Sign up
Log in Sign up
This is a legacy page. Please click here to view the latest version.
Thu 15 Nov 2018, 08:48 GMT

Oil slightly higher on renewed output cut talks


By A/S Global Risk Management.

Michael Poulson, Senior Oil Risk Manager at Global Risk Management.
Image credit: A/S Global Risk Management
This week, OPEC stated that the organisation's members should decrease output to bring down global inventories as oil prices have plummeted over the past month. The group's president seemed sure that the members will reach consensus about this strategy at the next OPEC meeting in the beginning of December. He did not mention any specific magnitude of these alleged cuts, but a possible benchmark is the amount of the previous cuts.

The market didn't seem to react heavily to this news, which could be due to such a statement not changing fundamentals from day to day. There is, however, a possibility of this statement flooring the oil price at the $65 level in the short term.

Today the EIA oil inventories are due. Consensus is of a build in crude oil stocks of around 3.2 mio. barrels. Data from the American Petroleum Institute (API) last night showed an 8.9m-barrel build.

As the U.S. refiners have been running on low steam for more than a month, the U.S. has imported less oil than average for the year. The data to look for is therefore the U.S. refinery utilisation rate in the short term and the outcome of the 6 December OPEC meeting in medium term.

Yesterday, the International Energy Agency (IEA) released its monthly oil market report. According to the IEA, oil supply continues to grow at a fast pace, leading to increases in global inventories for 4 months in a row and products are back into the five-year average.

Today sees a row of U.S. economic data along with Fed members and Chair speeches.

Washington State Hybrid-Electric 160-Auto Ferry vessel render. Corvus Energy to supply battery systems for Washington State Ferries hybrid vessels  

ABB selects Corvus for two new 160-vehicle ferries as part of $3.98bn electrification plan.
Vinssen and Mana Engineering sign MoU. Vinssen, Mana Engineering partner on hydrogen fuel cell retrofit for 800-teu feeder vessel  

South Korean and Dutch firms to pursue Lloyd’s Register approval for hybrid retrofit concept.
Hercules Elisabeth vessel. Hercules Tanker Management takes delivery of second Ultra-Spec vessel in China  

Hercules Elisabeth is the second of 10 hybrid-ready tankers designed for alternative fuels.
Wolf 1 vessel. Petrol Ofisi launches fuel supply tanker Wolf 1  

Turkish bunker supplier adds 1,750-dwt vessel with alternative fuel infrastructure to fleet.
BIMCO meeting. BIMCO to convene for adoption of biofuel clause and ETS provisions at February meeting  

Documentary Committee to consider new contractual frameworks for alternative fuels and emission trading scheme compliance.
Sea Change II vessel render. Incat Crowther and Switch Maritime develop 150-passenger hydrogen ferry for New York  

Design work begins on 28-metre vessel with 720 kg hydrogen capacity and 25-knot speed.
Aerial view of a container vessel. HIF Global signs heads of agreement with German eFuel One for 100,000 tonnes of e-methanol annually  

Deal covers supply from HIF’s Uruguay project, with e-methanol meeting EU RED III standards.
Welcoming of Kota Odyssey at Jordan’s Aqaba Container Terminal. PIL’s LNG-powered vessel makes maiden call at Jordan’s Aqaba port  

Kota Odyssey is Pacific International Lines’ first LNG-fuelled ship to call at the Red Sea port.
Celsius vessel. RMK Marine to equip Celsius LNG bunker vessel with gas combustion unit  

Turkish shipbuilder adds specialised equipment to support cool-down and gassing-up operations for LNG vessels.
CSL and CMA CGM contract signing. Cochin Shipyard signs contract with CMA CGM for six LNG-fuelled container vessels  

Indian shipbuilder to construct vessels for French shipping company.

↑  Back to Top


 Recommended