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


Close-up of a vessel bow at port. Iberian Peninsula poised to overtake the Netherlands as Europe’s top LNG bunkering hub  

Spanish and Portuguese ports quadrupled ship-to-ship LNG supply in two years, data shows.

FOBAS Fuel Insight Fuel Quality report H2 2025 cover. Lloyd’s Register reports sharp rise in marine fuel quality failures in late 2025  

December recorded the highest monthly off-specification cases, driven by sulphur, catalytic fines and flash point issues.

Bio-LNG bunkering infrastructure. Bahía de Bizkaia Gas launches bio-LNG loading service after ISCC certification  

Spanish regasification terminal begins offering renewable fuel loading for trucks and vessels in January 2026.

Grande Michigan vessel. Grimaldi takes delivery of eighth ammonia-ready car carrier Grande Michigan  

The 9,000-ceu vessel features 50% lower fuel consumption and 5 MWh battery capacity.

Graphic of the ABS logo with a blue background and light effects over a globe. ABS consortium delivers ammonia fuel safety report for EMSA  

Report expands on IMO interim guidelines and highlights need for comprehensive understanding of ammonia properties.

Green Future vessel. NYK operates methanol-fuelled bulk carrier for BHP, claims 65% emissions cut  

Green Future becomes first oceangoing bulk carrier to use low-carbon methanol fuel.

Genesis Sea vessel. Ulstein Verft completes sea trials for Genesis Sea CSOV ahead of spring delivery  

The 89.6-metre vessel features hybrid battery propulsion and preparations for green methanol operation.

S-4L waterjet render. Kongsberg Maritime launches S-4L waterjet series with Gotland ferry order  

Hydrogen-ready Horizon X ferry to feature new propulsion technology on Swedish route.

Annual Capital Link Forum in Athens. ECSA calls for EU to withdraw shipping legislation once IMO reaches global agreement  

European shipowners' association urges Commission to clarify that regional measures are transitional pending an international framework.

QRDI Grant Award event. CircleProcess Technologies wins Qatar grant for onboard LNG-to-hydrogen conversion project  

Project ReformLNG aims to convert LNG into hydrogen fuel and solid carbon onboard vessels.





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