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  

Eco Levant vessel. X-Press Feeders trials ethanol-methanol blend in Rotterdam  

Container operator tests 10-90 ethanol-methanol fuel mix aboard Eco Levant vessel.

Venture Energy, CSST and CSTC MoU signing. Venture Energy signs green methanol cooperation agreement  

MoU establishes framework for long-term offtake and capacity development in maritime decarbonisation.

Iberdrola España Onshore Power Supply (OPS). Iberdrola España completes shore power installation at the Port of Pasaia  

Spanish utility installs onshore power supply system, enabling docked vessels to use renewable electricity.

Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. Itochu secures approval for ammonia bunkering trials in Singapore  

Japanese trading house to conduct two-year trial following MPA authorisation.

Oceanic Moon alongside Gas Utopia vessel. Safe ammonia bunkering in ports is possible, according to MAGPIE project findings  

EU-funded MAGPIE project validates safety frameworks for ammonia bunkering operations in commercial ports.

RS Onza vessel. Suardiaz Group acquires methanol-capable tanker RS Onza for Moeve operations  

IMO2 chemical tanker to operate in European ports, primarily Spain, for energy company.

Steel-cutting ceremony for vessel with builder's hull no. S1157. Construction begins on 20,000-cbm LNG bunkering vessel for GSX Energy  

Chinese shipbuilder starts work on upgraded dual-fuel vessel with enhanced economy and energy efficiency features.

Tiger Fisher vessel alongside Narwhal Fisher vessel. James Fisher dual-fuel tankers named at Chinese yard  

FKAB-designed newbuilds are part of four-vessel FKAB T68 series and include LNG and LBG capability.

Factory Acceptance Testing (FAT) for X52DF-A-1.0 engine. WinGD completes factory testing of ammonia-fuelled engine for LPG carrier  

X52DF-A-1.0 engine tested in China ahead of installation on first of four vessels under construction.

Drift Energy energy-harvesting ship render. RINA awards first approval in principle for energy-harvesting ship  

Drift Energy receives certification for vessel design that generates clean energy at sea.


↑  Back to Top


 Recommended