Wed 20 Jun 2018, 09:03 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed last night at $75.08, down $0.26, and WTI closed at $65.07, down $0.78. Like a Colombian defender, this market looks interesting for all of about 3 minutes. I mentioned a few weeks ago that we will more than likely flirt around the $75-$80 level in the build up to the OPEC meeting, and at the moment we are trading around the bottom of the range. I think, however, that there is definite room to the upside over the course of the coming days. It is looking more and more likely that this week's OPEC meeting is going to be one of the most difficult meetings OPEC has had for a while. Fractures have opened up within the cartel that actually hasn't been a particular issue between themselves, but that of Mr Trump and his administration with regards to imposing sanctions on both Venezuela and Iran. I've got an idea: why don't you send Mr Trump one of those gold plated envelopes with an invitation for the USA to join OPEC? If you all want cohesion and a "fair market", then why try and fight the world's second biggest producer and second biggest consumer? Why not invite him to your biannual meetings? As Gandhi once said: "It is easy enough to be friendly to one's friends. But to befriend the one who regards himself as your enemy is the quintessence of true religion. The other is mere business." Gandhi took on the biggest Empire in human history; maybe OPEC should take a leaf out of his book and take on the biggest modern 'empire'. Good day.

Fuel Oil Market (June 19)

The front crack opened at -10.05, weakening to -10.15, before strengthening to -9.90. The Cal 19 was valued at - 16.60.

Asia's July fuel oil viscosity spread was at $10.75 a tonne on Tuesday, holding steady since June 12.

The viscosity spread is the price differential between 180 cSt and 380 cSt fuel oil and the value reflects how strong or weak the fuel oil market is.

Cash deals came to a standstill after a total of 140,000 tonnes changed hands in the previous session, the highest volume traded since May 25.

Economic data/events (Times are London.)

* OPEC’s International Seminar starts, with participation of all OPEC ministers, CEOs of Sonangol, BP, Total, among others, 1st day of 2. Click here for program

* 12pm: U.S. MBA Mortgage Applications, June 15

* 3pm: U.S. Existing Home Sales for May

* 3:30pm: U.S. EIA weekly oil inventory report

Singapore 380 cSt

Jul18 - 430.75 / 432.75

Aug18 - 425.50 / 427.50

Sep18 - 420.25 / 422.25

Oct18 - 415.75 / 417.75

Nov18 - 412.00 / 414.00

Dec18 - 409.25 / 411.25

Q3-18 - 425.50 / 427.50

Q4-18 - 412.75 / 414.75

Q1-19 - 402.50 / 405.00

Q2-19 - 392.50 / 395.00

CAL19 - 363.50 / 366.50

CAL20 - 288.50 / 293.50

Singapore 180 cSt

Jul18 - 441.25 / 443.25

Aug18 - 436.75 / 438.75

Sep18 - 431.50 / 433.50

Oct18 - 426.75 / 428.75

Nov18 - 423.25 / 425.25

Dec18 - 420.25 / 422.25

Q3-18 - 436.50 / 438.50

Q4-18 - 424.00 / 426.00

Q1-19 - 414.25 / 416.75

Q2-19 - 404.25 / 406.75

CAL19 - 378.00 / 381.00

CAL20 - 312.00 / 317.00

Rotterdam 3.5%

Jul18 - 412.50 / 414.50

Aug18 - 408.75 / 410.75

Sep18 - 404.25 / 406.25

Oct18 - 399.75 / 401.75

Nov18 - 395.50 / 397.50

Dec18 - 391.25 / 393.25

Q3-18 - 408.50 / 410.50

Q4-18 - 395.25 / 397.25

Q1-19 - 385.00 / 387.50

Q2-19 - 371.50 / 374.00

CAL19 - 342.00 / 345.00

CAL20 - 275.00 / 280.00

BP  

Peninsula 2026 graduate cohort. Peninsula welcomes 2026 graduate cohort across global bunkering network  

Bunker firm brings new graduates into roles spanning Houston, Singapore, Gibraltar, Monaco and Las Palmas.

Mathias Krogsgard, Malik Supply. Malik Supply appoints Mathias Krogsgård as bunker trader  

Danish bunker firm adds trader with export and technology background to growing team.

Jeroen De Vos, Peninsula. Biofuel adoption in shipping shifts from debate to delivery, says Peninsula's Jeroen de Vos  

Marine biofuels have moved from pilot projects to routine fuel strategy, argues IBIA vice-chair.

KEPCO E&C and KR signing. KEPCO E&C and Korean Register of Shipping to collaborate on marine SMR development  

Korean firms to develop technical standards and certification pathways for the BANDI offshore small modular reactor.

Ship-to-ship (STS) LNG bunkering operation at the Port of Sagunto. Peninsula completes first LNG bunkering operation at Sagunto  

Levante LNG bunkering vessel supplies K Line car carrier in landmark delivery.

Person signing a document. India and EU sign letter of intent for green shipping corridor coalition  

India's Ministry of Ports, Shipping and Waterways and EU partners have agreed to develop green ammonia and methanol trade links.

CMA CGM Gold naming ceremony. CMA CGM takes delivery of methanol dual-fuel newbuild  

13,000-TEU CMA CGM Gold uses conventional fuels as well as alternative fuels, including biomethanol and e-methanol.

Mass flow meter (MFM) system installation on Storholmen vessel. TFG Marine meets 2026 target to equip 90% of bunkering fleet with mass flow meters  

Installation aboard the Storholmen takes MFM deployment across its global fleet to more than 90%.

World Fuel logo. World Fuel seeks marine fuel sales executive in Singapore  

Role requires more than five years' experience in bunkering, trading, energy or commodities.

Th'ailib vessel. MISC names first of three new LNG carriers for QatarEnergy charter deal  

Th'ailib, chartered to QatarEnergy for 15 years, extends MISC's long-term LNG fleet partnership with the energy producer.