Wed 7 Mar 2018, 08:56 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Fuel Oil Market (March 6)

The front crack opened at -10.70, strengthening to -10.40, before weakening to -10.60. The Cal 19 was valued at -14.80

Trade activity in the fuel oil derivatives market was muted on Tuesday while rising crude oil prices weighed on Asia's frontmonth high-sulphur fuel oil crack, trade sources said.

Oil futures rose on Tuesday for a third session, underpinned by robust demand forecasts and as ministers from OPEC touted the strength of its agreement to cut output to bolster prices.

Broker sources pegged the front-month 380 cSt crack to Brent crude at a discount of about $10.70 a barrel on Tuesday, down from a narrow range of about minus $10.25 -$10.30 a barrel in the previous session.

Economic Data and Events

* 12pm: MBA Mortgage Applications March 2, prior 2.7%

* 1:30pm: U.S. Nonfarm Productivity 4Q Final, est. -0.1%, prior -0.1%

* 1:15pm: U.S. ADP Employment Change Feb., est. 200k, prior 234k

* 3:30pm: EIA issues weekly U.S. oil inventory report

* Today:

** DNB's Oil, Offshore and Shipping conference, Oslo, 1st day of 2

** CERAWeek, with today's speakers including Shell CEO Ben van Beurden, U.S. Energy Secretary Rick Perry, among others, 3rd day of 5

Singapore 380 cSt

Apr18 - 357.50 / 359.50

May18 - 356.75 / 358.75

Jun18 - 356.00 / 358.00

Jul18 - 354.75 / 356.75

Aug18 - 353.25 / 355.25

Sep 18 - 351.50 / 353.50

Q2-18 - 356.75 / 358.75

Q3-18 - 353.00 / 355.00

Q4-18 - 347.00 / 349.50

Q1-19 - 339.50 / 342.00

CAL19 - 309.50 / 313.50

CAL20 - 241.50 / 249.50

Singapore 180 cSt

Apr18 - 364.75 / 366.75

May18 - 364.00 / 366.00

Jun18 - 363.25 / 365.25

Jul18 - 362.25 / 364.25

Aug18 - 360.75 / 362.75

Sep 18 - 359.00 / 361.00

Q2-18 - 364.00 / 366.00

Q3-18 - 360.50 / 362.50

Q4-18 - 354.50 / 357.00

Q1-19 - 347.25 / 349.75

CAL19 - 321.50 / 325.50

CAL20 - 253.50 / 261.50

Rotterdam Barges

Apr18 344.75 / 346.75

May18 343.75 / 345.75

Jun18 342.50 / 344.50

Jul18 340.75 / 342.75

Aug18 338.75 / 340.75

Sep 18 - 336.00 / 338.00

Q2-18 343.75 / 345.75

Q3-18 339.25 / 341.25

Q4-18 330.00 / 332.50

Q1-19 322.50 / 325.00

CAL19 288.50 / 292.50

CAL20 228.50 / 236.50


CMA CGM Notre Dame vessel at Singapore Port. Singapore 12-month bunker calls hit all-time high in July  

TTM calls at world's largest bunkering hub reach record levels despite softer sales volumes.

Cargo port in Singapore. Singapore T3M bunker sales stay below 14m tonnes for fourth month running  

Rolling three-month volumes remain subdued despite modest month-on-month recovery in July.

Shore power system launch at Port of Callao. Peru’s Port of Callao launches first shore power system in Latin America  

DP World Callao’s onshore power supply system could cut over 6,300 tonnes of CO₂ annually.

Aristodimos vessel. New Times Shipbuilding delivers LNG dual-fuel crude oil tanker to Capital  

Chinese yard hands over 155,500-dwt vessel in ceremony attended by owner’s representative.

MSC Sabrina and Alice Cosulich ship-to-ship (STS) bunkering operation. Shell completes maiden LNG bunkering operation in Valencia  

Delivery to MSC vessel facilitated by Fratelli Cosulich said to be first-ever LNG bunker supply at Spanish port.

Marina Bay Sands, Singapore. PIL hiring senior marine fuels executive to manage global bunkering operations  

Singapore-based role includes oversight of fuel procurement and delivery operations, covering PIL's fleet of container and multi-purpose vessels.

Steel-cutting ceremony of vessels with builder's hull nos. CHB2083 and CHB2084. Changhong International Shipbuilding cuts steel on two more 3100-teu boxships for Costamare  

HSFO-fuelled vessels feature scrubbers, SCR systems and shore power connections to meet emissions requirements.

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.