Sign up
Log in Sign up
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

Kris Vedat, SmartSea. Smart ships failing to convert data into actionable intelligence, warns SmartSea  

Maritime technology firm claims vessels collect vast amounts of data but lack integration to support decision-making.
Energy Transition Outlook 2026 Hydrogen To 2060 report cover. DNV forecasts 100-fold growth in clean hydrogen by 2060, with China leading expansion  

Classification society projects $3.2tn investment in hydrogen sector, with maritime accounting for 15% of clean hydrogen use.
World Shipping Council logo. Dual-fuel container ship and vehicle carrier fleet surpasses 1,200 vessels  

World Shipping Council reports 65% year-on-year increase in operational dual-fuel vessels to 440 ships.
Sotiris Raptis, ECSA. European shipowners call for ETS revenue investment and fuel supplier mandate  

ECSA urges the EU to invest €9bn in annual ETS revenues in fuel production and infrastructure.
Sheen Mao Choong, SSA. Singapore bunker industry urged to prioritise resilience and collaboration  

SSA committee vice chair highlights energy security and crisis readiness at Marine Fuels Forum 2026.
Chia How Khee, TFG Marine and David Foo, MPA. TFG Marine receives bunker safety award from Singapore maritime authority  

Marine fuel supplier recognised for safety standards and operational performance at MPA Marine Fuel Forum.
Rotterdam skyline at night. Bunker surveyor sought in Rotterdam to meet increased demand  

Dutch firm MCE Marine Surveyors is recruiting for a quantitative fuel inspection role.
Emma Roberts, BHP. GCMD highlights BHP biofuel trials to address scaling challenges in maritime decarbonisation  

Mining company discusses need for traceability and coordinated progress across supply, cost and operational readiness.
Levante LNG vessel. Peninsula implements energy efficiency measures across bunker supply fleet  

Marine fuel supplier focusing on data-driven upgrades and operational measures to cut consumption.
Aerial view of a biogas plant. Centrica Energy gains ISCC certification to trade certified bio-LNG  

The energy trading arm of Centrica plc can now trade certified bio-LNG with customers.




   Fuels & Propulsion

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



 Recommended