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  
EU share of world fleet graphic. European shipowners control 34.5% of global fleet but lag on sustainable fuel production  

New study highlights Europe’s shipping dominance while warning of Asia’s lead in alternative fuel development.
O Bunkering Board of Directors graphic. O Bunkering announces new board of directors following merger  

Marine fuel supplier forms board to guide strategic direction and governance after recent merger.
Clean ammonia project pipeline chart as of April 2026. Clean ammonia project pipeline reaches 144 MMT by 2034 as industry advances  

Gena Solutions tracks 327 clean ammonia projects, with four reaching development milestones in April.
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.

↑  Back to Top


 Recommended