Tue 20 Mar 2018, 08:54 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed down $0.16 to $66.05, WTI closed at $62.06 down $0.28. It is now time for me to bombard you with facts: U.S. crude oil exports in 2017 were nearly double those of 2016, and China accounted for 202,000 b/d (20 percent) of the 527,000 b/d total increase. U.S. crude was shipped to 37 destinations, compared with 27 in 2016. India, which did not receive U.S. crude oil exports in 2016, received 22,000 b/d in 2017, tying with Spain as the 10th-largest destination. U.S. crude oil exports grew to an average of 1.1 million barrels per day (b/d) in 2017. U.S. crude oil production reached 9.3 million b/d in 2017. Current US production is around 10.38mn b/d. And finally, Spot Brent crude oil prices averaged $3.36 per barrel more than WTI prices in 2017 compared with just $0.40/b more in 2016, providing a price incentive to export U.S. crude oil into the international market. Phew - I rest my case. But geopolitics is the fly in the ointment that has led to the collapse of my case in a more spectacular fashion than OJ Simpson. Have a good day.

Fuel Oil Market (March 19)

The front crack opened at -10.60, weakening to -10.85, before strengthening to -10.55, closing -10.85. The Cal 19 was valued at -14.55

Asia's 380 cSt cash differential slid into a wide discount on Monday amid an absence of willing buyers despite aggressive suppliers for cargoes of the fuel.

380 cSt fuel oil cash discounts fell to minus $1.17 a tonne to Singapore quotes on Monday, down from a premium of 5 cents on Friday and plus 17 cents a week ago.

The 380 cSt cash differential is now at its lowest since March 2017

Economic Data and Events

* 8:30pm: API issues weekly U.S. oil inventory report

* Bloomberg-compiled refinery snapshot for U.S. and Canada; gives offline capacity projections for crude units and FCCs

* Saudi Crown Prince Mohammed bin Salman meets with President Donald Trump at the White House as part of U.S. visit

Singapore 380 cSt

Apr18 - 361.75 / 363.75

May18 - 361.50 / 363.50

Jun18 - 359.00 / 361.00

Jul18 - 359.50 / 361.50

Aug18 - 358.00 / 360.00

Sep18 - 356.00 / 358.00

Q2-18 - 361.25 / 363.25

Q3-18 - 357.75 / 359.75

Q4-18 - 351.25 / 353.75

Q1-19 - 343.00 / 345.50

CAL19 - 316.50 / 320.50

CAL20 - 253.50 / 261.50

Singapore 180 cSt

Apr18 - 369.00 / 371.00

May18 - 368.75 / 370.75

Jun18 - 368.50 / 370.50

Jul18 - 367.50 / 369.50

Aug18 - 366.25 / 368.25

Sep18 - 364.25 / 366.25

Q2-18 - 368.75 / 370.75

Q3-18 - 365.25 / 367.25

Q4-18 - 359.25 / 361.75

Q1-19 - 351.50 / 354.00

CAL19 - 329.75 / 333.75

CAL20 - 277.50 / 285.50

Rotterdam Barges

Apr18 349.75 / 351.75

May18 349.50 / 351.50

Jun18 348.50 / 350.50

Jul18 347.00 / 349.00

Aug18 345.25 / 347.25

Sep18 342.75 / 344.75

Q2-18 349.25 / 351.25

Q3-18 345.00 / 347.00

Q4-18 335.75 / 338.25

Q1-19 328.00 / 330.50

CAL19 297.00 / 301.00

CAL20 242.00 / 250.00


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.