Wed 14 Mar 2018, 09:11 GMT

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

BP  

Bankruptcy filing documents. Liquid Wind parent company declared bankrupt, business put up for sale  

Swedish e-fuel facility developer enters bankruptcy proceedings, with subsidiaries across three Nordic countries now available for acquisition.

Corvus Energy and BYD Energy Storage strategic agreement signing. Corvus Energy and BYD Energy Storage sign strategic agreement for marine battery development  

Norway-based Corvus and Chinese firm BYD formalise partnership for next-generation lithium iron phosphate systems.

Tide Talks hydrogen webinar graphic. EMSA to host webinar on hydrogen as marine fuel  

Second episode of Tide Talks series scheduled for 29 June draws on agency studies.

Keel-laying ceremony of vessel with builder's hull no. CHB2047. Keel laid for MSC 19,000-teu LNG dual-fuel container ship  

Vessel CHB2047 is being built at Changhong International’s Daishan facility in Zhoushan.

Keys Azalea vessel. NYK achieves over 90% methane oxidation in LNG engine catalyst trial  

Japanese shipping company reports results from onboard test of system designed to reduce methane slip.

We are hiring graphic. Uni-Fuels seeks general manager for Houston bunker trading desk  

Nasdaq-listed marine fuel seller advertises for commercial leader to oversee P&L and customer relationships.

M2I2 grant award event. Emvolon wins Massachusetts grant for biomethane-to-biomethanol conversion system  

Technology converts biomethane into biomethanol at source, with applications including sustainable aviation fuel production.

Nikolaj Holm Kristensen and Tobias Laugesen, Malik Energy. Malik Energy expands team with two new hires in Denmark  

Marine fuel supplier adds chemicals specialist and supplier to Fredericia and Aalborg offices.

Soil boring tests. Straits Bio-LNG reports favourable soil test results for jetty construction  

Preliminary soil boring tests show shallower depth than expected at Singapore-based company’s jetty site.

Evangelia Tsimpidi, Flex Commodities. Flex Commodities hires Trafigura operator for Greek bunker deliveries  

Evangelia Tsimpidi joins from Trafigura Maritime Ventures with experience in ARA and US markets.