This is a legacy page. Please click here to view the latest version.
Thu 17 May 2018, 07:23 GMT

Oil at three-and-a-half-year high on inventory deviations, geopolitical uncertainty


By A/S Global Risk Management.


Michael Poulson, Global Risk Management.
Image credit: Global Risk Management
The weekly oil inventory report from the Energy Information Administration (EIA) yesterday showed a larger-than-expected draw in crude and gasoline inventories and completely in the opposite direction of the weekly oil stocks data from the American Petroleum Institute (API), and this supported oil prices. Brent increased by $1 following the EIA release. Markets are increasingly focusing on potential shortage of supplies as global inventories are shrinking.

EIA crude oil inventories: -1.1404M barrels (-0.763M expected) API crude oil inventories: 4.854M barrels (-1.850M previous)

In its monthly oil market report, published yesterday, the International Energy Agency (IEA) lowered its global oil demand growth forecast for this year by 0.1 mio. barrels per day (bpd) to 99.2 mio. bpd. Supplies are currently 98 mio. bpd, but according to the IEA: "non-OPEC growth... will grow by 1.87 mio. bpd in 2018". The reason for the revision of demand growth could be the increasing oil prices, which could dampen consumption. According to the agency, global inventories have dropped below the 5-year average - which was a goal for the current oil production cut agreement - for the first time since 2014.

Turning to economic data, today's main potential market mover is the U.S. Philadelphia Fed Manufacturing Index along with a couple of Fed member speeches. Other than that, no major releases.

BP  

Spirit of Toulouse vessel. Norsepower installs first rotor sail aboard methanol-powered ro-ro vessel built for Airbus charter  

The Spirit of Toulouse will carry six rotor sails alongside dual-fuel methanol engines on a transatlantic route.

Mercedes Pinto truck-to-ship (TTS) bunkering at S.C. de Tenerife. Baleària Canarias completes first truck-to-ship LNG bunkering for fast ferry at Tenerife  

Mercedes Pinto received around 600 MWh of LNG via two tanker trucks simultaneously.

O Bunkering logo. O Bunkering claims 15-minute marine lubricant delivery at Duqm  

Omani supplier says local stock enables rapid turnaround for vessel operators.

Shenghang Yongle vessel. World's first operational ammonia bunker vessel enters service  

Converted 5,500-cbm gas carrier has received the first ammonia bunkering class certificate.

Philippos Ioulianou, EmissionLink. Shipowners risk financial exposure by delaying EU allowance transfers, EmissionLink warns  

EmissionLink says last-minute EUA compliance habits are creating avoidable financial and commercial risk.

Vinssen and WE Tech Solutions MoU signing. South Korea’s Vinssen signs MoU with Finland’s WE Tech Solutions to target European marine electrification market  

The agreement combines hydrogen fuel cell systems with advanced power conversion and management technology.

Steel cutting ceremony of vessel with builder's hull no. CHB2053. Changhong International starts building 21,700-TEU LNG dual-fuel container ship for MSC  

Vessel is described as the largest container ship currently under construction in Zhejiang Province.

MSC Leticia X naming and delivery ceremony. Changhong International delivers fifth MSC LNG dual-fuel boxship 324 days early  

Chinese shipyard hands over 10,300-TEU vessel to MSC well ahead of contract schedule.

Chang Ping Yuan vessel. Cosco Shipping names 88,000-cbm VLGC Chang Ping Yuan with dual-fuel LPG propulsion  

Owner claims 20% CO₂ reduction and Panama Canal compatibility across both lock systems.

World Fuel logo. World Fuel seeks senior marine fuels sales executive in London  

Position requires minimum of 10 years' experience in marine fuels, marine energy, or shipping.


↑  Back to Top