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…
Published Wednesday, January 13th, 2016
Headlines
Oil
Fundamentals: Chinese crude oil imports swelled in December by 21.4% on the month and 9.3% on the year to a record high of 7.82 mbpd as Beijing continued to make the most of subdued oil prices to increase strategic oil fills. Imports for the whole of 2015 also hit a record after averaging 6.71 mbpd. UBS has become the latest financial institution to trim its oil price forecasts with 2016 Brent and WTI now seen averaging $42.50/bbl and $40/bbl respectively, down $15 and $12.50 from a previous estimate. Meanwhile, Barclays has revealed that oil and gas capital expenditure is set to fall by as much as 20% this year if prices remain around $40/bbl.
Technicals: The 5-day MA gap theory has come into play and the contracts are undergoing what is expected to be a short-lived upside correction towards the lowest daily M/As. These are 31.89 WTI; 32.25 Brent; 102.43 Heat; 110.04 RBOB and 307.05 Gasoil. The trend still remains firmly down and it is recommended to sell into these fleeting rallies. Any price strength will only be temporary and as such it is not advised to be long.
to read the rest of the report, please click here