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



The uptrend continues

By A/S Global Risk Management.



Michael Poulson, Oil Risk Manager at A/S Global Risk Management. Image credit: A/S Global Risk Management


Updated on 07 Nov 2017 10:01 GMT

Brent is trading around levels last seen in 2015 and the uptrend seems strong. If the next resistance level around USD 66.80 is broken we could be looking at different levels in general. Bear in mind, though, that much has changed since 2015 where oil prices were well above USD 100.

Likely the decisive factor for the recent surge has been events in the Middle East. On Saturday, a missile was fired against Riyadh Airport in Saudi Arabia. Iran was blamed, as the missile allegedly was fired by the Iranian backed Houthis of Yemen. This event seems to have lid a fire under the Saudi-Iranian dispute. Though no barrels are affected at present, a lot of barrels could potentially be at risk as both countries are major oil producers.

But events like this (geopolitical risks) are likely not the only reason for the current uptrend. If we look to the US, the rig count continues to decrease, which is another bullish indicator. However, production of US crude is at its highest since 2015, which is a strong bearish indicator. Additionally, US exports of crude are record high as well. So how can this be coupled with the strong prices? Most likely the answer is global demand, which seems to be gaining strength as financials for especially China and the US have been improving.

The supply/demand situation will continue to be tight as long as the supply can't keep up with the demand. For now, it looks like the only ones being able to offset are the American shale producers, as OPEC and "allies" could prolong their production cuts at the meeting in Vienna at the end of this month.



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:

Geopolitical risk premium rises, US oil rigs fall
A/S Global Risk Management Ltd.

Latest News:

Singapore's record H1 was lowest six-month sales period since May-November
2020: Papering over the cracks
Nine-month high: Singapore sees rise in bunker calls as percentage of ship arrivals
Oil and fuel oil hedging market update
Pegasus has bunker craft operator licence revoked in Singapore
Singapore Q2 bunker sales lower than in 2016
Oil rises a second consecutive day but ends the week much lower
Singapore H1 bunker sales surpass 25m tonnes for first time
Brightoil explains how new exchange rules could affect its listing status
Oil and fuel oil hedging market update
Wartsila inks EUR 170m deal to retrofit scrubbers
Singapore bunker sales up YoY... but second-lowest in 16 months




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
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
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events