Tue 24 Apr 2018 09:05

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent crude oil futures climbed to as high as $75.20 a barrel in early trading on Tuesday - the highest since Nov. 27, 2014. Brent was still at $75 a barrel at 03:11 GMT, up $29 cents, or 0.4 percent, from its last close. U.S. WTI crude futures were at $68.98 a barrel, up $34 cents, or 0.5 percent from their last settlement. I think it's worth listing all the bullish factors that have pushed the market up to its highest levels since November 2014: Iran sanctions potential, Syria and wider Middle East instability, increasing Asian (particularly Chinese) demand, the floated idea of OPEC cut extension, eradication of oil glut, Bloomberg survey showing draw on U.S. inventories ... That's a pretty strong list. The next two weeks are the twilight zone before Trump makes his Iran sanctions deal, which will understandably affect the market greatly. With a $1-3 premium built into current prices in anticipation of a pull out form the deal, a u-turn decision could push us back down to $70 as people profit take and sentiment falls flat. Like the longest game of Countdown ever, the clue this week is 'LFOFGLIESB'. Answers on a postcard.

Fuel Oil Market (April 23)

The front crack opened at -13.55, strengthening to -13.50, before weakening to -13.85, closing -13.80. The Cal 19 was valued at -15.60

Asia's 380 cSt ex-wharf fuel oil premiums were pushed higher on Monday after it emerged that at least one supplier was in possession of an off-specification cargo of the fuel, tightening prompt supplies of the mainstay bunker fuel

The off-spec cargo is expected to lift premiums of the fuel over the short term until suppliers are able to replace the cargo and meet prompt customer demand, the sources said.

Ex-wharf premiums for 380-cst fuel oil were at about $3- $4 a tonne to Singapore quotes on Monday, up from about $2-$3 a tonne to Singapore quotes last week..

Singapore 380 cSt

May18 -395.75 / 397.75

Jun18 -394.00 / 396.00

Jul18 - 392.25 / 394.25

Aug18 - 390.25 / 392.25

Sep18 - 388.00 / 390.00

Oct18 - 386.00 / 388.00

Q3-18 - 390.00 / 392.00

Q4-18 - 383.00 / 385.00

Q1-19 -374.00 / 376.50

Q2-19 - 367.50 / 370.00

CAL19 - 342.25 / 345.25

CAL20 - 276.75 / 281.75

Singapore 180 cSt

May18 - 405.50 / 407.50

Jun18 - 403.75 / 405.75

Jul18 - 402.25 / 404.25

Aug18 - 400.50 / 402.50

Sep18 - 398.25 / 400.25

Oct18 - 396.75 / 398.75

Q3-18 - 400.25 / 402.25

Q4-18 - 394.00 / 396.00

Q1-19 - 385.25 / 387.75

Q2-19 - 379.00 / 381.50

CAL19 - 356.75 / 359.75

CAL20 - 300.75 / 305.75

Rotterdam Barges

May18 381.00 / 383.00

Jun18 380.25 / 382.25

Jul18 378.50 / 380.50

Aug18 376.00 / 378.00

Sep18 372.75 / 374.75

Oct18 - 369.00 / 371.00

Q3-18 375.75 / 377.75

Q4-18 365.25 / 367.25

Q1-19 356.25 / 358.75

Q2-18 345.50 / 348.00

CAL19 322.25 / 325.25

CAL20 258.25 / 263.25


The Buffalo 404 barge, owned by Buffalo Marine Service Inc., performing a bunker delivery. TFG Marine installs first ISO-certified mass flow meter on US Gulf bunker barge  

Installation marks expansion of company's digitalisation programme across global fleet.

Sogestran's fuel supply vessel, the Anatife, at the port of Belle-Île-en-Mer. Sogestran's HVO-powered tanker achieves 78% CO2 reduction on French island fuel runs  

Small tanker Anatife saves fuel while supplying Belle-Île and Île d'Yeu.

Crowley 1,400 TEU LNG-powered containership, Tiscapa. Crowley deploys LNG-powered boxship Tiscapa for Caribbean and Central American routes  

Vessel is the third in company's Avance Class fleet to enter service.

The inland LNG bunker vessel LNG London. LNG London completes 1,000 bunkering operations in Rotterdam and Antwerp  

Delivery vessel reaches milestone after five years of operations across ARA hub.

The M.V. COSCO Shipping Yangpu, China's first methanol dual-fuel containership. COSCO vessel completes maiden green methanol bunkering at Yangpu  

China's first methanol dual-fuel containership refuels with green methanol derived from urban waste.

Carsten Ladekjær, CEO of Glander International Bunkering. Glander International Bunkering reports stable performance amid regulatory changes  

Bunker trader achieves $3bn turnover and $22m pre-tax earnings for fiscal 2024-25.

Map of the Mediterranean Sea ULSFO demand surges in Med as ECA compliance drives fuel shift  

KPI OceanConnect reports accelerating ULSFO uptake across the region.

The Zale performing a bunker delivery. Monjasa reports Singapore as top bunker supply port with over 1 MMT delivered  

Supplier says world's largest bunkering hub became its biggest supply location in 2024.

Steel cutting ceremony for the 7,999 DWT chemical bunker tanker Lucia Cosulich at Taizhou Maple Leaf Shipbuilding Co., Ltd. in China. Fratelli Cosulich begins construction of second methanol-ready bunker tanker  

Italian firm starts steel cutting for 7,999 DWT chemical bunker vessel.

Petrobras logo. Petrobras introduces volume-based price discounts at Santos  

Brazilian oil company offers progressive discounts for bunker deliveries exceeding 1,500 tonnes.


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