Thu 26 Apr 2018, 08:19 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed last night up $0.14 to $74.00 and WTI closed at $68.05, up $0.35. EIA data was as predicted by API (shock!) but the market didn't really react, and we closed around the levels we had been trading in all day. It's all a bit unsettling at the moment, geopolitical tensions aside, that if we look at the state of the global economy it's all looking rather rosy, isn't it? Equities are up. The 10 year US treasury yield, the world's most important bond-market indicator, is at 3%, the first time since 2014. Demand is apparently healthy. North Korea appears to be willing to show some form of diplomacy. What's Going On!! Where's the drama? Look I'm all for happy times and people giving each other slaps on the back, but will someone spark some kind of collapse or something? Have a good day.

Fuel Oil Market (April 25)

The front crack opened at -14.00, weakening to -14.10,before strengthening to -13.50. The Cal 19 was valued at -16.65.

Concerns about narrowing supplies of finished grade fuel oil in Singapore helped boost the front-month arbitrage spread on Wednesday

The May East-West arbitrage spread rose to about $14.75 a tonne on Wednesday, up from about $14.50 in the previous session and $13.50 on Friday

The Singapore fuel oil market has rallied this week as inventories have dropped at the same time that some supplies in the region do not meet the standards for use as shipping fuel, further reducing availability

Economic Data and Events: (Times are London.)

* 1:30pm: U.S. March Durable Goods Orders, est. 1.6% (prior 3%)

* 1:30pm: U.S. Initial Jobless Claims week of April 21, est. 230k (prior 232k)

* CWC China LNG & Gas Summit, final day

* Angola issues final loading plan for June

* EARNINGS: Royal Dutch Shell Plc, Total SA, ConocoPhillips, Valero Energy Corp., DNO ASA

Singapore 380 cSt

May18 - 398.25 / 400.25

Jun18 - 396.00 / 398.00

Jul18 - 393.75 / 395.75

Aug18 - 391.25 / 393.25

Sep18 - 388.75 / 390.75

Oct18 - 386.25 / 388.25

Q3-18 - 391.25 / 393.25

Q4-18 - 384.25 / 386.25

Q1-19 - 375.25 / 377.75

Q2-19 - 368.00 / 370.50

CAL19 - 337.50 / 340.50

CAL20 - 272.00 / 277.00

Singapore 180 cSt

May18 - 408.75 / 410.75

Jun18 - 406.50 / 408.50

Jul18 - 403.75 / 405.75

Aug18 - 401.50 / 403.50

Sep18 - 399.00 / 401.00

Oct18 - 397.00 / 399.00

Q3-18 - 401.50 / 403.50

Q4-18 - 395.25 / 397.25

Q1-19 - 386.50 / 389.00

Q2-19 - 379.50 / 382.00

CAL19 - 352.00 / 355.00

CAL20 - 296.00 / 301.00

Rotterdam Barges

May18 - 383.25 / 385.25

Jun18 - 382.50 / 384.50

Jul18 - 380.25 / 382.25

Aug18 - 377.50 / 379.50

Sep18 - 374.00 / 376.00

Oct18 - 370.25 / 372.25

Q3-18 - 377.25 / 379.25

Q4-18 - 366.75 / 368.75

Q1-19 - 357.00 / 359.50

Q2-19 - 345.00 / 347.50

CAL19 - 317.50 / 320.50

CAL20 -249.75 / 254.75

LNG  

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.