Sign up
Log in Sign up
This is a legacy page. Please click here to view the latest version.
Thu 21 Dec 2017, 12:04 GMT

Oil up a notch as US crude oil stocks drop heavily


By A/S Global Risk Management.

The crude oil market has been quiet news-wise during end of last week and start of this week. So yesterday all eyes were on the US oil inventory data. The report showed a large draw of 6.5 mbbl on crude which most likely drove the Brent price up to the mid 64s, where it currently trades as well. Furthermore, gasoline inventories saw a build of 1.2 mbbl, and distillates a build of 0.8 mbbl.

US production inched a bit higher last week despite a modest drop of 1 in the rig count. This could be a sign of growth in US production leveling out. But that is far from certain. US exports rose last week by a remarkable 750 kbpd to a level of 1860 kbpd.

Lately China, and Asia in general, have been importing a lot of US crude, and last week did not seem to be any different. Likely, the increased US export is an effect of the relatively wide spread between Brent and WTI. As we are seeing US refineries running quite high utilization rates in combination with 1000-2000 kbpd exports we could see more draws on US crude inventories. This trend is most likely an effect of the OPEC cuts and a strong global demand at the moment. If this trend is able to persist, it would give US producers an incentive to increase production.

Tonight, the weekly U.S. oil rig count from Baker Hughes is published and followed closely.

BP  
Jacob Norgaard, Bunker Holding. Bunker Holding appoints Global Risk Management's Jacob Nørgaard as CFO  

Michael Krabbe steps down after eight years with the company.
Icon of the Seas ship-to-ship (STS) bunkering operation. Avenir LNG vessel completes first LNG bunker delivery to Icon of the Seas in Honduras  

Avenir Advantage delivers LNG to Royal Caribbean cruise ship in operation involving Axpo.
Andrea Lazzaro, WinGD. Ethanol gains traction as a marine fuel, WinGD says, citing Shandong and Maersk  

Engine maker WinGD says ethanol is ready for maritime use as early orders and IMO recognition build momentum.
Lumi Aurora vessel. IINO Lines takes delivery of the world’s only ice-class VLGC at Hanwha Ocean’s Okpo yard  

LPG dual-fuel vessel is also capable of carrying ammonia as cargo.
Clean Arctic Alliance logo. Clean Arctic Alliance warns of black carbon threat as container ships eye Northern Sea Route  

Environmental coalition urges IMO polar fuel rules as Arctic shipping activity raises climate concerns.
Steel-cutting ceremony of vessel with builder's hull no. CHB2052. Construction begins on 21,700-TEU LNG dual-fuel boxship for MSC  

366-metre vessel described as the largest container ship currently under construction in Zhejiang Province.
CIMC SOE building. CIMC SOE signs order with European shipowner for 6,000-cbm LNG bunker vessel  

Vessel set to provide LNG bunkering services at European ports once deployed.
Flex Commodities office in Dubai. Flex Commodities moves Dubai head office to Jumeirah Lakes Towers  

UAE-based firm relocates to waterfront community popular amongst bunker companies.
Echandia Core marine battery system. Echandia: Batteries offer fuel savings by optimising generator loads on large vessels  

Marine batteries could cut auxiliary generator fuel consumption by up to 15%, according to technology firm.
Palermo LNG facility. Amazónica LNG joins SEA-LNG, extending the coalition’s reach into Latin America  

Colombian LNG terminal operator becomes first South American member of the multi-sector industry group.

↑  Back to Top


 Recommended