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. Two days of rally was followed by a fierce sell-off on Monday giving us the impression that the original downtrend was just about to resume. As it turns out, it could not have been further from the truth as a fresh bout of buying pushed prices higher once again. As the settlements were not conclusively above all of the daily short-term M/As it is pre-mature to paint a bullish a picture. Given the rollercoaster ride of the last week or so the current technical state of the market is rather undecided and the aforementioned M/As are losing relevance. It is the highs and lows of the week that needs careful watching as closes above the former are likely to bring further short-covering and settlements below the latter will have the complex falling down to last week’s lows. Until some kind of mini break-out takes place it is probably best to stay put. The immediate resistance on WTI is clear. It is yesterday’s high together with the 2009 low at 32.41/40.
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