Sign up
Log in Sign up
This is a legacy page. Please click here to view the latest version.
Thu 18 Oct 2018 06:07

Will Saudi Arabia be able to replace Iranian oil?


By A/S Global Risk Management.

Michael Poulson, Senior Oil Risk Manager at Global Risk Management.
Image: A/S Global Risk Management
After a huge inventory build of 6.5 mio. crude barrels from EIA yesterday, prices dropped to below $79.50 before slowly starting to recover. The $80 threshold was once again broken through and Brent crude did not retrace above $80 as fast as earlier. This indicates a possible loss of belief in the market after the news of Saudi Arabia being able to replace the missing Iranian oil. However, will Saudi Arabia really be able to offset possible future missing barrels? It is considered very possible that more barrels will be taken off the market when the U.S. sanctions on Iran really kick in. Some analysts believe that these are replaceable due to the unutilized production and spare capacity in primarily Saudi Arabia and Russia. This alleged production and spare capacity has, however, never really been utilized as Saudi Arabia is approaching record production and Russia is already producing at record-breaking levels. As of now, it seems the market believes that the Iranian oil is replaceable.

The ongoing dispute between the US and Saudi Arabia is yet to be resolved as the columnist is still missing - last seen at the Saudi embassy in Turkey.

Graphic announcing the release of the DNV Net-Zero Guidance Paper. DNV and WMMF release guide to help shipowners navigate path to net-zero  

Guide offers practical roadmap for decarbonisation amid evolving regulations and commercial pressures.
Aerial view of MSC container ship and Marine Ista vessel. Vitol launches Pakistan bunker operations with first large-scale IMO-compliant fuel production  

Supplier expands bunkering network to three Pakistani ports, sourced from locally produced VLSFO.
Port Director Ingvar M. Mathisen in front of Pelikan II vessel. Port of Oslo introduces fee structure rewarding zero-emission vessels  

Norwegian port offers quay fee exemptions and discounts for ships using shore power and green technology.
Coral Energy vessel. Gasum publishes daily price for FuelEU Maritime compliance units  

Nordic energy company aims to enhance transparency in the evolving regulation compliance market.
Lady Clara vessel alongside Till Benelux vessel. Bunker Suite completes E-BDN trial aboard Lady Clara in Rotterdam  

Digital platform provider conducts electronic bunker delivery note trial with partners.
Chane Terminal Nieuwe Maas in Rotterdam. Peninsula expands biofuel capabilities in Rotterdam  

Marine fuel supplier adds 30,000 cbm capacity, with plans to expand to 110,000 cbm in early 2026.
Northern Europe map with the Finnish flag placed over Finland. ScanOcean launches physical bunker supply operations in Finland  

Swedish supplier expands into Finland with MGO and renewable fuels offerings.
Singapore Port viewed from The Pinnacle@Duxton. Singapore marine fuel sales dip 1.2% in October  

First YoY decline since February as sales of best-selling product fall despite bunker calls rising to second-highest level in port's history.
Daria Sukhanova, PMG Energies. PMG Energies appoints Daria Sukhanova as bunker trader  

Marine fuel business adds trader with over five years of experience to its team.
CMA CGM Salamanque vessel alongside Edison's Ravenna Knutsen vessel. CMA CGM and Edison complete Italy's first STS LNG bunkering for a boxship  

Ship-to-ship operation marks the first time LNG has been delivered to a container vessel in the Adriatic.

↑  Back to Top


 Recommended