Crude oil extended gains today, with US crude hitting $58/bbl (highest price since Jul 2015) as a major pipeline cut  Canadian crude flows to the USA and therefore the inventories are expected to fall further. 

This week we saw slightly increased VLCC rates in MEG and WAF due to the relatively steady activity in the region.

Oil remained steady today as the decrease in Chinese crude imports to a 1 year low was offset by the uncertainty addressed by the escalating political tensions in the Middle East.

Oil prices continued to climb this week to levels we haven’t seen since mid 2015 boosted by the improved compliance from OPEC and Russia will extend its deal to cut crude output.

The head of oil giant Saudi Aramco yesterday claimed that the lack of recent investments in the oil sector could lead to a shortage of supplies.

Ongoing political tensions in the Middle East buoyed oil prices this week.

Oil prices rose about 2% yesterday, supported by Saudi Arabian export cuts in November and comments from the OPEC meeting in Moscow that the market is rebalancing after years of oversupply.

Earlier today in the meeting in Moscow, the world’s biggest oil producers, Russia and Saudi Arabia, have announced a $1BN fund to invest in energy projects that is expected boost the economic and political partnership between the two countries.

According to the CEO of Royal Dutch Shell, it is not unreasonable to expect oil prices at $60/bbl by 2020.

After Iraqi oil minister’s reported that OPEC members are considering extending the output cuts, oil prices rose for the largest gain in 13 years, with WTI reaching 50.08 USD/bbl and Brent 55.68 USD/bbl.

Crude inventories rose by 6.2 Mbbls by the end of last week to 468.8 Mbbls, beating for one more time analysts’ expectations.

Oil prices were up again today due to the strong global refining margins and the successful reopening of USG refineries.

Tropical Storm Harvey, which has flooded the USG Coast, severely damaged the region’s refining capacity and increased the crude inventories as refiners are no longer able to take more oil. Gasoline futures and other refined product futures and prices continued to soar on fears of fuel shortages across the region.

It has been 2 years since the discovery of the Liza oil field and Exxonmobil announced that they have discovered more oil in the Payara reservoir off the coast of Guyana, which increases the total discovery to approximately 500 Mbbls.

US crude inventories fell by 9.2Mbbls last week, almost 3 times more than analysts expected.