Wed 31 Oct 2018, 09:18 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.


Image credit: Freight Investor Services (FIS)
Commentary

Brent crude futures had gained 49 cents, or 0.7 percent, to $76.40 a barrel by 06:19 GMT. They fell 1.8 percent yesterday, at one point touching their lowest since Aug. 24 at $75.09 a barrel. U.S. WTI crude futures advanced 28 cents, or 0.4 percent, to $66.46 a barrel on Wednesday. They dropped 1.3 percent the day before, after hitting their lowest since Aug. 17 at $65.33 a barrel. After a short holiday, the bulls are back. It seems that all the bullish traders took a nice city break away, but now they have returned, with the market recovering over half of its loses that it suffered yesterday. Our ever-accurate friend, the API, reported U.S. crude inventories rose 5.7 million barrels last week, more than analyst's forecasts for a 4.1 million barrel build. Interestingly, this doesn't seem to be the driver of the market this morning, but I'm sure will affect anything that has happened later this afternoon when the EIA confirm the data levels at 2.30 pm UK time. We have an interesting November ahead of us with sanctions on Iran to come into effect and an OPEC meeting, so I don't think the yoyo up and down of prices is over yet. Good day.

Fuel Oil Market (Oct 30)

The front crack opened at -6.50, strengthening to -6.25, before weakening to -6.50. The Cal 19 was valued at -13.20.

Asia's front-month 180-centistokes (cSt) high-sulphur fuel oil crack to Dubai crude slipped on Tuesday, after four straight sessions of gains to a record high in the previous session.

The November Singapore 180 cSt fuel oil crack narrowed its premium to $1.06 a barrel to Dubai crude, compared with a record high of $1.61 a barrel on Monday.

Firm demand and concerns of tight prompt supplies of finished grade fuel oil in the Singapore storage and trading hub have helped boost fuel oil cash premium, time spreads and refining margins to fresh highs recently.

However, further gains could be capped amid expectations of higher arbitrage flows into Asia in November.

Economic Events: (Times are UK)

* 11am: MBA Mortgage Applications, Oct. 26

* 12:15am: U.S. ADP Employment Change, Oct.

* 1:45pm: Chicago Purchasing Manager, Oct.

* 2:30pm: EIA weekly oil inventory report; TopLive blog starts 2:20pm

* Genscape weekly ARA crude stockpiles report

* Singapore International Energy Week, 2nd day of 3

* EIA's Monthly Crude Oil and Natural Gas Production report

* EARNINGS: Repsol, OMV, Suncor

Singapore 380 cSt

Nov18 - 478.00 / 480.00

Dec18 - 469.25 / 471.25

Jan19 - 461.25 / 463.25

Feb19 - 454.75 / 456.75

Mar19 - 449.50 / 451.50

Apr19 - 444.50 / 446.50

Q1-19 - 455.25 / 457.25

Q2-19 - 439.50 / 441.50

Q3-19 - 420.25 / 422.75

Q4-19 - 387.50 / 390.00

CAL19 - 424.75 / 427.75

CAL20 - 355.25 / 361.25

Singapore 180 cSt

Nov18 - 483.75 / 485.75

Dec18 - 476.25 / 478.25

Jan19 - 469.75 / 471.75

Feb19 - 463.75 / 465.75

Mar19 - 459.00 / 461.00

Apr19 - 454.75 / 456.75

Q1-19 - 464.25 / 466.25

Q2-19 - 449.75 / 451.75

Q3-19 - 433.00 / 435.50

Q4-19 - 406.50 / 409.00

CAL19 - 437.75 / 440.75

CAL20 - 377.25 / 383.25

Rotterdam 3.5%

Nov18 - 445.50 / 447.50

Dec18 - 436.75 / 438.75

Jan19 - 430.75 / 432.75

Feb19 - 425.75 / 427.75

Mar19 - 421.50 / 423.50

Apr19 - 417.25 / 419.25

Q1-19 - 426.00 / 428.00

Q2-19 - 412.50 / 414.50

Q3-19 - 392.75 / 395.25

Q4-19 - 358.50 / 361.00

CAL19 - 396.75 / 399.75

CAL20 - 335.25 / 341.25

0.1% Rott barges Gasoil

Nov18 - 694.34 / 696.34

Dec18 - 687.29 / 689.29

Jan19 - 684.53 / 686.53

Feb19 - 682.86 / 684.86

Mar19 - 681.06 / 683.06

Apr19 - 679.36 / 681.36

Q1-19 - 682.81 / 684.81

Q2-19 - 679.79 / 681.79

Q3-19 - 683.30 / 685.80

Q4-19 - 679.12 / 682.12

CAL19 - 683.30 / 684.44

Sing GO 10ppm

Nov18 - 93.16 / 93.36

Dec18 - 92.25 / 92.45

Jan19 - 91.82 / 92.02

Feb19 - 91.58 / 91.78

Mar19 - 91.54 / 91.74

Apr19 - 91.51 / 91.71

Q1-19 - 91.64 / 91.84

Q2-19 - 91.52 / 91.72

Q3-19 - 91.70 / 91.90

Q4-19 - 91.91 / 92.11

CAL19 - 91.69 / 91.89


WinGD methanol and ethanol webinar invitation. WinGD to host webinar on methanol- and ethanol-flexible fuel engine technology  

Engine manufacturer will discuss market outlook, regulations and operational experience with alcohol-based marine fuels.

Peninsula graduate programme group photo. Peninsula opens applications for 2026 graduate programmes in marine fuels trading  

Two-year scheme offers positions across six global locations starting in September, combining hands-on experience with structured development.

Collin She, Oilmar DMCC. Oilmar DMCC promotes Collin She to key account manager role  

She will lead strategic customer relationships and drive growth opportunities in Singapore and the wider region.

Areion vessel. Dorian LPG takes delivery of dual-fuel VLGC capable of carrying ammonia  

The 93,000-cbm Areion can run on LPG or fuel oil and transport ammonia cargoes.

FSRU Toscana alongside Green Zeebrugge vessel. RINA awards ISCC EU certification to OLT Offshore LNG Toscana for bio-LNG supply  

Certification enables bio-LNG use in the EU as a renewable fuel under RED II and RED III directives.

World Shipping Council at IMO meeting. WSC calls for safe maritime corridor as 20,000 seafarers remain trapped in the Persian Gulf  

Industry body urges IMO member states to establish safe passage and supply access.

Graphic promoting Auramarine webinar titled 'Sustainable Fueling Part 3: Ammonia - next alternative fuel in marine'. Auramarine to host webinar on ammonia as marine fuel in April  

Finnish firm will explore ammonia’s role in maritime decarbonisation at its third spring webinar.

Front cover of study by WinGD and Envision Energy titled 'Renewable Fuel Economics: An OPEX illustration based on current costs'. Green ammonia could reach cost parity with VLSFO and LNG by 2050, study finds  

WinGD and Envision Energy study projects green ammonia operational costs competitive with conventional marine fuels.

Elenger Marine's LNG bunkering vessel Optimus alongside Brittany Ferries’ Saint-Malo. Bureau Veritas verifies methane emissions on Brittany Ferries’ LNG vessels  

Verification enables ferry operator to report measured methane slip instead of regulatory default values.

Map showing existing and planned Emission Control Areas (ECAs). Alliance calls for urgent black carbon action as new Arctic emission control areas take effect  

Canadian Arctic and Norwegian Sea ECAs now in force, with compliance deadline set for March 2027.