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Thu 11 Jan 2018, 09:31 GMT

Oil stocks, Iran deal and European central bank meeting in focus


By A/S Global Risk Management.



Huge draw in weekly crude oil stocks supports prices ahead of the next oil stocks data this afternoon.

The weekly oil inventory report from the Energy Information Administration (EIA) confirmed Tuesday's API oil stocks data with huge draw in crude oil, considerable builds in gasoline and distillates inventories. The draw in crude oil stocks was only half of the API data though. U.S. crude oil production fell slightly last week. Immediate market reaction was a short spike in oil prices followed by a sharp drop and at time of writing Brent oil price is hovering around $69.

EIA oil inventory data:

Crude oil: -4.95 mio.
Distillates. +4.25 mio.
Gasoline: +4.14 mio.
Change in refinery runs: -1.40%

Tomorrow is deadline for the U.S. president accepting (or not accepting) a continuation of the waivers of oil-related sanctions on Iran. Trump refused to issue the waiver in October where he stated that Iran is not complying with the deal (nuclear deal from 2015 between Iran and a row of countries). Since sanctions against Iran was lifted, the country's oil production as well as exports have increased, see below chart.

Non-OPEC oil producer Kazakhstan continues to increase oil production this year after already increasing production last year from 78 mio. tonnes to 86.2 mio. tonnes in 2016.

Turning to economic data, today sees ECB December meeting minutes, U.S. inflation data along with German GDP and U.S. jobs data. .


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RSP and Dynamic People partnership signing. Rotterdam Shore Power partners with Dynamic People to digitalise operations  

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Dorian LPG logo. Dorian LPG orders three dual-fuel VLGCs from Hanwha Ocean in $345m deal, secures $368.4m credit facility  

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EPS vessels naming ceremony. Eastern Pacific Shipping takes delivery of three LNG dual-fuel Newcastlemaxes five months ahead of schedule  

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Yang Ming and Hanwha Ocean contract signing ceremony. Yang Ming orders six 13,000-TEU LNG dual-fuel vessels from Hanwha Ocean  

Taiwanese carrier expands green fleet with ammonia-ready newbuilds due for delivery by 2029.

AiP award ceremony for 12,500-cbm LNG bunker vessel design. LR awards approval in principle to Chinese yard for 12,500-cbm LNG bunker vessel design  

Lloyd’s Register validates new LNG bunkering vessel concept by CSSC Huangpu Wenchong at SMM 2026.


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