Sign up
Log in Sign up
This is a legacy page. Please click here to view the latest version.
Tue 12 Dec 2017, 10:16 GMT

Brent around two-year-high as critical pipeline closes


By A/S Global Risk Management.

The so-called Forties Pipeline was closed yesterday due to damage on the pipeline. The pipeline transports about 500 kbpd from the North Sea to UK. But it is not just any barrel of crude oil the pipeline transports. The crude this pipe transports accounts for a large part of the basket which is used to price the world's benchmark, Brent. The total closure of this pipe has sent Brent prices above the $65 level, which is a level not seen since 2015.

The supply disruptions started on December 7 as the capacity of the pipe decreased by 150 kbpd. Initially, this drove the price up from the $61-62 level to close about 63 on Friday. Yesterday, it was announced that the pipe suffered from a fissure and therefore it was closed. The closure drove the price to close about $65.

Tonight's crude oil inventory data from the American Petroleum Institute (API) will be followed closely - consensus is a draw in crude oil of around 2.89 mbbl.

The U.S.benchmark crude oil is called WTI (West Texas Intermediate), whereas the crude oil produced in the North Sea area is called Brent. Most oil is priced using Brent crude as the benchmark.

Turning to economic data, this morning saw improved UK inflation data compared to last month; later today the ECB President Draghi will speak ahead of tomorrow's closely followed U.S. central bank statement and Trump's speech.

BP  
O Bunkering and Marafi Services merger ceremony. O Bunkering and Marafi Services announce merger  

Omani firms join forces to accelerate growth and improve operational efficiency.
Order ceremony for LNG dual-fuel container vessels. OOCL orders twelve 13,600-teu LNG dual-fuel container vessels from Chinese shipbuilder  

Hong Kong-based carrier’s first LNG-powered vessels mark entry into alternative fuel segment.
Lucia Cosulich vessel. Cosulich launches second methanol-ready bunker vessel at Chinese shipyard  

Lucia Cosulich is the second of four sister vessels being built for alternative fuel bunkering.
LNG bunkering vessel render. Wärtsilä Gas Solutions secures order for LNG systems on four bunkering vessels  

GSX Energy orders systems for vessels being built at Chinese shipyard Nantong CIMC Sinopacific.
Guo Si ship-to-ship (STS) bunkering operation. Chimbusco Pan Nation delivers 2,500 mt of B100 biodiesel in China’s largest single bunkering  

Hong Kong operation claims 89% greenhouse gas emissions reduction compared with conventional marine fuel.
Caroline Yang, Diana Mok and Francois-Xavier Accard, IBIA. IBIA appoints three new members to Asia regional board  

Caroline Yang, Diana Mok and Francois-Xavier Accard join the board following unanimous approval.
Reimei vessel. MOL achieves 98% methane slip reduction in LNG-fuelled vessel trials  

Japanese shipping company exceeds target in demonstration trials aboard coal carrier operating between Japan and Australia.
Seaside LNG logo. Seaside LNG expands C-suite with four industry veterans  

Houston-based firm appoints new leadership team as LNG bunkering market projected to reach $15bn by 2030.
International Maritime Organization (IMO) headquarters. ICS calls for swift adoption of global regulatory framework  

Secretary general notes MEPC discussions were constructive, but that many member states were still not in a position to adopt the framework without further changes.
WSC quote on maritime discussions. WSC welcomes 'constructive engagement' on global emissions reduction measure  

The liner industry has invested $150bn in dual-fuel ships, but emissions reductions depend on a global framework, notes WSC CEO.

↑  Back to Top


 Recommended