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


Castrol Logo. BP to sell 65% stake in Castrol to Stonepeak for $10bn enterprise value  

Deal brings BP's divestment programme to $11bn, with proceeds earmarked for debt reduction.

Clippership 24-metre class autonomous wind-powered vessel. RINA approves design for Clippership's 24-metre autonomous wind-powered cargo vessel  

Classification society to supervise construction of zero-emission ship featuring twin rigid wings for transatlantic operations.

CMA CGM Antigone vessel. Bureau Veritas classes first methanol dual-fuel boxship as CMA CGM takes delivery  

The 15,000-teu CMA CGM Antigone was built by CSSC Jiangnan Shipyard in China.

AiP award ceremony for floating nuclear plant design. Samsung Heavy Industries' floating nuclear plant design wins ABS approval  

Concept features twin KAERI small modular reactors and a compartmentalised layout to support offshore nuclear power generation.

Claire-Celine Bausager Jørgensen, Dan-Bunkering. Dan-Bunkering Europe appoints Claire-Celine Bausager Jørgensen as senior fuel supplier  

Jørgensen returns to bunker trading after several years in the company's HR department.

CMA CGM Tivoli vessel. DHL and CMA CGM partner on 8,990-tonne biofuel purchase for ocean freight decarbonisation  

Logistics and shipping firms to use UCOME biofuel, targeting 25,000-tonne CO2e reduction.

FincoEnergies Logo. Glencore to acquire majority stake in Dutch marine fuel supplier FincoEnergies  

Transaction expected to complete in Q2 2026, subject to EU anti-trust approval.

CMA CGM Eugenie naming ceremony. CMA CGM names 15,000-teu methanol-fuelled containership CMA CGM Eugenie  

Vessel to operate on Phoenician Express service linking Asia, Middle East, and Mediterranean.

Christian Larsen, Island Oil. Island Oil appoints Christian Larsen as senior trader in Denmark expansion  

Marine fuel supplier establishes operations in Denmark as part of expansion strategy.

HIF Global and Government of Uruguay MoU signing. HIF Global signs Uruguay agreement to advance US$5.3bn e-fuels facility in Paysandú  

Memorandum sets roadmap for final investment decision on plant targeting 880,000 tonnes annual production.





 Recommended