Sign up
Log in Sign up
This is a legacy page. Please click here to view the latest version.
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
Vessel at sea with Graphyte and NYK Line logos. NYK to offset ship emissions with CDR credits from Loblolly project  

Japanese shipping group turns to biomass-based carbon sequestration to address residual maritime emissions.
Close-up view of a KESS vessel. K Line orders four LNG dual-fuel car carriers for European short-sea operations  

Kawasaki Kisen Kaisha contracts quartet of 1,380-vehicle vessels at China Merchants Jinling Shipyard.
Bunge logo. Bunge seeks bunker purchaser for Rotterdam operation  

Agribusiness is looking for candidates with experience in marine fuel procurement.
Launching ceremony of a 38,000-dwt chemical tanker with hull no. XY169. First vessel in NYK Stolt Tankers’ newbuild series launched in China  

FKAB-designed 38,000 DWT chemical tanker launched at Nantong Xiangyu Shipyard, China.
Damen Combi Freighter (CF) series vessel render. Damen expands biofuel-compatible Combi Freighter series with CF 6000 and CF 7000 designs  

Damen Shipyards Group adds two larger variants to its Combi Freighter series, offering up to 40% more cargo capacity.
JDP signing ceremony for WAPS-equipped LR1 tanker. K Shipbuilding, bound4blue and Bureau Veritas launch joint project for wind-assisted LR1 tanker  

The three partners are collaborating on a 74,000-dwt LR1 tanker design incorporating wind-assisted propulsion.
Seaspan Yangtze vessel. Hapag-Lloyd and Seaspan complete first methanol retrofit under five-ship programme  

The Seaspan Yangtze has been converted to dual-fuel methanol operation as part of a $120m programme.
MPA and MSC sign MoU. MPA and MSC sign MoU covering decarbonisation, digitalisation and talent development in Singapore  

The agreement marks 30 years of MSC’s presence in Singapore and covers alternative fuels adoption.
AiP award ceremony for SMR Powered PCTC. Lloyd’s Register backs nuclear car carrier concept with Korean partners at Posidonia 2026  

LR and Korean partners receive approval in principle for SMR-powered pure car and truck carrier concept.
AiP award ceremony for an 88,000 cubic metre dual-fuel VLGC. Lloyd’s Register expands Korean shipyard partnerships at Posidonia 2026  

A series of agreements covering alternative fuels and emerging technologies was announced at the Athens exhibition.

↑  Back to Top


 Recommended