OIL PRODUCTS: Oil Products End of Day Summary: Cracks Rise
Cracks have risen today amid various signs of refinery disruptions, coupled with Trump’s announcement of higher tariffs on India due to its purchases of Russian crude.
- US gasoline crack up 0.8$/bbl at 22.04$/bbl
- US ULSD crack up 2.3$/bbl at 31.17$/bbl
- Reuters prelim EIA storage survey: Gasoline: -1.1m bbl, distillates: +1.1m bbl, Ref runs: -0.2%
- Israel’s Ashdod refinery was forced to partially shut down due to a malfunction as the refinery resumed after previous difficulties following a planned regeneration, according to Bloomberg.
- Ukraine military claimed strikes on two Russian oil refineries, the 177kb/d Novokuibyshevsk refinery and 340kb/d Ryazan, as well as other oil infrastructure in response to recent attacks on Ukrainian cities.
- The Novokuibyshevsk refinery halted oil intake following the, while the Ryazan refinery has significantly reduced oil intake since the attack, according to Bloomberg.
- Rosneft’s Ryazan oil refinery has halted around half of its refinery capacity since Aug. 2 following a Ukrainian drown attack last week, Reuters said.
- The cif Hamburg 10ppm diesel premium to Ice gasoil futures fell in the week to August 1 due to sufficient domestic refinery supply and weak demand, particularly for heating oil, Argus reports.
- Phillips 66 Borger, Texas refinery reported an upset on August 2, according to a Texas Commission on Environmental Quality filing cited by Reuters.
- CDU capacity utilisation rates at China’s state-owned refineries is showing signs of contraction for August, according to OilChem.
- FGE NexantECA expects Europe’s diesel complex to continue facing downward pressure, which “will cool off Singapore gasoil cracks,” according to a Aug. 1 report cited by Bloomberg.
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Historical bullets
USDCAD TECHS: Trend Outlook Remains Bearish
- RES 4: 1.4111 High Apr 4
- RES 3: 1.4016 High May 12 and 13 and a key resistance
- RES 2: 1.3920 High May 21
- RES 1: 1.3674/3776 20- and 50-day EMA values
- PRICE: 1.3607 @ 16:12 BST Jul 4
- SUP 1: 1.3557 Low Jul 03
- SUP 2: 1.3540 Low Jun 16 and the bear trigger
- SUP 3: 1.3503 1.618 proj of the Feb 3 - 14 - Mar 4 price swing
- SUP 4: 1.3473 Low Oct 2 2024
The trend needle in USDCAD points south and this week’s move down reinforces current conditions. S/T gains between Jun 16 - 23 appear to have been corrective. Key support and the bear trigger is 1.3540, Jun 16 low. Clearance of this level would resume the downtrend and open 1.3503, a Fibonacci projection. Pivot resistance is at the 50-day EMA, at 1.3776. A clear break of this average would signal scope for a stronger recovery.
AUDUSD TECHS: Bull Cycle Remains In Play
- RES 4: 0.6700 76.4% retracement of the Sep 30 ‘24 - Apr 9 bear leg
- RES 3: 0.6688 High Nov 7 ‘24
- RES 2: 0.6603 High Nov 11 ‘24
- RES 1: 0.6590 High Jul 01
- PRICE: 0.6548 @ 16:05 BST Jul 04
- SUP 1: 0.6521 20-day EMA
- SUP 2: 0.6468/6373 50-day EMA / Low Jun 23 and a reversal trigger
- SUP 3: 0.6357 Low May 12
- SUP 4: 0.6275 Low Apr 14
The trend set-up in AUDUSD remains bullish and the pair is holding on to its recent gains. The latest break higher maintains the bullish price sequence of higher highs and higher lows, the definition of an uptrend. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 0.6603 next, the Nov 11 2024 high. Key short-term support has been defined at 0.6373, the Jun 23 low.
EURJPY TECHS: Northbound
- RES 4: 171.88 High Jul 19 ‘24
- RES 3: 171.28 1.382 proj of the Feb 28 - Mar 18 - Apr 7 price swing
- RES 2: 171.09 High Jul 23 ‘24
- RES 1: 170.61 High Jul 03
- PRICE: 170.22 @ 16:04 BST Jul 04
- SUP 1: 169.04 Low Jul 02
- SUP 2: 167.87 20-day EMA
- SUP 3: 167.13 Low Jun 20
- SUP 4: 165.66 50-day EMA
EURJPY traded higher on Thursday resulting in a print above 170.47, the 76.4% retracement of the Jul 11 - Aug 5 sell-off. A clear break of this price point would strengthen bullish conditions and signal scope for extension. This would open 170.28 next, a Fibonacci projection. The trend is overbought, a pullback would unwind this condition. Support to watch lies at 167.87, the 20-day EMA.
