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  

Professor Lynn Loo, GCMD. Project CAPTURED secures EU ETS recognition and IMO support for onboard carbon capture pathway  

Two regulatory developments strengthen the commercial case for onboard carbon capture and storage at sea.

Vard 9 601 design render. Vard wins €220m contract to build methanol-ready vessels for Trinity House  

Norwegian shipbuilder Vard will replace two ageing Trinity House vessels with hybrid-powered successors.

Sunoco LP logo. Sunoco seeks bunker trader for 'front-line' role to expand marine fuels business  

Professional sought with at least two years' experience in bunker trading or marine fuels commercial sector.

Seaway vessel. Royal IHC delivers methanol-ready TSHD to Boskalis  

The 31,000-cbm Seaway is among the largest trailing suction hopper dredgers in the world.

Ocean Navigator vessel. LNG-powered MV Ocean Navigator completes sea trial ahead of August delivery  

Sallaum Lines ro-ro vessel due to enter commercial service next month.

EmissionLink logo. FuelEU surplus price drop could undermine fuel transition, warns EmissionLink  

Falling compliance costs may discourage real uptake of lower-carbon fuels, the company cautions.

Port of Hamburg. Port of Hamburg moves towards ammonia bunkering readiness with new safety framework  

Hamburg and MB Energy develop risk analysis and safety concept for ammonia ship-to-ship bunkering.

CMA CGM Pantheon naming ceremony. LNG-powered boxship CMA CGM Pantheon named in ceremony  

Vessel is sister ship to CMA CGM Notre Dame and will serve the Asia–Northern Europe trade lane.

Kota Ocean vessel. PIL hiring head of marine fuel procurement in Singapore  

Role requires at least 10 years’ experience in bunkering, shipping or energy sectors.

Arctic Tern and Hai Gang Zhi Yuan STS bunkering operation. EUKOR’s new car carrier completes first biomethanol bunkering at Shanghai on maiden voyage  

EUKOR, SIPG Energy and World Fuel deliver 2,800 tonnes of waste-derived biomethanol to the first Shaper Class vessel.


↑  Back to Top