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Thu 18 Jan 2018, 09:02 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed last night at $69.38, WTI closed at $63.97. So here we are, $70 per bbl. Did anyone take any notice, though, when I said that US oil stocks are actually increasing? The crude that's being drawn isn't going anywhere, it's just been turned into oil products. This week, apparently we should see another draw on crude stocks in the US, and guess what? You got it - a build in product inventories.

Fuel Oil Market (January 17)

The front crack opened at -11.70, strengthening to -11.50 across the day. The Cal 19 was valued at -12.60.

The discount in Asia's front-month 380 cSt fuel oil time spread was trading at its widest since early-August on Wednesday as concerns of limited spot demand and ample prompt supplies of the fuel continued to weigh on market sentiment.

The Singapore 380 cSt Feb-March time spread was trading at a discount of 70 cents a tonne around 5pm Singapore time on Wednesday in the Intercontinental Exchange, down from its -50 cents a tonne settlement in the previous session. Total fuel oil flows into East Asia for January are expected to close lower than December's 10- month high of about 6.7 million tonnes.

Fujairah fuel oil inventories dropped 6 percent, or 545,000 barrels (about 81,000 tonnes), to a three-week low of 8.529 million barrels (1.273 million tonnes) in the week ended Jan. 15.

Economic Data and Events

Singapore 380 cSt

Feb18 - 375.75 / 377.75

Mar18 - 376.25 / 378.25

Apr18 - 376.75 / 378.75

May18 - 376.75 / 378.75

Jun18 - 376.25 / 378.25

Jul18 - 375.75 / 377.75

Q2-18 - 376.75 / 378.75

Q3-18 - 374.75 / 376.75

Q4-18 - 370.75 / 373.25

Q1-19 - 364.00 / 366.50

CAL19 - 340.75 / 343.75

CAL20 - 289.25 / 294.25

Singapore 180 cSt

Feb18 - 380.25 / 382.25

Mar18 - 381.25 / 383.25

Apr18 - 381.75 / 383.75

May18 - 382.00 / 384.00

Jun18 - 381.50 / 383.50

Jul18 - 381.25 / 383.25

Q2-18 - 381.75 / 383.75

Q3-18 - 380.25 / 382.25

Q4-18 - 376.75 / 379.25

Q1-19 - 371.75 / 374.25

CAL19 - 349.25 / 352.25

CAL20 - 298.25 / 303.25

Rotterdam Barges

Feb18 363.00 / 365.00

Mar18 364.25 / 366.25

Apr18 364.75 / 366.75

May18 364.50 / 366.50

Jun18 364.00 / 366.00

Jul18 362.75 / 364.75

Q2-18 364.25 / 366.25

Q3-18 361.25 / 363.25

Q4-18 353.25 / 355.75

Q1-19 345.25 / 347.75

CAL19 320.25 / 323.25

CAL20 270.00 / 275.00

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.




   Fuels & Propulsion

Ammonia B100 B24 B30 Bio-LNG / LBM / LBG Biofuel Biogas Biomethanol Dual-fuel E-fuel E-methane / e-NG E-methanol Electric Ethanol FAME Green hydrogen Green/e-ammonia HVO Hydrogen LNG LPG Lubes Methanol MGO Nuclear UCOME ULSFO VLSFO Wind



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