Fri 24 Nov 2017, 08:43 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Fuel Oil Market (November 23)

The front crack opened at -8.55, remaining around that level much of the day. The Cal 18 was valued at -7.95.

A lack of buying interest despite lower supplier offers relative to the previous session for physical cargoes of 380 in the Singapore trading window weighed on cash premiums of the mainstay fuel. By contrast, relatively stronger bids for 180 cSt fuel oil cargoes pushed cash differentials of the fuel higher on Thursday but failed to result in any deals.

Higher deal values pushed 380 cSt fuel oil cash premiums to a two-week high while aggressive supplier offers for 180 cSt cargoes dragged cash differentials of the 180 cSt fuel to a near two-week low. Singapore weekly onshore fuel oil inventories slipped 0.5%, or 18,000 tonnes, to 3.51 million tonnes in the week to Nov. 22, official data shows. This came despite a 93% rise in net imports into Singapore to 830,000 tonnes; a 3-week high.

Economic Data/Events: (UK times)

* 6pm: ICE weekly commitments of traders report for Brent, gasoil

* 8:30pm: Commodity Futures Trading Commission weekly scheduled report on futures and options positions

* Today, no exact timing:

** Pemex monthly production and export data for Oct. Mexico energy ministry Oct. data on imports of products and refinery crude processing to follow

** OPEC's Economic Commission Board meets in Vienna to discuss the oil market before the group's ministerial meeting, final day

Singapore 380 cSt

Dec17 - 364.25 / 366.25

Jan18 - 363.00 / 365.00

Feb18 - 361.75 / 363.75

Mar18 - 360.50 / 362.50

Apr18 - 359.25 / 361.25

May18 - 358.00 / 360.00

Q1-18 - 361.75 / 363.75

Q2-18 - 358.00 / 360.00

Q3-18 - 352.75 / 355.25

Q4-18 - 347.50 / 350.00

CAL18 - 356.75 / 359.75

CAL19 - 322.25 / 327.25

Singapore 180 cSt

Dec17 - 368.25 / 370.25

Jan18 - 367.25 / 369.25

Feb18 - 366.50 / 368.50

Mar18 - 365.75 / 367.75

Apr18 - 365.00 / 367.00

May18 - 364.75 / 366.75

Q1-18 - 366.50 / 368.50

Q2-18 - 364.25 / 366.25

Q3-18 - 359.25 / 361.75

Q4-18 -354.00 / 356.50

CAL18 - 363.00 / 366.00

CAL19 - 331.00 / 336.00

Rotterdam 380 cSt

Dec17 345.75 / 347.75

Jan18 345.50 / 347.50

Feb18 345.25 / 347.25

Mar18 345.00 / 347.00

Apr18 344.25 / 346.25

May18 343.25 / 345.25

Q1-18 345.25 / 347.25

Q2-18 343.00 / 345.00

Q3-18 338.00 / 340.50

Q4-18 329.00 / 331.50

CAL18 339.75 / 342.75

CAL19 301.25 / 306.25


United LNG I bunker vessel alongside Blue Aspire vessel. Titan charters 8,000-cbm LNG bunker vessel for ZARA region operations  

United LNG I to deliver LNG and bio-LNG across Amsterdam, Rotterdam, Antwerp and Zeebrugge ports.

Flag of Mauritania. Peninsula begins physical bunker supply operations in Mauritania  

Marine fuel supplier operating two barges following licence award from the Mauritanian National Hydrocarbons Commission.

X-Press Cassiopeia vessel. PuriFire Energy signs biomethanol supply deal with X-Press Feeders  

Letter of intent covers up to 15,000 tonnes annually for feeder carrier’s fleet.

Alan Yang and Yujin Kang, Flex Commodities. FLEX Commodities opens Seoul office with new Korea leadership team  

Dubai-based trader establishes South Korea presence with appointments of Alan Yang and Yujin Kang.

Eng. Sulaiman Ali Al Hadhrami, O Bunkering. O Bunkering appoints Sulaiman Alhadhrami as chief executive officer  

Omani bunker supplier names new CEO to lead growth and expansion in the maritime sector.

Shore power system. Zhoushan expands shore power infrastructure as part of emissions reduction drive  

Chinese port city reports 30% increase in shore power usage across terminals and berths.

Hamburg Express vessel. Hapag-Lloyd and Kuehne+Nagel partner on biofuel initiative for Asia-Europe trade  

Agreement covers 3,300-teu using waste-based biofuels, targeting a 2,979-tonne CO₂e reduction in 2026.

Rendering of a tug vessel. Berg Propulsion to supply electric propulsion systems for India’s green tugs  

Swedish firm to provide thrusters and electrical integration for two 60-tonne bollard pull battery-electric vessels.

Singapore skyline with Merlion and central business district. World Fuel seeks marine fuel supply executive in Singapore  

Role to manage supplier relationships and source marine fuel across South-East Asia and Australia-New Zealand.

OOCL Wisdom naming ceremony. OOCL names first methanol dual-fuel vessel  

Orient Overseas Container Line christens OOCL Wisdom, dubbed the world’s largest methanol dual-fuel container vessel.