The Bunker Review is contributed by Marine Bunker Exchange
Brent traded near six-week high amid concern that the escalating crisis in Ukraine will disrupt supplies. Ukraine accused Russia of fueling terrorism in its eastern regions as the North Atlantic Treaty Organization pledged to bolster the defenses of nearby nations. The escalating crisis in Ukraine provides strong support to the market for disruption in oil and gas supply in the region. The situation in eastern Europe is playing a part in the firmness of oil prices. Ukrainian authorities this week used armed forces for the first time since taking power in February as they sought to regain control from separatists in the eastern Donetsk region.
On Thursday talks are taking place in Geneva. U.S. President Barack Obama warned that Russia will face additional economic penalties unless President Vladimir Putin backs away from supporting separatist militias in Ukraine and pull troops away from the border.
In Libya, the oil tanker Aegan Dignity loaded crude as state run National Oil Corp. prepares to export from the Hariga port for the first time since July. The terminal is one of four seized last year by rebels seeking self-rule in the east of the country, which holds Africa’s largest reserves. Today Libya is producing 330,000 barrels a day of crude oil. Before the take over three years ago Libya was pumping almost 1.6 million barrels per day.
U.S. crude stockpiles increased by 10 million barrels last week, according to the Energy Information Administration. That’s the most since March 2001 and more than five times the estimate in a Bloomberg News survey of analysts. Inventories rose to 394.1 million in the week ended April 11, according to the EIA, the Energy Department’s statistical arm. The forecast was 1.75 million barrels. The price resilience in the face of that inventory build-up is remarkable.
Next week oil prices are expected to show mixed movements.
All prices stated in USD / Mton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)