Thu 3 Dec 2009, 09:54 GMT

Market Briefing



Today's Trends

Rotterdam (ARA) fuel oil - Trading $6 lower

Singapore fuel oil - Trading $3 lower

US Gulf - Expected to $5 lower

Oil prices decreased on Wednesday as unemployment went higher and the US oil inventory data came out higher than expected. Today the important figures are growth indicators from the service industry in the EU and US. Further, the ECB decision on interest rates and European GDP figures and retail sales could be of importance.

Oil prices rebound slightly this morning - following the mood of Asian financial markets.

US unemployment increases

The important ADP unemployment indicator came out showing that 169,000 people have been laid off during November. The reading was higher than the expected 155,000 - but also indicating layoffs slowed from October to November. The number came out in the mid region between the expected level and the last level. The higher than expected number indicates that Friday's unemployment figure will come out with a higher percentage unemployed than the anticipated 10.2%. Later today US jobless claims will be released - and in the recent readings, the number showed a lower amount of unemployment claims.

EIA data showed higher crude oil and gasoline inventories

Oil data from EIA came out Wednesday with major increases in the important crude and gasoline inventories. The increases were way higher than expected. Crude oil imports were lower, but as refinery utilization dropped against the expectations - the result was higher inventories. Gasoline inventories have increased as product demand has increased during last week, before the Thanksgiving Holiday. As refinery utilization drops below 80% once again, we finally see falling distillate inventories, which should be supportive for prices in the medium term. Refineries have run with higher than necessary utilization rates for too long and now there is too much product available.

Release: EIA oil data (Consensus)

Crude: 2,100,000 barrels (400,000)
Distillates: -1,200,000 barrels (-300,000)
Gasoline: 4,000,000 barrels (1,000,000)
Refinery utilization: -0.6% (0.5)

Recommendation

Prices are running back and forth in the 75-80 range. We are now on the middle of the range. Current short ranged recommendation is therefore pretty simple: buy on 75 - sell on 80.


Rolls-Royce mtu engine test bench. Rolls-Royce Power Systems switches German engine test facilities to HVO fuel  

Company saved 3,200 tonnes of CO2 by end of 2025 after switching to renewable diesel.

MSC Migsan delivery ceremony. Changhong International delivers final LNG dual-fuel container ship 205 days early  

Chinese shipbuilder completes 10-vessel series for MSC with delivery of 11,500-teu MSC Migsan.

Seoul city skyline. Oilmar seeks senior and mid-level bunker traders in Seoul  

Marine fuel firm aims to recruit experienced traders for South Korean operations.

Morten Thomas Jacobsen, GEA. Global Ethanol Association to present on ethanol marine fuel at London shipping expo  

Morten Thomas Jacobsen will discuss ethanol fuel trials and maritime decarbonisation challenges in June.

Adrian Tolson, IBIA. IBIA warns of structural shift in marine fuel market following Arabian Gulf tensions  

Association chair says geopolitical disruptions signal lasting changes to bunker supply dynamics and pricing.

HMM Hamburg vessel. Rotterdam bunker volumes plunge 25% in first quarter amid regulatory shifts  

Fossil fuel sales decline sharply while alternative fuels show modest growth in Dutch port.

Camellia Dream vessel. Norsepower completes factory tests for 18 rotor sails bound for Airbus fleet  

Wind propulsion units cleared for installation on LD Armateurs vessels targeting 50% emissions reduction.

Frankie Russ vessel. Ernst Russ acquires four chemical tankers with five-year charters worth $126m  

Hamburg shipowner enters tanker segment with methanol-ready newbuildings delivering from Q4 2026.

Ammonia fuel system component. Wärtsilä boosts ammonia engine power output to match LNG equivalent  

Finnish technology group raises Wärtsilä 25 Ammonia engine output, enabling simpler vessel designs.

Aerial view of a cruiseship at sea. Fincantieri secures order for three LNG-fuelled cruise ships from Princess Cruises  

Italian shipbuilder to construct vessels at Monfalcone yard, with deliveries scheduled through 2039.