Technical & Fundamental Oil Reports Specialists

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PVM Midday Report 28 June 2016

Published Tuesday, June 28th, 2016

Headlines

  1. Norwegian oil workers threaten to strike this weekend if new wage deal is not agreed
  2. Iraq to boost oil export capacity at its southern ports to 4.5 mbpd by mid-2017
  3. No Brexit negotiations until UK triggers formal process to leave EU – EU President
  4. French and Italian consumer morale dips by more-than-expected in June

Oil                                                                                              

Fundamentals: Oil prices are taking their cues from a fresh bout of risk appetite across financial markets as traders go into bargain-hunting mode. Also helping to lift prices is the prospect of a looming oil workers’ strike in Norway as well as a 0.7% fall in the value of the dollar against a basket of major currencies. Elsewhere, an Iraqi oil official has revealed that it plans to boost the oil export capacity from its southern ports to 4.5 mbpd from 3.6 mbpd by mid-2017. He added that crude oil exports from Iraq’s southern ports have so far averaged 3.162 mbpd this month which is slightly down on May.

Technicals: The contracts, by last night, had held their targets lower which for all, bar RBOB, were the 55 day MAs. There are no further targets south whilst the 55s hold on WTI at 46.52; Sep’ Brent 47.86; Aug’ Heat 143.75; and Gasoil 425.50 and 423.25. Aug’ RBOB is holding the 200 day at 148.49 and the 100 day at 147.39. Whilst the above hold there are no targets lower and the contracts have completed a price cycle. The odds are that the contracts will try to narrow the 5 day gap some more but a rally to the 5 day MAs is a sell. The trend is down but erratic. 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.