Sign up
Log in Sign up
Fri 22 Dec 2017, 09:31 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

So we are just below two-and-a-half-year highs. Brent crude futures, were at $64.81 a barrel, down $19 cents, or 0.1 percent. U.S. WTI crude futures were at $58.16 a barrel at 07:55 GMT, down $20 cents, or 0.3 percent, from their last settlement. The market does a have a buoyant spring in its step. Yes, there is the ever present danger of oil production for OPEC, but for now I think they will be pretty happy at year end.

Fuel Oil Market (December 21)

The front crack opened at -8.50, weakening to -8.70 across the day. The Cal 18 was valued at -8.10.

The front-month time spread of Asia's 180 cSt high sulphur fuel oil flipped into contango on Thursday amid limited demand for the lower viscosity fuel oil.

Singapore weekly onshore fuel oil inventories fell 2.5 percent, or 583,000 barrels (about 87,000 tonnes), to an 11-week low of 22.631 million barrels (3.38 million tonnes) in the week ended Dec. 20.

This came despite a 9 percent increase in net fuel oil imports into Singapore in the previous week to a two week high of 912,000 tonnes, Reuters calculations showed.

Economic Data/Events: (UK times)

* 1:30pm: U.S. Nov. personal spending m/m, est. 0.5% (prior 0.3%)

* 1:30pm: U.S. Nov. personal income, est. 0.4% (prior 0.4%)

* 1:30pm: U.S. durable goods orders m/m for Nov. P, est. 2% (prior -0.8%)

* 3pm: U.S. Nov. new home sales, est. 655k (prior 685k)

* 3pm: University of Michigan sentiment, Dec. final, est 97.2 (prior 96.8)

* 6pm: Baker Hughes rig count

* 6pm: ICE weekly commitments of traders report for Brent, gasoil

* 8:30pm: CFTC weekly scheduled report on futures and options positions

Singapore 380 cSt

Jan18 - 366.00 / 368.00

Feb18 - 365.75 / 367.75

Mar18 - 365.50 / 367.50

Apr18 - 365.25 / 367.25

May18 - 364.75 / 366.75

Jun18 - 363.75 / 365.75

Q1-18 - 365.75 / 367.75

Q2-18 - 364.00 / 366.00

Q3-18 - 360.00 / 362.50

Q4-18 - 355.50 / 358.00

CAL18 - 361.00 / 364.00

CAL19 - 327.75 / 332.75

Singapore 180 cSt

Jan18 - 370.00 / 372.00

Feb18 - 370.50 / 372.50

Mar18 - 370.50 / 372.50

Apr18 - 370.50 / 372.50

May18 - 370.00 / 372.00

Jun18 - 369.25 / 371.25

Q1-18 - 370.25 / 372.25

Q2-18 - 369.25 / 371.25

Q3-18 - 366.75 / 369.25

Q4-18 - 361.75 / 364.25

CAL18 - 366.50 / 369.50

CAL19 - 336.50 / 341.50

Rotterdam 380 cSt

Jan18 352.25 / 354.25

Feb18 351.75 / 353.75

Mar18 351.50 / 353.50

Apr18 351.00 / 353.00

May18 350.00 / 352.00

Jun18 349.00 / 351.00

Q1-18 351.75 / 353.75

Q2-18 350.25 / 352.25

Q3-18 345.00 / 347.50

Q4-18 336.00 / 338.50

CAL18 345.00 / 348.00

CAL19 304.00 / 309.00

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