Wed 18 Jul 2018, 10:21 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent futures were down 40 cents, or 0.6 percent, at $71.76 a barrel by 00:27 GMT. They rose 32 cents to $72.16 a barrel on Tuesday, after earlier touching a three-month low. U.S. WTI crude was down 27 cents, or 0.4 percent, at $67.82. It settled up 2 cents at $68.08 a barrel the session before, coming off a nearly one-month low. The most unsurprising thing has happened again this week with the API stocks data disagreeing with just about every other group who has reported an opinion on them. A poll of analysts reported a predicted draw of 3.6 mil bbls; however, the API has gone for a build of 600k bbls. Looking at the market this morning, it seems to have built into pricings the predicted draw, having dropped around 1% so far. No one knows what's going to happen, I think is a fair conclusion. Well, at least everything else in the world is rosy: world economy healthy and not under attack by protectionist demagogues. Democracy and the fine running of governments is being upheld across the world. Big political decisions are being made by well-informed experts and not thrown out to Dick or Harry to decide. I am one 'David Attenborough in intensive care' news story from packing my bags and emigrating to the Bahamas. Just kidding. Keep an eye out 3.30pm UK time for EIA data, as well as any further clarification statements from Donald Trump. Maybe he misspoke years ago and said "I want" instead of "I don't want" to be President. Good day.

Fuel Oil Market (Jul 17)

The front crack opened at -8.35, before weakening to -8.70. The Cal 19 was valued at -15.25.

Asia's 380 cSt fuel oil cash premium extended gains on Tuesday climbing to fresh multi-year highs as ongoing concerns of supply constraints continued to fuel bullish sentiment.

Adding to a persistent shortage of finished-grade fuel oil that has characterised the Singapore market since May, some trade sources said the delay of at least two tankers laden with fuel oil bound for Singapore could see prompt supply tightness being prolonged over the near term

The 380 cSt fuel oil cash premium climbed to $6.25 a tonne to Singapore quotes on Tuesday, up from $5.56 per tonne in the previous session and its widest premium since so-called 'bull play' in June 2015

Economic data/events (Times are London.)

* 12pm: MBA Mortgage Applications, July 13

* 1:30pm: U.S. Housing Starts, June

* 7pm: U.S. Fed Reserve Beige Book

* Genscape weekly ARA crude stockpiles report

* JODI issues oil export and output data

Singapore 380 cSt

Aug18 - 419.00 / 421.00

Sep18 - 412.00 / 414.00

Oct18 - 407.50 / 409.50

Nov18 - 404.25 / 406.25

Dec18 - 401.25 / 403.25

Jan19 - 398.25 / 400.25

Q4-18 - 404.25 / 406.25

Q1-19 - 395.75 / 397.75

Q2-19 - 386.25 / 388.75

Q3-19 - 359.50 / 362.00

CAL19 - 369.25 / 372.25

CAL20 - 295.00 / 301.00

CAL20 - 295.75 / 301.75

Singapore 180 cSt

Aug18 - 427.50 / 429.50

Sep18 - 421.25 / 423.25

Oct18 - 417.50 / 419.50

Nov18 - 414.50 / 416.50

Dec18 - 411.75 / 413.75

Jan19 - 409.00 / 411.00

Q4-18 - 414.50 / 416.50

Q1-19 - 406.50 / 408.50

Q2-19 - 398.00 / 400.50

Q3-19 - 375.00 / 377.50

CAL19 - 383.75 / 386.75

CAL20 - 318.25 / 324.25

CAL20 - 319.00 / 325.00

Rotterdam 3.5%

Aug18 - 398.00 / 400.00

Sep18 - 392.75 / 394.75

Oct18 - 388.50 / 390.50

Nov18 - 384.50 / 386.50

Dec18 - 381.00 / 383.00

Jan19 - 378.75 / 380.75

Q4-18 - 384.50 / 386.50

Q1-19 - 375.50 / 377.50

Q2-19 - 364.50 / 367.00

Q3-19 - 337.50 / 340.00

CAL19 - 346.75 / 349.75

CAL20 - 282.50 / 288.50


Factory Acceptance Testing (FAT) for X52DF-A-1.0 engine. WinGD completes factory testing of ammonia-fuelled engine for LPG carrier  

X52DF-A-1.0 engine tested in China ahead of installation on first of four vessels under construction.

Drift Energy energy-harvesting ship render. RINA awards first approval in principle for energy-harvesting ship  

Drift Energy receives certification for vessel design that generates clean energy at sea.

MSC World Europa vessel. MSC Cruises achieves flag state recognition for verified methane emissions data  

Bureau Veritas certifies actual methane slip values for two LNG-fuelled cruise ships.

IBIA and EENMA MoU signing. IBIA and Greek shortsea shipowners sign cooperation agreement  

The International Bunker Industry Association partners with EENMA to support the marine fuels sector.

Hapag-Lloyd and Scan Global Logistics logos. Scan Global Logistics and Hapag-Lloyd expand biofuel partnership to cut shipping emissions  

Collaboration claims to avoid 8,500 tonnes of CO₂e emissions through second-generation biofuels.

Lapis Ace ship-to-ship LNG bunkering operation. MOL signs first annual LNG bunkering contract for car carriers in Vancouver  

Japanese shipping company secures year-round fuel supply with Seaspan Energy at Canadian port.

Gasum's LNG bunkering vessel Coralius. Gasum’s maritime bio-LNG sales surge from 0.8% to 12.3% in 2025  

Nordic energy company attributes growth to FuelEU Maritime regulation introduced in 2025.

Port Authority of Valencia board meeting. Valenciaport gives LNG bunkering go-ahead to Shell and Axpo Iberia  

Port authority approves two LNG bunkering authorisations as part of its decarbonisation strategy.

Northern Purpose naming ceremony. BSM enters LCO₂ carrier segment with management of dual-fuel Northern Purpose  

Bernhard Schulte Shipmanagement takes over first liquefied carbon dioxide carrier for Northern Lights project.

Anna Cosulich vessel. Fratelli Cosulich takes delivery of methanol-ready bunker tanker Anna Cosulich  

Vessel built in China will head to Singapore to support group's bunkering operations.