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  

Chimbusco and Shenergy green methanol agreement signing. 'China’s largest single-order green methanol procurement deal' announced  

Chimbusco and Shenergy seal agreement for 6,000 tonnes of methanol.

Moriond vessel. Exmar takes delivery of third dual-fuel LPG midsize gas carrier in newbuild programme  

Belgian shipping group Exmar takes delivery of the 41,000-cbm LPG carrier Moriond.

Hafnia logo. Hafnia Pools reaches 24 partners and 170 vessels as FuelEU compliance met through pooling mechanism  

Hafnia’s tanker pool platform adds five vessels in Q1 2026 amid volatile market conditions.

Avenir Ascension and Visby ship-to-ship (STS) bio-LNG bunkering operation. St1 Biokraft supplies liquefied biogas to Destination Gotland for summer ferry operations  

Nordic biomethane company makes its first liquefied biogas delivery to Swedish ferry operator.

Star Norge vessel. G2 Ocean launches emission reduction certificates for supply chain decarbonisation  

New certificates allow cargo owners to offset Scope 3 transport emissions via biofuel use.

World Fuel logo. World Fuel’s marine gross profit surges 86% as bunker price volatility drives Q1 results  

Higher bunker prices and volatility propel World Fuel to a strong first quarter, prompting upgraded full-year guidance.

Green Pearl and Lapis Ace ship-to-ship (STS) bio-LNG bunkering operation. Axpo completes first ship-to-ship bio-LNG bunkering at Barcelona  

Swiss energy company supplies bio-LNG to MOL's car carrier Lapis Ace at Spanish port.

Dimitris Mertikas, Island Oil. Island Oil appoints Dimitris Mertikas as head of international trading in Dubai  

Bunker firm says hire will strengthen its trading capabilities and knowledge of the Middle Eastern and Greek markets.

International Chamber of Shipping (ICS) logo. LNG and biofuels seen as most viable near-term options, ICS Barometer finds  

Geopolitical instability emerges as shipping’s defining risk in ICS report.

Changhong International Shipyard aerial view. Zhoushan ship exports nearly double in five months amid decarbonisation push  

China's Zhoushan reports 93.7% surge in ship exports driven by rising demand for more advanced and environmentally friendly vessels.


↑  Back to Top


 Recommended