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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China Classification Society certifies SMDERI’s methanol single-fuel engine.

Carnot multi-fuel engine. Carnot tests engine on biodiesel as multi-fuel development programme advances  

UK engine developer Carnot has run its engine on biodiesel, adding to prior diesel and hydrogen tests.

IBIA logo. IBIA to hold mass flow meter training course in Rotterdam as industry reflects on first months of implementation  

One-day course covers MFM technology, regulatory frameworks and practical bunkering experience.

AQUBE battery system. Sunlight Group subsidiary lands first order for AQUBE liquid-cooled battery system for DLR research vessel  

A 48-metre floating technology platform will test hydrogen, hybrid and electric propulsion systems at sea.

Fure Vasa vessel. Furetank to name LBM-fuelled Fure Vasa as Swedish-flagged fleet reaches 105 ships  

Vessel to run primarily on liquefied biomethane (LBM) within the EU and is equipped for shore power connection.

Mitsui-Everllence 7S60ME engine. Mitsui E&S completes commercialisation of ammonia dual-fuel engines and fuel supply systems  

Japanese manufacturer says it is now ready to supply ammonia propulsion systems for actual vessels.

Jacob Norgaard, Bunker Holding. Bunker Holding appoints Global Risk Management's Jacob Nørgaard as CFO  

Michael Krabbe steps down after eight years with the company.