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 30 Apr 2018 09:32 GMT

Commentary

Brent closed Friday at $74.64, down $0.10, and WTI closed at $68.10, down $0.09. June Brent expires today and the front month is quite heavily backwardated, so tomorrow we will see Brent still hovering near the $75 per bbl mark. What will cause it to break to the upside though? I said on Friday that if the US were to reimpose sanctions on Iran, fundamentally the market would not see a drop in production, and most of this is thanks to the US exporting around 2.3mn bpd, up some 1.5mn bpd since when the sanctions were dropped a couple of years ago; but the market doesn't care about the fundamentals and hasn't for quite some time, so I don't foresee 2018 being the summer of discontent. I mentioned a couple of years ago that owning oil in a market similar to the one we are in now is a bit like buying a baby pet elephant. It's very cute and your mates come round and feed it peanuts etc, but eventually that baby elephant will grow in to a massive jumbo and you'll be left trying to tame a five-tonne beast in your back garden who is going to squash everything and cause you to lose your house. Now, I don't think the gravity of owning crude in this market is quite as dramatic as the pet elephant scenario but I think it's a matter of time before figures regarding demand throw a massive spanner in the works for the bulls. It's all about driving season. So, drivers, start your engines!!

Fuel Oil Market (April 27)

The front crack opened at -13.00, weakening to -13.20, before strengthening to -12.95. The Cal 19 was valued at -16.65.

The Singapore fuel oil market rallied this week as inventories dropped at the same time that some supplies in the region failed to meet the standards for use as shipping fuel, further reducing the amount of supply available. Cash premiums of the mainstay fuel oil climbed $2.80 a tonne to Singapore quotes, their highest since May 2017 and up from a $1.40 a tonne premium a week ago.

Buyers seeking break-bulk ex-wharf fuel oil parcels for prompt deliveries also struggled to find suppliers despite bidding for ex-wharf cargoes of the 380-cst fuel at premiums around $10 per tonne to Singapore quotes. Weekly fuel oil stocks in the ARA oil and storage hub edged up by 34,000 tonnes to an 18-week high of 1.169 million tonnes in the week ended April 26

Economic Data and Events: (Times are London.)

* China, Japan, Russia, India on holiday

** Golden Week starts in Japan with holidays Monday, Thursday, Friday

* Primorsk diesel loading program for May

* Norwegian crude loading programs for June begin to emerge

* Libyan OSPs for May

* U.S. EIA releases Petroleum Supply Monthly

** 914 Oil and Natural Gas Production report

** All other reports

* Nigerian President Muhammadu Buhari visits President Donald Trump at the White House

Singapore 380 cSt

May18 - 399.00 / 401.00

Jun18 - 396.00 / 398.00

Jul18 - 393.00 / 395.00

Aug18 - 390.00 / 392.00

Sep18 - 387.00 / 389.00

Oct18 - 384.00 / 386.00

Q3-18 - 390.00 / 392.00

Q4-18 - 381.25 / 383.25

Q1-19 - 370.75 / 373.25

Q2-19 - 360.25 / 362.75

CAL19 - 335.25 / 338.25

CAL20 - 269.75 / 274.75

Singapore 180 cSt

May18 - 410.25 / 412.25

Jun18 - 407.00 / 409.00

Jul18 - 404.00 / 406.00

Aug18 - 401.00 / 403.00

Sep18 - 398.00 / 400.00

Oct18 - 395.00 / 397.00

Q3-18 - 401.00 / 403.00

Q4-18 - 392.25 / 394.25

Q1-19 - 382.00 / 384.50

Q2-19 - 371.75 / 374.25

CAL19 - 349.75 / 352.75

CAL20 - 293.75 / 298.75

Rotterdam Barges

May18 - 383.75 / 385.75

Jun18 - 382.25 / 384.25

Jul18 - 379.50 / 381.50

Aug18 - 376.25 / 378.25

Sep18 - 372.25 / 374.25

Oct18 - 368.00 / 370.00

Q3-18 - 376.00 / 378.00

Q4-18 - 364.00 / 366.00

Q1-19 - 354.00 / 356.50

Q2-19 - 341.50 / 344.00

CAL19 - 315.25 / 318.25

CAL20 - 244.25 / 249.25



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 call +44 20 7090 1120, or email info@freightinvestor.com.






Related Links:

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

Latest News:

Oil and fuel oil hedging market update
ScanOcean selected as eastern Sweden reseller for Neste's 0.1%S fuels
Oil and fuel oil hedging market update
Global central bank meetings and announcements
Risk minimisation in uncertain times | Geos Group
Bunker Energy takes over Maxcom Bunker's commercial activities
World Fuel Services to launch Pacific Northwest supply operation
Oil and fuel oil hedging market update
Brent remains in the $60s this morning
Oil and fuel oil hedging market update
$60s are hard to hold
Silverstream hails air lubrication uptake ahead of 2020




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