Sign up
Log in Sign up
Tue 2 Jan 2018 09:04

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed 2017 at $66.87, WTI closed at $60.42. Crude has started the New Year with the same fanciful wishing as an overweight bloke who has seen a personal trainer for the first time this morning. $70 for Brent is in touching distance and who knows where we go from there? $80? $100? It is incredible though - I made a point last week about whether the market will retrace after the Forties pipeline is back or when the Es Sider pipe in Libya is repaired. The market jumped significantly after news emerged of these two temporary production shutdowns, but now that Forties is back and Es Sider is due to come back online soon, has flat price weakened? Not a bit of it. We really do seem to be in a bull market and with the market not seemingly happy to readjust after production is back in these two areas, could that mean that we are in an overbought market? Caution on flat price over the coming week. What else is going on? Well, the US rig count closed 2017 up 42% from 2016. Quite a jump. Apparently US production is at 10mn bpd. Let's not forget that in May 2016 the US rig count was at 404; today we are 747. Will the US rig count ever return to the record set in 1981 of over 4,500 wells? Well, if flat price continues to rise, who knows?

Fuel Oil Market (December 29)

The front crack opened at -8.40, weakening to -8.55, before strengthening to -8.50. The Cal 18 was valued at -8.10.

Economic Data and Events

* Bloomberg OPEC output survey

* Russian oil ministry data on production, exports for December

* Bloomberg fcast of U.S. waterborne LPG exports

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

* See OIL WEEKLY AGENDA for this week's events

Singapore 380 cSt

Feb18 - 376.50 / 378.50

Mar18 - 376.00 / 378.00

Apr18 - 375.75 / 377.75

May18 - 375.25 / 377.25

Jun18 - 374.25 / 376.25

Jul18 - 373.25 / 375.25

Q2-18 - 376.00 / 378.00

Q3-18 - 371.75 / 373.75

Q4-18 - 366.50 / 369.00

Q1-19 - 358.75 / 361.25

CAL9 - 356.50 / 359.50

Singapore 180 cSt

Feb18 - 378.25 / 380.25

Mar18 - 378.25 / 380.25

Apr18 - 378.00 / 380.00

May18 - 377.75 / 379.75

Jun18 - 377.00 / 379.00

Jul18 - 378.75 / 380.75

Q2-18 - 380.75 / 382.75

Q3-18 - 377.25 / 379.25

Q4-18 - 372.25 / 374.75

Q1-19 - 366.75 / 369.25

CAL19 - 365.00 / 368.00

Rotterdam Barges

Feb18 362.50 / 364.50

Mar18 362.25 / 364.25

Apr18 362.00 / 364.00

May18 361.25 / 363.25

Jun18 360.00 / 362.00

Jul18 358.50 / 360.50

Q2-18 362.25 / 364.25

Q3-18 357.50 / 359.50

Q4-18 348.25 / 350.75

Q1-19 340.50 / 343.00

CAL19 336.00 / 339.00

Lease agreement between Inter Terminals Sweden and the Port of Gothenburg, signed on July 1st. Pictured: Göran Eriksson, CEO of the Port of Gothenburg (left) and Johan Zettergren, Managing Director of Inter Terminals Sweden (right). New Gothenburg lease an opportunity to expand green portfolio: Inter Terminals  

Bunker terminal operator eyes tank conversion and construction projects for renewable products.
Map of US Gulf. Peninsula extends US Gulf operation offshore  

Supplier to focus on Galveston Offshore Lightering Area (GOLA) in strategy to serve growing client base.
The M/T Jutlandia Swan, operated by Uni-Tankers. Uni-Tankers vessel gets wind-assisted propulsion  

Fourth tanker sails with VentoFoil units as manufacturer says suction wing technology is gaining traction.
Port of Gothenburg Energy Port. Swedish biomethane bunkered in Gothenburg  

Test delivery performed by St1 and St1 Biokraft, who aim to become large-scale suppliers.
Image from Cockett Marine Oil presentation. Cockett to be closed down after 45 years  

End of an era as shareholders make decision based on 'non-core nature' of Cockett's business.
Petrobras logo. Petrobras confirms prompt availability of VLS B24 at Rio Grande  

Lead time for barge deliveries currently five days.
Opening of the IMO Marine Environment Protection Committee (MEPC), 83rd Session, April 7, 2025. IMO approves pricing mechanism based on GHG intensity thresholds  

Charges to be levied on ships that do not meet yearly GHG fuel intensity reduction targets.
Preemraff Göteborg, Preem's wholly owned refinery in Gothenburg, Sweden. VARO Energy expands renewable portfolio with Preem acquisition  

All-cash transaction expected to complete in the latter half of 2025.
Pictured: Biofuel is supplied to NYK Line's Noshiro Maru. The vessel tested biofuel for Tohoku Electric Power in a landmark first for Japan. NYK trials biofuel in milestone coal carrier test  

Vessel is used to test biofuel for domestic utility company.
Pictured (from left): H-Line Shipping CEO Seo Myungdeuk and HJSC CEO Yoo Sang-cheol at the contract signing ceremony for the construction of an 18,000-cbm LNG bunkering vessel. H-Line Shipping orders LNG bunkering vessel  

Vessel with 18,000-cbm capacity to run on both LNG and MDO.

↑  Back to Top


 Recommended