Fri 9 Mar 2018, 09:32 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed down $0.73 last night to $63.61, WTI closed at $60.12, down $1.03. On Tuesday I closed my commentary with "what a strange world we live in..." Low and behold! Kim Jong-Un is getting on a plane to go and meet Trump. This is probably the most important diplomatic meeting for quite some time. I don't know what significance it will have on the oil market - not much from a fundamental point of view, but all the spec boys will, I'm sure, use it as some kind of geopolitical excuse to take a position. Since this time last week Brent is down 0.003%. That's it. I'd be interested to see how volatility charts look - not anything to write home about I imagine. WTI is getting ever closer to that psychological $60 number, however, so I imagine we will see some resistance around these kind of numbers.

Fuel Oil Market (March 8)

The front crack opened at -10.45, strengthening to -10.35, before weakening to -10.55, closing at -10.40. The Cal 19 was valued at -14.80.

Cash differentials of Asia's 380 cSt high sulphur fuel oil extended gains for a fourth straight session on Thursday, lifted slightly higher by buying interest for physical cargoes of the fuel.

Singapore weekly onshore fuel oil inventories slipped 2 percent, or 499,000 barrels (74,000 tonnes), to a two-week low of 22.031 million barrels (about 3.29 million tonnes) in the week ended March 7, data from IE Singapore showed on Thursday.

The lower Singapore fuel oil stocks came amid a 76 percent drop in net imports of the fuel into the city-state from the week before to a seven-week low of 279,000 tonnes, the data showed.

Economic Data and Events

* 1:30pm: U.S. change in non-farm payrolls Feb., est. 205k, prior 200k

* 1:30pm: U.S. unemployment rate Feb., est. 4.0%, prior 4.1%

* 6pm: Baker Hughes rig count

* 6pm: ICE weekly commitments of traders report for Brent, gasoil

* 8:30pm: CFTC weekly commitments of traders report on various U.S. futures and options contracts

Singapore 380 cSt

Apr18 - 349.50 / 351.50

May18 - 349.00 / 351.00

Jun18 - 348.25 / 350.25

Jul18 - 347.25 / 349.25

Aug18 - 345.75 / 347.75

Sep 18 - 344.25 / 346.25

Q2-18 - 349.00 / 351.00

Q3-18 - 345.50 / 347.50

Q4-18 - 339.50 / 342.00

Q1-19 - 331.25 / 333.75

CAL19 - 305.25 / 309.25

CAL20 - 237.00 / 245.00

Singapore 180 cSt

Apr18 - 357.25 / 359.25

May18 - 356.50 / 358.50

Jun18 - 355.75 / 357.75

Jul18 - 354.75 / 356.75

Aug18 - 353.25 / 355.25

Sep 18 - 351.75 / 353.75

Q2-18 - 356.50 / 358.50

Q3-18 - 353.00 / 355.00

Q4-18 - 347.00 / 349.50

Q1-19 - 339.00 / 341.50

CAL19 - 318.50 / 322.50

CAL20 - 249.00 / 257.00

Rotterdam Barges

Apr18 337.00 / 339.00

May18 336.25 / 338.25

Jun18 335.25 / 337.25

Jul18 333.50 / 335.50

Aug18 331.50 / 333.50

Sep 18 - 329.00 / 331.00

Q2-18 336.00 / 338.00

Q3-18 331.00 / 333.00

Q4-18 321.75 / 324.25

Q1-19 314.25 / 316.75

CAL19 284.00 / 288.00

CAL20 224.00 / 232.00


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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