Wed 2 May 2018, 08:08 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed last night at $73.13 and WTI closed at $67.25. Brent is stuttering as it struggles to break out above $75 per bbl. I wonder though: Q1 saw us more or less trading in a $65-$70 per bbl range; Q2 so far has seen us trade in more or less a $70 -$75 range. Does that mean Q3 is $75-$80 and Q4 $80-$85? Or is it really not that rudimentary? I think the time has passed to justify whether crude oil prices should be up here. I'm pretty sure we will flirt with some wild numbers over the course of the next ten days until POTUS decides whether to reimpose sanctions on Iran. Mr Netanyahu has certainly put the cat amongst the pigeons, it seems, so we will have to wait and see the course of action Trump decides. What else is going on? EIA data is out later. Apparently, we will see a build on crude and gasoline according to API. That's not particularly encouraging for the bulls who trade against numbers still, but there is some light at the end of the tunnel with Cushing stocks declining by 750kb. With driving season around the corner, any builds on gasoline could cause this market to decline, and decline fast.

Fuel Oil Market (May 01)

The front crack opened at -12.75, strengthening to -12.25, before weakening to -12.30, closing -12.25. The Cal 19 was valued at -16.95.

Economic Data and Events: (Times are London.)

* 12pm: MBA Mortgage Applications for April 27 (prior -0.2%)

* 1:15pm: ADP Employment Change for April, est. 198k (prior 241k)

* 3:30pm: DOE U.S. Crude Inventories for April 27

** TOPLive blog coverage begins 3:20pm

* 7pm: FOMC Rate Decision

** Russia public holiday

** Russia issues monthly oil production, exports data for April

** Genscape weekly ARA crude stockpiles report

** Saudi Aramco may issue June OSPs as soon as May 2, or later in week

** North Sea Brent loading program for June

** Revised/final CPC loading program for May could emerge as soon as today

Singapore 380 cSt

Jun18 - 401.25 / 403.25

Jul18 - 398.25 / 400.25

Aug18 - 395.50 / 397.50

Sep18 - 392.75 / 394.75

Oct18 - 389.75 / 391.75

Nov18 - 386.75 / 388.75

Q3-18 - 395.50 / 397.50

Q4-18 - 387.00 / 389.00

Q1-19 - 376.50 / 379.00

Q2-19 - 366.00 / 368.50

CAL19 - 338.75 / 341.75

Singapore 180 cSt

Jun18 - 413.00 / 415.00

Jul18 - 410.00 / 412.00

Aug18 - 407.00 / 409.00

Sep18 - 404.00 / 406.00

Oct18 - 401.00 / 403.00

Nov18 - 397.75 / 399.75

Q3-18 - 407.00 / 409.00

Q4-18 - 398.25 / 400.25

Q1-19 - 388.00 / 390.50

Q2-19 - 377.75 / 380.25

CAL19 - 353.00 / 356.00

Rotterdam Barges

Jun18 - 387.00 / 389.00

Jul18 - 384.00 / 386.00

Aug18 - 380.50 / 382.50

Sep18 - 376.75 / 378.75

Oct18 - 372.75 / 374.75

Nov18 - 368.50 / 370.50

Q3-18 - 380.50 / 382.50

Q4-18 - 368.50 / 370.50

Q1-19 - 358.00 / 360.50

Q2-19 - 345.75 / 348.25

CAL19 - 318.75 / 321.75



Rasmus Frimann Nielsen and Lars Zimmermann, Everllence. Everllence's small-bore GenSet orders surpass 2,000 in 2026  

Engine maker reports strong order intake across its small-bore portfolio, citing demand for reliable, fuel-flexible auxiliary power.

MT Tulip bunker tanker. Bunker One renews MT Tulip charter, plans mass flow meter upgrade in Mauritius  

Bunker One is keeping its bunker tanker in Mauritius while adding flow metering technology to improve delivery transparency.

COP31 panel discussion. Fund for Energy Efficiency Technologies becomes first to adopt revised Singapore-Asia Taxonomy  

FEET's adoption coincides with Lloyd's Register's independent review of GCMD's methodology for quantifying fuel savings from wind-assisted propulsion systems.

Arsenio Dominguez, IMO Secretary-General. IMO chief urges states to enforce safety rules in Strait of Hormuz amid rising attacks  

Arsenio Dominguez says more than 130 attacks on commercial vessels have been verified since February, with at least 25 seafarers killed.

OOCL Wisdom ship-to-ship (STS) bunkering operation at Xiamen Port. Xiamen Port launches 'green methanol bunkering' with OOCL Wisdom  

Boxship received 1,005 tonnes of methanol, corresponding to a reduction of more than 1,600 tonnes in carbon emissions, says COSCO Shipping.

Monjasa Tracer vessel. Monjasa expands fleet with five sister tankers in largest-ever acquisition  

Marine fuel supplier acquires five product tankers from Bernhard Schulte, boosting West African operations and global flexibility.

Molgas Energy logo. Molgas completes acquisition of Prima LNG’s Irish business  

Molgas takes over Prima LNG’s Irish customer portfolio, including a Mondelez manufacturing site, as part of its expansion.

Levante LNG vessel. Peninsula marks three years of LNG bunkering with Levante LNG  

Bunker supplier reports zero claims and CO₂e cuts as LNG bunker vessel completes three years of operations.

Sea Leader FZCO logo. Sea Leader begins physical bunker supply operations in eastern India  

Company completes first bunker delivery after registering with India's shipping authority.

Wega and Deneb vessels render. Auramarine to supply methanol fuel systems for German hydrographic research vessels  

Finnish firm signs deal with Gondan Shipbuilders to equip two new vessels for Germany's maritime agency.