Sign up
Log in Sign up
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

Bennett J. Pekkattil and Capt. Alok RC Sharma. TFG Marine calls for digital transformation to manage alternative fuel risks  

CFO says transparency and digital solutions are essential as the marine fuels sector faces volatility from diversification.
Mugardos Energy Terminal. Reganosa’s Mugardos terminal adds bio-LNG bunkering for ships and trucks  

Spanish facility obtains EU sustainability certification to supply renewable fuel with 92% lower emissions.
Global Ethanol Association (GEA) and Growth Energy logo side by side. Growth Energy joins Global Ethanol Association as new member  

US biofuel trade association represents nearly 100 biorefineries and over half of US ethanol production.
Bertha B vessel. H2SITE explains decision to establish Bergen subsidiary  

Ammonia-to-hydrogen technology firm says Norwegian city was obvious choice for its ambitions.
Vessel at sea under dark clouds. Gibraltar Port Authority issues severe weather warning for gale-force winds and heavy rain  

Port authority warns of storm-force gusts of up to 50 knots and rainfall totals reaching 120 mm.
Christiania Energy headquarters. Christiania Energy relocates headquarters within Odense Harbour  

Bunker firm moves to larger waterfront office to accommodate growing team and collaboration needs.
AiP award ceremony for 20K LNGBV design. HD Hyundai Heavy Industries receives design approval for 20,000-cbm LNG bunkering vessel  

Bureau Veritas grants approval in principle following joint development project with South Korean shipbuilder.
Lloyd’s Register technical committee meeting in Spain. Peninsula outlines dual role in FuelEU Maritime compliance at Lloyd’s Register panel  

Marine fuel supplier discusses challenges for shipowners and opportunities for suppliers under new regulation.
Current status of fleet fuel types chart. LNG-fuelled container ships dominate January alternative-fuel vessel orders  

Container ships accounted for 16 of 20 alternative-fuelled vessels ordered in January, DNV reports.
Rick Boom, CIMAC and Professor Lynn Loo, GCMD. GCMD and CIMAC sign partnership to advance alternative marine fuel readiness  

Two-year agreement aims to bridge operational experience with technical standards for decarbonisation solutions.




 Recommended