This is a legacy page. Please click here to view the latest version.
Mon 29 Jan 2018, 09:13 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent crude futures held above $70 per barrel, but were down by $19 cents from their last close at $70.34 a barrel at 07:49 GMT. U.S. WTI crude futures were at $66.19 a barrel, up $5 cents. Fantastic scenes from Roger Federer at the Australian Open, somehow he just manages to keep on going. It's a bit like the oil market, surely it just can't keep on going up, when will the reality of the situation bring it crashing down? The story of the U.S. dollar is an interesting factor, too. I've been so used to it at $1.3 to the pound that checking the level was a surprise up at $1.42. The description of U.S. fiscal policy as 'loose' by the media is a kind description and the resulting weakening of the currency seems to go against the aims of the current administration. Again it seems to be a toss up between two factors: the expectation that U.S. production will break the 10mil bpd and the technicals showing that there is still room for more upward movement. (Technical jargon time: there is this wave named after a bloke called Elliott, and he really likes the number 5; the next move up on Brent would signal this 5, proving that everything will move up higher). Think the market has shown a top out level just over $71, and perhaps a correction back to $68 with the emphasis on the U.S. production.

Fuel Oil Market (January 26)

The front crack opened at -11.65, weakening to -11.80, moving back to -11.65, closing at -11.70. The Cal 19 was valued at -16.00.

Asia's front-month visco spread climbed to a near sixmonth high on Friday after nearly three weeks of sustained buying interest, trade and broker sources said.

This came despite limited signs of narrowing low-viscosity fuel oil supplies, according to some industry participants. Earlier in January, the front-month visco spread sank to a near two-year low amid declining demand for lowviscosity fuel oils after Pakistan said it had indefinitely suspended fuel oil imports.

Fuel oil stocks in the ARA oil hub jumped 28 percent, or 232,000 tonnes, from the previous week to a five-week high of 1.048 million tonnes in the week ended Jan. 25, data from Dutch consultancy PJK International showed. A closed arbitrage from Europe to Asia Pacific drove fuel oil stocks higher.

Economic Data and Events

* Chatham House Middle East & North Africa Energy conference, London; speakers include Iraq Oil Minister Jabbar Al-Luaibi, Libya National Oil Corp. Chairman Mustafa Sanalla, ENI CEO Claudio Descalzi; 1st day of 2

* Oseberg loading program for March

* BHGE annual meeting, Florence, featuring executives from Saudi Aramco, Shell, EnQuest, Rosneft, Eni, 1st day of 2

* Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday's EIA report

Singapore 380 cSt

Feb18 - 382.50 / 384.50

Mar18 - 382.50 / 384.50

Apr18 - 382.00 / 384.00

May18 - 381.50 / 383.50

Jun18 - 380.75 / 382.75

Jul18 - 379.50 / 381.50

Q2-18 - 381.25 / 383.25

Q3-18 - 377.50 / 379.50

Q4-18 - 372.00 / 374.50

Q1-19 - 362.75 / 365.25

CAL19 - 322.50 / 325.50

CAL20 - 255.25 / 260.25

Singapore 180 cSt

Feb18 - 388.50 / 390.50

Mar18 - 388.25 / 390.25

Apr18 - 388.00 / 390.00

May18 - 387.50 / 389.50

Jun18 - 386.75 / 388.75

Jul18 - 385.50 / 387.50

Q2-18 - 387.25 / 389.25

Q3-18 - 383.75 / 385.75

Q4-18 - 378.00 / 380.50

Q1-19 - 368.75 / 371.25

CAL19 - 330.50 / 333.50

CAL20 - 264.50 / 269.50

Rotterdam Barges

Feb18 368.00 / 370.00

Mar18 369.00 / 371.00

Apr18 368.75 / 370.75

May18 368.00 / 370.00

Jun18 367.00 / 369.00

Jul18 365.50 / 367.50

Q2-18 368.00 / 370.00

Q3-18 363.00 / 365.00

Q4-18 352.75 / 355.25

Q1-19 342.50 / 345.00

CAL19 301.50 / 304.50

CAL20 226.50 / 231.50


Petrobras and Transpetro signing ceremony. Petrobras and Transpetro order 41 vessels worth $470m for fleet renewal  

Brazilian state oil companies contract gas carriers, barges and pushboats from domestic shipyards.

European Commission headquarters. EU proposes phase-out of high-risk biofuels from renewable energy targets by 2030  

Draft regulation sets linear reduction trajectory starting in 2024, with contribution reaching zero by end of decade.

Vessel with H2SITE ammonia cracking system. H2SITE launches Norwegian subsidiary to advance ammonia-to-power technology for maritime sector  

Spanish technology firm establishes Bergen hub to accelerate deployment of ammonia cracking systems for shipping.

CMA CGM Monte Cristo vessel. CMA CGM names 400th owned vessel as methanol-fuelled containership  

French shipping line reaches fleet ownership milestone with 15,000-teu dual-fuel methanol vessel.

Methanol bunkering operation at Yantian Port. Wah Kwong adds China’s first dual-fuel methanol bunkering vessel to managed fleet  

Da Qing 268 completed maiden operation at Shenzhen’s Yantian Port on 21 January.

Tomas Harju-Jeanty and Kalle Härkki. Sumitomo SHI FW licenses VTT syngas technology for sustainable fuels plants  

Agreement enables production of green methanol and SAF from biowaste for global gasification projects.

Hydromover 1.0 vessel. Yinson GreenTech launches upgraded electric cargo vessel in Singapore, expands to UAE  

Hydromover 2.0 offers increased energy storage capacity and can be fully recharged in under two hours, says designer.

Nildeep Dholakia, Island Oil. Island Oil appoints Nildeep Dholakia as senior trader in Dubai  

Marine fuel supplier expands Dubai team as part of regional growth strategy.

Wind-assisted LNG carrier AIP certification ceremony. Dalian Shipbuilding's wind-assisted LNG carrier design receives Bureau Veritas approval  

Design combines dual-fuel propulsion with foldable wing sails to cut emissions by 2,900 tonnes annually.

Dual naming ceremony of the GH Angelou and GH Christie vessels. Anglo-Eastern adds two methanol-ready Suezmax tankers to managed fleet  

GH Angelou and GH Christie were christened at HD Hyundai Samho Shipyard on 5 January.


↑  Back to Top


 Recommended