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.

ESVAGT Robert Boyle vessel at the Port of Immingham. UK's first commercial biomethanol bunkering service launches at Immingham  

Exolum, Methanex and Ørsted partner to supply biomethanol for shipping at the UK's largest port by tonnage.
Vitol Bunkers vessel alongside terminal facility. Vitol Bunkers launches HSFO supply in Pakistan after four-year hiatus  

Company resumes high-sulphur fuel oil bunkering at three Pakistani ports following earlier VLSFO and LSMGO launches.
Aerial view of CIMC SOE shipyard facility. CIMC SOE secures orders for three LNG bunkering vessels  

Chinese shipbuilder adds two 20,000 cbm and one 18,900 cbm LNG bunkering vessels to order book.
HADAG Type 2030e ferry render. Lehmann Marine to supply battery systems for Hamburg’s first electric ferries  

German firm wins contract for three 3.8 MWh systems for HADAG vessels entering service in 2028.
Viking Glory vessel. Viking Line green corridor project marks two years with biogas use and shore power progress  

Turku-Stockholm route partnership reports tenfold increase in renewable biogas use and advancing electrification infrastructure.
MV Blue Alliance vessel. Global Fuel Supply unveils Blue Alliance tanker after Dubai upgrade works  

Marine fuel supplier completes intermediate survey and technical upgrades on vessel ahead of operational service.
Everllence common-rail technology illustration. Everllence common-rail technology surpasses 20 million operating hours  

Engine maker’s common-rail systems reach milestone across 600 engines and 5,500 cylinders over 18 years.
Representatives from LR Advisory and Geogas. LR Advisory appointed by Geogas Trading to develop FuelEU Maritime compliance strategy  

Lloyd’s Register division to support charterer with emissions planning and FuelEU pooling operationalisation.
Photograph of a red container vessel. ICS survey shows maritime leaders favour LNG as industry awaits IMO net-zero vote  

Barometer reveals strategic shift towards conservative fuel choices amid regulatory uncertainty over decarbonisation framework.
Petrobras logo. Petrobras bunker operations to close for Carnival, with higher prices during holiday period  

Brazilian headquarters shut 16-18 February; Rotterdam office to handle new sales during closure.

↑  Back to Top


 Recommended