BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





Status in the aftermath of Harvey's first hit

29 Aug 2017 09:40 GMT

By A/S Global Risk Management.



By Michael Poulson, A/S Global Risk Management

In the Mexican Gulf 331 kbpd of crude production has been shut down as well has the onshore production of 300-500 kbpd been shut down. Usually this would be a bullish signal at least for the WTI price as oil pumped in the Gulf of Mexico and in the basins of southern US generally is sold as WTI. But refinery capacity of 2.35 mbpd has been shut down suggesting an excess supply. This is likely the reason for the bearish movement of the WTI price since Friday, leaving a two-year high spread to Brent.

Because of the magnitude of the event in southern US, it could imply increased geopolitical risk premium in the market and potentially influence the Brent price. But that is not what is observed. Brent did not get affected upwards, taking us back to look at the fundamentals of oil supply and demand. The supply/demand situation suggests that there still is a supply glut likely pressuring the prices downwards..

Today the weekly oil stocks data from the American Petroleum Institute (API) is released. Draws in gasoline and distillates stocks are expected as the refinery capacity is reduced due to Harvey.

In Libya, the country has seen further disruptions concluding in two additional fields, El Feel and The Hamda, being shut down. Libya's biggest field Sharara remains shut as well. Again, fundamentals is suggesting enough supply as crude prices do not seem to be much affected for now.



A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.




Related Links:

A/S Global Risk Management Ltd.

Latest News:

Another first for Wartsila as wireless charging for hybrid coastal ferry is 'successfully' tested
Scandlines hails bunker-saving summer for hybrid ferries
BHP, GoodFuels to collaborate on biofuel bunker project in Singapore
The OPEC / non-OPEC meeting takes centre stage
Oil and fuel oil hedging market update
Fluxys focuses investment on Zeebrugge's fifth LNG tank and second jetty
Rolls-Royce and Inmarsat sign ship energy management agreement
Bullish market sentiment remains, short-term dark horse could be meeting comments
Oil and fuel oil hedging market update
Dorian LPG and ABS to conduct feasibility study of LPG as marine fuel
CO2 reduction addressed at ECSA seminar
World's first dual-fuel boxship conversion completed




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
Rotterdam
Santos
Singapore
Directory
Africa
Asia
Central America
Middle East
North America
North Europe
Oceania
South America
South Europe
Directory
Germany
Gibraltar
Greece
Hong Kong
Italy
Japan
Netherlands
Panama
Russia
Singapore
South Africa
South Korea
Spain
Turkey
United Arab Emirates
United Kingdom
United States
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Events
Upcoming Events