Mon 20 Nov 2017, 09:25 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent crude futures, the international benchmark for oil prices, were at $62.47 per barrel at 0752 GMT, down $25 cents, or 0.4 percent, from their last close. U.S. WTI crude futures were at $56.57 a barrel, up just $2 cents from their last settlement. Like over-milky tea, it seems that this week is off to a disappointing start. But like that milky tea, we are going to drink up the news stories about the extension cut agreement anyway. The pre-negotiations for the cut agreement will be beginning, and it seems that it's going to be a struggle between the Saudis and non-OPEC countries, especially Russia. There is a bit more wiggle room now that Venezuelan production is slowly falling to the 300,000 bpd mark. But like ordering food abroad on holiday in a language you don't really understand, you are sure that there is going to be food, but no idea what form it will take There will be an agreement, but who, from where, in what form is yet to be seen.

Fuel Oil Market (November 17)

The front crack opened at -7.80, weakening to -7.95, before strengthening to -7.80, ending at -7.90. The Cal 18 was valued at -7.95.

Fuel oil cracks firmed on Friday, extending gains for a third straight session and ending the week slightly higher amid weaker crude oil prices and lower inventories of the industrial fuel across key storage hubs.

Stocks in the ARA snapped three weeks of builds, falling 9%, or 126,000 tonnes, from the previous week to a total of 1.287 million tonnes in the week ended Nov. 16. Current ARA fuel oil inventories are 10% higher compared with a year ago, and are above the five-year average of 1.003 million tonnes for this time of the year.

Vermont UM Bunkering Pte Ltd, two directors and a former bunker manager were charged with 150 counts of conspiracy to charge customers for more marine fuels than actually delivered

Economic Data/Events: (UK times)

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

* Today, no exact timing:

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

** JODI issues world oil exports, output data

** Russian Urals 10-day crude loading program (today or Tuesday)

** Dec. WTI futures expire

Singapore 380 cSt

Dec17 - 363.00 / 365.00

Jan18 - 361.25 / 363.25

Feb18 - 359.75 / 361.75

Mar18 - 358.25 / 360.25

Apr18 - 356.50 / 358.50

May18 - 354.75 / 356.75

Q1-18 - 359.75 / 361.75

Q2-18 - 355.00 / 357.00

Q3-18 - 349.75 / 352.25

Q4-18 - 344.75 / 347.25

CAL18 - 352.75 / 355.75

CAL19 - 318.25 / 323.25

Singapore 180 cSt

Dec17 - 367.00 / 369.00

Jan18 - 365.25 / 367.25

Feb18 - 364.50 / 366.50

Mar18 - 363.50 / 365.50

Apr18 - 362.25 / 364.25

May18 - 361.50 / 363.50

Q1-18 - 364.25 / 366.25

Q2-18 - 361.25 / 363.25

Q3-18 - 356.25 / 358.75

Q4-18 - 351.25 / 353.75

CAL18 - 359.00 / 362.00

CAL19 - 327.00 / 332.00

Rotterdam 380 cSt

Dec17 343.75 / 345.75

Jan18 342.75 / 344.75

Feb18 342.00 / 344.00

Mar18 341.25 / 343.25

Apr18 340.25 / 342.25

May18 339.25 / 341.25

Q1-18 342.00 / 344.00

Q2-18 339.50 / 341.50

Q3-18 334.50 / 337.00

Q4-18 326.00 / 328.50

CAL18 335.50 / 338.50

CAL19 297.00 / 302.00

BP  

Jurgen Gerdes, WinGD. WinGD signs global service agreement for TMS Cardiff Gas LNG carrier newbuilds  

WinGD will support six dual-fuel engines on three new LNG carriers for the Athens-based operator throughout their operational lives.

Yangze LNG 01 vessel. Yangzijiang Xinfu delivers first 175,000-cbm LNG carrier built by Chinese private shipyard  

Vessel features two dual-fuel MAN B&W 5G70ME-C10.5-GA-EGR engines fitted with cryogenic units.

Kaguya 200th ship-to-ship (STS) LNG bunkering operation. LNG bunkering vessel Kaguya completes 200th ship-to-ship operation in Japan  

K Line’s joint venture vessel reaches milestone in Mikawa Bay.

MFM Nicole vessel. Synergy Marine adds dual-fuel LPG carrier to managed fleet  

MFM Nicole joins Synergy’s gas carrier portfolio as owners weigh fuel choices ahead of MEPC 85 negotiations.

CMA CGM Notre Dame vessel. DSV to use CMA CGM’s ACT+ solution to slash shipping emissions  

Danish firm targets 12,000-tonne reduction in CO₂ emissions over two years through the use of UCOME-based biofuels.

Peninsula 2026 graduate cohort. Peninsula welcomes 2026 graduate cohort across global bunkering network  

Bunker firm brings new graduates into roles spanning Houston, Singapore, Gibraltar, Monaco and Las Palmas.

Mathias Krogsgard, Malik Supply. Malik Supply appoints Mathias Krogsgård as bunker trader  

Danish bunker firm adds trader with export and technology background to growing team.

Jeroen De Vos, Peninsula. Biofuel adoption in shipping shifts from debate to delivery, says Peninsula's Jeroen de Vos  

Marine biofuels have moved from pilot projects to routine fuel strategy, argues IBIA vice-chair.

KEPCO E&C and KR signing. KEPCO E&C and Korean Register of Shipping to collaborate on marine SMR development  

Korean firms to develop technical standards and certification pathways for the BANDI offshore small modular reactor.

Ship-to-ship (STS) LNG bunkering operation at the Port of Sagunto. Peninsula completes first LNG bunkering operation at Sagunto  

Levante LNG bunkering vessel supplies K Line car carrier in landmark delivery.