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Wed 28 Nov 2018, 08:57 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Image credit: Freight Investor Services (FIS)
Commentary

Oil prices rose by more than 1 percent on Wednesday ahead of an OPEC meeting next week at which the producer club is expected to decide some form of supply cut to counter an emerging glut. The shutdown of Britain's largest North Sea oilfield for repairs also supported prices, traders said. U.S. West Texas Intermediate (WTI) crude futures were at $52.24 per barrel at 06:07 GMT, up 68 cents, or 1.3 percent from their last settlement. International Brent crude oil futures were up 78 cents, or 1.3 percent, at $60.99 per barrel.

The Buzzard oilfield, which pumps about 150,000 barrels per day (bpd), has closed temporarily after the discovery of pipe corrosion. As a result, trade sources said three cargoes due to load in December had been cancelled. "The shutdown ... is reducing supply of a North Sea crude that helps set global prices," said Sukrit Vijayakar, director of energy consultancy Trifecta, referring to Buzzards's role in the settlement of Brent futures. Despite Wednesday's rise, oil prices have still lost around 30 percent in value since early October, weighed down by an emerging supply overhang and by widespread weakness in financial markets.

The crude oil price slump since October is so far on par with the 2008 price crash and steeper than that of 2014/2015. "I don’t believe it" could be your response, just like Trumps comments on climate change.

Fuel Oil Market (Nov 26)

The front crack opened at -3.65, strengthening to -3.60, before weakening to -3.90. The Cal 19 was trading between - 10.40 and -10.65 throughout the day


Window Trades
- No cargo trades were reported in the Singapore trading window.

Reflecting expectations of a tighter supply outlook in December, the 380 cSt front-month time spread was also slightly higher on Tuesday at about $11.60 a tonne on Tuesday, from $11.25 a tonne on Monday, the broker sources said.

Economic Events:

* 12am: MBA Mortgage Applications, Nov. 23

* 1:30pm: U.S. Advance Goods Trade Balance, Oct.

* 1:30pm: U.S. Wholesale Inventories, Oct (prelim.)

* 1:30pm: U.S. GDP, 3Q

* 3pm: U.S. New Home Sales, Oct.

* 3pm: U.S. Richmond Fed Manufacturing Index, Nov.

* 3:30pm: EIA weekly U.S. oil inventory report; TopLive blog starts 3:20pm

* Permian Midstream 2018 Takeaway Capacity & Infrastructure Congress, Houston, 1st day of 2

* CERI Breakfast on IMO Rules, Calgary

* Bloomberg NEF APAC summit in Shanghai, final day

* Genscape weekly ARA crude stockpiles report

* EARNINGS: Lukoil PJSC

Singapore 380 cSt

Dec18 - 398.25 / 400.25

Jan19 - 386.75 / 388.75

Feb19 - 378.75 / 380.75

Mar19 - 373.00 / 375.00

Apr19 - 367.75 / 369.75

May19 - 362.25 / 364.25

Q1-19 - 379.50 / 381.50

Q2-19 - 361.75 / 363.75

Q3-19 - 342.50 / 345.00

Q4-19 - 314.25 / 316.75

CAL19 - 353.25 / 356.25

CAL20 - 294.75 / 300.75

Singapore 180 cSt

Dec18 - 402.50 / 404.50

Jan19 - 391.25 / 393.25

Feb19 - 384.50 / 386.50

Mar19 - 379.75 / 381.75

Apr19 - 376.00 / 378.00

May19 - 371.00 / 373.00

Q1-19 - 385.25 / 387.25

Q2-19 - 370.50 / 372.50

Q3-19 - 353.75 / 356.25

Q4-19 - 330.50 / 333.00

CAL19 - 364.25 / 367.25

CAL20 - 315.75 / 321.75

Rotterdam 3.5%

Dec18 - 359.00 / 361.00

Jan19 - 351.50 / 353.50

Feb19 - 346.75 / 348.75

Mar19 - 342.00 / 344.00

Apr19 - 337.25 / 339.25

May19 - 332.50 / 334.50

Q1-19 - 346.75 / 348.75

Q2-19 - 332.75 / 334.75

Q3-19 - 313.75 / 316.25

Q4-19 - 283.00 / 285.50

CAL19 - 323.00 / 326.00

CAL20 - 270.50 / 276.50

0.1% Rott barges Gasoil

Dec18 - 569.01 / 571.01

Jan19 - 561.64 / 563.64

Feb19 - 561.00 / 563.00

Mar19 - 561.42 / 563.42

Apr19 - 561.96 / 563.96

May19 - 563.54 / 565.54

Q1-19 - 561.85 / 563.85

Q2-19 - 563.77 / 565.77

Q3-19 - 570.81 / 573.31

Q4-19 - 576.46 / 579.46

CAL19 - 566.41 / 570.41

CAL20 - 574.42 / 580.42

Sing GO 10ppm

Dec18 - 75.00 / 75.20

Jan19 - 75.40 / 75.60

Feb19 - 75.70 / 75.90

Mar19 - 75.90 / 76.10

Apr19 - 76.02 / 76.22

May19 - 76.09 / 76.29

Q1-19 - 75.57 / 75.97

Q2-19 - 75.82 / 76.22

Q3-19 - 76.67 / 76.97

Q4-19 - 77.42 / 77.82

CAL19 - 76.25 / 76.85

CAL20 - 77.81 / 78.41

BP  
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.
Artistic impression of battery-electric ferry for operation on Perth’s Swan River. Lloyd’s Register to class Western Australia’s first electric ferry fleet  

Echo Marine Group partners with Lloyd’s Register on five battery-electric ferries for Perth’s Swan River.
Thomas Kazakos, secretary general of The International Chamber of Shipping (ICS). ICS condemns Middle East shipping attacks as 20,000 seafarers remain trapped  

Industry body calls for urgent state action to resupply vessels and enable crew changes.
Molslinjen ferry illustration. Molslinjen order propels Australia to top of battery vessel production rankings  

Danish ferry operator’s three-catamaran order at Incat Tasmania shifts global manufacturing landscape, analysis shows.




   Fuels & Propulsion

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