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  

Yampu vessel. CSL delivers world’s first battery-powered self-unloading bulk carrier  

MV Yampu will transport limestone for Adbri in Australia, with full electric operation targeted by 2031.

Illustration of hydrogen fuel cell system. NYK, Yanmar and Eneos to install hydrogen fuel cell system on new Tokyo dining cruise vessel  

Three Japanese companies are collaborating to bring hydrogen propulsion to a dining cruise ship due to enter service in 2027.

Signing ceremony for 8,600-ceu dual-fuel PCTCs. Sallaum Lines orders four 8,600-ceu dual-fuel PCTCs from Chinese yard — its largest vessels to date  

Ammonia-ready car carriers ordered from XSI mark the next phase of Sallaum Lines’ fleet renewal.

Factory acceptance test (FAT) for X72DF-A ammonia engine. WinGD completes factory acceptance test on X72DF-A ammonia engine destined for CMB.Tech bulker  

Swiss engine maker WinGD has completed factory acceptance testing of its ammonia-fuelled X72DF-A engine in China.

Everllence B&W S60ME-C10.5-GI-EcoEGR engine render. Everllence secures world’s first order for ME-GI Mk10.7 dual-fuel engine  

Norwegian car-carrier operator GCC selects next-generation methane engine for four newbuilds.

Capital Clean Energy Carriers Corp. (CCEC) and CMA CGM logos. Capital Clean Energy Carriers and CMA CGM form joint venture to build $82.8m LNG bunkering vessel  

The 20,000-cbm dual-fuel vessel is due for delivery in the third quarter of 2028.

Hong Kong flag. Hong Kong launches port dues and vessel registration incentives to boost green fuel bunkering  

Two new schemes offer financial concessions to attract green fuel vessels and grow the Hong Kong fleet.

Mein Schiff Flow vessel. Fincantieri delivers LNG-ready cruise ship Mein Schiff Flow to TUI Cruises  

The 160,000 gross-tonne vessel is the second of two InTUItion-class dual-fuel ships.

Monjasa logo. Monjasa seeks trader for Fredericia-based Northwest Europe desk  

Bunker firm is recruiting a trader to join its Northwest Europe team.

Port of Barcelona and Port of Shanghai signing ceremony. Barcelona and Shanghai sign strategic port cooperation agreement targeting green fuels and digital corridors  

Ports formalise a 'sister ports' relationship covering green shipping, digitalisation and intermodality.


↑  Back to Top