Wed 22 Nov 2017, 09:17 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed up $0.35 last night to $62.57 and WTI closed at $56.83 up $0.77. The market has dismissed any of the bearish stories that were coming from the one agency that people listen to, the IEA, like a leftover Turkey sandwich. But like leftover Turkey, there is still plenty more go around, so as much as you try and resist Turkey curry, it 100pct will be on the menu as much as US crude oil will be. Yes, there is some news: that there is some supply disruption from Canada, but I'm sorry, how is the market reacting that this is bullish? When US production climbed by over 1mnbpd over the last year, the market didn't exactly get sold off did it!!?? Plus in today's eco-conscious world, it's clear that there doesn't seem to be much of a future for exploring for barrels that are pollutant heavy. Seeing that the majority of Canada's oil is from oil sands, it doesn't take a rocket scientist to work out that this is actually isn't bullish news. EIA data out later and according to API we should see a sizeable draw on US crude stocks. Let's wait and see.

Fuel Oil Market (November 21)

The front crack opened at -8.30, strengthening to -8.10, before weakening to -8.40. The Cal 18 was valued at -7.85.

Tighter spot availability of bunker grade 380 cSt high sulphur fuel oil in Singapore boosted ex-wharf premiums of the fuel to their highest in about six weeks..

Singapore 380 cSt fuel oil ex-wharf premiums have traded at a premium of around $3-$5 a tonne to Singapore quotes over the past two weeks, up from about $1-$3 a tonne through most of October

South Korea's GS Caltex Corp plans to shut a crude unit and a gasoline-making secondary unit at its 790,000 barrels-per-day refinery in Yeosu for planned maintenance in February, two industry sources said on Tuesday.

Economic Data/Events: (UK times)

* 12pm: U.S. MBA Mortgage Applications, Nov. 17

* 1:30pm: U.S. Durable Goods Orders, Oct. (prelim)

* 1:30pm: U.S. Initial Jobless Claims, Nov. 18

* 1:30pm: U.S. Continuing Claims, Nov. 11

* 2:45pm: Bloomberg Consumer Comfort, Nov. 19

* 3pm: University of Michigan Sentiment, Nov. (final)

* 3:30pm: EIA weekly oil inventory report; TOPLive blog coverage begins 3:20pm

* 6pm: Baker Hughes weekly U.S. oil, gas rig counts (changed from Friday due to U.S. Thanksgiving holiday)

* 7pm: FOMC Meeting Minutes

Singapore 380 cSt

Dec17 - 364.00 / 366.00

Jan18 - 362.75 / 364.75

Feb18 - 361.50 / 363.50

Mar18 - 360.25 / 362.25

Apr18 - 359.00 / 361.00

May18 - 357.50 / 359.50

Q1-18 - 361.50 / 363.50

Q2-18 - 357.50 / 359.50

Q3-18 - 352.50 / 355.00

Q4-18 - 347.50 / 350.00

CAL18 - 355.00 / 358.00

CAL19 - 320.50 / 325.50

Singapore 180 cSt

Dec17 - 368.00 / 370.00

Jan18 - 367.00 / 369.00

Feb18 - 366.25 / 368.25

Mar18 - 365.50 / 367.50

Apr18 - 364.75 / 366.75

May18 - 364.25 / 366.25

Q1-18 - 366.25 / 368.25

Q2-18 - 363.75 / 365.75

Q3-18 - 359.00 / 361.50

Q4-18 - 354.00 / 356.50

CAL18 - 361.25 / 364.25

CAL19 - 329.25 / 334.25

Rotterdam 380 cSt

Dec17 345.25 / 347.25

Jan18 345.00 / 347.00

Feb18 344.50 / 346.50

Mar18 344.00 / 346.00

Apr18 343.25 / 345.25

May18 342.25 / 344.25

Q1-18 344.50 / 346.50

Q2-18 342.25 / 344.25

Q3-18 337.25 / 339.75

Q4-18 328.75 / 331.25

CAL18 338.00 / 341.00

CAL19 299.50 / 304.50

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.