Thu 3 Dec 2009 09:54

Market Briefing



Today's Trends

Rotterdam (ARA) fuel oil - Trading $6 lower

Singapore fuel oil - Trading $3 lower

US Gulf - Expected to $5 lower

Oil prices decreased on Wednesday as unemployment went higher and the US oil inventory data came out higher than expected. Today the important figures are growth indicators from the service industry in the EU and US. Further, the ECB decision on interest rates and European GDP figures and retail sales could be of importance.

Oil prices rebound slightly this morning - following the mood of Asian financial markets.

US unemployment increases

The important ADP unemployment indicator came out showing that 169,000 people have been laid off during November. The reading was higher than the expected 155,000 - but also indicating layoffs slowed from October to November. The number came out in the mid region between the expected level and the last level. The higher than expected number indicates that Friday's unemployment figure will come out with a higher percentage unemployed than the anticipated 10.2%. Later today US jobless claims will be released - and in the recent readings, the number showed a lower amount of unemployment claims.

EIA data showed higher crude oil and gasoline inventories

Oil data from EIA came out Wednesday with major increases in the important crude and gasoline inventories. The increases were way higher than expected. Crude oil imports were lower, but as refinery utilization dropped against the expectations - the result was higher inventories. Gasoline inventories have increased as product demand has increased during last week, before the Thanksgiving Holiday. As refinery utilization drops below 80% once again, we finally see falling distillate inventories, which should be supportive for prices in the medium term. Refineries have run with higher than necessary utilization rates for too long and now there is too much product available.

Release: EIA oil data (Consensus)

Crude: 2,100,000 barrels (400,000)
Distillates: -1,200,000 barrels (-300,000)
Gasoline: 4,000,000 barrels (1,000,000)
Refinery utilization: -0.6% (0.5)

Recommendation

Prices are running back and forth in the 75-80 range. We are now on the middle of the range. Current short ranged recommendation is therefore pretty simple: buy on 75 - sell on 80.


Marius Kairys, CEO of Elenger Sp. z o.o. Elenger enters Polish LNG bunkering market with ferry refuelling operation  

Baltic energy firm completes maiden truck-to-ship LNG delivery in Gdansk.

Samsung Heavy Industries (SHI) virtual reality (VR) training program developed in collaboration with Evergreen. SHI develops VR training solutions for Evergreen's methanol-fuelled ships  

Shipbuilder creates virtual reality program for 16,500 TEU boxship operations.

Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. Itochu orders 5,000 cbm ammonia bunker vessel  

Japanese firm targets Singapore demonstration after October 2027, with Zeta Bunkering lined up to perform deliveries.

Bunkering of the Glovis Selene car carrier. Shell completes first LNG bunkering operation with Hyundai Glovis in Singapore  

Energy major supplies fuel to South Korean logistics firm's dual-fuel vessel.

Orient Overseas Container Line (OOCL) vessel. CPN delivers first B30 marine gasoil to OOCL in Hong Kong  

Chimbusco Pan Nation claims to be first in region to supply all grades of ISCC-EU certified marine biofuel.

The Buffalo 404 barge, owned by Buffalo Marine Service Inc., performing a bunker delivery. TFG Marine installs first ISO-certified mass flow meter on US Gulf bunker barge  

Installation marks expansion of company's digitalisation programme across global fleet.

Sogestran's fuel supply vessel, the Anatife, at the port of Belle-Île-en-Mer. Sogestran's HVO-powered tanker achieves 78% CO2 reduction on French island fuel runs  

Small tanker Anatife saves fuel while supplying Belle-Île and Île d'Yeu.

Crowley 1,400 TEU LNG-powered containership, Tiscapa. Crowley deploys LNG-powered boxship Tiscapa for Caribbean and Central American routes  

Vessel is the third in company's Avance Class fleet to enter service.

The inland LNG bunker vessel LNG London. LNG London completes 1,000 bunkering operations in Rotterdam and Antwerp  

Delivery vessel reaches milestone after five years of operations across ARA hub.

The M.V. COSCO Shipping Yangpu, China's first methanol dual-fuel containership. COSCO vessel completes maiden green methanol bunkering at Yangpu  

China's first methanol dual-fuel containership refuels with green methanol derived from urban waste.


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