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Thu 9 Nov 2017, 09:02 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed down $0.20 last night to $63.49 and WTI closed at $56.81, down $0.39. Honestly what is the point of API numbers? Why does the market react off numbers that are wrong at least 60 pct of the time compared to actual data published by EIA? Crude showed a build last week in the US - which shouldn't surprise anyone; they are producing so much that it has to go somewhere. I think this may be the shape of things to come for a while as well.

Fuel Oil Market (November 8)

The front crack opened at -8.05, weakening to -8.50, before strengthening to -8.05. The Cal 18 was valued at -7.60.

The EW arbitrage spread of 380 cSt fuel oil narrowed amid no shortage of fuel oil inflows into Singapore as well as weaker fuel oil prices in the city-state relative to Rotterdam prices.

Despite the narrower spread, sources said arbitrage opportunities between northwest Europe and Singapore remain 'workable', but is unlikely to attract many large fixtures amid ample near-term inventories and as the year draws to an end.

Fujairah inventories fell 743,000 barrels (or about 111,000 tonnes) to 8.641 million barrels (1.29 million tonnes) in the week to Nov. 6.

CMA CGM said it would use liquefied natural gas to power nine extra-large vessels it has ordered, in a first for an industry grappling with 2020 regulations.

Economic Data/Events: (UK times)

* 1:30pm: U.S. Initial Jobless Claims, Nov. 4, est. 232k (prior 229k)

* 1:30pm: U.S. Continuing Claims, Oct. 28, est. 1,885k (prior 1,884k)

* 2:45pm: Bloomberg Consumer Comfort, Nov. 5 (prior 51.7)

* 3pm: U.S. Wholesale Inventories m/m, Sept. F, est. 0.3% (prior 0.3%)

* 8:45pm: Bloomberg oil trading panel, with Peter Sherk, CEO Americas at Mercuria Energy Trading

* Russian refining maintenance schedule from ministry

Singapore 380 cSt

Dec17 - 369.50 / 371.50

Jan18 - 368.00 / 370.00

Feb18 - 366.50 / 368.50

Mar18 - 365.00 / 367.00

Apr18 - 363.50 / 365.50

May18 - 362.00 / 364.00

Q1-18 - 366.50 / 368.50

Q2-18 - 362.00 / 364.00

Q3-18 - 356.75 / 359.25

Q4-18 - 351.25 / 353.75

CAL18 - 359.00 / 362.00

CAL19 - 318.75 / 323.75

Singapore 180 cSt

Dec17 - 374.00 / 376.00

Jan18 - 373.00 / 375.00

Feb18 - 372.00 / 374.00

Mar18 - 371.00 / 373.00

Apr18 - 369.75 / 371.75

May18 - 368.75 / 370.75

Q1-18 - 372.00 / 374.00

Q2-18 - 368.00 / 370.00

Q3-18 - 363.50 / 366.00

Q4-18 - 358.00 / 360.50

CAL18 - 365.25 / 368.25

CAL19 - 327.50 / 332.50

Rotterdam 380 cSt

Dec17 350.25 / 352.25

Jan18 349.25 / 351.25

Feb18 348.25 / 350.25

Mar18 347.50 / 349.50

Apr18 346.50 / 348.50

May18 345.50 / 347.50

Q1-18 348.25 / 350.25

Q2-18 345.75 / 347.75

Q3-18 340.75 / 343.25

Q4-18 331.75 / 334.25

CAL18 341.25 / 344.25

CAL19 297.25 / 302.25

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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.
Petrobras logo. Petrobras doubles invoiced price of MGO and LSMGO  

Export tax by Brazil's federal government forces Petrobras to double distillate invoice values.
Bunkering of Viking Line's Viking Glory by a Gasum vessel in Turku, Finland. Gasum renews FuelEU Maritime pooling partnerships with Viking Line and Wallenius SOL  

Nordic energy company extends compliance pooling arrangements with two shipping companies operating bio-LNG vessels.
Naming ceremony for CMA CGM Carmen on 18 March 2026. CMA CGM names methanol-powered container ship CMA CGM Carmen  

French shipping line christens 15,000-teu vessel as part of its alternative fuel fleet expansion.




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