Wed 20 Dec 2017, 09:31 GMT

Oil prices inch upwards ahead of inventory data


By A/S Global Risk Management.



The weekly oil stocks data from the American Petroleum Institute (API), published last night, showed a drop in U.S. crude oil stocks of more than 5 mio. barrels last week, a drop in distillates stocks of almost 3 mio. barrels, while gasoline stocks increased by 2 mio. barrels. Consensus of the official oil inventory report, published by the International Energy Administration (IEA) this afternoon, is a draw of 3.7 mio. barrels in crude, a small draw in distillates and a build in gasoline inventories. The last four weeks have shown draws in crude oil stocks. Expect some volatility ahead of the publishing.

The new oil minister of OPEC's fifth largest oil producer, Kuwait, sees global crude demand increase by 1.5 mio. barrels per day next year. The growth rate complies with OPEC's forecast. The oil minister, Al-Rashidi, also said "that will support oil prices and support refining margins". Kuwait currently producers around 2.7 mio. barrels per day, but is planning to increase production to four mio. barrels per day in 2020. The country is part of the current production cut agreement entered by both OPEC and non-OPEC countries. OPEC's largest oil producer, Saudi Arabia, likely also sees increasing prices next year as the country stated that it expects oil revenue to increase by 12% in 2018.

Turning to economic data, today sees U.S. housing data and a tax reform vote. Also, Bank of England's Carney will speak this afternoon.


Flag of Brazil. Petrobras resumes bunkering operations at Rio Grande Terminal after power restoration  

Brazilian supplier restarts marine fuel supply after completing an inspection following an electricity outage.

Stena E-Flexer vessel render. Stena RoRo orders battery-ready E-Flexer 2.0 ferries from Chinese yard  

Vessels include diesel engines capable of running on biodiesel and are methanol-ready.

BW Gemini vessel. Nord Gas Solutions to supply cargo and fuel systems for eight BW LPG VLGCs  

Gas-handling systems specialist awarded contract for new 90,000-cbm vessels.

Kingston Trader vessel. TFG Marine fits mass flow meter to Jamaica-bound bunker barge  

Kingston Trader becomes the first Caribbean bunkering vessel with mass flow metering as TFG Marine’s fleet coverage nears 90%.

Sebastian Vasquez and Camilo Angulo Ferrand, Monjasa. Monjasa announces full-chain marine fuel operations in Cartagena  

Monjasa says it now covers the entire marine fuel supply chain in Colombia, from oil wells to ship-side deliveries.

Steel-cutting ceremony for vessel with builder's hull no. H619. Ceremonies held for Van Oord’s methanol-hybrid rock installation vessels  

Two ships advance through parallel construction at China’s CIMC Raffles shipyard.

WK NatPower and AREL MoU signing. Wah Kwong NatPower signs MoU to explore Hong Kong marine electrification  

Venture will examine shore power, vessel charging and electric vessel deployment around Aberdeen’s waterfront.

Vard 4 39 design render. Dong Fang Offshore orders CSOV with battery-hybrid propulsion  

Vard secures fifth newbuild contract from Taiwanese firm, with delivery scheduled for 2028.

Rock Star vessel. CSL and OWL launch first subsea rock installation vessel for offshore wind  

MV Rock Star can run on MGO and methanol and is designed to support scour protection and cable burial for offshore wind projects.

François Michel and Andy McKeran. Lloyd’s Register study backs 200,000-cbm LNG carriers for fleet renewal  

Analysis finds larger LNG carriers could cut transport costs while retaining access to most major terminals.