BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





Oil and fuel oil hedging market update

03 Nov 2017 08:44 GMT

By the Oil Desk at Freight Investor Services.



Brent closed up $0.13 last night to $60.62 and WTI closed at $54.54, up $0.24. Well, once again, it's all rather rosy. Brent is up 2% on the week. On the month it's up 7.5% and on the year it is up 16%. I'm sure everyone who is at OPEC is giving themselves a massive pat on the back. The question is: will these levels be able to sustain themselves? Well, let's talk about that, shall we? Let's have OPEC in the Brent corner and the USA in the WTI corner for a second. OPEC production has been capped and Brent has risen 16% since that magical meeting. US production has risen by about 1.1mn bpd and prices have risen about 10% on WTI. So let me ask you this my fellow oilanauts, which one has the ability to maintain higher prices and higher production? I fear that the start of my commentary will soon lead with the price of WTI and not Brent. Has Brent had its day as the global benchmark? Perhaps not, perhaps it's even irrelevant, but let me tell you this: China have ramped up crude purchases in 2017 by 13% so far. The US are exporting more and more and are now starting to sell to the Chinese. The Middle East (OPEC really) has seen a sizeable drop in the number of cargoes purchased by China. Apparently, demand is increasing but pfff to that, this "increased demand" is nothing, but buyers making hay whilst WTI is $6 cheaper than Brent. Doesn't take a rocket scientist to work that out, does it? I wish you all a wonderful weekend.

Fuel Oil Market (November 2)

The front crack opened at -7.40, weakening to -7.50, strengthening to -7.45, ending the day at -7.55. The Cal 18 was valued at -7.55.

Asia's front-month East-West arbitrage spread slipped to a near-three week low on Thursday as Singapore onshore inventories of the industrial fuel climbed to an eight-week high.

The December arbitrage spread was also weighed down by recent strength in the Rotterdam market relative to Singapore, making fuel oil imports into Singapore from the European oil hub less economical, sources said.

Singapore inventories rose for a fourth straight week, up 2.5%, or 94,000 tonnes, from the previous week to 3.84 million tonnes in the week to Nov. 1. Weekly net imports into Singapore were down 31% from a week earlier to 0.88 million tonnes, a three-week low. Fuel oil stocks are now 12.6% higher year on year.

Economic Data/Events: (UK times)

* 12:30pm: U.S.

** Change in nonfarm payrolls for Oct., est. 313k (prior -33k)

** Unemployment rate for Oct., est. 4.2% (prior 4.2%)

** Trade balance for Sept., est. -$43.2b (prior -$42.4b)

* 2pm: U.S.

** Factory orders for Sept., est. 1.2% (prior 1.2%)

** Durable goods orders for Sept., final, est. 2% (prior 2.2%)

* 5pm: U.S. Baker Hughes weekly oil, gas rig counts

* 6pm: ICE weekly commitments of traders report for Brent, gasoil

* 7:30pm: U.S. CFTC weekly commitments of traders report on futures and options contracts

Singapore 380 cSt

Dec17 - 355.50 / 357.50

Jan18 - 353.25 / 355.25

Feb18 - 351.50 / 353.50

Mar18 - 349.75 / 351.75

Apr18 - 348.25 / 350.25

May18 - 346.75 / 348.75

Q1-18 - 351.50 / 353.50

Q2-18 - 346.75 / 348.75

Q3-18 - 341.25 / 343.75

Q4-18 - 336.00 / 338.50

CAL18 - 343.00 / 346.00

CAL19 - 307.75 / 312.75

Singapore 180 cSt

Dec17 - 360.25 / 362.25

Jan18 - 358.75 / 360.75

Feb18 - 357.00 / 359.00

Mar18 - 355.75 / 357.75

Apr18 - 354.75 / 356.75

May18 - 353.50 / 355.50

Q1-18 - 357.25 / 359.25

Q2-18 - 353.25 / 355.25

Q3-18 - 347.75 / 350.25

Q4-18 - 343.50 / 346.00

CAL18 - 349.75 / 352.75

CAL19 - 316.75 / 321.75

Rotterdam 380 cSt

Dec17 335.00 / 337.00

Jan18 333.00 / 335.00

Feb18 332.00 / 334.00

Mar18 331.00 / 333.00

Apr18 330.00 / 332.00

May18 328.75 / 330.75

Q1-18 332.00 / 334.00

Q2-18 329.00 / 331.00

Q3-18 323.50 / 326.00

Q4-18 315.25 / 317.75

CAL18 325.00 / 328.00

CAL19 286.00 / 291.00



Founded in 2002, Freight Investor Services is a specialist in dry bulk and commodity derivatives, including cargo freight, iron ore, fertilizer and bunker fuel. The company has offices in London, Dubai, Singapore and Shanghai.

For further details about fuel oil swaps or to discuss trading opportunities, please contact Andrew Cullen, Client Relations & Development Manager, on +44 207 090 1126, or email AndrewC@freightinvestor.com.


Image: Freight Investor Services (FIS) logo. Image credit: Freight Investor Services (FIS)




Related Links:

Oil and fuel oil hedging market update

Latest News:

Jan Brent rose $0.47 to close at $62.57
Debmarine Namibia inks MoU to build bunker-saving mining vessel
Understanding 'about' in bunker consumption clauses
Viking Line ferry will be first to use dual-fuel version of world's most efficient four-stroke diesel engine
Market still indecisive as OPEC meeting closes in
Oil and fuel oil hedging market update
First LNG shipment arrives at future Lapland bunkering hub
VPS expands oil condition monitoring capabilities
Quadrise issues activity update following 'media speculation'
Oil and fuel oil hedging market update
Oil slightly up, but markets in wait-and-see mode ahead of OPEC meeting
Ceremonies held for MSC Cruises ships with scrubbers




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events