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Fri 24 Nov 2017 08:43

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Fuel Oil Market (November 23)

The front crack opened at -8.55, remaining around that level much of the day. The Cal 18 was valued at -7.95.

A lack of buying interest despite lower supplier offers relative to the previous session for physical cargoes of 380 in the Singapore trading window weighed on cash premiums of the mainstay fuel. By contrast, relatively stronger bids for 180 cSt fuel oil cargoes pushed cash differentials of the fuel higher on Thursday but failed to result in any deals.

Higher deal values pushed 380 cSt fuel oil cash premiums to a two-week high while aggressive supplier offers for 180 cSt cargoes dragged cash differentials of the 180 cSt fuel to a near two-week low. Singapore weekly onshore fuel oil inventories slipped 0.5%, or 18,000 tonnes, to 3.51 million tonnes in the week to Nov. 22, official data shows. This came despite a 93% rise in net imports into Singapore to 830,000 tonnes; a 3-week high.

Economic Data/Events: (UK times)

* 6pm: ICE weekly commitments of traders report for Brent, gasoil

* 8:30pm: Commodity Futures Trading Commission weekly scheduled report on futures and options positions

* Today, no exact timing:

** Pemex monthly production and export data for Oct. Mexico energy ministry Oct. data on imports of products and refinery crude processing to follow

** OPEC's Economic Commission Board meets in Vienna to discuss the oil market before the group's ministerial meeting, final day

Singapore 380 cSt

Dec17 - 364.25 / 366.25

Jan18 - 363.00 / 365.00

Feb18 - 361.75 / 363.75

Mar18 - 360.50 / 362.50

Apr18 - 359.25 / 361.25

May18 - 358.00 / 360.00

Q1-18 - 361.75 / 363.75

Q2-18 - 358.00 / 360.00

Q3-18 - 352.75 / 355.25

Q4-18 - 347.50 / 350.00

CAL18 - 356.75 / 359.75

CAL19 - 322.25 / 327.25

Singapore 180 cSt

Dec17 - 368.25 / 370.25

Jan18 - 367.25 / 369.25

Feb18 - 366.50 / 368.50

Mar18 - 365.75 / 367.75

Apr18 - 365.00 / 367.00

May18 - 364.75 / 366.75

Q1-18 - 366.50 / 368.50

Q2-18 - 364.25 / 366.25

Q3-18 - 359.25 / 361.75

Q4-18 -354.00 / 356.50

CAL18 - 363.00 / 366.00

CAL19 - 331.00 / 336.00

Rotterdam 380 cSt

Dec17 345.75 / 347.75

Jan18 345.50 / 347.50

Feb18 345.25 / 347.25

Mar18 345.00 / 347.00

Apr18 344.25 / 346.25

May18 343.25 / 345.25

Q1-18 345.25 / 347.25

Q2-18 343.00 / 345.00

Q3-18 338.00 / 340.50

Q4-18 329.00 / 331.50

CAL18 339.75 / 342.75

CAL19 301.25 / 306.25

Philippe Berterottière and Matthieu de Tugny. GTT unveils cubic LNG fuel tank design for boxships with BV approval  

New GTT CUBIQ design claims to reduce construction time and boost cargo capacity.
Wilhelmshaven Express, Hapag-Lloyd. Hapag-Lloyd secures multi-year liquefied biomethane supply deal with Shell  

Agreement supports container line's decarbonisation strategy and net-zero fleet operations target by 2045.
Dual-fuel ship. Dual-fuel vessels will dominate next decade, says Columbia Group  

Ship manager predicts LNG-powered vessels will bridge gap until zero-carbon alternatives emerge.
Stril Poseidon vessel. VPS campaign claims 12,000 tonnes of CO2 savings across 300 vessels  

Three-month efficiency drive involved 12 shipping companies testing operational strategies through software platform.
Birdseye view of a ship. Gard warns of widespread cat fines surge in marine fuel  

Insurer reports elevated contamination levels, echoing VPS circular in early September.
Christoffer Ahlqvist, ScanOcean. ScanOcean opens London office to expand global bunker trading operations  

New office will be led by Christoffer Ahlqvist, Head of Trading.
Aurora Expeditions' Sylvia Earle. Aurora Expeditions claims 90% GHG reduction in landmark HVO trials  

Sylvia Earle said to be the first Infinity-class ship to trial HVO biofuel.
Molslinjen ferry illustration. Wärtsilä wins contract for electric propulsion systems on two Danish ferries  

Technology group to supply integrated electric systems for Molslinjen's battery-electric catamarans.
Manja Ostertag, Bunker Holding. Bunker Holding executive to address biofuels at Berlin event  

Manja Ostertag will discuss production scaling and supply chain integration at September forum.
Svitzer Ingrid tugboat naming ceremony. Denmark's first electric tug named as Svitzer advances decarbonisation goals  

Svitzer Ingrid said to reduce annual CO₂ emissions by 600-900 tonnes using battery power.




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