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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

Marius Kairys, CEO of Elenger Sp. z o.o. Elenger enters Polish LNG bunkering market with ferry refuelling operation  

Baltic energy firm completes maiden truck-to-ship LNG delivery in Gdansk.
Samsung Heavy Industries (SHI) virtual reality (VR) training program developed in collaboration with Evergreen. SHI develops VR training solutions for Evergreen's methanol-fuelled ships  

Shipbuilder creates virtual reality program for 16,500 TEU boxship operations.
Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. Itochu orders 5,000 cbm ammonia bunker vessel  

Japanese firm targets Singapore demonstration after October 2027, with Zeta Bunkering lined up to perform deliveries.
Bunkering of the Glovis Selene car carrier. Shell completes first LNG bunkering operation with Hyundai Glovis in Singapore  

Energy major supplies fuel to South Korean logistics firm's dual-fuel vessel.
Orient Overseas Container Line (OOCL) vessel. CPN delivers first B30 marine gasoil to OOCL in Hong Kong  

Chimbusco Pan Nation claims to be first in region to supply all grades of ISCC-EU certified marine biofuel.
The Buffalo 404 barge, owned by Buffalo Marine Service Inc., performing a bunker delivery. TFG Marine installs first ISO-certified mass flow meter on US Gulf bunker barge  

Installation marks expansion of company's digitalisation programme across global fleet.
Sogestran's fuel supply vessel, the Anatife, at the port of Belle-Île-en-Mer. Sogestran's HVO-powered tanker achieves 78% CO2 reduction on French island fuel runs  

Small tanker Anatife saves fuel while supplying Belle-Île and Île d'Yeu.
Crowley 1,400 TEU LNG-powered containership, Tiscapa. Crowley deploys LNG-powered boxship Tiscapa for Caribbean and Central American routes  

Vessel is the third in company's Avance Class fleet to enter service.
The inland LNG bunker vessel LNG London. LNG London completes 1,000 bunkering operations in Rotterdam and Antwerp  

Delivery vessel reaches milestone after five years of operations across ARA hub.
The M.V. COSCO Shipping Yangpu, China's first methanol dual-fuel containership. COSCO vessel completes maiden green methanol bunkering at Yangpu  

China's first methanol dual-fuel containership refuels with green methanol derived from urban waste.

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