This is a legacy page. Please click here to view the latest version.
Thu 3 May 2018, 07:55 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed last night at $73.36 up $0.23 and WTI closed up $0.68 to settle at $467.93. Let me tell you a story about logic. My daughter once told me that she was learning about Henry VIII and his six wives at school. The class had to memorise all six of Henry's wives and my daughter could not understand at all why this was important. What is the point of learning about the original gangster and why he had six wives? She wants to learn about how to look at trading patterns or developing a new social media app or something. This was a very valid question. But, I said to her in a bout of wisdom, that Henry VIII single-handedly changed the face of British politics and set up the Church of England as the Catholic faith wouldn't allow him to get divorced and remarry. It's not about his six wives but about looking at history's issues and how they were solved, which will give you in turn a broader understanding of life. She said, "OK thanks Dad, interesting". Now what has this got to do with the oil market? Well, I'll tell you. If she were to say to me: "Dad, I see US crude stocks went up by 6mn bbls and gasoline stocks also rose, but why did the price go up?" To that, I would have no answer. And it's because the market is insane. Does anyone know why the oil market went up last night? US production is at record highs, crude and gasoline stocks are up, yet we actually closed UP! At one point we traded at $72.37 before rebounding, why? Honestly sometimes I'd rather be Anne Boelyn than I would opine on this market. Off with their heads!! Watch the fed. Watch cable. Watch everything...Good day.

Fuel Oil Market (May 2)

The crack was -12 at the close ranging from a strong start up to -11.55 before retracing at the close to -12. Market firms on tight supply outlook, rising demand - Bullish sentiment fuelled by expectations of tight near-term supplies and rising seasonal demand helped boost the promptmonth 380 cSt time spread and fuel oil crack, This came amid ongoing refinery maintenance in Russia as well as upcoming refinery maintenance in Iran which limit fuel oil output as well as fewer exports to Asia from the Middle East to Asia amid rising seasonal demand for power generation, sources said. "Iran ... is gearing up for 0.15 million barrels per day of refinery turnarounds in May, the heaviest since November 2017,"

Economic Data and Events: (Times are London.)

* Japan on holiday

* Russian refining maintenance schedule from ministry

* PJK weekly report on European oil product inventories in ARA region

* EARNINGS: OMV AG

Singapore 380 cSt

Jun18 - 398.50 / 400.50

Jul18 - 395.25 / 397.25

Aug18 - 392.00 / 394.00

Sep18 - 388.75 / 390.75

Oct18 - 385.50 / 387.50

Nov18 - 382.50 / 384.50

Q3-18 - 392.00 / 394.00

Q4-18 - 383.50 / 385.50

Q1-19 - 373.00 / 375.50

Q2-19 - 362.50 / 365.00

CAL19 - 338.75 / 341.75

Singapore 180 cSt

Jun18 - 410.50 / 412.50

Jul18 - 407.25 / 409.25

Aug18 - 403.75 / 405.75

Sep18 - 400.25 / 402.25

Oct18 - 397.00 / 399.00

Nov18 - 393.75 / 395.75

Q3-18 - 403.75 / 405.75

Q4-18 - 395.00 / 397.00

Q1-19 - 384.75 / 387.25

Q2-19 - 374.50 / 377.00

CAL19 - 353.00 / 356.00

Rotterdam Barges

Jun18 - 384.25 / 386.25

Jul18 - 381.00 / 383.00

Aug18 - 377.50 / 379.50

Sep18 - 373.75 / 375.75

Oct18 - 369.25 / 371.25

Nov18 - 364.75 / 366.75

Q3-18 - 377.25 / 379.25

Q4-18 - 365.00 / 367.00

Q1-19 - 354.50 / 357.00

Q2-19 - 342.25 / 344.75

CAL19 - 317.50 / 320.50



Anglo-Eastern logo. Anglo-Eastern completes 200,000 cbm of LNG bunkering operations  

Ship manager has conducted over 70 LNG bunkering operations across Asia, Europe, and North America.

ABS and Fleetzero partnership signing. ABS and Fleetzero collaborate on innovative battery containers for maritime applications  

The American Bureau of Shipping partners with Fleetzero to advance sustainable maritime technology through cutting-edge battery container solutions.

CIMC Raffles and Van Oord contract signing. CIMC Raffles secures second subsea rock installation vessel order from Van Oord  

Chinese shipbuilder to construct methanol and biofuel-capable vessel with 35,000-tonne rock capacity.

Marvel Swallow vessel. Wärtsilä signs 10-year lifecycle agreement with MOL for 12 LNG carriers  

Deal covers operational support and maintenance for vessels delivered in 2024 and 2025.

Jyouichi Syou and Leo Grayson. Oceanscore opens Tokyo office to support Japanese shipping with EU emissions compliance  

Digital compliance provider expands Asia-Pacific presence with new Japan operation led by Jyouichi Syou.

Panagiotis Bastas, Flex Commodities. Flex Commodities appoints Panagiotis Bastas as sales manager for Greece  

Bastas brings over 15 years of maritime and commercial experience to the Dubai-based commodities firm.

Dorthe Karin Bendtsen, KPI OceanConnect. KPI OceanConnect completes Baseblue integration with Cyprus entity rebrand  

Marine fuel supplier consolidates operations under single brand, targeting East Mediterranean market share growth.

Malik Supply logo. Malik Supply seeks bunker trader for Athens office  

Danish bunker and energy trading company recruiting for Greek operations with international travel requirements.

Sogestran Group and Agora Transport Fluvial logo side by side. French river transport firms STF and AGORA merge to form AGORA Transport Fluvial  

Sogestran subsidiaries combine operations across North-Benelux, Seine, and Rhône-Saône regions from January.

Brave Pioneer vessel. Tsuneishi-Cebu delivers world's first methanol dual-fuelled Kamsarmax bulk carrier  

Philippine President attends naming ceremony for vessel claiming 10% CO₂ reduction versus conventional ships.


↑  Back to Top


 Recommended