Tue 1 May 2018 08:55

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


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