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Mon 11 Jun 2018 09:37

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed down $0.86 on Friday to $76.46 and WTI closed down $0.21 to $65.74. Brent has been fairly range bound and I made the point a few weeks ago that coming up to the OPEC meeting in Vienna on 22nd June that Brent would flirt in the 75-80 range until then, and this has proved true. However, I decided to look at last week's EIA data this morning and, would you believe it: a build on gasoline inventories. Quite a sizeable build as well, especially seeing that driving season has started. Perhaps Elon Musk has taken more of a grip on the US motor industry than the APi cares to acknowledge. Either that or every forecaster called it wrong. I'll let you decide which of those statements are true. On that note, JP Morgan have decided that they were wrong too. Their latest report says "oil fundamentals are expected to weaken in 2019 on the back of stronger-than-expected non-OPEC supply...". Weren't they forecasting 90 dollar crude not long ago? Let's couple this with the fact the rig count is close to a three-and-a-half-year high, the US are ever closer to overtaking Russia as the worlds biggest oil supplier (something we stated December 2017) and the Brent/WTI spread is perilously close to -11. Maybe this old sage was right. But like a broken clock, even that's right twice a day. Good day and week to all.

Economic data/events (Times are London.)

* 1:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* Today: Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday’s EIA report

* See OIL WEEKLY AGENDA for this week’s events

Singapore 380 cSt

Jul18 - 435.75 / 437.75

Aug18 - 431.50 / 433.50

Sep18 - 427.50 / 429.50

Oct18 - 423.75 / 425.75

Nov18 - 419.25 / 421.25

Dec18 - 415.75 / 417.75

Q3-18 - 431.50 / 433.50

Q4-18 - 419.00 / 421.00

Q1-19 - 407.00 / 409.50

Q2-19 - 394.50 / 397.00

CAL19 - 372.50 / 375.50

CAL20 - 300.00 / 305.00

Singapore 180 cSt

Jul18 - 445.75 / 447.75

Aug18 - 441.75 / 443.75

Sep18 - 438.00 / 440.00

Oct18 - 434.25 / 436.25

Nov18 - 430.25 / 432.25

Dec18 - 427.00 / 429.00

Q3-18 - 441.75 / 443.75

Q4-18 - 429.75 / 431.75

Q1-19 - 418.25 / 420.75

Q2-19 - 406.25 / 408.75

CAL19 - 387.00 / 390.00

CAL20 - 314.00 / 319.00

Rotterdam 3.5%

Jul18 - 419.50 / 421.50

Aug18 - 415.75 / 417.75

Sep18 - 411.75 / 413.75

Oct18 - 407.25 / 409.25

Nov18 - 402.75 / 404.75

Dec18 - 398.25 / 400.25

Q3-18 - 415.50 / 417.50

Q4-18 - 402.00 / 404.00

Q1-19 - 391.00 / 393.50

Q2-19 - 378.00 / 380.50

CAL19 - 351.50 / 354.50

CAL20 - 285.00 / 290.00

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.

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