Thu 29 Mar 2018, 07:47 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed last night at $69.53, down $0.58, WTI closed at $64.38, down $0.87, and INE closed at 414.10 yuan, or $65.95 per bbl. Early window today owing to the Easter break, so I'll make it short for a change. US oil stocks are growing. US production is increasing at a rate of knots and OPEC continue to open the door for the US to continue producing as much as they like. Flip the coin and we have Iran-North Korea-Venezuela potential for geopolitical uncertainty, the Saudi-Russia pact to agree a long-term production cap agreement, and a market that loves reacting strongly to bullish rumour. Q2 should be interesting.

Fuel Oil Market (March 28)

The front crack opened at -12.75, strengthening to -12.70, before weakening to -12.95. The Cal 19 was valued at -15.20

Asia's front-month high-sulphur fuel oil crack pulled back from a near seven-month low in the previous session amid falling stocks of the fuel across key storage hubs and weaker crude oil prices.

The April 180 cSt fuel oil crack to Brent crude was at about minus $9.27 a barrel on Wednesday, compared with minus $9.62 a barrel on Tuesday, its lowest since Aug. 12.

Singapore weekly onshore fuel oil inventories fell 10 percent, or 2.529 million barrels (377,000 tonnes) to a five-week low of 21.691 million barrels (about 3.24 million tonnes) in the week ended March 27. This came as weekly net imports of fuel oil into Singapore slipped 8 percent from the week before to a two-week low of 803,000 tonnes


Economic Data and Events

* 1:30pm: U.S. Initial Jobless Claims for March 24, est. 230k (prior 229k)

* 1:30pm: U.S. Continuing Claims for March 17, est. 1,870k (prior 1,828k)

* 2:45pm: Chicago Purchasing Manager for March, est. 62 (prior 61.9)

* 2:45pm: Bloomberg Consumer Comfort for March 25 (prior 56.8)

* 3pm: University of Michigan Sentiment for March (final), est. 102 (prior 102)

* 6pm: Baker Hughes U.S. Rig Count for Mar 30 (prior 995)

* 6pm: Philadelphia Fed President Patrick Harker speaks on the economic outlook at a New York Association of Business Economics luncheon

* Russian refining maintenance schedule from ministry

* North Sea Forties, Ekofisk May loading programs

Singapore 380 cSt

Apr18 - 365.25 / 367.25

May18 - 365.25 / 367.25

Jun18 - 365.50 / 367.50

Jul18 - 364.50 / 366.50

Aug18 - 363.00 / 365.00

Sep18 - 361.25 / 363.25

Q2-18 -365.50 / 367.50

Q3-18 -363.25 / 365.25

Q4-18 - 357.25 / 359.75

Q1-19 - 350.00 / 352.50

CAL19 - 324.50 / 328.50

CAL20 - 267.00 / 275.00

Singapore 180 cSt

Apr18 - 375.00 / 377.00

May18 - 374.25 / 376.25

Jun18 - 374.00 / 376.00

Jul18 - 373.00 / 375.00

Aug18 - 371.50 / 373.50

Sep18 - 370.00 / 372.00

Q2-18 - 374.50 / 376.50

Q3-18 - 371.75 / 373.75

Q4-18 - 366.25 / 368.75

Q1-19 - 359.25 / 361.75

CAL19 - 338.00 / 342.00

CAL20 - 291.00 / 299.00

Rotterdam Barges

Apr18 353.00 / 355.00

May18 354.00 / 356.00

Jun18 353.75 / 355.75

Jul18 352.50 / 354.50

Aug18 350.50 / 352.50

Sep18 347.50 / 349.50

Q2-18 353.50 / 355.50

Q3-18 350.00 / 352.00

Q4-18 341.00 / 343.50

Q1-19 333.75 / 336.25

CAL19 305.25 / 309.25

CAL20 246.75 / 254.75


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.