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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

Heinrich Wegener & Sohn Bunkergesellschaft m.b.H. logo. Heinrich Wegener & Sohn joins Global Ethanol Association  

German family-owned bunker firm joins industry body to support ethanol and methanol adoption.
Keel-laying ceremony of vessel with builder's hull no. CHB2048. Second MSC ultra-large LNG dual-fuel boxship enters dry dock at Zhoushan  

Changhong International's Daishan Base receives 19,000-teu container vessel built for MSC.
175,000-cbm LNG carrier vessel render. Deal signed to build four LNG-fuelled gas carriers  

Quartet of 175,000-cbm LNG vessels destined for Shell charter.
Launching ceremony of MSC Leticia X vessel. Changhong International launches LNG container ships and tankers for MSC and Navios  

Chinese shipbuilder launches four vessels in the space of days, spanning LNG container ships and oil tankers.
Norsepower and CHIC signing. Norsepower and Cosco unit sign R&D agreement to advance rotor sail development  

Finnish wind propulsion firm and Chinese manufacturer deepen ties with dedicated research and development pact.
Andrés Galnares and Gorka Hermoso, H2SITE. H2SITE closes Series B round above €42m to scale hydrogen membrane technology  

Fresh capital secured as firm targets large-scale industrial deployment and expansion into Asian markets.
Mitsubishi Heavy Industries (MHI) logo. MHI study points to cost reduction potential in India-to-Singapore green ammonia value chain  

Mitsubishi Heavy Industries analysis finds value chain optimisation could cut green ammonia costs.
YM Wayfinder naming ceremony. Yang Ming names third LNG dual-fuel boxship for Asia–North Europe service  

YM Wayfinder joins two sister vessels already operating on LNG on the FE3 route.
Milind Homkar, Flex Commodities. Flex Commodities appoints Milind Homkar as trade controller  

Dubai-based trader brings in finance and audit specialist to lead trade control function.
Launching ceremony of Kypros Island vessel. Safe Bulkers launches first methanol dual-fuel bulk carrier at Chinese shipyard  

Greek dry bulk operator launches first methanol-powered vessel as part of its fleet renewal programme.




   Fuels & Propulsion

Ammonia B100 B24 B30 Bio-LNG/LBM 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 power



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