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Wed 7 Mar 2018 08:56

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

Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. BSM to manage world's first ammonia bunkering vessel for Itochu  

German ship manager will provide technical services for 5,000 cbm vessel due in 2027.
Baleària vessel being bunkered by road tank wagon (RTW) Baleària switches three ferries to exclusive bio-LNG operation  

Spanish ferry operator uses renewable fuel on Barcelona-Alcudia-Ciutadella and Málaga-Melilla routes until December 2025.
DFDS's Ro-Ro cargo vessel, Freesia Seaways. ReFlow launches lifecycle emissions tool to support decarbonisation decisions  

Digital platform simulates vessel emissions from production to operation, helping owners evaluate decarbonisation options.
Aerial view of ships next to seafarer. IMO issues training guidelines for seafarers on alternative fuels  

International Maritime Organization develops framework to prepare crews for energy transition.
IBIA and BIMCO logo side by side. IBIA launches follow-up survey on bunker licensing and mass flow meter impact  

Survey examines progress since 2022 on fuel quality transparency and regulatory alignment.
Nikolas Giannos, Malik Supply. Malik hires bunker trader for Athens office  

Danish supplier adds Nikolas Giannos to its Hellas operation.
Armorine supply truck. Greenergy completes acquisition of fuel and lube distributor Armorine  

UK firm expands into France following competition clearance to purchase established supplier.
A Maersk vessel, pictured from above. Maersk retrofits 200 time-chartered vessels to cut fuel costs and emissions  

Shipping giant partners with 50 owners on efficiency programme targeting 35% emissions reduction.
Singapore Port viewed from The Pinnacle@Duxton. MPA declines to renew Brightoil bunker craft operator licence  

Brightoil Petroleum will cease operations from November 1 following licence expiry.
Panama flags. Sonan Bunkers launches Panama office to expand Americas coverage  

Supplier opens hub in Panama City under new Sonan Energy branding.




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