PVM Midday Report 13 June 2016
Headlines
OPEC hints at tighter oil balance in 2H 2016; output down 100,000 bpd in May
Chinese implied oil demand falls by 380,000 bpd in May y/y to 10.24 mbpd
Iran’s biggest oil…
Introduction. The market is still in a down trend and it is not advised to play against it. Some important levels were hit and held yesterday, namely WTI to its Dec’ 2008 low and target at 32.40. Heat virtually hit its target to 104.30 with a low at 104.54. Gasoil also hit and closed over its long term c/p and target to 313.25. RBOB was weak and closed pretty poorly but overnight it has moved back over the long term c/p and erstwhile target at 115.22. Two of the five contracts are now just back over key long term c/p supports – RBOB at 115.22 and Gasoil at 313.25. In addition WTI has held the critical 2008 low at 32.40. The contracts, for the moment, have done all that was expected of them. The recovery from the lows yesterday was very much a case of “too much too soon” – the “5 day gap” was over $2 per barrel wide. This is almost always unsustainable and the market needed to recover a bit and narrow this gap, which it has now done and the gap is now only 75c wide. Sell rallies to the 5 and 8 day MAs. Targets lower would only be green lighted on moves confirmed by closes (m/c) below the aforementioned key supports.
to read the rest of the report, please click here
Subscribe to News