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Wed 12 Jan 2011, 12:57 GMT

Market Briefing


Oil higher as flood spreads (Brent: $97)

Trends

Rotterdam (ARA) fuel oil - Trading USD 1 lower

Singapore fuel oil - Trading USD 4 lower

US Gulf fuel oil - Expected to open USD 1 lower

Australian flood spreads to Brisbane

The water is now coming into the suburbs of Queensland's main city. Agricultural areas are flooded and infrastructure that is used for transporting coal to the coast is disrupted. Commodity prices are in general increasing on that behalf. As the flooding increases in magnitude so does the time horizon for normalisation.

Oil prices are supported as Chinese coal plants are missing the Australian coal and hence the industry is left with electric diesel generators. There are some similarities with early 2008 where a major earthquake disrupted electric infrastructure in China and spurred diesel demand and prices.

Release: API oil data (Consensus)

Oil data from the US showed heavy builds in gasoline inventories primarily and totally the report was bearish on oil prices. However, the market shrugged off the numbers as the 96 dollar technical break spurred buying.

Crude: +57,000 barrels (-1,100,000)
Distillates: +1,554,000 barrels (+1,000,000)
Gasoline: +7,036,000 barrels (1,000,000)

Today, FED Beige Book report on the economy is key.

Recommendation

Brent oil prices ended above the long term resistance of USD 92 in December. This means that we are now seeing a new range between 92 and 105 forming. We recommend consumers to hedge at current levels.

The short term range is between 96 and 98 dollar per barrel on the Brent.

Electric  
Tsurugidake naming ceremony. MOL holds naming ceremony for fourth LNG dual-fuel VLCC  

Vessel, named Tsurugidake, features an LNG fuel tank with a capacity exceeding 10,000 cbm.
VPS Carbon Reduction seminar graphic. VPS to host Bergen seminar on marine fuel quality, lubricants and decarbonisation regulation  

Free-to-attend event on September 16 will feature speakers from VPS and DNV.
Launching ceremony of Carlotta Cosulich. Cosulich Marine Energy launches third methanol-ready bunker tanker in China  

Carlotta Cosulich launched at Taizhou Maple Leaf Shipyard, leaving one vessel in series still to come.
Carnival Corporation logo. Carnival's CSMART seeks specialist instructor for LNG-as-fuel training in Netherlands  

Role focused on delivering training to through classroom instruction and simulator-based learning.
Port of Galveston. Stabilis Solutions nears 100 LNG bunkering operations at Galveston  

Houston-based supplier highlights its Gulf Coast LNG bunkering record as plans advance for new liquefaction facility.
Central control room at the green methanol plant. Towngas hosts Hong Kong government delegation at Inner Mongolia green methanol plant  

Hong Kong's Transport and Logistics Bureau tours VENEX facility as green methanol capacity scales to 300,000 tonnes.
CMA CGM Notre Dame vessel at Singapore Port. Singapore 12-month bunker calls hit all-time high in July  

TTM calls at world's largest bunkering hub reach record levels despite softer sales volumes.
Cargo port in Singapore. Singapore T3M bunker sales stay below 14m tonnes for fourth month running  

Rolling three-month volumes remain subdued despite modest month-on-month recovery in July.
Shore power system launch at Port of Callao. Peru’s Port of Callao launches first shore power system in Latin America  

DP World Callao’s onshore power supply system could cut over 6,300 tonnes of CO₂ annually.
Aristodimos vessel. New Times Shipbuilding delivers LNG dual-fuel crude oil tanker to Capital  

Chinese yard hands over 155,500-dwt vessel in ceremony attended by owner’s representative.




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