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Wed 21 Sep 2016, 07:56 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

By the Oil Desk at Freight Investor Services Ltd.

Brent closed down 0.07 last night to $45.88 and Nov WTI closed up 0.19 to $44.05. We were off around 0.70 cents at one stage yesterday before OPEC came out and said "the deal we are looking at will be for one year". Am I being stupid? Have I missed something? What deal!?! It can't be about freezing production, if it is we all know demand is weak at the moment so even with a freeze (which would still mean OPEC production is at record levels) we will still be in on oversupplied market, so it can't be that. Will there be a cut? No way Jose. So what is this deal? I'm intrigued but I'm not optimistic about anything actually coming out of any meeting/coffee breaks/sauna discussions etc etc. Boing at 45 and boing at 50. If everyone is happy about that range then why do we need to keep on talking about it? API claim there will be a big draw on crude stocks later. Interesting, it seems those 12mn bbls the other week did disappear. If anyone finds them please return.

OPEC may turn planned informal meeting in Algiers next week into a formal session, Algerian Energy Minister Noureddine Bouterfa said. EIA to release weekly oil inventory report at 3:30pm London time.

Economic data/events

* OIL FUTURES: WTI rises to trade near $45 ahead of OPEC meeting.
* 12pm: U.S. MBA mortgage applications, Sept. 16, prior 4.2%.
* 3:30pm: EIA to release weekly oil inventory report.
* 7pm: Federal Reserve decision on interest rates.
* Today: Climate Week, New York City, 3rd day of 7.
* Today: CEE & Turkey Refining & Petrochemicals Summit, Izmir, final day.
* Today: Shale Insight conference in Pittsburgh, 1st day of 2.
* Today: China final Aug. trade data.
* Today: Rystad Energy's Oil & Gas Summit, Houston, final day.
* Today: Alaska Oil & Gas Congress, Anchorage, final day.
* Today: Gulf Keystone 1H earnings; Total SA's investor day.

Singapore 380 cSt

Oct16 - 251.00 / 253.00
Nov16 - 249.50 / 251.50
Dec16 - 248.25 / 250.25
Jan17 - 247.25 / 249.25
Feb17 - 247.00 / 249.00
Mar17 - 247.00 / 249.00
Q4-16 - 248.00 / 251.00
Q1-17 - 245.75 / 248.75
Q2-17 - 246.00 / 250.00
Q3-17 - 247.75 / 251.75
CAL17 - 249.75 / 253.75
CAL18 - 262.50 / 268.50
CAL19 - 276.50 / 284.50

Singapore 180 cSt

Oct16 - 257.00 / 259.00
Nov16 - 255.25 / 257.25
Dec16 - 254.50 / 256.50
Jan17 - 253.00 / 255.00
Feb17 - 253.25 / 255.25
Mar17 - 253.25 / 255.25
Q4-16 - 253.75 / 256.75
Q1-17 - 252.00 / 255.00
Q2-17 - 253.00 / 257.00
Q3-17 - 254.75 / 258.75
CAL17 - 256.50 / 260.50
CAL18 - 271.00 / 277.00
CAL19 - 285.50 / 293.50

Rotterdam 3.5%

Oct16 235.50 / 237.50
Nov16 232.50 / 234.50
Dec16 230.25 / 232.25
Jan17 231.50 / 233.50
Feb17 232.50 / 234.50
Mar17 233.00 / 235.00
Q4-16 232.25 / 235.25
Q1-17 231.75 / 234.75
Q2-17 233.00 / 237.00
Q3-17 235.00 / 239.00
CAL17 234.75 / 238.75
CAL18 244.75 / 250.75
CAL19 256.75 / 264.75


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.

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