Mon 12 Mar 2018, 09:08 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent crude futures were at $65.36 per barrel, down $13 cents, or 0.2 percent, from their previous close at 07:14 GMT. U.S. WTI crude futures were at $61.90 a barrel, down $14 cents, or 0.2 percent. The U.S. economy really is starting to motor now, after adding 313,000 jobs according to data on Friday, the biggest jump for a few years. Even on the oil side they are continuing their drive forward. Even on lower rig count the production figures seem to have taken no hit at all. The U.S. oil motto is no 'when life gives you 10 lemons make the lemonade as if you had 20'. In other news the U.K. have rolled out the red carpet for Saudi Arabia's Crown Prince. The main topic of the meeting in relation to oil is whether the Saudi's choose to float Aramco in London or elsewhere. The lingering news piece that will reverse the situation oil news over the last couple of years is the eventual unwinding of OPEC's cuts. Before they always had the option of increasing or extending the cuts, now everyone is just thinking of when will they end them.

Fuel Oil Market (March 9)

The front crack opened at -10.40, strengthening to -10.25, before weakening to -10.30, closing at -1040. The Cal 19 was valued at -14.80.

Buying interest lifted Asia's 380 cSt fuel oil prompt-month and front-month time spreads to multi-week highs on Friday

The 380 cSt fuel oil balance-of-March/April time spread was trading at a premium of $1 a tonne at the end of Asian trading hours, its widest premium since Feb. 15 and up from a premium of 75 cents per tonne in the previous session.

Meanwhile, continued weakness in crude oil prices helped narrow the April 180 cSt fuel oil crack discount to Brent crude to its narrowest in more-than two weeks. Fuel oil stocks in the ARA oil hub jumped 41 percent from the previous week to an 11-week high of 1.089 million tonnes in the week ended March 8.

Economic Data and Events

* 12:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* 6pm: EIA's Monthly Drilling Productivity Report

* March ICE gasoil expires

* Caspian CPC, Azeri Supsa crude programs for April

* Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday's EIA report

Singapore 380 cSt

Apr18 - 360.00 / 362.00

May18 - 359.25 / 361.25

Jun18 - 358.25 / 360.25

Jul18 - 356.75 / 358.75

Aug18 - 355.00 / 357.00

Sep 18 - 353.25 / 355.25

Q2-18 - 359.25 / 361.25

Q3-18 - 355.00 / 357.00

Q4-18 - 349.00 / 351.50

Q1-19 - 341.00 / 343.50

CAL19 - 311.75 / 315.75

CAL20 - 243.50 / 251.50

Singapore 180 cSt

Apr18 - 367.75 / 369.75

May18 - 366.75 / 368.75

Jun18 - 365.75 / 367.75

Jul18 - 364.25 / 366.25

Aug18 - 362.50 / 364.50

Sep 18 - 360.75 / 362.75

Q2-18 - 366.75 / 368.75

Q3-18 - 362.50 / 364.50

Q4-18 - 356.50 / 359.00

Q1-19 - 348.75 / 351.25

CAL19 - 325.00 / 329.00

CAL20 - 255.50 / 263.50

Rotterdam Barges

Apr18 347.00 / 349.00

May18 346.25 / 348.25

Jun18 345.25 / 347.25

Jul18 343.50 / 345.50

Aug18 341.50 / 343.50

Sep 18 - 338.75 / 340.75

Q2-18 346.25 / 348.25

Q3-18 341.25 / 343.25

Q4-18 332.00 / 334.50

Q1-19 324.50 / 327.00

CAL19 290.50 / 294.50

CAL20 230.50 / 238.50


Rasmus Frimann Nielsen and Lars Zimmermann, Everllence. Everllence's small-bore GenSet orders surpass 2,000 in 2026  

Engine maker reports strong order intake across its small-bore portfolio, citing demand for reliable, fuel-flexible auxiliary power.

MT Tulip bunker tanker. Bunker One renews MT Tulip charter, plans mass flow meter upgrade in Mauritius  

Bunker One is keeping its bunker tanker in Mauritius while adding flow metering technology to improve delivery transparency.

COP31 panel discussion. Fund for Energy Efficiency Technologies becomes first to adopt revised Singapore-Asia Taxonomy  

FEET's adoption coincides with Lloyd's Register's independent review of GCMD's methodology for quantifying fuel savings from wind-assisted propulsion systems.

Arsenio Dominguez, IMO Secretary-General. IMO chief urges states to enforce safety rules in Strait of Hormuz amid rising attacks  

Arsenio Dominguez says more than 130 attacks on commercial vessels have been verified since February, with at least 25 seafarers killed.

OOCL Wisdom ship-to-ship (STS) bunkering operation at Xiamen Port. Xiamen Port launches 'green methanol bunkering' with OOCL Wisdom  

Boxship received 1,005 tonnes of methanol, corresponding to a reduction of more than 1,600 tonnes in carbon emissions, says COSCO Shipping.

Monjasa Tracer vessel. Monjasa expands fleet with five sister tankers in largest-ever acquisition  

Marine fuel supplier acquires five product tankers from Bernhard Schulte, boosting West African operations and global flexibility.

Molgas Energy logo. Molgas completes acquisition of Prima LNG’s Irish business  

Molgas takes over Prima LNG’s Irish customer portfolio, including a Mondelez manufacturing site, as part of its expansion.

Levante LNG vessel. Peninsula marks three years of LNG bunkering with Levante LNG  

Bunker supplier reports zero claims and CO₂e cuts as LNG bunker vessel completes three years of operations.

Sea Leader FZCO logo. Sea Leader begins physical bunker supply operations in eastern India  

Company completes first bunker delivery after registering with India's shipping authority.

Wega and Deneb vessels render. Auramarine to supply methanol fuel systems for German hydrographic research vessels  

Finnish firm signs deal with Gondan Shipbuilders to equip two new vessels for Germany's maritime agency.