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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.

Areion vessel. Dorian LPG takes delivery of dual-fuel VLGC capable of carrying ammonia  

The 93,000-cbm Areion can run on LPG or fuel oil and transport ammonia cargoes.
FSRU Toscana alongside Green Zeebrugge vessel. RINA awards ISCC EU certification to OLT Offshore LNG Toscana for bio-LNG supply  

Certification enables bio-LNG use in the EU as a renewable fuel under RED II and RED III directives.
World Shipping Council at IMO meeting. WSC calls for safe maritime corridor as 20,000 seafarers remain trapped in the Persian Gulf  

Industry body urges IMO member states to establish safe passage and supply access.
Graphic promoting Auramarine webinar titled 'Sustainable Fueling Part 3: Ammonia - next alternative fuel in marine'. Auramarine to host webinar on ammonia as marine fuel in April  

Finnish firm will explore ammonia’s role in maritime decarbonisation at its third spring webinar.
Front cover of study by WinGD and Envision Energy titled 'Renewable Fuel Economics: An OPEX illustration based on current costs'. Green ammonia could reach cost parity with VLSFO and LNG by 2050, study finds  

WinGD and Envision Energy study projects green ammonia operational costs competitive with conventional marine fuels.
Elenger Marine's LNG bunkering vessel Optimus alongside Brittany Ferries’ Saint-Malo. Bureau Veritas verifies methane emissions on Brittany Ferries’ LNG vessels  

Verification enables ferry operator to report measured methane slip instead of regulatory default values.
Map showing existing and planned Emission Control Areas (ECAs). Alliance calls for urgent black carbon action as new Arctic emission control areas take effect  

Canadian Arctic and Norwegian Sea ECAs now in force, with compliance deadline set for March 2027.
Artistic impression of battery-electric ferry for operation on Perth’s Swan River. Lloyd’s Register to class Western Australia’s first electric ferry fleet  

Echo Marine Group partners with Lloyd’s Register on five battery-electric ferries for Perth’s Swan River.
Thomas Kazakos, secretary general of The International Chamber of Shipping (ICS). ICS condemns Middle East shipping attacks as 20,000 seafarers remain trapped  

Industry body calls for urgent state action to resupply vessels and enable crew changes.
Molslinjen ferry illustration. Molslinjen order propels Australia to top of battery vessel production rankings  

Danish ferry operator’s three-catamaran order at Incat Tasmania shifts global manufacturing landscape, analysis shows.

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