Fri 13 Apr 2018, 09:03 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent crude was down $18 cents, or 0.2 percent, at $71.84, and is up about 7 percent for the week. WTI for May delivery CLc1 was down $16 cents, or 0.2 percent, at $66.91 a barrel at 06:32 GMT. For the week, the contract is set to post a gain of nearly 8 percent, following two weeks of declines. The new proxy wars of the world are taking a new turn and seemingly entering a cooler patch. Trump has cooled off on his plans for a more military intervention in Syria, which has become the battleground for a complicated multi-party war. With parties like Russia, U.S., Iran, Israel all involved, it could expand into a bigger factor that could drive this market up. OPEC's collective output has dropped 201,400, the biggest drop since November. It may be the result of fortunate factors, such as the dramatic drop off in oil production by Venezuela, but it does give the market a strong permission to be up above the $70 level. It's quite a feat they have managed, with many naysayers. Technically, we are bullish; with Syria tensions, Iran sanctions and North Korea talks, it could be a fun year this one - to the moon and back.

Fuel Oil Market (April 12)

The front crack opened at -12.80, strengthening to -12.25, before weakening to -12.35. The Cal 19 was valued at -14.85.

Trade activity in the fuel oil paper markets was muted on Thursday with the front-month fuel oil crack widening its discount to Brent crude as crude oil prices recovered slightly after Asia trading hours. Oil markets edged back from highs last reached in late 2014 as ample supplies weighed, but prices were underpinned by worries over military escalation in Syria and trade tensions between the United States and China.

Singapore weekly onshore fuel oil inventories fell 0.1 percent, or 14,000 barrels (about 2,000 tonnes), to a 13- week low of 19.692 million barrels (about 2.939 million tonnes) in the week ended April 11. This came despite weekly net imports of fuel oil into Singapore surging 73 percent from the week before to a three-week high of 825,000 tonnes, the data showed.

Economic Data and Events

* 3pm: U.S. JOLTS Job Openings, Feb.

* 3pm: University of Michigan Sentiment, April

* 6pm: Baker Hughes rig count

* ~6:30pm: ICE weekly commitments of traders report for Brent, gasoil

* Commodity Futures Trading Commission weekly scheduled report on futures and options positions

Singapore 380 cSt

May18 - 387.25 / 389.25

Jun18 - 386.00 / 388.00

Jul18 - 384.75 / 386.75

Aug18 - 383.00 / 385.00

Sep18 - 381.25 / 383.25

Oct18 - 379.50 / 381.50

Q3-18 - 383.00 / 385.00

Q4-18 - 377.00 / 379.00

Q1-19 - 368.75 / 371.25

Q2-19 - 361.50 / 364.00

CAL19 - 337.00 / 340.00

CAL20 - 279.00 / 284.00

Singapore 180 cSt

May18 - 396.25 / 398.25

Jun18 - 395.50 / 397.50

Jul18 - 395.25 / 397.25

Aug18 - 393.75 / 395.75

Sep18 - 392.00 / 394.00

Oct18 - 390.25 / 392.25

Q3-18 - 393.75 / 395.75

Q4-18 - 387.75 / 389.75

Q1-19 - 379.75 / 382.25

Q2-19 - 373.75 / 376.25

CAL19 - 351.75 / 354.75

CAL20 - 302.75 / 307.75

Rotterdam Barges

May18 375.25 / 377.25

Jun18 374.50 / 376.50

Jul18 373.00 / 375.00

Aug18 370.75 / 372.75

Sep18 368.00 / 370.00

Oct18 - 364.75 / 366.75

Q3-18 370.75 / 372.75

Q4-18 361.00 / 363.00

Q1-19 351.75 / 354.25

Q2-18 342.00 / 344.50

CAL19 319.00 / 322.00

CAL20 258.00 / 263.00


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.