Sign up
Log in Sign up
Tue 10 Jul 2018, 11:36 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed last night at $78.86, up $0.79, and WTI closed up $0.26 to $74.11. Brent continues to trade in this $75-$80 range and Trump rages on at China and OPEC. I’m surprised he even has any toys left in his pram. His trip to Europe at the end of this week will show further how disruptive he aims to be, with his gaze concentrating on NATO and an embattled British PM facing a potential party rebellion and Brexit disaster. All eyes on EIA data later as the 4th July holidays will prove crucial to show evidence that driving season is as strong as everyone was hoping it would be. Expect to see draws on crude and Cushing levels with the Canadian pipe still shut in. Good day.

Fuel Oil Market (Jul 7)

The front crack opened at -9.70, weakening to -9.80, before strengthening to -9.65, closing -9.70. The Cal 19 was valued at -15.30.

Asia's fuel oil crack slipped for a second straight session on Tuesday, pulled down by higher crude oil prices.The August 180 cSt fuel oil crack to Brent crude was trading at a discount of about $5.69 a barrel on Tuesday, down from minus $5.10 a barrel on Monday.

Despite the widening fuel oil crack this week, trade sources said fuel oil refining margins were relatively strong given the rise in crude oil prices. Fuel oil refining margins would continue to be buoyed by strong market fundamentals over the near term, traders added.

Since May, the fuel oil market sentiment has been boosted by tight supplies of finished grade fuel oil, lower arbitrage arrivals into Asia as well as firm demand for the fuel from the power generation and shipping sectors.

Economic data/events (Times are London.)

* 11am-12pm: OPEC issues Monthly Oil Market Report

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

* Genscape weekly ARA crude stockpiles report

Singapore 380 cSt

Aug18 - 448.50 / 450.50

Sep18 - 442.50 / 444.50

Oct18 - 438.00 / 440.00

Nov18 - 434.75 / 436.75

Dec18 - 432.00 / 434.00

Jan19 - 429.00 / 431.00

Q4-18 - 435.00 / 437.00

Q1-19 - 425.50 / 427.50

Q2-19 - 414.25 / 416.75

Q3-19 - 387.50 / 390.00

CAL19 - 392.50 / 395.50

CAL20 - 314.00 / 320.00

Singapore 180 cSt

Aug18 - 455.50 / 457.50

Sep18 - 451.25 / 453.25

Oct18 - 448.00 / 450.00

Nov18 - 444.75 / 446.75

Dec18 - 442.00 / 444.00

Jan19 - 440.00 / 442.00

Q4-18 - 445.00 / 447.00

Q1-19 - 436.75 / 438.75

Q2-19 - 426.50 / 429.00

Q3-19 - 403.50 / 406.00

CAL19 - 407.50 / 410.50

CAL20 - 337.00 / 343.00

Rotterdam 3.5%

Aug18 - 429.50 / 431.50

Sep18 - 424.50 / 426.50

Oct18 - 420.25 / 422.25

Nov18 - 416.25 / 418.25

Dec18 - 412.75 / 414.75

Jan19 - 410.50 / 412.50

Q4-18 - 416.25 / 418.25

Q1-19 - 407.00 / 409.00

Q2-19 - 394.25 / 396.75

Q3-19 - 364.25 / 366.75

CAL19 - 370.75 / 373.75

CAL20 - 298.25 / 304.25

Zhoushan waterfront at night. Zhoushan becomes world's third-largest bunker port  

Chinese refuelling hub overtakes Antwerp-Bruges and Fujairah to take third place in 2025.
Meyer Turku's net-zero vessel concept render. Meyer Turku completes net-zero cruise ship concept with 90% emissions cut  

Finnish shipbuilder’s AVATAR project vessel design exceeds IMO targets using technologies expected by 2030.
Uni-Fuels Logo. Uni-Fuels renews ISCC certification after first biofuel delivery  

Singapore-based marine fuel supplier completes inaugural ISCC-certified biofuel delivery, supporting EU regulatory compliance.
Close-up of a vessel bow at port. Iberian Peninsula poised to overtake the Netherlands as Europe’s top LNG bunkering hub  

Spanish and Portuguese ports quadrupled ship-to-ship LNG supply in two years, data shows.
FOBAS Fuel Insight Fuel Quality report H2 2025 cover. Lloyd’s Register reports sharp rise in marine fuel quality failures in late 2025  

December recorded the highest monthly off-specification cases, driven by sulphur, catalytic fines and flash point issues.
Bio-LNG bunkering infrastructure. Bahía de Bizkaia Gas launches bio-LNG loading service after ISCC certification  

Spanish regasification terminal begins offering renewable fuel loading for trucks and vessels in January 2026.
Grande Michigan vessel. Grimaldi takes delivery of eighth ammonia-ready car carrier Grande Michigan  

The 9,000-ceu vessel features 50% lower fuel consumption and 5 MWh battery capacity.
Graphic of the ABS logo with a blue background and light effects over a globe. ABS consortium delivers ammonia fuel safety report for EMSA  

Report expands on IMO interim guidelines and highlights need for comprehensive understanding of ammonia properties.
Green Future vessel. NYK operates methanol-fuelled bulk carrier for BHP, claims 65% emissions cut  

Green Future becomes first oceangoing bulk carrier to use low-carbon methanol fuel.
Genesis Sea vessel. Ulstein Verft completes sea trials for Genesis Sea CSOV ahead of spring delivery  

The 89.6-metre vessel features hybrid battery propulsion and preparations for green methanol operation.




 Recommended