Mon 30 Oct 2017, 08:59 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Fuel Oil Market (October 27)

Cracks extend losses, as ARA inventories build. Asia's fuel oil crack fell for a third consecutive session on Friday amid rising fuel oil inventories across key storage hubs over the past week as well as strength in crude oil prices, trade sources said.

Fuel oil stocks in the Amsterdam-Rotterdam-Antwerp (ARA) oil hub rose 6 percent, or 77,000 tonnes, to 1.334 million tonnes in the week to Oct. 26, PJK data showed. ARA Compared to last year, ARA fuel oil inventories are up 122 percent and are well above the five-year average of 793,000 tonnes for this time of year. Few fuel oil exports contributed to the build in inventories, industry sources said.

One outgoing fuel oil cargo was reported over the past week from the ARA hub to Senegal, PJK data showed. This week, official data showed Singapore fuel oil inventories rose 3 percent to a total of 3.75 million tonnes in the week to Oct. 25. Inventories in (FOIZ) were 6 percent higher in the week to Oct. 23 to a total of 1.38 million

Economic Data/Events: (UK times)

* 9:30am: U.K. mortgage approvals for Sept., est. 66k (prior 66.6k)

* 10am: Eurozone consumer confidence for Oct., final, est. -1% (prior -1%)

* 12:30pm: U.S. personal income for Sept., est. 0.4% (prior 0.2%)

** Personal spending for Sept., est. 0.9% (prior 0.1%)

* 1pm: Germany CPI m/m for Oct., prelim., 0.1% (prior 0.1%)

** CPI y/y for Oct., prelim., est. 1.7% (prior 1.8%)

* Today:

** Basra Oil, Gas & Infrastructure conference in Beirut; 1st day of 2

** North Sea Forties, Ekofisk loading programs for December

** Bloomberg forecast of U.S. waterborne LPG exports

** Boomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories

* Earnings:

** Sinopec, PetroChina, Galp

Singapore 380 cSt

Nov17 - 348.00 / 350.00

Dec17 - 346.50 / 348.50

Jan18 - 344.50 / 346.50

Feb18 - 343.00 / 345.00

Mar18 - 341.75 / 343.75

Apr18 - 340.50 / 342.50

Q1-18 - 343.00 / 345.00

Q2-18 - 339.25 / 341.25

Q3-18 - 334.75 / 337.25

Q4-18 - 330.50 / 333.00

CAL18 - 337.75 / 340.75

CAL19 - 306.75 / 311.75

CAL20 - 276.75 / 283.75

Singapore 180 cSt

Nov17 - 352.75 / 354.75

Dec17 - 351.50 / 353.50

Jan18 - 350.00 / 352.00

Feb18 - 349.25 / 351.25

Mar18 - 348.25 / 350.25

Apr18 - 347.25 / 349.25

Q1-18 - 349.00 / 351.00

Q2-18 - 345.75 / 347.75

Q3-18 - 341.25 / 343.75

Q4-18 - 338.00 / 340.50

CAL18 - 344.50 / 347.50

CAL19 - 315.50 / 320.50

CAL20 - 286.50 / 293.50

Rotterdam 380 cSt

Nov17 329.25 / 331.25

Dec17 325.50 / 327.50

Jan18 325.00 / 327.00

Feb18 324.75 / 326.75

Mar18 324.50 / 326.50

Apr18 324.00 / 326.00

Q1-18 324.75 / 326.75

Q2-18 323.25 / 325.25

Q3-18 318.75 / 321.25

Q4-18 311.50 / 314.00

CAL18 319.75 / 322.75

CAL19 284.25 / 289.25

CAL20 253.50 / 260.50


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Fifth ship in Explora Journeys’ six-vessel series is scheduled to enter service in 2027.

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Hong Kong shipowner’s 175,000 cbm newbuild is scheduled for delivery as fleet expansion continues.

Yu Neng Jiao Long vessel. Cosco Shipping takes delivery of 64,900-dwt Panamax crude tanker  

Yu Neng Jiao Long features dual-fuel capability and meets IMO Tier III emission standards.

Fuel for Thought: LNG report. LNG fleet reaches 1,665 vessels as methane slip technology advances  

Lloyd’s Register report highlights economic viability and emissions reduction progress for marine fuel.

Aerial view of Piraeus Harbour in Greece. Bureau Veritas seeks emissions compliance verifier in Piraeus  

Classification society advertises for specialist to verify shipping emissions data under IMO and EU regulations.

We are hiring graphic message with a handshake gesture. Trafigura seeks financial controller for shipping and bunkering operations in Athens  

Role involves accounting and controlling activities for shipping and bunkering entities, reporting to regional controller.

Port in Mauritania. Minerva Bunkering launches Mauritania operation after securing regulatory licence  

Company to supply marine fuels from Nouadhibou and Nouakchott to commercial vessels and offshore installations.

Mercedes Pinto vessel. Baleària's third dual-fuel fast ferry Mercedes Pinto hits 38 knots in sea trials  

The 123-metre vessel is destined for the Canary Islands and can run on biomethane.

TFG Marine and DBS USD 300 million working capital facility graphic. TFG Marine secures $300m DBS facility backed by electronic bunker delivery notices  

Marine fuel supplier’s working capital facility leverages digital documentation to enhance transparency and efficiency.