Fri 8 Jun 2018, 08:26 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Oil prices reversed earlier gains today and fell below $77 as surging U.S. output as well as signs of weakening demand in China weighed on markets, even though supply woes in Venezuela and OPEC's ongoing production cuts offered crude some support. China's May crude oil imports eased away from a record high hit the month before, customs data showed, with state-run refineries entering planned maintenance. May shipments were 39.05 million tonnes, or 9.2 million (bpd), according to the General Administration of Customs. That compared with 9.6 million bpd in April. Further weighing on prices has been surging U.S. output EIA, which hit another record last week at 10.8 million bpd. That's a 28 percent gain in two years, or an average 2.3 percent growth rate per month since mid-2016. It puts the United States close to becoming the world's biggest crude oil producer, edging nearer to the 11 million bpd churned out by Russia. Is this what Trump meant by "making America great again?" The surge in U.S. production has pulled down U.S. WTI crude into a steep discount versus Brent to more than $11 per barrel, its steepest since 2015. This is occurring because of the rapid increase in production from U.S. shale coupled with the tightening of supplies elsewhere through the actions of OPEC and Russia.

Economic data/events (Times are London.)

* 3pm : U.S. Wholesale Inventories for April (final)

* 6pm Baker Hughes U.S. Rig Count

* 6:30pm: ICE weekly commitments of traders report for Brent, gasoil,

* CFTC weekly commitments of traders report on various U.S. futures and options contracts

* G-7 Leaders' Summit in La Malbaie, Quebec with heads of state from France, U.K., Germany, U.S. and Japan are expected

* See OIL WEEKLY AGENDA for this week's events

Singapore 380 cSt

Jul18 - 438.75 / 440.75

Aug18 - 434.75 / 436.75

Sep18 - 431.00 / 433.00

Oct18 - 427.25 / 429.25

Nov18 - 422.75 / 424.75

Dec18 - 419.25 / 421.25

Q3-18 - 434.75 / 436.75

Q4-18 - 422.25 / 424.25

Q1-19 - 410.25 / 412.75

Q2-19 - 397.75 / 400.25

CAL19 - 376.00 / 379.00

CAL20 - 303.50 / 308.50

Singapore 180 cSt

Jul18 - 448.25 / 450.25

Aug18 - 444.75 / 446.75

Sep18 - 441.25 / 443.25

Oct18 - 437.50 / 439.50

Nov18 - 433.50 / 435.50

Dec18 - 430.25 / 432.25

Q3-18 - 444.75 / 446.75

Q4-18 - 432.75 / 434.75

Q1-19 - 421.25 / 423.75

Q2-19 - 409.25 / 411.75

CAL19 - 390.50 / 393.50

CAL20 - 317.50 / 322.50

Rotterdam 3.5%

Jul18 - 422.75 / 424.75

Aug18 - 419.00 / 421.00

Sep18 - 415.00 / 417.00

Oct18 - 410.50 / 412.50

Nov18 - 406.00 / 408.00

Dec18 - 401.50 / 403.50

Q3-18 - 418.75 / 420.75

Q4-18 - 405.25 / 407.25

Q1-19 - 394.25 / 396.75

Q2-19 - 381.25 / 383.75

CAL19 - 355.00 / 358.00

CAL20 - 288.50 / 293.50

BP  

Maran Melina vessel. Angelicoussis Group takes delivery of fifth dual-fuel Suezmax tanker  

Maran Tankers Management adds the 155,500-DWT Maran Melina to its fleet.

CMA CGM Orsay naming ceremony. CMA CGM takes delivery of LNG-powered Orsay for Asia-Europe trade  

24,212-TEU vessel joins 10-ship series, adding capacity to the carrier's FAL3 route.

Titan Unikum vessel. Titan Clean Fuels completes 15-year survey on LNG bunkering vessel Titan Unikum  

Multi-gas carrier has undergone dry-docking work at a Chinese yard, preparing it for future upgrades.

Aesen 116H vessel. Lehmann Marine’s CUBE battery system debuts in China aboard hybrid crew boat  

German battery maker’s first Chinese installation targets fuel savings on a Cheoy Lee-built vessel for a Singapore operator.

Person signing a document. Iino Lines secures transition loan from Mizuho Bank for LPG dual-fuel VLGC  

Japanese shipowner finances the acquisition of Lumi Aurora through a green transition finance framework aligned with ICMA guidelines.

ABS, HD KSOE and Siemens MoU signing. ABS, HD KSOE and Siemens partner on digital twin technology for ammonia-fuelled ship safety  

Three firms will combine CFD analysis and digital twin technology to assess ammonia leak scenarios in vessel design.

American Bureau of Shipping (ABS) logo. Nuclear-powered LNG carriers cost more upfront but cut lifetime fuel bills, ABS-backed study finds  

Joint study with Blossom Energy examines the economics of a 174,000-cbm LNG carrier powered by a small reactor.

Christos Doulaveris, Flex Commodities. Flex Commodities appoints Christos Doulaveris as general manager for Greece  

Bunker trader strengthens its Greek operations with a new leadership appointment.

Chang Ping Yuan vessel. China delivers first domestically built VLGC under Chinese flag  

Cosco Shipping’s new 88,000-cbm gas carrier features an LPG dual-fuel main engine.

IMO, GreenVoyage2050 and Republic of Türkiye MoTI logos. Electric and hybrid ferries could cut Sea of Marmara emissions by 63%, IMO study finds  

A GreenVoyage2050 study finds that electrification could slash emissions, avoid €492 million in damage costs and support jobs.