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Tue 7 Aug 2018, 09:10 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent crude oil future spot was at $74.08 per barrel at 0624 GMT, up 33 cents, or 0.4 percent, from their last close, and U.S. WTI crude futures were up 20 cents, or 0.3 percent, at $69.21 barrel.

Crude looks like it's in for a choppy day as Iran sanctions mix with U.S. stock data predictions.

Fuel Oil Market (Aug 6)

The front crack opened at -8.40, weakening to -9.10, before strengthening to -8.85. The Cal 19 was valued at -14.40.

Asia's fuel oil market started the week lower with cash premiums and prompt-month time spread slipping to multiweek lows.

However, despite the weaker market on Monday, market fundamentals remained supportive as tight supplies and firm demand continue to characterize Asia's fuel oil market over the near term. Relatively weaker deal values on Monday weighed on cash premiums of both grades of 180 cSt and 380 cSt fuel oils.

The 380 cSt premiums slipped to a three-week low of $5.94 a tonne to Singapore quotes, while 180 cSt premiums were at a one-week low of $5.07 a tonne to Singapore quotes. Similarly, the prompt month 380 cSt time spread was at its narrowest premium in almost three weeks at $7.50 a tonne.

Economic data/events (Times are London.)

* 9:30pm: API issues weekly U.S. oil inventory report

* U.S. EIA's monthly Short Term Energy Outlook report

* Bloomberg-compiled refinery snapshot for U.S. and Canada, providing offline capacity projections for crude units and FCCs

Singapore 380 cSt

Sep18 - 436.50 / 438.50

Oct18 - 431.75 / 433.75

Nov18 - 428.50 / 430.50

Dec18 - 425.50 / 427.50

Jan19 - 422.50 / 424.50

Feb19 - 419.75 / 421.75

Q4-18 - 428.75 / 430.75

Q1-19 - 419.50 / 421.50

Q2-19 - 410.00 / 412.50

Q3-19 - 390.00 / 392.50

CAL19 - 392.50 / 395.50

CAL20 - 322.25 / 328.25

Singapore 180 cSt

Sep18 - 445.00 / 447.00

Oct18 - 441.25 / 443.25

Nov18 - 438.50 / 440.50

Dec18 - 435.75 / 437.75

Jan19 - 433.50 / 435.50

Feb19 - 430.75 / 432.75

Q4-18 - 438.50 / 440.50

Q1-19 - 430.50 / 432.50

Q2-19 - 422.50 / 425.00

Q3-19 - 406.50 / 409.00

CAL19 - 407.75 / 410.75

CAL20 - 342.25 / 348.25

Rotterdam 3.5%

Sep18 - 415.75 / 417.75

Oct18 - 411.25 / 413.25

Nov18 - 407.50 / 409.50

Dec18 - 404.25 / 406.25

Jan19 - 402.00 / 404.00

Feb19 - 399.75 / 401.75

Q4-18 - 407.75 / 409.75

Q1-19 - 399.50 / 401.50

Q2-19 - 390.50 / 393.00

Q3-19 - 369.50 / 372.00

CAL19 - 370.75 / 373.75

CAL20 - 306.25 / 312.25

CMA CGM Notre Dame vessel at Singapore Port. Singapore 12-month bunker calls hit all-time high in July  

TTM calls at world's largest bunkering hub reach record levels despite softer sales volumes.
Cargo port in Singapore. Singapore T3M bunker sales stay below 14m tonnes for fourth month running  

Rolling three-month volumes remain subdued despite modest month-on-month recovery in July.
Shore power system launch at Port of Callao. Peru’s Port of Callao launches first shore power system in Latin America  

DP World Callao’s onshore power supply system could cut over 6,300 tonnes of CO₂ annually.
Aristodimos vessel. New Times Shipbuilding delivers LNG dual-fuel crude oil tanker to Capital  

Chinese yard hands over 155,500-dwt vessel in ceremony attended by owner’s representative.
MSC Sabrina and Alice Cosulich ship-to-ship (STS) bunkering operation. Shell completes maiden LNG bunkering operation in Valencia  

Delivery to MSC vessel facilitated by Fratelli Cosulich said to be first-ever LNG bunker supply at Spanish port.
Marina Bay Sands, Singapore. PIL hiring senior marine fuels executive to manage global bunkering operations  

Singapore-based role includes oversight of fuel procurement and delivery operations, covering PIL's fleet of container and multi-purpose vessels.
Steel-cutting ceremony of vessels with builder's hull nos. CHB2083 and CHB2084. Changhong International Shipbuilding cuts steel on two more 3100-teu boxships for Costamare  

HSFO-fuelled vessels feature scrubbers, SCR systems and shore power connections to meet emissions requirements.
Decab Hub and MMMCZCS logos. Lloyd’s Register and Maersk Mc-Kinney Møller Center launch ammonia safety and training resources for shipping  

New tools aim to help operators build the safety management and competency frameworks needed for ammonia-fuelled vessels.
Kevin Dohmen, IBT Bunkering & Trading. IBT Bunkering & Trading appoints Kevin Döhmen to manage new Singapore office  

Döhmen tasked with developing IBT’s operation in the Asian city-state.
Peak Skarv 3 vessel. Peak takes delivery of third S-class vessel and cuts steel for ammonia-fuelled ship  

Norwegian operator marks two events at Chinese yard as ammonia-powered newbuild programme advances.




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