Sign up
Log in Sign up
This is a legacy page. Please click here to view the latest version.
Thu 12 Oct 2017, 09:16 GMT

The news has not changed much since the start of this week


By A/S Global Risk Management.

By Michael Poulson, A/S Global Risk Management

Saudi Arabia's statement of supplying less oil in November still holds Brent above 56 USD in addition to European crude stocks being below 5-year average.

Furthermore the disputes in Iraq, in terms of the Kurdish region, still is a hot topic with risk of escalating. The situation could conclude in Turkey closing oil supply from the Kurdish region to the global market resulting in some 500 kbpd not being supplied

Looking at the longer term Iraq and/or Iran could step in to fill the decreased supply from Saudi Arabia. Iran has increased production remarkably since sanctions were lifted, and rumors are telling about new investments in Iraqi productivity.

Additionally the US is exporting record high amounts of the sweeter WTI grade crude oil, as the spread to Brent is relatively high making it profitable for consumers to switch. Most of the US exports are going to Asia as the demand seems strong on top of slightly bullish financials. The increased US supply is likely going to stay at these levels as long as the spread between WTI and Brent is more than 5 USD. So, this is raising the question if market is capable of digesting this increased supply. Just for now it looks so, bearing in mind that the oil market can change quickly.

One day late, the API published for the US oil stocks data. The data pointed pointed to a build of 3.1mbbl crude, 2mbbl build in distillates and a draw of 1.6mbbl on gasoline stocks. The EIA will release the inventory figures later today. Consensus is a build in crude; expect some volatility around the publishing.

OPEC released the monthly report yesterday, with another increased demand forecast for 2018. At the moment it doesn't seem to affect the price much, but it is definitely worth keeping in mind.


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.

BP  
Jacob Norgaard, Bunker Holding. Bunker Holding appoints Global Risk Management's Jacob Nørgaard as CFO  

Michael Krabbe steps down after eight years with the company.
Icon of the Seas ship-to-ship (STS) bunkering operation. Avenir LNG vessel completes first LNG bunker delivery to Icon of the Seas in Honduras  

Avenir Advantage delivers LNG to Royal Caribbean cruise ship in operation involving Axpo.
Andrea Lazzaro, WinGD. Ethanol gains traction as a marine fuel, WinGD says, citing Shandong and Maersk  

Engine maker WinGD says ethanol is ready for maritime use as early orders and IMO recognition build momentum.
Lumi Aurora vessel. IINO Lines takes delivery of the world’s only ice-class VLGC at Hanwha Ocean’s Okpo yard  

LPG dual-fuel vessel is also capable of carrying ammonia as cargo.
Clean Arctic Alliance logo. Clean Arctic Alliance warns of black carbon threat as container ships eye Northern Sea Route  

Environmental coalition urges IMO polar fuel rules as Arctic shipping activity raises climate concerns.
Steel-cutting ceremony of vessel with builder's hull no. CHB2052. Construction begins on 21,700-TEU LNG dual-fuel boxship for MSC  

366-metre vessel described as the largest container ship currently under construction in Zhejiang Province.
CIMC SOE building. CIMC SOE signs order with European shipowner for 6,000-cbm LNG bunker vessel  

Vessel set to provide LNG bunkering services at European ports once deployed.
Flex Commodities office in Dubai. Flex Commodities moves Dubai head office to Jumeirah Lakes Towers  

UAE-based firm relocates to waterfront community popular amongst bunker companies.
Echandia Core marine battery system. Echandia: Batteries offer fuel savings by optimising generator loads on large vessels  

Marine batteries could cut auxiliary generator fuel consumption by up to 15%, according to technology firm.
Palermo LNG facility. Amazónica LNG joins SEA-LNG, extending the coalition’s reach into Latin America  

Colombian LNG terminal operator becomes first South American member of the multi-sector industry group.

↑  Back to Top


 Recommended