Sign up
Log in Sign up
Fri 27 Apr 2018 08:11

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed up $0.74 last night to $74.74 and WTI closed up $68.19, up $0.14. It's all blissful in the land of the bull. Brent is up another 1% on last week and why not be up here? People seem convinced that the US are going to pull the Iran agreement, and this may disrupt about 350kbpd of production. Wow, 350kbpd of production eh? So the market is rallying to the dizzying heights of $75 per bbl on the back of Iranian sanction, meaning 350kbpd being taken off the market. Well, US exports last week were 2.3mn bpd. In Jan 2017, US exports were 0.746mn bpd. So, if my maths is right, that is an increase in US exports of 1.554mn bpd in available crude in the market since last January. Now let's stay on the maths path - 350kbpd may come off because Iran are sanctioned, but the US are exporting more nets an increase in available oil by 1.2mn bpd compared to Jan last year. So the news about increasing demand has been the market's saving grace. Inventories have been drained and now demand up. The market up here is what it is, I suppose. Have a good weekend.

Fuel Oil Market (April 26)

The front crack opened at -13.30, strengthening to -12.85, before weakening to -13.40, closing -13.30. The Cal 19 was valued at -16.65.

Bullish sentiment continued to support Asia's fuel oil market on Thursday amid ongoing concerns of tight supplies of finished grade bunker fuels and after official data showed Singapore fuel oil stocks dropped to a more than 3-year low

The 380 cSt fuel oil barges crack to Brent crude also narrowed its discount to about minus $12.85 a barrel before the Singapore trading window but later gave up gains to about minus $13.30 a barrel as crude prices climbed.

Singapore weekly onshore fuel oil inventories fell for a fifth straight week to 17.395 million barrels (about 2.596 million tonnes) in the week ended April 25, the lowest since November 2014.

Economic Data and Events: (Times are London.)

* 6pm: Baker Hughes U.S. rig count

* 8:30pm: CFTC Commitment of Traders report

* North Sea Forties, Ekofisk loading plans for June

* Russia Urals final loading plan for June

* EARNINGS: Exxon Mobil, Chevron, Eni, Phillips 66

Singapore 380 cSt

May18 - 399.25 / 401.25

Jun18 - 396.75 / 398.75

Jul18 - 394.25 / 396.25

Aug18 - 391.50 / 393.50

Sep18 - 388.75 / 390.75

Oct18 - 386.00 / 388.00

Q3-18 - 391.50 / 393.50

Q4-18 - 383.25 / 385.25

Q1-19 - 374.25 / 376.75

Q2-19 - 365.50 / 368.00

CAL19 - 339.00 / 342.00

CAL20 - 273.50 / 278.50

Singapore 180 cSt

May18 - 410.25 / 412.25

Jun18 - 407.75 / 409.75

Jul18 - 405.25 / 407.25

Aug18 - 402.50 / 404.50

Sep18 - 399.75 / 401.75

Oct18 - 397.00 / 399.00

Q3-18 - 402.50 / 404.50

Q4-18 - 394.25 / 396.25

Q1-19 - 385.50 / 388.00

Q2-19 - 377.00 / 379.50

CAL19 - 353.50 / 356.50

CAL20 - 297.50 / 302.50

Rotterdam Barges

May18 - 384.50 / 386.50

Jun18 - 383.50 / 385.50

Jul18 - 381.25 / 383.25

Aug18 - 378.25 / 380.25

Sep18 - 374.75 / 376.75

Oct18 - 370.75 / 372.75

Q3-18 - 378.00 / 380.00

Q4-18 - 366.50 / 368.50

Q1-19 - 356.75 / 359.25

Q2-19 - 344.75 / 347.25

CAL19 - 319.25 / 322.25

CAL20 -248.25 / 253.25

Lease agreement between Inter Terminals Sweden and the Port of Gothenburg, signed on July 1st. Pictured: Göran Eriksson, CEO of the Port of Gothenburg (left) and Johan Zettergren, Managing Director of Inter Terminals Sweden (right). New Gothenburg lease an opportunity to expand green portfolio: Inter Terminals  

Bunker terminal operator eyes tank conversion and construction projects for renewable products.
Map of US Gulf. Peninsula extends US Gulf operation offshore  

Supplier to focus on Galveston Offshore Lightering Area (GOLA) in strategy to serve growing client base.
The M/T Jutlandia Swan, operated by Uni-Tankers. Uni-Tankers vessel gets wind-assisted propulsion  

Fourth tanker sails with VentoFoil units as manufacturer says suction wing technology is gaining traction.
Port of Gothenburg Energy Port. Swedish biomethane bunkered in Gothenburg  

Test delivery performed by St1 and St1 Biokraft, who aim to become large-scale suppliers.
Image from Cockett Marine Oil presentation. Cockett to be closed down after 45 years  

End of an era as shareholders make decision based on 'non-core nature' of Cockett's business.
Petrobras logo. Petrobras confirms prompt availability of VLS B24 at Rio Grande  

Lead time for barge deliveries currently five days.
Opening of the IMO Marine Environment Protection Committee (MEPC), 83rd Session, April 7, 2025. IMO approves pricing mechanism based on GHG intensity thresholds  

Charges to be levied on ships that do not meet yearly GHG fuel intensity reduction targets.
Preemraff Göteborg, Preem's wholly owned refinery in Gothenburg, Sweden. VARO Energy expands renewable portfolio with Preem acquisition  

All-cash transaction expected to complete in the latter half of 2025.
Pictured: Biofuel is supplied to NYK Line's Noshiro Maru. The vessel tested biofuel for Tohoku Electric Power in a landmark first for Japan. NYK trials biofuel in milestone coal carrier test  

Vessel is used to test biofuel for domestic utility company.
Pictured (from left): H-Line Shipping CEO Seo Myungdeuk and HJSC CEO Yoo Sang-cheol at the contract signing ceremony for the construction of an 18,000-cbm LNG bunkering vessel. H-Line Shipping orders LNG bunkering vessel  

Vessel with 18,000-cbm capacity to run on both LNG and MDO.

↑  Back to Top


 Recommended