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


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First over-the-water methanol delivery completed in South Florida with Coast Guard-approved procedures.

Valerie Ahrens. Burando Energies appoints Valerie Ahrens as global head of methanol  

Ahrens brings more than 30 years of energy sector experience to the marine fuels supplier.

New Sea Generation (NSG) logo. New Sea Generation seeks junior bunker trader in Greece  

Greek bunker firm advertises role requiring commitment to demanding work schedule and operational responsibilities.

Person signing a document. IINO Lines secures sustainable shipping finance for methanol dual-fuel VLCC  

Japanese shipowner signs impact financing agreement with Mizuho Bank for alternative-fuel tanker.

Fluxys logo. Fluxys Belgium reports EUR74.9m profit as LNG flows surge and hydrogen infrastructure begins  

Belgian gas infrastructure operator’s 2025 net profit fell 8.8% amid hydrogen and CO₂ investments.

VPS logo. Shale oil components detected in Singapore marine fuel | VPS  

VPS testing identifies 90,000 mt of delivered VLSFO containing Estonian shale oil compounds.

Constantinos Capetanakis, Star Bulk. IBIA chair completes two-year term, citing expansion in regulatory engagement and membership  

Outgoing chair to remain on Global Board and lead Future Fuels and Bunker Buyers’ working groups.

Aerial view of a container vessel. LNG and methanol investments risk becoming 'dead ends' for shipping decarbonisation, UCL study finds  

Research warns transitional marine fuels may lock in fossil infrastructure rather than enabling an ammonia pathway.

Vitalii Protasov, GENA Solutions Oy. Protasov: Renewable fuel supply could meet shipping demand, but offtake agreements remain a barrier  

GENA Solutions CEO highlights project pipeline growth but warns regulatory uncertainty hampers investment decisions.

Frontier Venture vessel. Wah Kwong takes delivery of first LNG-ready LR2 tanker with Bureau Veritas SMART notation  

Frontier Venture is first in newbuild series to achieve Group 3 'augmented ship' capabilities.