Technical & Fundamental Oil Reports Specialists

Follow us

PVM Midday Report 22 June 2016

Published Wednesday, June 22nd, 2016


  1. API reports bigger-than-expected 5.2 million bbl fall in US crude inventories
  2. Vitol chief sees oil prices rising to mid-50s by year-end
  3. China exports first cargo of Australian-spec diesel
  4. Survey reveals two-thirds of large German companies not concerned with Brexit risks


Fundamentals: Oil prices are on the front foot with support mainly coming from the API after they reported a hefty 5.2 million bbl fall in US crude oil stocks. This compares to expectations for a smaller drop of 1.7 million bbls. Cushing inventories were also down, this time by 1.3 million bbls, while both gasoline and distillates also registered bigger-than-expected falls of 1.5 and 1.7 million bbls respectively. Elsewhere, China has revealed that it exported its first cargo of Australian-specification diesel earlier this month and comes on the heels of figures showing that total diesel exports rose by more than 300% y-o-y in May to 1.48 million tonnes. Meanwhile, the chief executive of Vitol has signalled that he sees oil prices reaching mid-50s by the end of the year.

Technicals: The complex is making a modest advance and the contracts looks healthy whilst above the 13-day MA and the 34-day MAs on RBOB. Closes below these important supports will take the bullish edge off the energy complex but while above they have upside targets to 50.59 WTI; 50.96 Brent; 152.98 Heat; 162.15 RBOB and 455.25 Gasoil. The bullish outlook is confirmed by the positive daily slow stochastics.

to read the rest of the report, please click here

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.