Wed 14 Mar 2018 09:11

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed down $0.31 last night to $64.64, WTI closed at $60.71, down 0.65. Yesterday's Brent market was very wibbly wobbly (fantastic English phrase) with a low of $64.05 and a high of $65.68 - with people quickly crying into their desk, or swearing to themselves. And it kind of makes sense. The market is about as interesting as listening to the shipping forecast on BBC Radio 4, while eating dry toast, and leafing through a text book on the intricacies of the UK tax system. With no real direction, and people taking more of a wait-and-see approach to yesterday's volatility will be welcomed with the same glee as Guardiola will have over Sevilla beating Man Utd last night. What will break us out of this range on Brent, though? Well, as I mentioned yesterday, I think the IEA report tomorrow will be important. There is also the US rig count increasing by 60 since the start of the year, US oil production at 10.369mn bpd as of last week, a near 1mn bpd increase from January where production stood at 9.492mn bpd. Consistent builds on US crude stockpiles, further complication of Venezuelan oil production, the sacking of Rex Tillerson and the implications for U.S. foreign policy (I'm looking at you Iran and North Korea). There are plenty of things to get this market going.

Fuel Oil Market (March 13)

The front crack opened at -9.95, strengthening to -9.90,before weakening to -10.10. The Cal 19 was valued at -14.85

Asia's prompt-month viscosity spread slipped, edging away from a 10-month high hit in the previous session. Tighter blendstock supplies and increased prompt demand from South Korean power producers have contributed to the recent gains in the viscosity spread.

Singapore sold a total of 4.136 million tonnes of marine fuels in February, the highest ever for the shortest month of the year. February sales were 7.5 percent higher than a year earlier but down 10.2 percent from a month ago

However, vessels calling at Singapore for bunkers continued to load larger quantities of fuel with each ship taking on average 1,340 tonnes of fuel in February, well above the average of 1,240 tonnes loaded by vessels in 2017 and slightly higher from the 1,330 tonne average in January.

Economic Data and Events

* 11am: MBA Mortgage Applications

* 11:30am-12pm: OPEC releases Monthly Oil Market Report

* 12:30pm: U.S. PPI Final Demand,. Feb.

* 12:30pm: U.S. Retail Sales Advance, Feb.

* 2pm: U.S. Business Inventories, Jan.

* 2:30pm: EIA weekly oil inventory report

Singapore 380 cSt

Apr18 - 358.25 / 360.25

May18 - 357.25 / 359.25

Jun18 - 356.25 / 358.25

Jul18 - 354.50 / 356.50

Aug18 - 352.75 / 354.75

Sep18 - 351.00 / 353

Q2-18 - 357.25 / 359.25

Q3-18 - 352.75 / 354.75

Q4-18 - 346.00 / 348.50

Q1-19 - 337.25 / 339.75

CAL19 - 312.25 / 316.25

CAL20 - 247.50 / 255.50

Singapore 180 cSt

Apr18 - 366.00 / 368.00

May18 - 365.00 / 367.00

Jun18 - 364.25 / 366.25

Jul18 - 362.75 / 364.75

Aug18 - 361.00 / 363.00

Sep18 - 359.25 / 361.25

Q2-18 - 365.00 / 367.00

Q3-18 - 360.75 / 362.75

Q4-18 - 354.50 / 357.00

Q1-19 - 346.25 / 348.75

CAL19 - 325.50 / 329.50

CAL20 - 271.50 / 279.50

Rotterdam Barges

Apr18 345.50 / 347.50

May18 344.75 / 346.75

Jun18 343.50 / 345.50

Jul18 341.75 / 343.75

Aug18 339.75 / 341.75

Sep18 337.00 / 339.00

Q2-18 344.50 / 346.50

Q3-18 339.50 / 341.50

Q4-18 330.00 / 332.50

Q1-19 322.50 / 325.00

CAL19 291.25 / 295.25

CAL20 236.25 / 244.25


Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. BSM to manage world's first ammonia bunkering vessel for Itochu  

German ship manager will provide technical services for 5,000 cbm vessel due in 2027.

Baleària vessel being bunkered by road tank wagon (RTW) Baleària switches three ferries to exclusive bio-LNG operation  

Spanish ferry operator uses renewable fuel on Barcelona-Alcudia-Ciutadella and Málaga-Melilla routes until December 2025.

DFDS's Ro-Ro cargo vessel, Freesia Seaways. ReFlow launches lifecycle emissions tool to support decarbonisation decisions  

Digital platform simulates vessel emissions from production to operation, helping owners evaluate decarbonisation options.

Aerial view of ships next to seafarer. IMO issues training guidelines for seafarers on alternative fuels  

International Maritime Organization develops framework to prepare crews for energy transition.

IBIA and BIMCO logo side by side. IBIA launches follow-up survey on bunker licensing and mass flow meter impact  

Survey examines progress since 2022 on fuel quality transparency and regulatory alignment.

Nikolas Giannos, Malik Supply. Malik hires bunker trader for Athens office  

Danish supplier adds Nikolas Giannos to its Hellas operation.

Armorine supply truck. Greenergy completes acquisition of fuel and lube distributor Armorine  

UK firm expands into France following competition clearance to purchase established supplier.

A Maersk vessel, pictured from above. Maersk retrofits 200 time-chartered vessels to cut fuel costs and emissions  

Shipping giant partners with 50 owners on efficiency programme targeting 35% emissions reduction.

Singapore Port viewed from The Pinnacle@Duxton. MPA declines to renew Brightoil bunker craft operator licence  

Brightoil Petroleum will cease operations from November 1 following licence expiry.

Panama flags. Sonan Bunkers launches Panama office to expand Americas coverage  

Supplier opens hub in Panama City under new Sonan Energy branding.





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