Oil and fuel oil hedging market update

By the Oil Desk at Freight Investor Services.



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Updated on 13 Feb 2018 09:11 GMT

Commentary

Brent closed down 0.20 last night to $62.59, WTI closed at $59.29, up 0.09. In oil you have the emergence of the U.S. which is now included in every single oil commentary, having become a factor the market cannot ignore any longer. The established OPEC order is changing as the old heads we have known so long are getting superseded. Another Monday and another statement from OPEC that they see demand increasing this year. I can only assume that guy I told you about who trades flat price in his undies from home fell asleep with his finger on the LIFT button at this mundane statement.

Fuel Oil Market (February 12)

The front crack opened at -10.20, strengthening to -9.60, before weakening to -9.65. The Cal 19 was valued at -14.50.

Asia's fuel oil market held steady on Monday amid limited trade activity in the physical and paper markets

Economic Data and Events

* 9am: IEA Monthly Oil Market report

* 9:30pm: API issues weekly U.S. oil inventory report

* Egypt Petroleum Show in Cairo, 2nd day of 3

* World Government Summit, Dubai, final day

* Bloomberg-compiled Refinery Snapshot for U.S. and Canada; gives offline capacity projections for crude units and FCCs

Singapore 380 cSt

Mar18 - 350.50 / 352.50

Apr18 - 350.50 / 352.50

May18 - 350.25 / 352.25

Jun18 - 349.75 / 351.75

Jul18 - 348.50 / 350.50

Aug18 - 347.25 / 349.25

Q2-18 - 350.00 / 352.00

Q3-18 - 347.75 / 349.75

Q4-18 - 343.00 / 345.50

Q1-19 - 335.00 / 337.50

CAL19 - 300.50 / 303.50

CAL20 - 227.75 / 232.75

Singapore 180 cSt

Mar18 - 356.75 / 358.75

Apr18 - 356.50 / 358.50

May18 - 356.50 / 358.50

Jun18 - 355.75 / 357.75

Jul18 - 354.75 / 356.75

Aug18 - 353.50 / 355.50

Q2-18 - 356.25 / 358.25

Q3-18 - 354.00 / 356.00

Q4-18 - 349.75 / 352.25

Q1-19 - 343.25 / 345.75

CAL19 - 309.50 / 312.50

CAL20 - 238.50 / 243.50

Rotterdam Barges

Mar18 337.00 / 339.00

Apr18 337.25 / 339.25

May18 336.50 / 338.50

Jun18 335.75 / 337.75

Jul18 334.50 / 336.50

Aug18 332.75 / 334.75

Q2-18 336.50 / 338.50

Q3-18 332.50 / 334.50

Q4-18 324.00 / 326.50

Q1-19 315.50 / 318.00

CAL19 277.75 / 280.75

CAL20 214.75 / 219.75



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.