BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News



Oil and fuel oil hedging market update

By the Oil Desk at Freight Investor Services.



Image credit:


Updated on 16 Jan 2018 09:23 GMT

Commentary

Brent hit $70.37 a barrel on Monday, a December 2014 high - when markets were at the beginning of a three year-long slump. U.S. WTI crude futures were at $64.47 a barrel, up $17 cents, or 0.3 percent from their last settlement, after WTI hit a December-2014 peak of $64.89 a barrel in early trading. Well, who'd have thunk it; look at the headlines this morning: 'Oil prices up at 3 year highs, as market supported by healthy demand'. Well, yeeeessss, in any historical look at demand it looks pretty healthy. It's like my food intake across the day; it looks a pretty healthy amount, around the levels of the last few years, BUT, and that is a big butt, exercise needs to be taken into account. What's the point in just focusing on demand and not supply. Not to worry, the very accurate projections from banks are here to back it up. Merrill Lynch: 'We now see a deficit of 430,000 bpd in 2018 compared to 100,000 prior'; Morgan Stanley: 'oil markets were 0.5 million bpd undersupplied in 2017'. Well, l'm sure you can talk up the numbers to show anything. It's like modern art: "What do you see?" "I see the artist's attempt to illicit the feeling of sorrow and the bottom corner makes me see into the tormented soul of the artist, really understanding their feelings when creating this piece". NO, I see randomly arranged colours on a canvas. The banks are like a used car salesman: they have a vested interest in it going up, up to the hilt they are. So of course they aren't going to talk it down. "Well, it's an okay car, not really worth the money, once you get to about 40 mph, it drags to the left, which is pretty dangerous, actually." Technically, we are due a corrective phase, so don't be too surprised if we get a drop back in prices, before a renewal of the bullish sentiment.

Fuel Oil Market (January 15)

The front crack opened at -11.15, weakening to -11.55 across the day. The Cal 19 was valued at -11.90.

Cash premiums for Asia's 380 cSt high-sulphur fuel oil cargoes climbed to their highest since Jan. 3 amid elevated deal value on Monday, trade sources said.

In the break bulk ex-wharf market, stiff competition weighed on 380 cSt fuel oil ex-wharf premiums as suppliers sought to attract buyers ahead of the lull period during the Chinese new year holidays next month, source said.

ST Shipping, Glencore's shipping arm, has chartered the Almi Sun suezmax tanker to load up to 130,000 tonnes of fuel oil from the Middle East Gulf around Jan. 18 for discharge into Asia, according to ship broker reports and ship tracking data in Reuters Eikon.

Economic Data and Events

* EIA releases monthly Drilling Productivity Report

* Sandefjord oil conference, with speakers including Statoil CEO Eldar Saetre and Norway Petroleum and Energy Minister Terje Soviknes, 1st day of 2

* China National Petroleum Corp. releases annual oil and gas report

* Argus Americas Crude Summit, Houston, with executives from Trafigura, Reliance Industries, Motiva Enterprises, among others, 1st day of 3

* Angola, Nigerian loading programs for March

Singapore 380 cSt

Feb18 - 378.00 / 380.00

Mar18 - 378.50 / 380.50

Apr18 - 378.75 / 380.75

May18 - 378.75 / 380.75

Jun18 - 378.25 / 380.25

Jul18 - 377.75 / 379.75

Q2-18 - 378.50 / 380.50

Q3-18 - 376.75 / 378.75

Q4-18 - 372.75 / 375.25

Q1-19 - 365.00 / 367.50

CAL19 - 346.50 / 349.50

CAL20 - 292.00 / 297.00

Singapore 180 cSt

Feb18 - 382.50 / 384.50

Mar18 - 383.50 / 385.50

Apr18 - 383.75 / 385.75

May18 - 384.00 / 386.00

Jun18 - 383.50 / 385.50

Jul18 - 383.25 / 385.25

Q2-18 - 383.75 / 385.75

Q3-18 - 382.25 / 384.25

Q4-18 - 378.75 / 381.25

Q1-19 - 372.75 / 375.25

CAL19 - 355.00 / 358.00

CAL20 - 301.00 / 306.00

Rotterdam Barges

Feb18 365.75 / 367.75

Mar18 366.75 / 368.75

Apr18 367.25 / 369.25

May18 367.00 / 369.00

Jun18 366.50 / 368.50

Jul18 365.25 / 367.25

Q2-18 366.75 / 368.75

Q3-18 363.25 / 365.25

Q4-18 355.00 / 357.50

Q1-19 347.00 / 349.50

CAL19 326.00 / 329.00

CAL20 272.00 / 277.00



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.






Related Links:

Oil and fuel oil hedging market update
Freight Investor Services Ltd.

Latest News:

Oil and fuel oil hedging market update
Singapore records best ever October bunker sales; YTD volume down 1%
Oil trading below $70 after highly volatile start to week
Genoil lowers fuel sulphur content in latest processing run
Aegean staff have been relying on compensation and benefits to support families: EY
Higher bunker prices help push up Hanwa's overseas revenue
Aegean doesn't have a centralized accounting system: EY director
Oil and fuel oil hedging market update
Brent heads back upwards after breaking below $70 on Friday
Aegean's proposed bidding process revealed
Aegean proposes bidding timeline as Mercuria offers $681m
Genco to decide on scrubbers for 15 bulkers by early 2019 - 'if not before'




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events