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Mon 27 Nov 2017 08:50

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Fuel Oil Market (November 24)

The front crack opened at -8.60, weakened to -8.70, before strengthening to -8.85. The Cal 18 was valued at -8.00.

Expectations of rising arbitrage supplies into Singapore in December weighed on the front-month time spreads and pushed refining margins of the fuel to fresh multi-week lows on Friday.

Meanwhile, tighter spot availability of finished bunker grade 380 cSt high-sulphur fuel oil in Singapore kept ex-wharf premiums of the fuel elevated this week at premiums around $3-$5 a tonne with several suppliers quoting the earliest spot availabilities around Dec. 1.

Fuel oil stocks in ARA oil hub fell for a second week straight, down 18 percent, or 238,000 tonnes, from the previous week to a total of 1.049 million tonnes in the week ended Nov. 23. Compared to the same time last year, however, ARA fuel oil inventories are 61 percent higher.

Economic Data/Events: (UK times)

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

* 3pm: U.S. New Home Sales for October

* 3:30pm: Dallas Fed. Manf Activity for November

* Today, no exact timing:

** Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillate inventories

** OPEC delegates may start to arrive in Vienna for meeting Thursday

** CFTC weekly commitments of traders report for data on various U.S. futures and options contracts (from Friday, postponed due to U.S. Holiday)

Singapore 380 cSt

Dec17 - 363.00 / 365.00

Jan18 - 361.75 / 363.75

Feb18 - 360.75 / 362.75

Mar18 - 359.50 / 361.50

Apr18 - 358.25 / 360.25

May18 - 357.00 / 359.00

Q1-18 - 360.75 / 362.75

Q2-18 - 357.00 / 359.00

Q3-18 - 351.75 / 354.25

Q4-18 - 346.50 / 349.00

CAL18 - 355.25 / 358.25

CAL19 - 320.75 / 325.75

Singapore 180 cSt

Dec17 - 367.25 / 369.25

Jan18 - 366.00 / 368.00

Feb18 - 365.50 / 367.50

Mar18 - 364.75 / 366.75

Apr18 - 364.00 / 366.00

May18 - 363.75 / 365.75

Q1-18 - 365.50 / 367.50

Q2-18 - 363.25 / 365.25

Q3-18 - 358.25 / 360.75

Q4-18 -353.00 / 355.50

CAL18 - 361.50 / 364.50

CAL19 - 329.50 / 334.50

Rotterdam 380 cSt

Dec17 344.50 / 346.50

Jan18 344.75 / 346.75

Feb18 344.75 / 346.75

Mar18 344.50 / 346.50

Apr18 344.25 / 346.25

May18 343.75 / 345.75

Q1-18 344.75 / 346.75

Q2-18 342.50 / 344.50

Q3-18 337.50 / 340.00

Q4-18 328.50 / 331.00

CAL18 338.25 / 341.25

CAL19 299.75 / 304.75

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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