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


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