7/9/2010

Successful seminar: What’s going to happen on fuel prices?



This was the topic at a fully booked seminar arranged by Global Risk Management recently held in Denmark talking to companies exposed to fuel prices.

Global's seminar in Middelfart - June 2010

 

At the seminar, Julian Lee, Senior Energy Analyst at CGES, talked about the fundamentals of the oil market concluding as follows:

 

- Brent prices seems to be range bound between USD 70 – 85 per barrel for time being.
- Buying interst from subsedized Chineese refineries arround USD 70 per barrel keeps a solid bottom under prices.
- CGES expects world economies to grow by 4% in 2010 leading to an increase of 1.9% in oil demand

 

At the same time Jan Knudsen, Executive Sales Director of Global Risk Management, expressed his concerns about low sulphur product availability in connection with the revised Marpol Annex VI Low Sulphur switching deadline from 1 July 2010. Knudsen expects that the price difference between high and low sulphur fuel will increase to arround USD 75 in the coming period as demand for low sulphur fuel increases.

 

Combining the three factors fundamentals, financials and geopolitics, Knudsen concluded that oil prices will increase to approx. USD 100 per barrel in 2011.

 

Global’s next seminar will take place in Singapore in autumn 2010 followed by Hamburg in spring 2011.
 

Learn more about the seminars and how to register
 
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