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PVM Midday Report 16 June 2016

Published Thursday, June 16th, 2016

  1. Niger Delta Avengers claim responsibility for NNPC pipeline attack
  2. French refinery workers extend strike action at Fos-Lavera oil port
  3. Angolan crude oil exports to edge higher in August at 1.74 mbpd
  4. Union warns wage dispute may cause Norwegian offshore drilling rig workers to strike

Oil                                                                                              

Fundamentals: Despite the recent overtures from Nigerian militants that it would be open to peace talks with the government if foreign mediators were involved, it was business as usual this morning after they claimed responsibility for a fresh attack on a pipeline owned by the state oil company NNPC. French workers at the country’s Fos-Lavera oil port have voted to extend industrial action until tomorrow and revealed that 70 vessels are currently held up outside the port. Norwegian workers operating offshore oil and gas drilling rigs have signalled that they might undertake strike action if a wage dispute is not resolved by the 22nd June. Elsewhere, a preliminary export programme has shown that Angolan crude oil exports will rise slightly in August to 1.74 mbpd from the planned 1.71 mbpd in July.

Technicals: The market continues to be under pressure and vulnerable to further losses if the crudes move and close (m/c) below the 34 day MAs at 47.62 WTI and 48.58 Brent. The latter really needs to m/c below the 50% c/p at 48.39 to green light a target lower to 46.58. A m/c on WTI below 47.62 green lights an objective to 45.89. Heat has just hit the target to the 34 day at 145.62 and RBOB has an objective to 147.12. Gasoil has hit its target to the 34 day at 433.00 and now needs a m/c below to activate further weakness. Poor closes today below the 34 day MAs would make lower numbers likely. It is not advised to be long.

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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.