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.

RSP and RST logo. Agreement signed to bring shore power to Rotterdam shortsea terminal by 2030  

Shore power partnership at Rotterdam’s RST terminal targets AFIR compliance and reduced ship emissions at berth by end of decade.
Equatorial logo. Equatorial Marine Fuel receives dual sustainability recognitions in 2026  

Singapore-based bunker firm earns the LowCarbonSG logo and an EcoVadis Bronze Medal.
Red Sea topographic map. Red Sea diversions and Mediterranean emissions rules set to squeeze bunker supply, warns Peninsula  

Bunker supplier Peninsula warns rerouted tankers face soaring fuel costs and regulatory penalties.
Hydrogen maritime workshop. Hydrogen maritime workshop held to push early regulatory alignment  

Classification society and French maritime authority explore pathways for hydrogen deployment at sea.
Launching ceremony of MSC Licia X vessel. Changhong International undocks seventh LNG dual-fuel container ship for MSC  

Vessel is part of a series fitted with ammonia-ready and methanol-ready provisions.
IBIA logo. IBIA urges further investigation into marine fuel concerns linked to shale oil components  

Industry body says evidence does not establish a direct link between shale oil and reported operational issues.
KUSPC grand opening. ABS grants AiP for LNG bunkering barge design  

Samsung Heavy Industries and Conrad Shipyard receive AiP for basic design under joint development.
Waalvliet vessel. ABB and Econowind combine wind propulsion with digital routing to cut ship emissions  

The partnership integrates wind-assisted propulsion with weather routing to reduce fuel consumption.
Peninsula logo. Peninsula seeks junior cargo trader for Dubai role  

Position centres on the procurement of marine fuels, blending components and associated products.
Island Oil Summer Students Programme. Island Oil opens operations to students in summer internship programme  

Cyprus-based firm gives students hands-on experience across its bunker business.

↑  Back to Top


 Recommended