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


Valiant Lady connected to the shore power system. Portsmouth International Port makes first commercial shore power connection with cruise ship  

Virgin Voyages’ Valiant Lady plugs into Portsmouth International Port’s shore power system, with two ships connected simultaneously.

Philippos Ioulianou, EmissionLink. EmissionLink calls for fairer EU ETS expansion and greater reinvestment in maritime decarbonisation  

Emissions compliance specialist warns that broader coverage alone will not deliver practical decarbonisation.

Peninsula and Evos logo. Peninsula and Evos sign MoU to develop biofuel storage at Algeciras terminal  

Partnership aims to develop up to 60,000 cbm of dedicated biofuel storage capacity at the Strait of Gibraltar.

Bow Tanaka vessel. Odfjell names chemical tanker with wind-assisted propulsion at Japanese yard  

40,000-dwt stainless-steel supersegregator is claimed to improve energy efficiency by up to 50%.

Hong Kong skyline. Towngas calls for Hong Kong 'Energy Office' and green certification hub in five-year plan proposals  

Hong Kong’s gas utility submits eight-point plan to shape the city’s energy future to 2030.

Malik Supply logo. Malik Supply seeks bunker trader for Dubai office expansion  

Danish firm looking for experienced professionals with a minimum of two years in bunker trading.

Greenergy River vessel. NYK joint venture names first China-built dual-fuel LNG carrier in six-vessel CNOOC series  

174,000-cbm vessel uses both fuel oil and boil-off gas as fuel.

Steve Esau, Sea-LNG. Anew Climate joins SEA-LNG coalition to advance bio-LNG adoption in the maritime sector  

North American low-carbon fuels company brings liquefied biomethane supply to the coalition.

Na Hiro E Pae vessel. Wind propulsion breaks new ground on French Polynesian multipurpose vessel  

Bound4blue installs its eSAIL on what is believed to be the world’s first multipurpose vessel fitted with wind propulsion.

Levante LNG vessel. Peninsula outlines case for bio-LNG as near-term emissions pathway for LNG-fuelled vessels  

Company says bio-LNG offers operators a practical route to emissions cuts using existing infrastructure.