Tue 1 May 2018, 08:55 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

London Brent crude for new July delivery was up 21 cents at $74.90. The June contract expired on Monday, settling up 53 cents at $75.17. U.S. WTI crude for June delivery was up 24 cents, or 0.4 percent, at $68.81 a barrel by 04:02 GMT, after settling up 47 cents on Monday. Like that kid in school who no one wants to hang out with, it seems that the U.K. is the only place (together with the Netherlands and much of the Middle East) currently not on holiday, only waiting for its bigger brother the U.S. to come in later to save us. Netanyahu has stuck his oar in on Iran sanctions - no geopolitical surprise there. The only question now is whether this will sway Trump, give him the excuse he needs, or will moderation win out when it comes to the actual decision next week?

Fuel Oil Market (April 30)

The front crack opened at -12.50, strengthening to -12.45, before weakening to -13.20. The Cal 19 was valued at - 16.65

Ex-wharf cash premiums of 380 cSt fuel oil eased from their recent highs as supply constrains showed some signs of easing over the near term but the downside was limited by berth congestion as suppliers worked to clear a backlog of demand and limited overall supplies of finished grade fuel oil, trade sources said.

Ex-wharf premiums of 380 Sst fuel oil eased to about $5- $6 a tonne to Singapore quotes on Monday, down from about $9-$10 a tonne on Friday. However, firm demand for cutter stock supplies helped boost the viscosity spread higher to about $12.75 a tonne, while tight overall supplies in Singapore helped widen the front-month arbitrage spread to about $15.25 a tonne, broker sources said.

Economic Data and Events: (Times are London.)

* Labor Day holiday in many parts of world, including China, Korea, Russia, Germany, France, Netherlands, Spain, Italy, Switzerland, Iraq, Nigeria, India, Brazil, Argentina, Indonesia, Malaysia, Singapore

* OPEC April production estimate based on Bloomberg survey

* Bloomberg to start publishing monthly crude export estimates for April for key OPEC nations based on tanker-tracking analysis

* EARNINGS: BP Plc, Marathon Petroleum, Anadarko Petroleum

Singapore 380 cSt

Jun18 - 401.25 / 403.25

Jul18 - 397.50 / 399.50

Aug18 - 395.00 / 397.00

Sep18 - 392.25 / 394.25

Oct18 - 389.25 / 391.25

Nov18 - 386.25 / 388.25

Q3-18 - 394.75 / 396.75

Q4-18 - 386.25 / 388.25

Q1-19 - 375.75 / 378.25

Q2-19 - 365.25 / 367.75

CAL19 - 341.50 / 344.50

CAL20 - 275.75 / 280.75

Singapore 180 cSt

Jun18 - 413.00 / 415.00

Jul18 - 409.25 / 411.25

Aug18 - 406.50 / 408.50

Sep18 - 403.50 / 405.50

Oct18 - 400.50 / 402.50

Nov18 - 397.25 / 399.25

Q3-18 - 406.25 / 408.25

Q4-18 - 397.50 / 399.50

Q1-19 - 387.25 / 389.75

Q2-19 - 377.00 / 379.50

CAL19 - 355.75 / 358.75

CAL20 - 299.75 / 304.75

Rotterdam Barges

Jun18 - 386.25 / 388.25

Jul18 - 383.50 / 385.50

Aug18 - 380.75 / 382.75

Sep18 - 377.50 / 379.50

Oct18 - 373.50 / 375.50

Nov18 - 369.25 / 371.25

Q3-18 - 380.50 / 382.50

Q4-18 - 368.50 / 370.50

Q1-19 - 358.50 / 361.00

Q2-19 - 346.00 / 348.50

CAL19 - 321.25 / 324.25

CAL20 - 250.25 / 255.25

BP  

Decab Hub and MMMCZCS logos. Lloyd’s Register and Maersk Mc-Kinney Møller Center launch ammonia safety and training resources for shipping  

New tools aim to help operators build the safety management and competency frameworks needed for ammonia-fuelled vessels.

Kevin Dohmen, IBT Bunkering & Trading. IBT Bunkering & Trading appoints Kevin Döhmen to manage new Singapore office  

Döhmen tasked with developing IBT’s operation in the Asian city-state.

Peak Skarv 3 vessel. Peak takes delivery of third S-class vessel and cuts steel for ammonia-fuelled ship  

Norwegian operator marks two events at Chinese yard as ammonia-powered newbuild programme advances.

Launching ceremony of Minerva Helen. New Times Shipbuilding launches LNG dual-fuel tanker for Minerva  

112,500-dwt Minerva Helen launched at shipyard in Jiangsu, China.

Hansa Drejoe vessel. Leonhardt & Blumberg equips first of four newbuilds with Econowind VentoFoils  

German shipowner installs wind-assisted propulsion technology aboard general cargo vessel Hansa Drejoe.

Green Pearl vessel at Port of Civitavecchia. Axpo and Vitol launch LNG bunkering at the Port of Civitavecchia  

Operation marks the extension of Axpo’s LNG bunkering network to third major Italian port.

Grande Pacifico vessel. Grimaldi takes delivery of ammonia-ready Grande Pacifico  

9,800-ceu ship is the largest PCTC in the Neapolitan Group’s fleet and the first of five sister vessels on order.

Regional seminar on alternative fuels and new technologies. IMO seminar in Trinidad and Tobago trains Caribbean maritime educators for the alternative fuels era  

A five-day regional seminar in Port of Spain addressed ammonia, methanol and hydrogen training for seafarers.

Summit Arbutus vessel. Corvus Energy wins 40 MWh battery contract for BC Ferries’ new biofuel-compatible Summit Class vessels  

Norwegian battery supplier to power four new hybrid-electric ferries for Canada’s BC Ferries.

Fleetzero Leviathan Battery Energy Storage System (BESS). ABS issues product design assessment for Fleetzero’s Leviathan battery system  

The first US-manufactured lithium iron phosphate marine battery system receives classification society approval.