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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

Zhoushan waterfront at night. Zhoushan becomes world's third-largest bunker port  

Chinese refuelling hub overtakes Antwerp-Bruges and Fujairah to take third place in 2025.
Meyer Turku's net-zero vessel concept render. Meyer Turku completes net-zero cruise ship concept with 90% emissions cut  

Finnish shipbuilder’s AVATAR project vessel design exceeds IMO targets using technologies expected by 2030.
Uni-Fuels Logo. Uni-Fuels renews ISCC certification after first biofuel delivery  

Singapore-based marine fuel supplier completes inaugural ISCC-certified biofuel delivery, supporting EU regulatory compliance.
Close-up of a vessel bow at port. Iberian Peninsula poised to overtake the Netherlands as Europe’s top LNG bunkering hub  

Spanish and Portuguese ports quadrupled ship-to-ship LNG supply in two years, data shows.
FOBAS Fuel Insight Fuel Quality report H2 2025 cover. Lloyd’s Register reports sharp rise in marine fuel quality failures in late 2025  

December recorded the highest monthly off-specification cases, driven by sulphur, catalytic fines and flash point issues.
Bio-LNG bunkering infrastructure. Bahía de Bizkaia Gas launches bio-LNG loading service after ISCC certification  

Spanish regasification terminal begins offering renewable fuel loading for trucks and vessels in January 2026.
Grande Michigan vessel. Grimaldi takes delivery of eighth ammonia-ready car carrier Grande Michigan  

The 9,000-ceu vessel features 50% lower fuel consumption and 5 MWh battery capacity.
Graphic of the ABS logo with a blue background and light effects over a globe. ABS consortium delivers ammonia fuel safety report for EMSA  

Report expands on IMO interim guidelines and highlights need for comprehensive understanding of ammonia properties.
Green Future vessel. NYK operates methanol-fuelled bulk carrier for BHP, claims 65% emissions cut  

Green Future becomes first oceangoing bulk carrier to use low-carbon methanol fuel.
Genesis Sea vessel. Ulstein Verft completes sea trials for Genesis Sea CSOV ahead of spring delivery  

The 89.6-metre vessel features hybrid battery propulsion and preparations for green methanol operation.




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