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


CMA CGM Eugenie naming ceremony. CMA CGM names 15,000-teu methanol-fuelled containership CMA CGM Eugenie  

Vessel to operate on Phoenician Express service linking Asia, Middle East, and Mediterranean.

Christian Larsen, Island Oil. Island Oil appoints Christian Larsen as senior trader in Denmark expansion  

Marine fuel supplier establishes operations in Denmark as part of expansion strategy.

HIF Global and Government of Uruguay MoU signing. HIF Global signs Uruguay agreement to advance US$5.3bn e-fuels facility in Paysandú  

Memorandum sets roadmap for final investment decision on plant targeting 880,000 tonnes annual production.

CMAL vessel. Corvus Energy wins largest-ever contract for seven electric Scottish ferries  

Battery systems supplier secures record order from Remontowa Shipbuilding for CMAL's Small Vessel Replacement Program.

HiMSEN H32CDF-LA engine classification approval test. HHI-EMD secures type approval for 5.4MW ammonia engine  

Lloyd's Register approves H32CDF-LA dual-fuel engine following three-day testing programme in Korea.

Atticus vessel. Global Fuel Supply acquires first bunker tanker  

Company transitions from chartering vessels to ship ownership with asset to be renamed MV Blue Alliance.

ABB Generations 2025 publication on smartphone. ABB publishes 2025 maritime insights on decarbonisation and digitalization  

Technology firm compiles annual articles exploring energy efficiency, automation, and alternative fuels for the shipping industry.

ClassNK AiP handover ceremony for bulk carrier design. ClassNK grants approval for multi-fuel ready bulk carrier design by Oshima Shipbuilding  

Vessel design accommodates future conversion to ammonia, methanol, or LNG with carbon capture capability.

The Arctic and black carbon graphic. Four countries propose Arctic fuel measure to cut black carbon from shipping  

Proposal to IMO's PPR 13 meeting aims to establish fuel regulations under MARPOL Annex VI.

T&E chart 1. Spain, Norway and Denmark lead Europe's green shipping fuel production, study finds  

Regulatory uncertainty prevents most e-fuel projects from progressing beyond the planning stage, says analysis.





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