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

By the Oil Desk at Freight Investor Services.



Image credit:


Updated on 05 Jan 2018 09:07 GMT

Commentary

Brent closed last night up $0.23 to $68.07, WTI closed at $62.01, up $0.38. Well it's certainly a lovely start to the year if you're a producer. Crude is climbing ever closer to $70 per bbl and I wonder when the rumours of crude at three digits will start? Based on the relentless rally, it could be as soon as next week. Personally, I think crude has got about as much chance of getting to $100 per bbl as I have of being invited to Meghan Markle's hen do. EIA data last night showed a substantial 7.419mn bbl draw but products were up a combined 13.7mn bbls. 13.7mn!! "Don't worry, demand is up," he says. Where? I can't see it. This is like the hardest Where's Wally ever! Okay, I know it's cold in the US at the moment, but 13.7mn bpd is not down to unforeseen weather shutting ports. Refinery utilisation is 96.7%. That's a 12-year high. When is the market going to realize that the US is banging out as much crude and as many products as they possibly can? Until OPEC decide to stop the production cuts and then everyone will take their hands off their eyes and say "Wow! Look how much the US are producing!" I mentioned a few weeks ago that the market will start looking less and less at EIA data as the weekly pivot point for where prices should be heading directionally, and I think this has now been evidenced. I would be interested to see the number of trades going through five minutes after EIA data is released in December 2017 compared to 2016, though. The new weekly pivot point is going to be the US rig count; and with WTI comfortably above $60, who can see it falling?

Fuel Oil Market (January 4)

The front crack opened at -10.00, strengthening to -9.70, before weakening to -9.90. The Cal 19 was valued at -11.00.

Asia's January visco spread fell to its lowest in 1-1/2 years on Thursday amid falling demand for low-viscosity fuel oils, traders said.

Demand for low-viscosity fuel oils was hit at the end of 2017 when Pakistan said it had indefinitely suspended fuel oil imports, significantly reducing demand for the fuels which are used in power generation.

Singapore fuel oil inventories fell 10%, or 2.462 million barrels , to a two-week low of 22.728 million barrels in the week ended Jan. 3.

This came despite a 149% jump in fuel oil net imports into Singapore, which climbed to a 33-week high of 1.457 million tonnes, as imports climbed to a 10-week high and exports fell to a seven-week low.

Economic Data and Events

* 6pm: Baker Hughes U.S. Rotary Oil Rigs, period Jan 5, prior 747

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

* 8:30pm: CFTC weekly commitments of traders report on various U.S. futures and options contracts

* Today: Venezuela Crude Oil Basket CNY, period Jan 5

Singapore 380 cSt

Feb18 - 376.50 / 378.50

Mar18 - 376.75 / 378.75

Apr18 - 376.75 / 378.75

May18 - 376.50 / 378.50

Jun18 - 376.00 / 378.00

Jul18 - 374.75 / 376.75

Q2-18 - 376.25 / 378.25

Q3-18 - 373.75 / 375.75

Q4-18 - 369.25 / 371.75

Q1-19 - 361.50 / 364.00

CAL19 - 340.50 / 343.50

CAL20 - 289.50 / 294.50

Singapore 180 cSt

Feb18 - 380.25 / 382.25

Mar18 - 381.25 / 383.25

Apr18 - 381.25 / 383.25

May18 - 381.25 / 383.25

Jun18 - 381.25 / 383.25

Jul18 - 380.25 / 382.25

Q2-18 - 381.25 / 383.25

Q3-18 - 379.25 / 381.25

Q4-18 - 375.25 / 377.75

Q1-19 - 369.25 / 371.75

CAL19 - 349.00 / 352.00

CAL20 - 298.25 / 303.25

Rotterdam Barges

Feb18 363.25 / 365.25

Mar18 364.00 / 366.00

Apr18 364.00 / 366.00

May18 363.75 / 365.75

Jun18 362.75 / 364.75

Jul18 361.50 / 363.50

Q2-18 363.50 / 365.50

Q3-18 359.50 / 361.50

Q4-18 350.75 / 353.25

Q1-19 342.75 / 345.25

CAL19 320.00 / 323.00

CAL20 268.00 / 273.00



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.






Related Links:

Oil and fuel oil hedging market update
Freight Investor Services Ltd.

Latest News:

Gaseous fuels 'the only way forward': MAN CSO
Fluxys and Novatek sign Rostock lease for LNG terminal, bunkering
ExxonMobil launches new Mobilgard lube for high-speed diesel engines
Oil market closed higher following API draw
Oil and fuel oil hedging market update
GTT and Dongsung Finetec sign MoU to market LNG Brick bunker tank
IMO 2020: Ship managers 'concerned' about impact on crew safety
Royal Caribbean to offset up to 12% of carbon emissions via wind farm
K Line predicts deeper losses on higher bunker prices
ONE revises earnings and bunker price forecasts downwards
Oil and fuel oil hedging market update
New opportunities emerge for producers as Iranian sanctions draw closer




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
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