Mon 20 Nov 2017, 09:25 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent crude futures, the international benchmark for oil prices, were at $62.47 per barrel at 0752 GMT, down $25 cents, or 0.4 percent, from their last close. U.S. WTI crude futures were at $56.57 a barrel, up just $2 cents from their last settlement. Like over-milky tea, it seems that this week is off to a disappointing start. But like that milky tea, we are going to drink up the news stories about the extension cut agreement anyway. The pre-negotiations for the cut agreement will be beginning, and it seems that it's going to be a struggle between the Saudis and non-OPEC countries, especially Russia. There is a bit more wiggle room now that Venezuelan production is slowly falling to the 300,000 bpd mark. But like ordering food abroad on holiday in a language you don't really understand, you are sure that there is going to be food, but no idea what form it will take There will be an agreement, but who, from where, in what form is yet to be seen.

Fuel Oil Market (November 17)

The front crack opened at -7.80, weakening to -7.95, before strengthening to -7.80, ending at -7.90. The Cal 18 was valued at -7.95.

Fuel oil cracks firmed on Friday, extending gains for a third straight session and ending the week slightly higher amid weaker crude oil prices and lower inventories of the industrial fuel across key storage hubs.

Stocks in the ARA snapped three weeks of builds, falling 9%, or 126,000 tonnes, from the previous week to a total of 1.287 million tonnes in the week ended Nov. 16. Current ARA fuel oil inventories are 10% higher compared with a year ago, and are above the five-year average of 1.003 million tonnes for this time of the year.

Vermont UM Bunkering Pte Ltd, two directors and a former bunker manager were charged with 150 counts of conspiracy to charge customers for more marine fuels than actually delivered

Economic Data/Events: (UK times)

* 1:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* Today, no exact timing:

** Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday EIA report

** JODI issues world oil exports, output data

** Russian Urals 10-day crude loading program (today or Tuesday)

** Dec. WTI futures expire

Singapore 380 cSt

Dec17 - 363.00 / 365.00

Jan18 - 361.25 / 363.25

Feb18 - 359.75 / 361.75

Mar18 - 358.25 / 360.25

Apr18 - 356.50 / 358.50

May18 - 354.75 / 356.75

Q1-18 - 359.75 / 361.75

Q2-18 - 355.00 / 357.00

Q3-18 - 349.75 / 352.25

Q4-18 - 344.75 / 347.25

CAL18 - 352.75 / 355.75

CAL19 - 318.25 / 323.25

Singapore 180 cSt

Dec17 - 367.00 / 369.00

Jan18 - 365.25 / 367.25

Feb18 - 364.50 / 366.50

Mar18 - 363.50 / 365.50

Apr18 - 362.25 / 364.25

May18 - 361.50 / 363.50

Q1-18 - 364.25 / 366.25

Q2-18 - 361.25 / 363.25

Q3-18 - 356.25 / 358.75

Q4-18 - 351.25 / 353.75

CAL18 - 359.00 / 362.00

CAL19 - 327.00 / 332.00

Rotterdam 380 cSt

Dec17 343.75 / 345.75

Jan18 342.75 / 344.75

Feb18 342.00 / 344.00

Mar18 341.25 / 343.25

Apr18 340.25 / 342.25

May18 339.25 / 341.25

Q1-18 342.00 / 344.00

Q2-18 339.50 / 341.50

Q3-18 334.50 / 337.00

Q4-18 326.00 / 328.50

CAL18 335.50 / 338.50

CAL19 297.00 / 302.00

BP  

Andre M ammonia-fuelled gas carrier. China delivers first domestically built ammonia-fuelled gas carrier  

CCS-classed vessel becomes the world's second ammonia-fuelled gas carrier, testing rules for the IMO's zero-carbon shipping transition.

Nordion Energi liquefied biogas (LBG) facility render. Storage tank installed as Gothenburg's LBG bunkering plant advances towards 2027 completion  

Nordion Energi's liquefied biogas facility at the Port of Gothenburg takes a step forward with tank installation.

Maran Myron vessel. Maran Tankers takes delivery of dual-fuel Suezmax Maran Myron  

Vessel is sixth dual-fuel tanker in eight-vessel series built by New Times Shipbuilding.

Lake Victoria truck-to-ship (TTS) bunkering operation. EPS completes first truck-to-ship LNG bunkering operation in Davisville  

Fuel delivered to the pure car and truck carrier Lake Victoria whilst at berth.

Maritime and Port Authority of Singapore logo. MPA opens applications for LNG floating storage unit licences  

Singapore invites applications for up to two LNG floating storage unit licences to bolster bunkering supply resilience.

Rasmus Frimann Nielsen and Lars Zimmermann, Everllence. Everllence's small-bore GenSet orders surpass 2,000 in 2026  

Engine maker reports strong order intake across its small-bore portfolio, citing demand for reliable, fuel-flexible auxiliary power.

MT Tulip bunker tanker. Bunker One renews MT Tulip charter, plans mass flow meter upgrade in Mauritius  

Bunker One is keeping its bunker tanker in Mauritius while adding flow metering technology to improve delivery transparency.

COP31 panel discussion. Fund for Energy Efficiency Technologies becomes first to adopt revised Singapore-Asia Taxonomy  

FEET's adoption coincides with Lloyd's Register's independent review of GCMD's methodology for quantifying fuel savings from wind-assisted propulsion systems.

Arsenio Dominguez, IMO Secretary-General. IMO chief urges states to enforce safety rules in Strait of Hormuz amid rising attacks  

Arsenio Dominguez says more than 130 attacks on commercial vessels have been verified since February, with at least 25 seafarers killed.

OOCL Wisdom ship-to-ship (STS) bunkering operation at Xiamen Port. Xiamen Port launches 'green methanol bunkering' with OOCL Wisdom  

Boxship received 1,005 tonnes of methanol, corresponding to a reduction of more than 1,600 tonnes in carbon emissions, says COSCO Shipping.