Fri 6 Apr 2018, 09:48 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed up $0.31 last night to $68.33, and WTI closed at $63.54, up $0.17. Week-on-week, crude is down around $2.40 per bbl or 3.5%. All this trade war talk between the USA and China seems, quite frankly, pretty petty. It's like two kids at preschool standing in front of each other and saying "I know you are, but what am I?". It is clear that the oil market needs one indicator to keep it up at these levels and that is consistent increases in demand. Quite how the US thinks putting tariffs on Chinese imports is good for demand is only for Donald to know. When Belgium looks pretty politically stable, you know the world is in trouble. Anyway, in other news, Saudi have increased their price of their light crude to Asia. Which is a bit strange. Maybe the cracks on light ends are improving and the Saudi's want to take advantage of their crude yielding those products, but they might as well just literally open the door for the US producers and allow them to help themselves. They are going to have to use all the tricks in the book to keep revenue up after taking the brunt of the cuts from the OPEC agreement. Like the big brother of the cartel, they are leading the way.

Fuel Oil Market (April 5)

The front crack opened at -11.55, strengthening to -11.20, before weakening to -11.40. The Cal 19 was valued at -14.40.

Improved sentiment on Thursday helped Asia's 380 cSt market firm as buying interest boosted the prompt-month 380 cSt time spread, recouping some of the losses from earlier in the week, trades sources said. Sentiment in the 380 market had recently been dampened by ample supplies of high-viscosity fuel oil grades and a shortage of blendstocks. Increased demand for blendstocks boosted the promptmonth viscosity spread for a seventh consecutive session to a near three-year high.

Singapore weekly onshore fuel oil inventories fell 9 percent, or 1.985 million barrels (296,000 tonnes), to a 12-week low of 19.706 million barrels (about 2.941 million tonnes) in the week ended April 4. The drop in onshore Singapore fuel oil inventories may also in part be a result of at least one supplier concluding its storage lease at the end of March at one of Singapore's oil tank farms.

Economic Data and Events

* 6pm: Baker Hughes weekly rig count

* 6pm: ICE weekly commitments of traders report for Brent, gasoil

** NOTE: ICE to release positioning data at 6:30pm London from April 13

* 8:30pm: CFTC weekly commitments of traders report on various U.S. futures and options contracts

* 1:30pm: U.S. March Nonfarm jobs report, est. 185k (prior 313k)

Singapore 380 cSt

May18 - 367.75 / 369.75

Jun18 - 367.00 / 369.00

Jul18 - 365.75 / 367.75

Aug18 - 364.00 / 366.00

Sep18 - 362.25 / 364.25

Oct18 - 360.25 / 362.25

Q3-18 - 364.00 / 366.00

Q4-18 - 357.75 / 359.75

Q1-19 - 350.00 / 352.50

Q2-19 - 354.50 / 357.50

CAL19 - 338.25 / 343.25

CAL20 - 288.75 / 296.75

Singapore 180 cSt

May18 - 378.50 / 380.50

Jun18 - 377.00 / 379.00

Jul18 - 375.75 / 377.75

Aug18 - 374.00 / 376.00

Sep18 - 372.25 / 374.25

Oct18 - 370.25 / 372.25

Q3-18 - 374.00 / 376.00

Q4-18 - 367.00 / 369.00

Q1-19 - 359.50 / 362.00

Q2-19 - 354.50 / 357.50

CAL19 - 338.25 / 343.25

CAL20 - 288.75 / 296.75

Rotterdam Barges

May18 355.75 / 357.75

Jun18 355.00 / 357.00

Jul18 353.25 / 355.25

Aug18 351.00 / 353.00

Sep18 348.25 / 350.25

Oct18 - 345.00 / 347.00

Q3-18 350.75 / 352.75

Q4-18 341.25 / 343.25

Q1-19 334.00 / 336.50

Q2-18 325.50 / 328.50

CAL19 305.50 / 310.50

CAL20 256.00 / 264.00


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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.