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Fri 30 Jun 2017, 07:50 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 up $0.09 last night to $47.42 and WTI closed up $0.19 at $44.93. So what has the week brought us? Well, Brent has been on stealth mode all week it seems and has risen 5% week-on-week. Where did that come from? I mean, I don't really see what factors are there to really support prices for its biggest rise in 6 weeks. Libya production is now at 1mn bpd and I'm sure Nigeria aren't far behind increasing their production as well. EIA data was hardly bullish, even though production was slightly down, but Brent has risen regardless. Perhaps $45 was the 'floor'. I personally think it's just people taking some profit for the end of Q2, as we have witnessed quite a sell-off on crude since the middle of May. I only think we will see a proper recovery on prices the minute the US rig count starts to level off. People have been harping on about the fact that US production has filled the void the OPEC cuts left behind, so if we start to see the rig count level off then this may give the bulls the encouragement to pile in to the market and drive us back up before the rig count rises again and back down we go to $45.

Economic Data/Events: (UK times)

* 1:30pm: U.S. Personal Income, May

* 2:45pm: Chicago Purchasing Manager, June

* 3pm: University of Michigan Sentiment, June (final)

* 6pm: Baker Hughes weekly U.S. oil, gas rig counts

* 8:30pm: Commodity Futures Trading Commission weekly scheduled report on futures and options positions

* Today:

** EIA releases monthly Crude Oil and Natural Gas Production report (914)

** EIA releases Petroleum Supply Monthly and related reports

Singapore 380 cSt

Jul17 - 290.25 / 292.25

Aug17 - 288.50 / 290.50

Sep17 - 286.75 / 288.75

Oct17 - 285.00 / 287.00

Nov17 - 284.00 / 286.00

Dec17 - 283.25 / 285.25

Q3-17 - 288.50 / 290.50

Q4-17 - 283.75 / 285.75

Q1-18 - 281.75 / 284.25

Q2-18 - 281.50 / 284.50

CAL18 - 282.25 / 285.75

CAL19 - 279.25 / 284.75

CAL20 - 258.75 / 266.75

Singapore 180 cSt

Jul17 - 295.75 / 297.75

Aug17 - 294.00 / 296.00

Sep17 - 292.50 / 294.50

Oct17 - 291.25 / 293.25

Nov17 - 290.50 / 292.50

Dec17 - 289.75 / 291.75

Q3-17 - 294.25 / 296.25

Q4-17 - 290.25 / 292.25

Q1-18 - 288.75 / 291.25

Q2-18 - 288.75 / 291.75

CAL18 - 289.50 / 293.00

CAL19 - 287.25 / 292.75

CAL20 - 267.75 / 275.75

Rotterdam 380 cSt

Jul17 277.50 / 279.50

Aug17 273.50 / 275.50

Sep17 270.75 / 272.75

Oct17 268.25 / 270.25

Nov17 266.00 / 268.00

Dec17 263.75 / 265.75

Q3-17 274.00 / 276.00

Q4-17 266.50 / 268.50

Q1-18 266.25 / 268.75

Q2-18 267.75 / 270.75

CAL18 267.00 / 270.50

CAL19 261.75 / 267.25

CAL20 238.25 / 246.25


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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