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


Decab Hub and MMMCZCS logos. Lloyd’s Register and Maersk Mc-Kinney Møller Center launch ammonia safety and training resources for shipping  

New tools aim to help operators build the safety management and competency frameworks needed for ammonia-fuelled vessels.

Kevin Dohmen, IBT Bunkering & Trading. IBT Bunkering & Trading appoints Kevin Döhmen to manage new Singapore office  

Döhmen tasked with developing IBT’s operation in the Asian city-state.

Peak Skarv 3 vessel. Peak takes delivery of third S-class vessel and cuts steel for ammonia-fuelled ship  

Norwegian operator marks two events at Chinese yard as ammonia-powered newbuild programme advances.

Launching ceremony of Minerva Helen. New Times Shipbuilding launches LNG dual-fuel tanker for Minerva  

112,500-dwt Minerva Helen launched at shipyard in Jiangsu, China.

Hansa Drejoe vessel. Leonhardt & Blumberg equips first of four newbuilds with Econowind VentoFoils  

German shipowner installs wind-assisted propulsion technology aboard general cargo vessel Hansa Drejoe.

Green Pearl vessel at Port of Civitavecchia. Axpo and Vitol launch LNG bunkering at the Port of Civitavecchia  

Operation marks the extension of Axpo’s LNG bunkering network to third major Italian port.

Grande Pacifico vessel. Grimaldi takes delivery of ammonia-ready Grande Pacifico  

9,800-ceu ship is the largest PCTC in the Neapolitan Group’s fleet and the first of five sister vessels on order.

Regional seminar on alternative fuels and new technologies. IMO seminar in Trinidad and Tobago trains Caribbean maritime educators for the alternative fuels era  

A five-day regional seminar in Port of Spain addressed ammonia, methanol and hydrogen training for seafarers.

Summit Arbutus vessel. Corvus Energy wins 40 MWh battery contract for BC Ferries’ new biofuel-compatible Summit Class vessels  

Norwegian battery supplier to power four new hybrid-electric ferries for Canada’s BC Ferries.

Fleetzero Leviathan Battery Energy Storage System (BESS). ABS issues product design assessment for Fleetzero’s Leviathan battery system  

The first US-manufactured lithium iron phosphate marine battery system receives classification society approval.