Fri 16 Mar 2018, 10:06 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent crude futures trading in London fell 7 cents to $65.05 a barrel after settling up 23 cents at 03:54 GMT. Brent is down 0.7 percent for the week. WTI oil futures for April delivery fell $3 cents, or 0.1 percent, to $61.16 a barrel, after settling up $23 cents yesterday. There's an interesting industry dichotomy coming into existence: those who see oil as the current and near future saviour, and those who are turning their back on it. It was reported yesterday that Norwegian company Statoil will be changing its name to Equinor as it moves away from oil in a similar fashion to their national wealth fund. On the other hand, we have the U.S. and newcomer Ghana. The U.S. is trying to become the preeminent oil producing nation, and is in a situation when only Russia is producing more than they are. Ghana's production is expected to expand 8.3% this year, which would peg it as one of the fastest growing oil industries in the world. So we have a contrast in terms of those divesting and those reinvesting. So far today, the market is as flat as the U.K.'s economy after Brexit; we are still stuck in a neutral technical position, waiting for a breakout either side. Perhaps the market will move when the U.S. opens, or it will be one to watch on Monday.

Fuel Oil Market (March 15)

The front crack opened at -10.35, strengthening to -10.30, before weakening to -10.35. The Cal 19 was valued at -14.90.

Asia's front-month 380 cSt fuel oil time spread and crack edged lower amid limited trading activity. The April/May time spread was slightly lower on Thursday, trading at about $65 cents a tonne, remaining within a tight range of about $60-90 cents a tonne this week.

Front-month 380 cSt fuel oil crack to Brent crude was trading at about minus $10.50 a barrel during the Singapore trading window on Thursday, down from minus $10.30 a barrel in the previous session. This came as Singapore weekly onshore fuel oil inventories jumped 8%, or 1.84 million barrels (275,000 tonnes) to a 2018 high of 23.871 million barrels (about 3.56 million tonnes) in the week ended March 14.

Economic Data and Events

* 5pm: Baker Hughes U.S. rig count

* ~5pm: ICE weekly commitments of traders report for Brent, gasoil

* Commodity Futures Trading Commission weekly scheduled report on futures and options positions

* Today:

** Petro India Conference in New Delhi

** Angola preliminary crude program for May

** Eni SpA strategy presentation

Singapore 380 cSt

Apr18 - 358.25 / 360.25

May18 - 357.50 / 359.50

Jun18 - 356.50 / 358.50

Jul18 - 355.00 / 357.00

Aug18 - 353.00 / 355.00

Sep18 - 351.00 / 353.00

Q2-18 - 357.25 / 359.25

Q3-18 - 353.25 / 355.25

Q4-18 - 346.75 / 349.25

Q1-19 - 338.25 / 340.75

CAL19 - 309.75 / 313.75

CAL20 - 246.75 / 254.75

Singapore 180 cSt

Apr18 - 366.00 / 368.00

May18 - 365.25 / 367.25

Jun18 - 364.25 / 366.25

Jul18 - 363.00 / 365.00

Aug18 - 361.25 / 363.25

Sep18 - 359.25 / 361.25

Q2-18 - 365.00 / 367.00

Q3-18 - 361.00 / 363.00

Q4-18 - 354.75 / 357.25

Q1-19 - 346.75 / 349.25

CAL19 - 323.00 / 327.00

CAL20 - 270.75 / 278.75

Rotterdam Barges

Apr18 343.75 / 345.75

May18 345.00 / 347.00

Jun18 343.75 / 345.75

Jul18 342.00 / 344.00

Aug18 340.00 / 342.00

Sep18 337.25 / 339.25

Q2-18 344.75 / 346.75

Q3-18 339.75 / 341.75

Q4-18 330.25 / 332.75

Q1-19 322.50 / 325.00

CAL19 290.25 / 294.25

CAL20 235.25 / 243.25


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.