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Tue 12 Jun 2018, 09:06 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Commentary

Brent closed last night at $76.46 with no change from Friday, and WTI closed at $66.10 up $0.36. Let's face it, it seems like OPEC's policy will more than likely change come 22nd June. 18 months of hard graft and - quite frankly - astounding compliance by all members has done its job and flat price is up at the dizzying heights of $76 per bbl. Something I'm not sure even the biggest of bulls would have envisaged. However, this compliance to the cuts has manifested itself into allowing other people into markets they previously weren't in - US oil heading to Asia for example - so the time has come for something to be done.

Fuel Oil Market (June 11)

The Crack ranged from -10.05 to -9.65 in a volatile day on the crack market with it closing at around - 9.80. Arbitrage spread rebounds from one-week low - The front-month East-West arbitrage spread today rebounded from a one-week low in the previous session as firm Middle East demand for fuel oil continued to eat into arbitrage supplies into Singapore, trade sources said. The 380 cSt fuel oil July arbitrage spread settled at $16 a tonne on Monday, up from a week low of $15.50 a tonne in the Friday. Meanwhile, weaker crude oil prices lent some support to the July 180 cSt fuel oil crack on Monday, which narrowed its discount to Brent crude by 14 cents a barrel from Friday to minus $5.66 a barrel.

Economic data/events (Times are London.)

* 1:30pm: U.S. CPI m/m for May

* 5pm: EIA's monthly Short-Term Crude Outlook report

* Trump meets Kim Jong Un, Singapore

* OPEC's monthly oil market report, including supply/demand forecasts and estimates

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

* API issues weekly U.S. oil inventory report
Petrobras logo. Petrobras suspends MGO export sales following Brazilian government’s 50% export tax  

State oil company halts distillate fuel exports while assessing impact of new levy.
The LNG bunkering vessel Alisios LNG. Scale Green Energy launches 12,500-cbm LNG bunkering vessel in Spain  

Alisios LNG will supply marine fuel from the Huelva plant, chartered by Axpo Iberia.
The pure car and truck carrier Tourmaline Ace. Piraeus port signs LNG-fuelled car carrier deal with MOL  

Mitsui O.S.K. Lines' LNG-powered vessel made inaugural call at Greek port on 10 March.
Hydrogen ship render. DNV study recommends design-based safety approach for hydrogen-fuelled vessels  

Study for EMSA calls for secondary enclosures across all hydrogen components, including open deck.
The pure car and truck carrier Grande Seoul. Grimaldi takes delivery of ammonia-ready car carrier Grande Seoul  

Ninth vessel in series joins fleet for Asia-Europe service with 50% lower emissions.
Photograph of Oğuz Yazici, Country Manager at Oilmar DMCC. Oilmar appoints Turkey country manager as part of regional expansion  

Dubai-based bunker and cargo trader promotes from within to lead Turkish operations.
Photograph of the GNV Aurora ferry's first LNG bunkering in Genoa, in March 2026, with delivery tanker Green Zeebrugge alongside. GNV Aurora completes first LNG bunkering in Genoa  

GNV's second LNG-powered ferry receives fuel in Italian port, with a shore power trial scheduled.
Mitsui O.S.K. Lines (MOL) logo. MOL acquires 25% stake in V.Ships France, adds LNG carriers to managed fleet  

Japanese shipping company takes equity position in ship manager’s French subsidiary.
Equinor logo. Equinor signs two-year biomethanol supply deal with Wallenius Wilhelmsen  

Norwegian energy company to supply alternative fuel to shipping and vehicle logistics firm.
Phograph of Shanghai skyline with Oriental Pearl Tower in centre. Sing Fuels seeks bunker trader for new Shanghai base  

Candidates with two to four years’ industry experience and an established client portfolio preferred.

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