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.


Grande Pacifico vessel. Grimaldi takes delivery of ammonia-ready Grande Pacifico  

9,800-ceu ship is the largest PCTC in the Neapolitan Group’s fleet and the first of five sister vessels on order.

Regional seminar on alternative fuels and new technologies. IMO seminar in Trinidad and Tobago trains Caribbean maritime educators for the alternative fuels era  

A five-day regional seminar in Port of Spain addressed ammonia, methanol and hydrogen training for seafarers.

Summit Arbutus vessel. Corvus Energy wins 40 MWh battery contract for BC Ferries’ new biofuel-compatible Summit Class vessels  

Norwegian battery supplier to power four new hybrid-electric ferries for Canada’s BC Ferries.

Fleetzero Leviathan Battery Energy Storage System (BESS). ABS issues product design assessment for Fleetzero’s Leviathan battery system  

The first US-manufactured lithium iron phosphate marine battery system receives classification society approval.

Grand Tour vessel render. ABB wins power and propulsion contract for Allseas’ offshore wind support vessel  

ABB will supply an integrated propulsion package for a new semi-submersible vessel supporting Europe’s offshore wind sector.

Keel-laying ceremony for SGC 005. Pinnacle Marine lays keel for fifth B100-compatible harbour craft as Singapore fleet build-out reaches full construction phase  

All five vessels in Pinnacle Marine's B100-compatible utility boat programme are now under construction.

210,000-tonne tri-fuel ore vessel render. CSSC units sign contract for four tri-fuel ore carriers  

Ships feature a tri-fuel propulsion system combining ethanol, methanol and fuel oil.

Houston skyline. Bunker One seeks oil derivatives trader for Houston desk  

New hire to work alongside trading and sales, providing hedging solutions for physical exposure.

Lyla Pathfinder vessel. Kawasaki delivers 13th LPG-fuelled LPG/ammonia carrier  

86,700-cbm vessel is shipbuilder's 20th delivery featuring LPG-fuel propulsion.

Mein Schiff Relax ship-to-ship (STS) bunkering operation. TUI Cruises puts both InTUItion-class ships on bio-LNG as fleet targets 50,000-tonne CO₂e saving in 2026  

German cruise operator says bio-LNG use across two newbuilds has already cut 26,000 tonnes of CO₂e.