Fri 1 Jun 2018 07:22

Oil prices spiked yesterday on Iran and US crude stock draws


By A/S Global Risk Management.


Michael Poulson, Global Risk Management.
Image: Global Risk Management
The weekly U.S. oil inventory report from the Energy Information Administration (EIA) showed a huge deviation from expectations with a 3.6 mio. barrel draw in crude oil stocks (0.4 mio. barrels expected). Distillates and gasoline inventories increased slightly where the consensus was draws. So all in all the report was mixed, but markets reacted with a short-term spike. Along with the weekly oil stocks, the EIA reported a record monthly production in March of 10.47 mio. barrels. Brent and WTI crude, the two main benchmarks for crude oil prices, are currently trading with a price difference that is around a 3-year high.

In a letter to the OPEC president, the Iranian oil minister asks for a separate agenda at the summit later this month in Vienna. Iran could become subject to the reimposing of sanctions by the U.S. from November, and this could potentially entail an export reduction of up to 1 mio. barrels per day for the 5th largest country in the OPEC organization.

Turning to economic data, the main topic today will likely be the U.S. imposing tariffs on steel and aluminum from Canada, Mexico and the EU - sparking fears of a global trade war. Traditionally, trade wars lead to weaker economic growth in the countries involved. This could affect oil prices as less growth means less consumption of oil; however, this is more the long-term effects of the looming trade war. The monthly U.S. nonfarm payrolls and unemployment rate is published this afternoon.

Tonight, the weekly oil rig count from Baker Hughes - counting the number of active U.S. oil rigs - will be followed closely for hints of continued increase.


Lease agreement between Inter Terminals Sweden and the Port of Gothenburg, signed on July 1st. Pictured: Göran Eriksson, CEO of the Port of Gothenburg (left) and Johan Zettergren, Managing Director of Inter Terminals Sweden (right). New Gothenburg lease an opportunity to expand green portfolio: Inter Terminals  

Bunker terminal operator eyes tank conversion and construction projects for renewable products.

Map of US Gulf. Peninsula extends US Gulf operation offshore  

Supplier to focus on Galveston Offshore Lightering Area (GOLA) in strategy to serve growing client base.

The M/T Jutlandia Swan, operated by Uni-Tankers. Uni-Tankers vessel gets wind-assisted propulsion  

Fourth tanker sails with VentoFoil units as manufacturer says suction wing technology is gaining traction.

Port of Gothenburg Energy Port. Swedish biomethane bunkered in Gothenburg  

Test delivery performed by St1 and St1 Biokraft, who aim to become large-scale suppliers.

Image from Cockett Marine Oil presentation. Cockett to be closed down after 45 years  

End of an era as shareholders make decision based on 'non-core nature' of Cockett's business.

Petrobras logo. Petrobras confirms prompt availability of VLS B24 at Rio Grande  

Lead time for barge deliveries currently five days.

Opening of the IMO Marine Environment Protection Committee (MEPC), 83rd Session, April 7, 2025. IMO approves pricing mechanism based on GHG intensity thresholds  

Charges to be levied on ships that do not meet yearly GHG fuel intensity reduction targets.

Preemraff Göteborg, Preem's wholly owned refinery in Gothenburg, Sweden. VARO Energy expands renewable portfolio with Preem acquisition  

All-cash transaction expected to complete in the latter half of 2025.

Pictured: Biofuel is supplied to NYK Line's Noshiro Maru. The vessel tested biofuel for Tohoku Electric Power in a landmark first for Japan. NYK trials biofuel in milestone coal carrier test  

Vessel is used to test biofuel for domestic utility company.

Pictured (from left): H-Line Shipping CEO Seo Myungdeuk and HJSC CEO Yoo Sang-cheol at the contract signing ceremony for the construction of an 18,000-cbm LNG bunkering vessel. H-Line Shipping orders LNG bunkering vessel  

Vessel with 18,000-cbm capacity to run on both LNG and MDO.


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