Sign up
Log in Sign up
Fri 17 Dec 2010 13:50

RWE steps up fuel oil selling strategy


German utility is reported to have sold large volumes of fuel oil swaps this week.

RWE AGM, Germany's second largest electricity producer and one of Europe's five largest utility firms, is reported to have sold large volumes of fuel oil on Thursday.

The utility sold 200,000 tonnes of fuel oil of the Januray/February timespread at backwardation of 25 cents and another 30,000 tonnes of January at $513.50-$514.25 a tonne, market sources said.

RWE has intensified its activities in the fuel oil market in recent months fixing 1-2 cargoes on board Very Large Crude Carriers (VLCCs) from Europe to Asia each month since September.

The company fixed two VLCCs to deliver 270,000 tonnes of fuel oil from Europe to Singapore in October. RWE was also reported to have transported two lots on board the VLCC Onoba, which loaded from Rotterdam on October 20th and was due to arrive in Singapore in December.

Another cargo was reported to have been lifted from the UK on November 12th with delivery in Singapore on board the Al Jabriyah, also in December.

More recently, RWE fixed arbitrage cargoes on board the VLCC Al Salheia and the Capricorn Star, which are scheduled to arrive in Singapore on January 13th and at the end of January respectively.

This month RWE has been more active in selling swaps and, up until Thursday, sold 100,000 tonnes of the Januray/February timespread, another 230,000 tonnes of December and 155,000 tonnes of January.

Thursday's trading play is the largest volume traded by RWE in a single day and the company's first major strategic move in the Asian fuel oil market since it began transporting physical volumes to Asia earlier this year.

RWE's bear play sets it against competitor Brightoil's bull trading strategy, which has seen the Chinese firm purchase over a million tonnes of swaps and half a million tonnes of physical cargoes since the start of the month.

Last month it was reported that RWE plans to launch a fuel oil trading desk in Singapore at the start of next year. RWE began trading fuel oil over a year ago and hired former Sempra trader Martin Farr at the start of 2010. According to industry sources, the German utility will be employing two traders in Asia, one each for the physical and paper markets.

Image: RWE trading floor

Sonan Energy Panama logo with white background. Sonan Energy Panama unveils new logo as part of sustainable energy transition  

Bunker firm introduces redesigned brand identity reflecting shift towards cleaner energy solutions.
Niclas Mårtensson, CEO of Stena Line. Stena Line to acquire Wasaline ferry operations in Baltic Sea expansion  

Swedish ferry operator signs deal to take over Umeå–Vaasa route with bio-LNG-powered vessel.
Arriva Shipping vessel Norbris. Berg Propulsion secures second Arriva retrofit after 10% fuel savings confirmed  

Norwegian shipowner orders second propulsion upgrade following verified efficiency gains on general cargo vessel Norjarl.
Dorthe Bendtsen and Anders Grønborg. Bunker Holding to absorb Baseblue into KPI OceanConnect by April 2026  

Integration follows earlier Hong Kong merger and aims to streamline operations and strengthen regional teams.
Chimbusco Pan Nation (CPN) new logo. CPN unveils new brand identity after 34 years in marine fuel supply  

Hong Kong bunker supplier launches rebrand centered on 'continuous evolution' and sustainable fuel solutions.
Aicha Azad, Flex Commodities. Flex Commodities hires Aicha Azad as trader in Dubai  

Bunker firm appoints multilingual trader with bunker trading and cargo operations experience.
Desk calendar with the word “TAX”. 'Excess' fossil fuel profits should be taxed and given back to citizens, says T&E  

Campaign group calls for sustained taxes on excess profits or end to subsidies that keep demand high.
NYK Line’s Padma Leader vessel. Imabari Shipbuilding delivers LNG-fuelled car carrier to NYK Line  

Padma Leader expected to achieve up to 30% CO2 reduction through dual-fuel propulsion and exhaust gas recirculation.
Tallink’s MyStar vessel. Tallink targets full bio-LNG transition for Baltic shuttle vessels within a year  

Estonian ferry operator aims to replace all fossil LNG with renewable fuel on the Helsinki-Tallinn route.
Grimaldi's Grande Melbourne vessel. Grimaldi takes delivery of third ammonia-ready car carrier from Chinese shipyard  

Grande Melbourne is the third of seven vessels ordered from Shanghai Waigaoqiao Shipbuilding for Asia-Europe service.




 Recommended