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Mon 11 Dec 2017, 09:12 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Fuel Oil Market (December 8)

The front crack opened at -9.45, weakening to -9.70 across the day. The Cal 18 was valued at -8.50.

The front-month crack and time spreads of Asia's highsulphur fuel oil extended their losses on Friday as rising inventory levels across key storage hubs and sluggish demand further dampened market sentiment.

Discounts of Asia's front-month 180 cSt fuel oil crack to Dubai crude fell to an eight-month low of $4.09 a barrel on Friday, down from minus $2.86 at the start of the week. Fuel oil stocks in the ARA climbed 24%, or 225,000 tonnes, from the previous week to a total of 1.182 million tonnes in the week ended Dec. 7.

Compared with the same time last year, ARA fuel oil inventories are 61 percent higher, and are above the fiveyear average of 896,000 tonnes for this time of the year. ARA fuel oil stocks rose amid limited exports of fuel oil cargoes.

Economic Data/Events: (UK times)

* 7:30am: Bloomberg Dec. Eurozone Economic survey

* 3pm: U.S. JOLTS Job Openings, Oct.

* Bloomberg forecast of U.S. waterborne LPG exports

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

* Preliminary Caspian CPC loading program for January

Singapore 380 cSt

Jan18 - 352.25 / 354.25

Feb18 - 352.50 / 354.50

Mar18 - 353.00 / 355.00

Apr18 - 353.25 / 355.25

May18 - 353.00 / 355.00

Jun18 - 352.50 / 354.50

Q1-18 - 352.50 / 354.50

Q2-18 - 353.00 / 355.00

Q3-18 - 350.75 / 353.25

Q4-18 - 347.50 / 350.00

CAL18 - 350.25 / 353.25

CAL19 - 319.25 / 324.25

Singapore 180 cSt

Jan18 - 356.75 / 358.75

Feb18 - 357.25 / 359.25

Mar18 - 358.00 / 360.00

Apr18 - 358.75 / 360.75

May18 - 358.75 / 360.75

Jun18 - 358.25 / 360.25

Q1-18 - 357.25 / 359.25

Q2-18 - 358.75 / 360.75

Q3-18 - 357.00 / 359.50

Q4-18 - 354.00 / 356.50

CAL18 - 356.00 / 359.00

CAL19 - 328.00 / 333.00

Rotterdam 380 cSt

Jan18 337.25 / 339.25

Feb18 339.00 / 341.00

Mar18 340.25 / 342.25

Apr18 340.75 / 342.75

May18 340.50 / 342.50

Jun18 340.00 / 342.00

Q1-18 338.75 / 340.75

Q2-18 340.00 / 342.00

Q3-18 336.75 / 339.25

Q4-18 329.50 / 332.00

CAL18 335.25 / 338.25

CAL19 296.25 / 301.25

WinGD methanol and ethanol webinar invitation. WinGD to host webinar on methanol- and ethanol-flexible fuel engine technology  

Engine manufacturer will discuss market outlook, regulations and operational experience with alcohol-based marine fuels.
Peninsula graduate programme group photo. Peninsula opens applications for 2026 graduate programmes in marine fuels trading  

Two-year scheme offers positions across six global locations starting in September, combining hands-on experience with structured development.
Collin She, Oilmar DMCC. Oilmar DMCC promotes Collin She to key account manager role  

She will lead strategic customer relationships and drive growth opportunities in Singapore and the wider region.
Areion vessel. Dorian LPG takes delivery of dual-fuel VLGC capable of carrying ammonia  

The 93,000-cbm Areion can run on LPG or fuel oil and transport ammonia cargoes.
FSRU Toscana alongside Green Zeebrugge vessel. RINA awards ISCC EU certification to OLT Offshore LNG Toscana for bio-LNG supply  

Certification enables bio-LNG use in the EU as a renewable fuel under RED II and RED III directives.
World Shipping Council at IMO meeting. WSC calls for safe maritime corridor as 20,000 seafarers remain trapped in the Persian Gulf  

Industry body urges IMO member states to establish safe passage and supply access.
Graphic promoting Auramarine webinar titled 'Sustainable Fueling Part 3: Ammonia - next alternative fuel in marine'. Auramarine to host webinar on ammonia as marine fuel in April  

Finnish firm will explore ammonia’s role in maritime decarbonisation at its third spring webinar.
Front cover of study by WinGD and Envision Energy titled 'Renewable Fuel Economics: An OPEX illustration based on current costs'. Green ammonia could reach cost parity with VLSFO and LNG by 2050, study finds  

WinGD and Envision Energy study projects green ammonia operational costs competitive with conventional marine fuels.
Elenger Marine's LNG bunkering vessel Optimus alongside Brittany Ferries’ Saint-Malo. Bureau Veritas verifies methane emissions on Brittany Ferries’ LNG vessels  

Verification enables ferry operator to report measured methane slip instead of regulatory default values.
Map showing existing and planned Emission Control Areas (ECAs). Alliance calls for urgent black carbon action as new Arctic emission control areas take effect  

Canadian Arctic and Norwegian Sea ECAs now in force, with compliance deadline set for March 2027.




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