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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.


Svitzer Balder vessel. Battery-methanol harbour tug completes sea trials ahead of Gothenburg deployment  

Svitzer Balder is claimed to be the most powerful electric escort tug in the world.

Launching ceremony of Nave Orbit vessel. Changhong International launches fourth LR2 tanker for Navios  

Chinese shipbuilder floats 115,000-tonne LR2/Aframax product tanker with methanol and LNG conversion capability.

Nippon Yuka Kogyo logo. Nippon Yuka Kogyo launches lubrication oil analysis service for ammonia-fuelled engines  

Japanese company offers condition monitoring service to support adoption of ammonia as a marine fuel.

Steel cutting ceremony of vessel with builder's hull no. S1128. CIMC Pacific Offshore Engineering advances two 20,000-cbm LNG bunkering vessel projects  

Two sister vessels for Singapore and Luxembourg owners reach construction milestones in China.

MPA and SSA logo side by side. Singapore maritime sector to accelerate AI adoption under new partnership  

MPA and SSA sign MOU to support AI implementation across shipping operations and bunkering.

Aerial view of a ship-to-ship (STS) transfer operation. Portland Port receives licence for LNG ship-to-ship transfer operations  

UK port can now support direct LNG transfers, reducing transit times and streamlining logistics operations.

Martin White, CEO of Stream Marine Group. Seafarer training must match pace of alternative fuel adoption, says Stream Marine Training  

Training provider highlights regulatory gap as methanol, ammonia and hydrogen gain traction in shipping.

Anji Luck vessel. Jiangnan Shipyard delivers final methanol-ready car carrier to Anji Logistics  

The 9,500-vehicle capacity vessel completes a 12-ship series built for SAIC’s logistics arm since 2022.

Bunker vessel alongside a ship during fuel transfer. Nippon Biofuel secures METI funding for Africa-based marine biofuel supply chain  

Japanese company to establish Jatropha cultivation and biofuel production facilities in Mozambique and Ghana.

Everllence B&W 6G60ME-LGIA HPSCR engine. Everllence’s ammonia-fuelled engine passes factory acceptance test ahead of October delivery  

Engine built by HHI-EMD will power Eastern Pacific Shipping’s very large ammonia carriers.


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