Wed 18 Jul 2018 10:21

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


Chart showing Singapore’s trailing 12-month bunker sales (TTM). Record-breaking 12-month bunker sales in Singapore hit 55.38m tonnes in August 2025  

Rolling 12-month bunker sales at the world’s largest bunkering hub reached an all-time high, underscoring a broader upward trajectory.

Illustration of the Explora V, Explora Journeys' fifth ship. Destinations revealed for 2027 launch of LNG-powered Explora V  

Fifth vessel in Explora Journeys fleet to make calls in Mediterranean, then travel east to Red Sea and Arabian Peninsula.

Yang Ming and Hanwha Ocean contract signing ceremony. Yang Ming orders seven LNG dual-fuel container ships from Hanwha Ocean  

Taiwanese shipping line contracts Korean shipbuilder for 16,000 TEU vessels with ammonia-ready capability.

Amogy and KBR sign MoU at Gastech 2025. Amogy partners with KBR to advance ammonia cracking catalysts for hydrogen production  

MoU focuses on evaluating ruthenium catalysts for offshore and industrial hydrogen applications.

Coral Energy, part of Anthony Veder's LNG carrier fleet. Anthony Veder and Gasum expand bio-LNG partnership for FuelEU Maritime compliance  

Two LNG carriers join Nordic energy company's compliance pool as surplus generators.

Illustration of Singapore's first floating LNG terminal. ABB wins contract to power Singapore's first floating LNG terminal  

FSRU will enable Singapore to boost its LNG importing capacity by 50 percent.

Bunker Partner homepage. Bunker Partner appoints trader in Dubai  

Marine fuel trading and broking company expands UAE team.

Fratelli Cosulich 2025 Bunker Meeting. Cosulich Marine Energy team meets in Monaco to discuss latest industry developments  

Members of Marine Energy division analysed strategies, methanol investments and evolving regulatory framework.

Monjasa MOST trainees. Monjasa trainee programme sees 97% surge in applications  

Marine fuel seller receives 1,530 applications for 2025, nearly double previous years.

Anothony Veder's ethylene carrier Coral Patula. Nissen Kaiun invests in wind-assist technology firm Econowind  

Investment highlights growing industry interest in fuel-neutral wind propulsion technologies.





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