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PVM Midday Report 28 January 2016

Published Thursday, January 28th, 2016

PVM Midday Report

Headlines

  1. OPEC pushing for February meeting of OPEC/non-OPEC producers – Russian EM
  2. Polish refiner considering taking on more Saudi crude; willing to import oil from Iran
  3. UK economic growth accelerates in last three months of 2015 to +0.5%
  4. European Commission survey of economic morale dips by more-than-expected this month

Oil                                                                                              

Fundamentals: Prospects of a potential joint cut in output by OPEC/non-OPEC continues to lend support to the front-end with the latest rumour coming from the Russian Energy Minister in which he claimed OPEC are trying to organise a meeting of global producers for next month. Elsewhere, a major Polish refiner has revealed it is considering taking on more crude from Saudi Arabia and signalled its willingness to begin importing Iranian crude. Staying with Iran, its President has claimed that low oil prices will not last long and expects producers under pressure from subdued prices will act to restore the current imbalance.

Technicals: The contracts are extending recent gains and a bullish sentiment is developing after RBOB climbed above all its s/t MAs. It now needs a close above the highest of them, the 13-day MA at 107.74, to give the rest further upside potential. WTI has strong resistance at 32.40 and needs a close above to greenlight the c/p at 33.55. Apr’ Brent, Heat and Gasoil all need to muster a conclusive move and close above their respective 34-day MAs at 35.42, 105.80 and 311.00 for the bulls to regain control. The downtrend is not yet in danger but tonight’s close could bring some heartache for bears.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.