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PVM Midday Report 27 June 2016

Published Monday, June 27th, 2016

Headlines

  1. Iran’s oil minister reveals new international oil contracts will be launched this summer
  2. Speculators pare back bullish bets on ICE Brent crude by 9,153 lots in week to June 21
  3. Profit growth at large Chinese industrial firms slows to +3.7% y/y in May
  4. Brexit shock sends UK’s benchmark borrowing costs to historic low of +0.95%

Oil                                                                                              

Fundamentals: Iran has stepped up its efforts to attract foreign investment into its ageing oil and gas industry after the country’s oil minister claimed that its new energy contracts will be launched this summer and tender 10-15 fields. Meanwhile, financial managers have trimmed their bets on rising ICE Brent crude prices for a second consecutive week after reducing net speculative length by 9,153 lots in the seven days to June 21.

Technicals: The market continues to be very vulnerable, but now needs moves confirmed by closes below the 55 day MAs to green light the next leg lower. These are key support on WTI at 47.50 and 46.42; and on Brent at 48.50 and 47.83. Heat’s key support is 142.35 and RBOB at 149.84. These are range rather than the 55s. Gasoil’s 55 is at 425.00 and 422.25. Watch the crudes – they are the key and the 55s on them are both achieved targets and pivotal support.

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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.