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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

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