Mon 9 Apr 2018, 09:04 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed down $1.22 on Friday to $67.11, WTI closed at $62.06, down $1.48, and INE was closed last Thursday and Friday for the Ching Ming festival. I think Brent will find some support at these kind of levels. $67.50: it's a nice round number and is slap bang in the middle of the 65 - 70 range we have been in all year. The trade war is still going on, quite who will fire the next shot is anyone's guess. I read an interesting article yesterday regarding the correlation between oil demand and the oil price. Quote: "It's not clear whether the global economies will continue to show a negative correlation between oil demand and oil prices from this point onwards, but the research suggests that in the United States, and even in China and India, oil demand is now more sensitive to oil prices than it was a decade or two ago, and that oil producers may be wrong to think that they still hold captive customers who would buy their product at any price". Oh by the way, the rig count in the US was up by 10 - now over 1,000. Just saying.

Fuel Oil Market (April 6)

The front crack opened at -11.25, strengthening to -10.70 across the day. The Cal 19 was valued at -14.50.

Asia's 380 cSt fuel oil cash differential flipped to a premium on Friday following strong buying interest for cargoes of the fuel for a second straight session. The 380 cSt fuel oil cash premiums were at $27 cents a tonne to Singapore quotes on Friday, up from minus $39 cents a tonne in the previous session and minus $82 cents a tonne on Monday.

Trade sources pointed to falling Singapore fuel oil inventories as well as renewed buying interest from Pakistan's state-oil company this week as bullish factors, but some were still puzzled by the abrupt shift in sentiment this week

Fuel oil stocks in the ARA oil hub fell 21 percent, or 222,000 tonnes, from the previous week to a three-week low of 839,000 tonnes in the week ended April 5.

Economic Data and Events

* 1:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* Today, no exact timing:

** Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday's EIA report

** Bloomberg New Energy Finance Future of Energy Summit in New York, day 1 of 2

** BTC Blend loading program for May

Singapore 380 cSt

May18 - 368.00 / 370.00

Jun18 - 367.25 / 369.25

Jul18 - 366.00 / 368.00

Aug18 - 364.25 / 366.25

Sep18 - 362.50 / 364.50

Oct18 - 360.50 / 362.50

Q3-18 - 364.25 / 366.25

Q4-18 - 357.00 / 359.00

Q1-19 - 349.00 / 351.50

Q2-19 - 342.50 / 345.50

CAL19 - 321.25 / 326.25

CAL20 - 262.00 / 270.00

Singapore 180 cSt

May18 - 380.25 / 382.25

Jun18 - 378.50 / 380.50

Jul18 - 377.25 / 379.25

Aug18 - 75.50 / 377.50

Sep18 - 373.75 / 375.75

Oct18 - 371.75 / 373.75

Q3-18 - 375.50 / 377.50

Q4-18 - 368.75 / 370.75

Q1-19 - 360.75 / 363.25

Q2-19 - 354.50 / 357.50

CAL19 - 335.50 / 340.50

CAL20 - 286.00 / 294.00

Rotterdam Barges

May18 356.00 / 358.00

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 302.75 / 307.75

CAL20 253.25 / 261.25


CMA CGM Notre Dame vessel at Singapore Port. Singapore 12-month bunker calls hit all-time high in July  

TTM calls at world's largest bunkering hub reach record levels despite softer sales volumes.

Cargo port in Singapore. Singapore T3M bunker sales stay below 14m tonnes for fourth month running  

Rolling three-month volumes remain subdued despite modest month-on-month recovery in July.

Shore power system launch at Port of Callao. Peru’s Port of Callao launches first shore power system in Latin America  

DP World Callao’s onshore power supply system could cut over 6,300 tonnes of CO₂ annually.

Aristodimos vessel. New Times Shipbuilding delivers LNG dual-fuel crude oil tanker to Capital  

Chinese yard hands over 155,500-dwt vessel in ceremony attended by owner’s representative.

MSC Sabrina and Alice Cosulich ship-to-ship (STS) bunkering operation. Shell completes maiden LNG bunkering operation in Valencia  

Delivery to MSC vessel facilitated by Fratelli Cosulich said to be first-ever LNG bunker supply at Spanish port.

Marina Bay Sands, Singapore. PIL hiring senior marine fuels executive to manage global bunkering operations  

Singapore-based role includes oversight of fuel procurement and delivery operations, covering PIL's fleet of container and multi-purpose vessels.

Steel-cutting ceremony of vessels with builder's hull nos. CHB2083 and CHB2084. Changhong International Shipbuilding cuts steel on two more 3100-teu boxships for Costamare  

HSFO-fuelled vessels feature scrubbers, SCR systems and shore power connections to meet emissions requirements.

Decab Hub and MMMCZCS logos. Lloyd’s Register and Maersk Mc-Kinney Møller Center launch ammonia safety and training resources for shipping  

New tools aim to help operators build the safety management and competency frameworks needed for ammonia-fuelled vessels.

Kevin Dohmen, IBT Bunkering & Trading. IBT Bunkering & Trading appoints Kevin Döhmen to manage new Singapore office  

Döhmen tasked with developing IBT’s operation in the Asian city-state.

Peak Skarv 3 vessel. Peak takes delivery of third S-class vessel and cuts steel for ammonia-fuelled ship  

Norwegian operator marks two events at Chinese yard as ammonia-powered newbuild programme advances.