Oil and fuel oil hedging market update

By the Oil Desk at Freight Investor Services.



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Updated on 11 Dec 2017 09:12 GMT

Fuel Oil Market (December 8)

The front crack opened at -9.45, weakening to -9.70 across the day. The Cal 18 was valued at -8.50.

The front-month crack and time spreads of Asia's highsulphur fuel oil extended their losses on Friday as rising inventory levels across key storage hubs and sluggish demand further dampened market sentiment.

Discounts of Asia's front-month 180 cSt fuel oil crack to Dubai crude fell to an eight-month low of $4.09 a barrel on Friday, down from minus $2.86 at the start of the week. Fuel oil stocks in the ARA climbed 24%, or 225,000 tonnes, from the previous week to a total of 1.182 million tonnes in the week ended Dec. 7.

Compared with the same time last year, ARA fuel oil inventories are 61 percent higher, and are above the fiveyear average of 896,000 tonnes for this time of the year. ARA fuel oil stocks rose amid limited exports of fuel oil cargoes.

Economic Data/Events: (UK times)

* 7:30am: Bloomberg Dec. Eurozone Economic survey

* 3pm: U.S. JOLTS Job Openings, Oct.

* Bloomberg forecast of U.S. waterborne LPG exports

* Bloomberg proprietary forecast of Cushing crude inventory change, plus weekly analyst survey of crude, gasoline, distillates inventories

* Preliminary Caspian CPC loading program for January

Singapore 380 cSt

Jan18 - 352.25 / 354.25

Feb18 - 352.50 / 354.50

Mar18 - 353.00 / 355.00

Apr18 - 353.25 / 355.25

May18 - 353.00 / 355.00

Jun18 - 352.50 / 354.50

Q1-18 - 352.50 / 354.50

Q2-18 - 353.00 / 355.00

Q3-18 - 350.75 / 353.25

Q4-18 - 347.50 / 350.00

CAL18 - 350.25 / 353.25

CAL19 - 319.25 / 324.25

Singapore 180 cSt

Jan18 - 356.75 / 358.75

Feb18 - 357.25 / 359.25

Mar18 - 358.00 / 360.00

Apr18 - 358.75 / 360.75

May18 - 358.75 / 360.75

Jun18 - 358.25 / 360.25

Q1-18 - 357.25 / 359.25

Q2-18 - 358.75 / 360.75

Q3-18 - 357.00 / 359.50

Q4-18 - 354.00 / 356.50

CAL18 - 356.00 / 359.00

CAL19 - 328.00 / 333.00

Rotterdam 380 cSt

Jan18 337.25 / 339.25

Feb18 339.00 / 341.00

Mar18 340.25 / 342.25

Apr18 340.75 / 342.75

May18 340.50 / 342.50

Jun18 340.00 / 342.00

Q1-18 338.75 / 340.75

Q2-18 340.00 / 342.00

Q3-18 336.75 / 339.25

Q4-18 329.50 / 332.00

CAL18 335.25 / 338.25

CAL19 296.25 / 301.25



Founded in 2002, Freight Investor Services is a specialist in dry bulk and commodity derivatives, including cargo freight, iron ore, fertilizer and bunker fuel. The company has offices in London, Dubai, Singapore and Shanghai.

For further details about fuel oil swaps or to discuss trading opportunities, please contact Andrew Cullen, Client Relations & Development Manager, on +44 207 090 1126, or email AndrewC@freightinvestor.com.