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Fri 9 Feb 2018, 09:26 GMT

Oil notched lower yesterday as oversupply fears loom


By A/S Global Risk Management.

Wednesday's oil data from the Energy Information Administration (EIA) pointed to a record-high crude oil production by the U.S. of 10.25 mio. barrels per day last week. Thus, the U.S. surpasses OPEC's largest oil producer Saudi Arabia and becomes the world's second-largest oil producer. Russia remains the largest for now. Both Saudi Arabia and Russia are part of the current oil production cut deal made between OPEC and a row of non-OPEC oil producers. Also weighing on prices is news of Iran - also part of the current oil production cut deal - planning to increase production. Two other OPEC countries, Angola and Nigeria, are planning on building oil fields online this year with a combined capacity of 430,000 barrels per day. The deal will be discussed in June. Likely in an attempt to calm markets and ease the oversupply fears, Russia yesterday stated that the country's cooperation with OPEC on curbing oil production could continue into 2019.

Today's major potential oil price mover will be tonight's weekly oil rig count from Baker Hughes. The number of active U.S. oil rigs increased by 7 in the last reading to currently 765.

Also the financial markets continued volatility could continue to spill over to the oil market.

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Space-efficient fuel tank system has gained formal certification, enabling methanol adoption without sacrificing storage capacity.
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ClassNK approves basic design of LNG engine exhaust treatment system achieving over 90% methane oxidation.
CMA CGM Esmeralda naming ceremony. CMA CGM names 15,000-teu methanol-powered container ship in Shanghai  

The CMA CGM Esmeralda has been deployed on the REX2 service.
DNV and the Singapore Institute of Technology (SIT) signing. DNV and Singapore Institute of Technology partner on remote vessel operations research  

Agreement focuses on shore-based control centres for bunker vessels and autonomous maritime capabilities.
Grande Inghilterra naming ceremony. Grimaldi takes delivery of eleventh ammonia-ready car carrier  

Grande Inghilterra features solar panels, lithium batteries and cold ironing capability.
Launching ceremony of Bisan Maru vessel. Japanese tugboat to feature biofuel blender and ultrasonic anti-fouling system  

Seagate Corporation’s Bisan Maru is the first Japanese tugboat to feature both environmental technologies.
Hercules Elisabeth vessel. Hercules Tanker Management deploys second Ultra-Spec vessel to the Mediterranean  

HTM Elisabeth arrived in Gibraltar carrying biofuel cargo from Thailand bound for Barcelona operations.
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Finnish technology group wins contract for cargo handling systems on two dual-fuel ammonia vessels.
Svitzer Balder vessel. Battery-methanol harbour tug completes sea trials ahead of Gothenburg deployment  

Svitzer Balder is claimed to be the most powerful electric escort tug in the world.
Launching ceremony of Nave Orbit vessel. Changhong International launches fourth LR2 tanker for Navios  

Chinese shipbuilder floats 115,000-tonne LR2/Aframax product tanker with methanol and LNG conversion capability.

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