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


Castrol Logo. BP to sell 65% stake in Castrol to Stonepeak for $10bn enterprise value  

Deal brings BP's divestment programme to $11bn, with proceeds earmarked for debt reduction.

Clippership 24-metre class autonomous wind-powered vessel. RINA approves design for Clippership's 24-metre autonomous wind-powered cargo vessel  

Classification society to supervise construction of zero-emission ship featuring twin rigid wings for transatlantic operations.

CMA CGM Antigone vessel. Bureau Veritas classes first methanol dual-fuel boxship as CMA CGM takes delivery  

The 15,000-teu CMA CGM Antigone was built by CSSC Jiangnan Shipyard in China.

AiP award ceremony for floating nuclear plant design. Samsung Heavy Industries' floating nuclear plant design wins ABS approval  

Concept features twin KAERI small modular reactors and a compartmentalised layout to support offshore nuclear power generation.

Claire-Celine Bausager Jørgensen, Dan-Bunkering. Dan-Bunkering Europe appoints Claire-Celine Bausager Jørgensen as senior fuel supplier  

Jørgensen returns to bunker trading after several years in the company's HR department.

CMA CGM Tivoli vessel. DHL and CMA CGM partner on 8,990-tonne biofuel purchase for ocean freight decarbonisation  

Logistics and shipping firms to use UCOME biofuel, targeting 25,000-tonne CO2e reduction.

FincoEnergies Logo. Glencore to acquire majority stake in Dutch marine fuel supplier FincoEnergies  

Transaction expected to complete in Q2 2026, subject to EU anti-trust approval.

CMA CGM Eugenie naming ceremony. CMA CGM names 15,000-teu methanol-fuelled containership CMA CGM Eugenie  

Vessel to operate on Phoenician Express service linking Asia, Middle East, and Mediterranean.

Christian Larsen, Island Oil. Island Oil appoints Christian Larsen as senior trader in Denmark expansion  

Marine fuel supplier establishes operations in Denmark as part of expansion strategy.

HIF Global and Government of Uruguay MoU signing. HIF Global signs Uruguay agreement to advance US$5.3bn e-fuels facility in Paysandú  

Memorandum sets roadmap for final investment decision on plant targeting 880,000 tonnes annual production.





 Recommended