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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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The 93,000-cbm Areion can run on LPG or fuel oil and transport ammonia cargoes.
FSRU Toscana alongside Green Zeebrugge vessel. RINA awards ISCC EU certification to OLT Offshore LNG Toscana for bio-LNG supply  

Certification enables bio-LNG use in the EU as a renewable fuel under RED II and RED III directives.
World Shipping Council at IMO meeting. WSC calls for safe maritime corridor as 20,000 seafarers remain trapped in the Persian Gulf  

Industry body urges IMO member states to establish safe passage and supply access.
Graphic promoting Auramarine webinar titled 'Sustainable Fueling Part 3: Ammonia - next alternative fuel in marine'. Auramarine to host webinar on ammonia as marine fuel in April  

Finnish firm will explore ammonia’s role in maritime decarbonisation at its third spring webinar.
Front cover of study by WinGD and Envision Energy titled 'Renewable Fuel Economics: An OPEX illustration based on current costs'. Green ammonia could reach cost parity with VLSFO and LNG by 2050, study finds  

WinGD and Envision Energy study projects green ammonia operational costs competitive with conventional marine fuels.
Elenger Marine's LNG bunkering vessel Optimus alongside Brittany Ferries’ Saint-Malo. Bureau Veritas verifies methane emissions on Brittany Ferries’ LNG vessels  

Verification enables ferry operator to report measured methane slip instead of regulatory default values.
Map showing existing and planned Emission Control Areas (ECAs). Alliance calls for urgent black carbon action as new Arctic emission control areas take effect  

Canadian Arctic and Norwegian Sea ECAs now in force, with compliance deadline set for March 2027.
Artistic impression of battery-electric ferry for operation on Perth’s Swan River. Lloyd’s Register to class Western Australia’s first electric ferry fleet  

Echo Marine Group partners with Lloyd’s Register on five battery-electric ferries for Perth’s Swan River.
Thomas Kazakos, secretary general of The International Chamber of Shipping (ICS). ICS condemns Middle East shipping attacks as 20,000 seafarers remain trapped  

Industry body calls for urgent state action to resupply vessels and enable crew changes.
Molslinjen ferry illustration. Molslinjen order propels Australia to top of battery vessel production rankings  

Danish ferry operator’s three-catamaran order at Incat Tasmania shifts global manufacturing landscape, analysis shows.




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