Fri 24 Nov 2017, 08:43 GMT

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


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