Tue 10 Jul 2018, 12:08 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed up $0.96 last night to $78.07 and WTI closed at $73.85, up $0.05. I'm reading this morning that a possible strike in Norway is causing this market to spike on the back of "possible supply disruptions". Hmmm. Knowing how efficient the people of Norway are, I imagine they will strike for three minutes, come up with a very thorough agreement and be back to work before you can even say 'picket line'. The bulls will jump on any news, though, and crude is trading up this morning. There are still the disruptions in Iran, Libya and Canada giving support like stabilisers to this tricycle of a market. The bulls also ignored comments from H.E. Al Mazrouei yesterday that the UAE can "easily increase production by 400-600,000 bpd". Ignorance is bliss, I suppose.

Fuel Oil Market (Jul 9)

The front crack opened at -9.45, before weakening to -9.60 across the day. The Cal 19 was valued at -15.30.

Asia's prompt-month viscosity spread, the price differential between the prompt-month swaps for 180 cSt and 380 cSt fuel oil grades, slipped to a near four-month low on Monday

Relatively strong 380 cSt fuel oil prices contributed to the weaker viscosity spread amid supply shortages and firm demand for the higher viscosity fuel, trade sources said. The balance-of-July viscosity spread was trading at around $7 a tonne on Monday, down 50 cents a tonne from the previous session and its lowest since March 8.

Economic data/events (Times are London.)

* ~5pm.: EIA STEO with expanded forecast discussion

* 9:30pm: API U.S. oil inventory report

* Bloomberg-compiled REFINERY SNAPSHOT for U.S. and Canada, providing offline capacity projections for crude units and FCCs

Singapore 380 cSt

Aug18 - 456.25 / 458.25

Sep18 - 450.25 / 452.25

Oct18 - 445.75 / 447.75

Nov18 - 443.00 / 445.00

Dec18 - 440.25 / 442.25

Jan19 - 436.50 / 438.50

Q4-18 - 443.00 / 445.00

Q1-19 - 433.00 / 435.00

Q2-19 - 421.75 / 424.25

Q3-19 - 395.00 / 397.50

CAL19 - 400.75 / 403.75

CAL20 - 322.25 / 328.25

Singapore 180 cSt

Aug18 - 463.50 / 465.50

Sep18 - 459.00 / 461.00

Oct18 - 455.75 / 457.75

Nov18 - 453.00 / 455.00

Dec18 - 450.25 / 452.25

Jan19 - 447.50 / 449.50

Q4-18 - 453.00 / 455.00

Q1-19 - 444.25 / 446.25

Q2-19 - 434.00 / 436.50

Q3-19 - 411.00 / 413.50

CAL19 - 416.00 / 419.00

CAL20 - 345.50 / 351.50

Rotterdam 3.5%

Aug18 - 437.00 / 439.00

Sep18 - 432.50 / 434.50

Oct18 - 428.25 / 430.25

Nov18 - 424.25 / 426.25

Dec18 - 420.75 / 422.75

Jan19 - 418.50 / 420.50

Q4-18 - 424.50 / 426.50

Q1-19 - 415.25 / 417.25

Q2-19 - 402.50 / 405.00

Q3-19 - 372.50 / 375.00

CAL19 - 379.00 / 382.00

CAL20 - 305.25 / 311.25

BP  

Electric tug render. Echandia wins battery contract for two electric tugs under India’s Green Tug Transition Programme  

Swedish battery maker secures second and third electric tug contracts in India’s port decarbonisation drive.

Grande Istanbul presentation ceremony. Grimaldi presents ammonia-ready car carrier Grande Istanbul at Turkish port ceremony  

Vessel is one of 17 next-generation PCTCs commissioned by the Italian shipping group.

Archigos vessel. Capital Ship Management takes delivery of methanol-ready Suezmax tanker Archigos  

The 157,000-dwt vessel, built in South Korea, features AI-assisted navigation and energy-saving technology.

Molgas truck-to-ship bunkering operation. Molgas secures 10-year LNG truck-to-ship licence at the Port of Bilbao  

Spanish energy group obtains decade-long operating licence for LNG bunkering operations.

CMA CGM Notre Dame vessel. CMA CGM names world’s largest LNG-powered containership in Le Havre  

The CMA CGM Notre Dame is formally welcomed into the French carrier’s fleet.

International Maritime Organization (IMO) headquarters. IMO calls for speaker nominations for ammonia-as-fuel technical seminar  

Nomination deadline for upcoming ammonia marine fuel seminar in London is 17 July.

OOCL Wisdom ship-to-ship (STS) bunkering operation. OOCL Wisdom completes ‘first green methanol bunkering’ at Qingdao Port  

Vessel, claimed to be the world's largest methanol dual-fuel container ship, sets sail on maiden voyage to Europe.

Dubai skyline. Oilmar seeks senior bunker trader for Dubai office  

Experienced trader with proven P&L responsibility sought by UAE-headquartered firm.

CFD simulation of vessel with three eSAILs. ABS reviews bound4blue’s Pwind calculation methodology for eSAIL wind propulsion systems  

Independent review aims to ease regulatory compliance and accelerate adoption of suction sail technology.

Port of Rotterdam aerial view. Port of Rotterdam appoints new programme manager for bunkering  

Astrid Sonnevelt has a background in renewable products, business development and emissions reduction.