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  

Navios Turquoise vessel. Navios Partners takes delivery of second LNG- and methanol-ready boxship in newbuilding series  

Handover of 7,900-TEU Navios Turquoise follows delivery of sister ship Navios Cyan in May.

Yang Ming and Hanwha Ocean contract signing ceremony. Yang Ming orders six 13,000-TEU LNG dual-fuel vessels from Hanwha Ocean  

Taiwanese carrier expands green fleet with ammonia-ready newbuilds due for delivery by 2029.

AiP award ceremony for 12,500-cbm LNG bunker vessel design. LR awards approval in principle to Chinese yard for 12,500-cbm LNG bunker vessel design  

Lloyd’s Register validates new LNG bunkering vessel concept by CSSC Huangpu Wenchong at SMM 2026.

Santiago I vessel. Marflet Marine becomes first Spanish merchant fleet owner to operate wind-assisted suction sails  

Spanish chemical tanker operator installs bound4blue eSAILs, targeting 10–15% energy savings.

Teunis Visser, IBIA. IBIA appoints veteran fuel industry trainer Teunis Visser as advisor  

Association brings on board specialist with nearly 40 years of oil, gas and bunker sector experience.

AiP award ceremony for a 114,000-DWT tri-fuel-ready tanker concept. Lloyd’s Register and MARIC unveil tri-fuel-ready tanker concept at SMM 2026  

New 114,000-DWT tanker design offers conversion readiness for LNG, methanol or ammonia.

TFG Marine mass flow meter (MFM). TFG Marine fits two more US Gulf Coast barges with certified mass flow meters  

TFG Marine expands its mass flow meter rollout on the US Gulf Coast, adding ISO 22192 certification to two supply barges.

Hercules Vanessa vessel. HTM’s Hercules Vanessa begins maiden voyage as Ultra-Spec tanker series expands  

Vessel is the latest addition to Hercules Tanker Management’s 10-ship next-generation fleet renewal programme.

Steel-cutting ceremony for TRAnsverse 2600e vessels. Cochin Shipyard begins construction of Svitzer’s battery-electric tugs in India  

Four TRAnsverse 2600e vessels are claimed to be among the most advanced green tugs under construction globally.

TT-Line Green Ship 2.0 illustration. MacGregor wins ro-ro equipment contract for TT-Line’s battery-hybrid LNG ferries  

Company to supply cargo handling systems for two new LNG-powered ferries destined for Baltic Sea routes.


↑  Back to Top