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Wed 27 Dec 2017, 10:00 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed last night at $67.02, WTI closed at $59.97. Wow. Did Wall St get the Christmas song mixed up? All I want for Christmas is crude? What a Christmas gift for the bulls with news of a pipeline explosion in Libya. Quite whether this was some technical traders taking advantage of London stuffing their faces with bubble and squeak and leftover Turkey is anyone's guess. I wonder though - what with the Forties pipeline restarting soon, London waddling back in and the Es Sider pipe that was sabotaged coming back online as soon as mid Jan, will the market readjust as quick as it is to spike? Probably not is the answer, I think. I still feel it is hope more than facts that are making people think the market balance is tighter than it actually is. But on its merry way it goes and as soon as news of a crude supply disruption breaks, the market jumps on it quicker than people who overindulge at Christmas sign up for a January gym membership. Quite how US oil production is being happily ignored when it is more than capable of plugging any supply deficits is beyond me, but 'ignorance is bliss' seems to be the phrase of 2017 if you're a crude producer outside of the US. Expect some volatility in the coming days on fairly thin trading.

Fuel Oil Market (December 22)

The front crack opened at -8.65, weakening to -8.75 across the day. The Cal 18 was valued at -8.10.

Singapore 380 cSt

Jan18 - 374.50 / 376.50

Feb18 - 373.75 / 375.75

Mar18 - 373.50 / 375.50

Apr18 - 373.00 / 375.00

May18 - 372.50 / 374.50

Jun18 - 372.50 / 374.50

Q1-18 - 374.00 / 376.00

Q2-18 - 372.50 / 374.50

Q3-18 - 368.50 / 371.00

Q4-18 - 363.75 / 366.25

CAL18 - 369.50 / 372.50

CAL19 - 333.25 / 338.25

Singapore 180 cSt

Jan18 - 378.50 / 380.50

Feb18 - 378.25 / 380.25

Mar18 -378.50 / 380.50

Apr18 - 378.25 / 380.25

May18 - 377.75 / 379.75

Jun18 - 377.00 / 379.00

Q1-18 - 378.50 / 380.50

Q2-18 - 377.75 / 379.75

Q3-18 - 374.25 / 376.75

Q4-18 - 3369.75 / 372.25

CAL18 - 375.00 / 378.00

CAL19 - 342.00 / 347.00

Rotterdam Barges

Jan18 360.50 / 362.50

Feb18 359.75 / 361.75

Mar18 359.50 / 361.50

Apr18 359.00 / 361.00

May18 358.00 / 360.00

Jun18 358.00 / 360.00

Q1-18 360.00 / 362.00

Q2-18 358.00 / 360.00

Q3-18 352.75 / 355.25

Q4-18 343.75 / 346.25

CAL18 354.00 / 357.00

CAL19 312.25 / 317.25

Closing ceremony of vessel with builder’s hull no. 0315874. LNG dual-fuel crude tanker handed over to Capital  

Jiangsu New Times Shipbuilding delivers the 155,500-DWT LNG dual-fuel crude oil vessel Amor.
Lowina Lundstrom, Gasum. Gasum names Lowina Lundström as vice president, biogas  

Former EIT InnoEnergy executive joins Gasum's management team to lead biogas business development from 1 December.
PIL and Huanghai Shipbuilding contract signing. PIL orders seven methanol-ready feeder vessels from Huanghai Shipbuilding  

Singapore carrier's 1,400-TEU newbuilds will boost intra-Asia capacity and support its 2050 net zero target.
MPA and Qingdao Port work plan signing ceremony. Singapore and Qingdao sign work plan to advance green and digital shipping corridors  

MPA and Shandong Port Group’s Qingdao Port have agreed to pursue methanol bunkering pilots and data-sharing initiatives between the two ports.
Delfin Midstream FLNG unit render. Wärtsilä to supply dual-fuel engines and thrusters for Delfin Midstream's FLNG vessel  

Finnish technology group lands propulsion order for first floating LNG vessel built for US Gulf export project.
Uni-Fuels Logo. Uni-Fuels advertises for senior bunker trader in Dubai  

Nasdaq-listed firm recruiting for its trading team as it aims to drive growth.
Mineral Europa vessel. Green ammonia bunkered to ammonia-powered bulk carrier in Australian first  

Pilbara Ports, Fortescue and CMB.Tech complete a ship-to-ship ammonia transfer at Port Hedland, supporting plans for a clean fuel bunkering hub in the region.
Sea Change II vessel render. US Coast Guard agrees design framework for hydrogen-fuelled New York ferry  

Switch Maritime and Incat Crowther reach regulatory agreement for a 150-passenger hydrogen fuel cell-electric fast ferry intended for New York's waterways.
Auto Advance vessel. UECC fits WE Tech hybrid power systems on newbuild ro-ro vessels  

Norwegian short-sea operator says battery and shaft generator technology from WE Tech Solutions has cut fuel use and auxiliary engine reliance on three newbuilds.
Terra Clove vessel. Envision's green ammonia used to bunker world's first VLAC  

Chinese energy group supplies vessel owned by Eastern Pacific Shipping as it links production and marine fuel supply chains.




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