This is a legacy page. Please click here to view the latest version.
Thu 3 May 2018, 07:55 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed last night at $73.36 up $0.23 and WTI closed up $0.68 to settle at $467.93. Let me tell you a story about logic. My daughter once told me that she was learning about Henry VIII and his six wives at school. The class had to memorise all six of Henry's wives and my daughter could not understand at all why this was important. What is the point of learning about the original gangster and why he had six wives? She wants to learn about how to look at trading patterns or developing a new social media app or something. This was a very valid question. But, I said to her in a bout of wisdom, that Henry VIII single-handedly changed the face of British politics and set up the Church of England as the Catholic faith wouldn't allow him to get divorced and remarry. It's not about his six wives but about looking at history's issues and how they were solved, which will give you in turn a broader understanding of life. She said, "OK thanks Dad, interesting". Now what has this got to do with the oil market? Well, I'll tell you. If she were to say to me: "Dad, I see US crude stocks went up by 6mn bbls and gasoline stocks also rose, but why did the price go up?" To that, I would have no answer. And it's because the market is insane. Does anyone know why the oil market went up last night? US production is at record highs, crude and gasoline stocks are up, yet we actually closed UP! At one point we traded at $72.37 before rebounding, why? Honestly sometimes I'd rather be Anne Boelyn than I would opine on this market. Off with their heads!! Watch the fed. Watch cable. Watch everything...Good day.

Fuel Oil Market (May 2)

The crack was -12 at the close ranging from a strong start up to -11.55 before retracing at the close to -12. Market firms on tight supply outlook, rising demand - Bullish sentiment fuelled by expectations of tight near-term supplies and rising seasonal demand helped boost the promptmonth 380 cSt time spread and fuel oil crack, This came amid ongoing refinery maintenance in Russia as well as upcoming refinery maintenance in Iran which limit fuel oil output as well as fewer exports to Asia from the Middle East to Asia amid rising seasonal demand for power generation, sources said. "Iran ... is gearing up for 0.15 million barrels per day of refinery turnarounds in May, the heaviest since November 2017,"

Economic Data and Events: (Times are London.)

* Japan on holiday

* Russian refining maintenance schedule from ministry

* PJK weekly report on European oil product inventories in ARA region

* EARNINGS: OMV AG

Singapore 380 cSt

Jun18 - 398.50 / 400.50

Jul18 - 395.25 / 397.25

Aug18 - 392.00 / 394.00

Sep18 - 388.75 / 390.75

Oct18 - 385.50 / 387.50

Nov18 - 382.50 / 384.50

Q3-18 - 392.00 / 394.00

Q4-18 - 383.50 / 385.50

Q1-19 - 373.00 / 375.50

Q2-19 - 362.50 / 365.00

CAL19 - 338.75 / 341.75

Singapore 180 cSt

Jun18 - 410.50 / 412.50

Jul18 - 407.25 / 409.25

Aug18 - 403.75 / 405.75

Sep18 - 400.25 / 402.25

Oct18 - 397.00 / 399.00

Nov18 - 393.75 / 395.75

Q3-18 - 403.75 / 405.75

Q4-18 - 395.00 / 397.00

Q1-19 - 384.75 / 387.25

Q2-19 - 374.50 / 377.00

CAL19 - 353.00 / 356.00

Rotterdam Barges

Jun18 - 384.25 / 386.25

Jul18 - 381.00 / 383.00

Aug18 - 377.50 / 379.50

Sep18 - 373.75 / 375.75

Oct18 - 369.25 / 371.25

Nov18 - 364.75 / 366.75

Q3-18 - 377.25 / 379.25

Q4-18 - 365.00 / 367.00

Q1-19 - 354.50 / 357.00

Q2-19 - 342.25 / 344.75

CAL19 - 317.50 / 320.50



TFG Marine relaunches operations in Trinidad and Tobago graphic. TFG Marine relaunches bunker supply operations in Trinidad and Tobago  

Marine fuel supplier returns to Caribbean location after operational hiatus.

Delivery ceremony of the Grande Istanbul vessel. Grimaldi takes delivery of fourth ammonia-ready car carrier Grande Istanbul  

Italian shipowner adds 9,241 CEU vessel to fleet for East Asia–Persian Gulf route.

LCO₂ carrier vessel render. Seven Japanese maritime firms sign MoU on standard design framework for LCO₂ carriers  

Major shipping lines and shipbuilders to collaborate on decarbonisation vessel designs through the MILES platform.

Washington State Hybrid-Electric 160-Auto Ferry vessel render. Washington State Ferries awards ABB hybrid-electric propulsion contract  

ABB to supply systems for first two hybrid-electric ferries in US electrification programme.

IBIA and Hong Kong Shipowners Association MoU signing. IBIA and Hong Kong Shipowners Association sign MoU on marine energy collaboration  

The two organisations have agreed to work together on sustainable shipping initiatives.

Nicklas Mikkelsen, Malik Supply. Malik Supply hires first trader for new Dubai office  

Nicklas Mikkelsen joins Danish bunker supplier ahead of January 2026 launch.

Tallink’s MyStar vessel. Tallink's MyStar joins Gasum's FuelEU Maritime compliance pool using bio-LNG  

Nordic energy company Gasum signs pooling agreement with Elenger to generate compliance surplus.

Methane Abatement in Maritime Innovation Initiative (MAMII) speakers. Maritime coalition gathers in Brussels to advance methane measurement and abatement technologies  

MAMII convenes shipowners, engine makers, and policymakers to accelerate methane reduction from LNG-fueled vessels.

Green oil bubbles. BIMCO delays biofuel clause for time charters to spring 2026  

Maritime organisation pushes back publication to address safety, technical requirements, and industry feedback.

Group photo of participants at the REMPEC expert meeting. Mediterranean moves closer to nitrogen oxide emission controls  

Expert meeting endorses feasibility study with 2032 target for Med NOx ECA implementation.


↑  Back to Top


 Recommended