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  
Flex Commodities logo. Flex Commodities seeks operator for bunker trading operations  

Candidates should have three to five years of relevant bunker or commodity trading operations experience
Glander International Bunkering logo. Glander International Bunkering seeks bunker trader for Valencia office  

Role open to sales professionals regardless of prior oil industry experience.
Frankie Russ vessel. TB Marine takes over technical management of methanol-ready tanker  

Newbuild MT Frankie Russ is first tanker in Ernst Russ's fleet.
AiP award ceremony for ecoAPEX cargo-handling technology. Lloyd’s Register grants approval in principle to Babcock LGE’s ecoAPEX cargo-handling technology  

New integrated system for gas carriers targets lower emissions and reduced reliquefaction energy consumption, with LR approval confirming its potential.
Lloyd's Register (LR) and K Shipbuilding MoU signing. K Shipbuilding and Lloyd’s Register to jointly develop ethanol-fuelled tanker design  

The pair will assess an ethanol-fuelled 50,000 dwt MR tanker, targeting Approval in Principle from LR.
AiP award ceremony for methanol-fuelled catamaran concept. Bureau Veritas grants approval in principle for methanol-fuelled catamaran concept  

Classification society backs O.S. Energy and Chartwell Marine’s fuel-system design for an aluminium vessel developed under a UK decarbonisation programme.
LNG carrier render. Wind propulsion offers 'no fundamental barriers' for LNG carriers, study finds  

Bound4blue’s research with Cryosafe Services concludes that wind-assisted propulsion can be integrated into LNG carrier operations without major obstacles.
Bureau Veritas grants AiP to Hudong-Zhonghua. Bureau Veritas grants AiP to Hudong-Zhonghua for new LNG carrier and VLGC designs  

Classification society approves two gas carrier designs featuring next-generation containment systems and dual-fuel propulsion capabilities.
Guanabara Bay FSRU. Petrobras signs 20-year LNG supply deal with Sempra Infrastructure  

Brazilian state oil company will purchase 0.8 mtpa of LNG from a Texas liquefaction terminal for two decades.
Launching ceremony of Amor. LNG dual-fuel crude oil tankers launched for Maran and Capital Ship  

Two 155,500-DWT vessels launched by New Times Shipbuilding in China.

↑  Back to Top


 Recommended