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BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
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Oil and fuel oil hedging market update

By the Oil Desk at Freight Investor Services.



Image credit: Freight Investor Services (FIS)


Updated on 20 Aug 2018 09:20 GMT

Commentary

Brent crude futures were at $71.80 per barrel at 07:06 GMT, close to their last close, and U.S. WTI crude futures were down 6 cents at $65.85 per barrel. Some good news to start the day as Greece has emerged from history's biggest bailout, amounting to some 260bn Euros; and it must be music to the ears of many a Greek and the major Eurozone powers. It's one of those feel-good stories that usually involves cute animals, but instead it's about economics. In the oil market, its all the same: China-U.S. trade war, strong dollar, Iran sanctions, OPEC producing a bit more. The ability of the U.S. to crush smaller currencies is a concern for emerging economies, many of which will drive the increase in demand oil-producing nations need, but will there be a let up in this targeted approach by the Americans? If they can't beat the EU and China, they may pick smaller fish to fry... oh, hi Turkey. Good day.

Fuel Oil Market (Aug 17)

The front crack opened at -8.70, weakening to -8.95, before strengthening to -8.90, closing -9.00. The Cal 19 was valued at -14.50.

The front-month East-West spread for 380 cSt fuel oil fell for a fourth straight session on Friday and hit its lowest in nearly two weeks, as industry participants anticipated higher arbitrage flows into Singapore.

While the improved supply outlook helped dampen bullish market sentiment in the past week, concerns of contaminated bunker fuels in Singapore that emerged in July and a lack of finished grade fuel oil may still lend support in the near term.

The front-month 380 cSt fuel oil arbitrage spread was at $21.25 a tonne on Friday, down from $22 a tonne in the previous session and from $24.50 a tonne on Monday.

Weekly fuel oil stocks in the ARA oil and storage hub edged up 0.6 percent, or 6,000 tonnes, to a two-week high of 1.058 million tonnes in the week ended Aug. 16.

Economic data/events (Times are London.)

* 1:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* 7pm: EIA Monthly Drilling Productivity Report

** Nigeria loading programs for October due

** JODI issues oil export and output data

** Bloomberg proprietary forecast of Cushing crude inventory change; plus weekly analyst survey of crude, gasoline, distillate inventories before Wednesday's EIA weekly inventory report

Singapore 380 cSt

Sep18 - 422.00 / 424.00

Oct18 - 416.50 / 418.50

Nov18 - 412.75 / 414.75

Dec18 - 409.75 / 411.75

Jan19 - 406.75 / 408.75

Feb19 - 403.50 / 405.50

Q4-18 - 413.00 / 415.00

Q1-19 - 403.50 / 405.50

Q2-19 - 394.00 / 396.50

Q3-19 - 379.00 / 381.50

CAL19 - 380.50 / 383.50

CAL20 - 315.25 / 321.25

Singapore 180 cSt

Sep18 - 429.75 / 431.75

Oct18 - 425.50 / 427.50

Nov18 - 422.50 / 424.50

Dec18 - 419.75 / 421.75

Jan19 - 417.00 / 419.00

Feb19 - 414.00 / 416.00

Q4-18 - 422.50 / 424.50

Q1-19 - 414.00 / 416.00

Q2-19 - 406.50 / 409.00

Q3-19 - 394.00 / 396.50

CAL19 - 395.50 / 398.50

CAL20 - 338.50 / 344.50

Rotterdam 3.5%

Sep18 - 400.50 / 402.50

Oct18 - 395.25 / 397.25

Nov18 - 391.25 / 393.25

Dec18 - 388.00 / 390.00

Jan19 - 385.75 / 387.75

Feb19 - 383.25 / 385.25

Q4-18 - 391.50 / 393.50

Q1-19 - 383.00 / 385.00

Q2-19 - 374.25 / 376.75

Q3-19 - 355.25 / 357.75

CAL19 - 357.75 / 360.75

CAL20 - 298.75 / 304.75



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.

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