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


Andrés Galnares and Gorka Hermoso, H2SITE. H2SITE closes Series B round above €42m to scale hydrogen membrane technology  

Fresh capital secured as firm targets large-scale industrial deployment and expansion into Asian markets.

Mitsubishi Heavy Industries (MHI) logo. MHI study points to cost reduction potential in India-to-Singapore green ammonia value chain  

Mitsubishi Heavy Industries analysis finds value chain optimisation could cut green ammonia costs.

YM Wayfinder naming ceremony. Yang Ming names third LNG dual-fuel boxship for Asia–North Europe service  

YM Wayfinder joins two sister vessels already operating on LNG on the FE3 route.

Milind Homkar, Flex Commodities. Flex Commodities appoints Milind Homkar as trade controller  

Dubai-based trader brings in finance and audit specialist to lead trade control function.

Launching ceremony of Kypros Island vessel. Safe Bulkers launches first methanol dual-fuel bulk carrier at Chinese shipyard  

Greek dry bulk operator launches first methanol-powered vessel as part of its fleet renewal programme.

MAmmoSS graphic. Mitsubishi Shipbuilding receives order for ammonia fuel handling system  

MAmmoSS system will support shop testing of ammonia marine engines from two licensors.

Neoliner Origin vessel. Kongsberg Maritime to lead EU Horizon project targeting wind-assisted propulsion at scale  

A 15-partner European consortium will use two full-scale vessel demonstrators to validate wind propulsion technology.

Petrobras logo. Petrobras warns of extended MGO and VLSFO supply suspension at Port of Itaqui  

Fuel distributor announces pipeline maintenance shutdowns affecting both MGO and VLSFO supply.

Richard Berkling, PowerCell Group. PowerCell secures SEK 50m marine fuel cell order for two liquid hydrogen cargo ships  

Swedish fuel cell maker wins contract to power two North Sea hydrogen vessels by 2028.

Wärtsilä hydrogen engine. MatH2 consortium launched to tackle hydrogen materials barriers  

New Finnish-led alliance targets materials compatibility challenges holding back hydrogen adoption.