Spot Cargo Markets - Price Rollercoaster

摘要

Roller-coaster oil prices firmed towards the end of the week as Saudi Arabia signaled larger than expected production cuts for January and state China National Petroleum Corp. forecast another boom year for the country’s oil demand growth. CNPC said Thursday that it sees oil demand in China growing by 3.4% in 2017 - close to 400,000 barrels per day - with crude oil imports set to rise by a similar amount. Saudi output is expected to come in below 10 million b/d this month, implying a cut in excess of the 486,000 b/d pledged under the Nov. 30 Opec/non-Opec output agreement. Iraq, Kuwait and the United Arab Emirates have also announced production cuts this month alongside non-Opec Russia. Large builds in US crude and product inventories announced midweek failed to halt a rally ignited after widespread profit-taking shaved $3/bbl from benchmark prices in Monday and Tuesday trade. Saudi oil minis- ter Khalid Al-Falih reiterated that Opec’s output deal, supported by non- Opec, will speed up the rebalancing process over time by slashing inventories of crude and refined products. Certainly the forward price curve signals a tighter oil market going forward with Brent and WTI offering no financial incentive to store crude oil in the second half of the year. At least 240 million bbl is currently held in OECD stocks. Prices were still lower on the week despite the late week rally with international benchmark Brent down 88￠/bbl at $56.01/bbl and US price-pin WTI down 75￠/bbl at $53.01/bbl Thursday.