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



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.

PetroChina Petroineos Trading logo. PetroChina International seeks bunker trader for London or Rotterdam role  

Company aims to expand sustainable marine fuel portfolio and strengthen ARA region presence.

Stena Connecta vessel. Stena Line deploys methanol-ready freight vessel with rotor sails on Belfast-Heysham route  

Stena Connecta joins sister ship in £100m investment to boost Irish Sea freight capacity.

Jacqui Taylor, Global Fuel Supply. Global Fuel Supply opens Cape Town office, hires senior fuel supplier  

Bunker firm establishes South African hub, appointing experienced regional specialist.

Business handshake. Riviera Marine incorporates The Bunker Firm Group in consolidation move  

Monaco-based bunker trader absorbs Danish group, creating combined entity with offices across five cities.

Aerial photograph of ships at sea. Uni-Fuels adds EU carbon allowances to marine fuel offering  

Singapore-based company expands services to help shipowners meet EU emissions trading compliance requirements.

Compagnie Maritime Nantaise and Bpifrance logo side by side. Compagnie Maritime Nantaise wins Bpifrance backing for space logistics vessel decarbonisation project  

French shipowner to develop hybrid propulsion system combining rigid wings, thermal engines, and digital twin.


↑  Back to Top


 Recommended