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


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.