Fri 5 Jan 2018 09:19

Brent climbed above $68 yesterday, then dipped


By A/S Global Risk Management.



Brent oil prices briefly climbed above $68 yesterday, but at the time of writing the price is slightly down to below that figure.

The weekly oil inventory report from the Energy Information Administration (EIA) yesterday pointed to another huge draw in crude oil stocks of 7.4 mio. barrels while distillates and gasoline showed huge builds of 8.8 and 4.8 mio. barrels respectively. Crude oil inventories are now around 424.46 mio. barrels. Refiners increased activity to 2005 highs, turning crude into products and production was around 9.78 mio. barrels. Refiners tend to ramp up the utlization rate in an attempt to run down crude oil stocks by year-end as taxes are paid based on the crude oil stock level at the end of the year. The blizzard with heavy snowfall and high winds causing disruptions in oil supplies and likely causing increased demand for heating oil in the country.

Geopolitics: tensions in Iran continue to support oil prices. Communication between North and South Korea has been resumed after more than two years of silence.

Tonight, the weekly oil rig count from Baker Hughes will be published; the last 3 weeks have seen unchanged number of active oil rigs. The data is followed closely as it is considered a proxy of increase/decrease in oil production.

Turning to economic data, yesterday's U.S. job reports pointed to improved job conditions, but this afternoon's non-farm payrolls will give further indications to the economic situation in the country. Today also Eurozone inflation data is released; so we could see some volatility in the economic market, which could spill over to the oil market. .


Lease agreement between Inter Terminals Sweden and the Port of Gothenburg, signed on July 1st. Pictured: Göran Eriksson, CEO of the Port of Gothenburg (left) and Johan Zettergren, Managing Director of Inter Terminals Sweden (right). New Gothenburg lease an opportunity to expand green portfolio: Inter Terminals  

Bunker terminal operator eyes tank conversion and construction projects for renewable products.

Map of US Gulf. Peninsula extends US Gulf operation offshore  

Supplier to focus on Galveston Offshore Lightering Area (GOLA) in strategy to serve growing client base.

The M/T Jutlandia Swan, operated by Uni-Tankers. Uni-Tankers vessel gets wind-assisted propulsion  

Fourth tanker sails with VentoFoil units as manufacturer says suction wing technology is gaining traction.

Port of Gothenburg Energy Port. Swedish biomethane bunkered in Gothenburg  

Test delivery performed by St1 and St1 Biokraft, who aim to become large-scale suppliers.

Image from Cockett Marine Oil presentation. Cockett to be closed down after 45 years  

End of an era as shareholders make decision based on 'non-core nature' of Cockett's business.

Petrobras logo. Petrobras confirms prompt availability of VLS B24 at Rio Grande  

Lead time for barge deliveries currently five days.

Opening of the IMO Marine Environment Protection Committee (MEPC), 83rd Session, April 7, 2025. IMO approves pricing mechanism based on GHG intensity thresholds  

Charges to be levied on ships that do not meet yearly GHG fuel intensity reduction targets.

Preemraff Göteborg, Preem's wholly owned refinery in Gothenburg, Sweden. VARO Energy expands renewable portfolio with Preem acquisition  

All-cash transaction expected to complete in the latter half of 2025.

Pictured: Biofuel is supplied to NYK Line's Noshiro Maru. The vessel tested biofuel for Tohoku Electric Power in a landmark first for Japan. NYK trials biofuel in milestone coal carrier test  

Vessel is used to test biofuel for domestic utility company.

Pictured (from left): H-Line Shipping CEO Seo Myungdeuk and HJSC CEO Yoo Sang-cheol at the contract signing ceremony for the construction of an 18,000-cbm LNG bunkering vessel. H-Line Shipping orders LNG bunkering vessel  

Vessel with 18,000-cbm capacity to run on both LNG and MDO.


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