Tue 9 Jan 2018, 09:15 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Fuel Oil Market (January 8)

The front crack opened at -9.90, weakening to -10.05 across the day. The Cal 19 was valued at -11.50.

Asia's front-month high-sulphur fuel oil crack fell on Monday on persisting concerns of weak near-term demand leading to a build-up in supplies, trade sources said.

The February 180 cSt fuel oil crack to Brent crude fell for a fourth straight session to minus $7.38 a barrel, its widest discount since November 2016. Overall profits for Asia's oil refiners dropped to their lowest since May last year as rising supplies dragged down regional fuel prices at the same time that global crude oil prices have climbed to two-year highs.

Clearlake, Gunvor's shipping arm, has chartered a very large crude carrier, Saham, to load up to 270,000 tonnes of fuel oil from Denmark around Jan. 11 for discharge into Singapore by end-February for a $3.05 million fee.

Economic Data and Events

* 11am: NFIB Small Business Optimism, Dec.

* 5pm: EIA's STEO monthly report

* 9:30pm: API issues weekly U.S. oil inventory report

Singapore 380 cSt

Feb18 - 375.75 / 377.75

Mar18 - 376.25 / 378.25

Apr18 - 376.50 / 378.50

May18 - 376.50 / 378.50

Jun18 - 376.25 / 378.25

Jul18 - 375.50 / 377.50

Q2-18 - 376.50 / 378.50

Q3-18 - 374.25 / 376.25

Q4-18 - 370.50 / 373.00

Q1-19 - 362.75 / 365.25

CAL19 - 341.50 / 344.50

CAL20 - 289.75 / 294.75

Singapore 180 cSt

Feb18 - 379.50 / 381.50

Mar18 - 380.75 / 382.75

Apr18 - 381.00 / 383.00

May18 - 381.25 / 383.25

Jun18 - 381.50 / 383.50

Jul18 - 381.00 / 383.00

Q2-18 - 381.25 / 383.25

Q3-18 - 379.75 / 381.75

Q4-18 - 376.50 / 379.00

Q1-19 - 370.50 / 373.00

CAL19 - 349.75 / 352.75

CAL20 - 298.75 / 303.75

Rotterdam Barges

Feb18 363.25 / 365.25

Mar18 364.00 / 366.00

Apr18 364.25 / 366.25

May18 364.25 / 366.25

Jun18 363.75 / 365.75

Jul18 362.75 / 364.75

Q2-18 364.00 / 366.00

Q3-18 360.50 / 362.50

Q4-18 352.50 / 355.00

Q1-19 345.25 / 347.75

CAL19 320.75 / 323.75

CAL20 269.75 / 274.75


Eleven Energy logo. Eleven Energy recruiting trader for new Singapore office  

Saudi bunkering firm looking to hire in Asian city-state ahead of planned January 2027 start date.

Singapore skyline. VPS advertises for bunker surveyor role in Singapore  

Testing and inspection firm seeks candidate to conduct bunker fuel surveys under Singapore Standards SS 648 and SS 600.

RCL vessels naming ceremony. RCL names first three of eight dual-fuel-ready 4,488-TEU vessels in China  

Regional Container Lines takes delivery of Anitta Bhum on day of naming ceremony.

Peak Skarv 4 vessel. Skarv Shipping completes newbuilding programme with delivery of ammonia-ready Peak Skarv 4  

Short-sea operator takes delivery of fourth vessel from Huanghai Shipyard, with ammonia-fuelled vessel next.

Diamond Gas Nexus vessel. NYK names dual-fuel LNG carrier for Cameron LNG project  

New vessel to support LNG transportation for US project in which Mitsubishi Corporation and NYK participate.

ULSTEIN SX222 offshore wind vessel render. PaxOcean signs design contract with Ulstein for methanol-ready offshore wind vessel  

PaxOcean and Ulstein agree design contract for an SX222 service operation vessel, prepared for methanol and electric operations.

NYK and IMO officials. NYK shares two years of ammonia-fuelled tugboat data with IMO  

Shipping company presents operational insights from Sakigake and updates on its ammonia-fuelled gas carrier at IMO session.

Type approval test (TAT) for H35CDF engine. HD Hyundai completes type approval test for new LNG dual-fuel engine  

Latest HiMSEN engine is claimed to offer reduced methane slip compared with previous models.

Flag of Brazil. Petrobras resumes bunkering operations at Rio Grande Terminal after power restoration  

Brazilian supplier restarts marine fuel supply after completing an inspection following an electricity outage.

Stena E-Flexer vessel render. Stena RoRo orders battery-ready E-Flexer 2.0 ferries from Chinese yard  

Vessels include diesel engines capable of running on biodiesel and are methanol-ready.