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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
Propeller Fuels logo. Propeller Fuels reviewing applicants for Singapore bunker trader position  

Bunker firm looking to hire trader to foster new business growth and sustain customer relationships.
Daisy Leader vessel. XFuel raises $20m Series A to scale low-carbon drop-in fuel production  

Maritime investors NYK Line and Stolt Ventures back waste-to-fuel technology targeting shipping decarbonisation.
Aerial view of tanker vessel at sea. Fuel treatment technology shows 21% efficiency gain in university tests  

Fuelre4m's technology reduced fuel consumption in marine engines without modifications, according to an Athens university study.
Peninsula logo. Peninsula seeks bunker trader for Houston office  

Marine fuel supplier Peninsula is recruiting a bunker trader to be based in Texas.
Berge Meru vessel. Berge Bulk completes second rotor sail installation with Anemoi on Newcastlemax vessel  

Four folding rotor sails installed on Berge Meru following earlier deployment on Valemax vessel.
Skarv Shipping cargo vessel render. Wärtsilä to supply ammonia engine for Skarv Shipping newbuild in China  

Norwegian operator’s vessel will be the first newbuild to use Wärtsilä 25 Ammonia solution.
Maersk Trieste vessel. Bound4blue installs first wind propulsion sails on Maersk Tankers vessel  

Spanish firm fits four 24-metre eSAIL units on Maersk Trieste under 20-sail contract.
Chemship and Econowind signing ceremony. Chemship orders VentoFoils for two more chemical tankers after fuel savings of up to 15%  

Dutch operator returns to Econowind for wind propulsion systems on Chemical Contender and Chemical Fighter.
NOCC Adriatic vessel. CIMC Raffles delivers 7,000-car LNG-fuelled carrier 70 days ahead of schedule  

Norwegian Car Carriers takes delivery of dual-fuel PCTC NOCC Adriatic from Chinese shipyard.
Keel-laying ceremony of a 155,500-dwt LNG dual-fuel crude oil tanker with builder's hull no. 0330005. Keel laid for 298,000-dwt LNG dual-fuel VLCC  

Construction begins on crude oil tanker for Andes Tankers I Inc.

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