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


Bankruptcy filing documents. Liquid Wind parent company declared bankrupt, business put up for sale  

Swedish e-fuel facility developer enters bankruptcy proceedings, with subsidiaries across three Nordic countries now available for acquisition.

Corvus Energy and BYD Energy Storage strategic agreement signing. Corvus Energy and BYD Energy Storage sign strategic agreement for marine battery development  

Norway-based Corvus and Chinese firm BYD formalise partnership for next-generation lithium iron phosphate systems.

Tide Talks hydrogen webinar graphic. EMSA to host webinar on hydrogen as marine fuel  

Second episode of Tide Talks series scheduled for 29 June draws on agency studies.

Keel-laying ceremony of vessel with builder's hull no. CHB2047. Keel laid for MSC 19,000-teu LNG dual-fuel container ship  

Vessel CHB2047 is being built at Changhong International’s Daishan facility in Zhoushan.

Keys Azalea vessel. NYK achieves over 90% methane oxidation in LNG engine catalyst trial  

Japanese shipping company reports results from onboard test of system designed to reduce methane slip.

We are hiring graphic. Uni-Fuels seeks general manager for Houston bunker trading desk  

Nasdaq-listed marine fuel seller advertises for commercial leader to oversee P&L and customer relationships.

M2I2 grant award event. Emvolon wins Massachusetts grant for biomethane-to-biomethanol conversion system  

Technology converts biomethane into biomethanol at source, with applications including sustainable aviation fuel production.

Nikolaj Holm Kristensen and Tobias Laugesen, Malik Energy. Malik Energy expands team with two new hires in Denmark  

Marine fuel supplier adds chemicals specialist and supplier to Fredericia and Aalborg offices.

Soil boring tests. Straits Bio-LNG reports favourable soil test results for jetty construction  

Preliminary soil boring tests show shallower depth than expected at Singapore-based company’s jetty site.

Evangelia Tsimpidi, Flex Commodities. Flex Commodities hires Trafigura operator for Greek bunker deliveries  

Evangelia Tsimpidi joins from Trafigura Maritime Ventures with experience in ARA and US markets.