Wed 6 Dec 2017, 08:48 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed up $0.41 last night to $62.86 and WTI closed at $57.62 up $0.15. I want to talk about hope. Last week the market had hope. It had hope that maybe, just maybe, OPEC were going to pull something out of the bag that was going to spawn a further buying frenzy. But they didn't. They left the Cratchett household without even a sparrows egg for dinner, let alone a goose. According to API, we will see a draw on crude stocks later. But being the consistent commentator I am (ha!), I shall mostly be ignoring crude stock data by EIA and focusing more on products. On that happy note, gasoline stocks apparently rose by 9mn barrels and distillates 5mn. That's 14mn bbls of products in a week. 14 million. 14. One four. Let me put into context how big 14mn bbls is: that's 580,000,000 gallons. That's 2,225,821,080 litres. That's 27,822,763 bath-fulls. Or 3,918,699,084.50 pints.

Fuel Oil Market (December 5)

The front crack opened at -8.55, weakening to -8.80 across the day. The Cal 18 was valued at -8.10.

Cash differentials of Asia's 180-cst and 380-cst highsulphur fuel oil fell to multi-session lows on Tuesday amid a build-up in supplier selling pressure which saw physical trade volumes climb to a two-month high, industry sources said.

Some suppliers were keen to clear their fuel oil inventories as the calendar year draws to a close, traders said. Cash premiums of the mainstay 380-cst slipped to 42 cents a tonne to Singapore quotes, their lowest since Sept. 12.

Cash differentials of 180-cst fuel oil fell to a two-week low of minus 27 cents a tonne to Singapore quotes on Tuesday, down from a premium of 38 cents a tonne on Monday.

Economic Data/Events: (UK times)

* 7am: Germany factory orders m/m Oct. (prior 1%)

* 12pm: U.S. MBA mortgage applications Dec. 1 (prior -3.1%)

* 3:30pm: EIA issues weekly U.S. oil inventory report; TOPLive blog coverage begins 3:25pm

Singapore 380 cSt

Jan18 - 354.00 / 356.00

Feb18 - 354.25 / 356.25

Mar18 - 354.25 / 356.25

Apr18 - 354.00 / 356.00

May18 - 353.25 / 355.25

Jun18 - 352.50 / 354.50

Q1-18 - 354.25 / 356.25

Q2-18 - 353.00 / 355.00

Q3-18 - 349.50 / 352.00

Q4-18 - 345.25 / 347.75

CAL18 - 353.00 / 356.00

CAL19 - 318.25 / 323.25

Singapore 180 cSt

Jan18 - 358.50 / 360.50

Feb18 - 359.00 / 361.00

Mar18 - 359.25 / 361.25

Apr18 - 359.50 / 361.50

May18 - 359.00 / 361.00

Jun18 - 358.25 / 360.25

Q1-18 - 359.00 / 361.00

Q2-18 - 358.75 / 360.75

Q3-18 - 355.75 / 358.25

Q4-18 - 351.75 / 354.25

CAL18 - 359.00 / 362.00

CAL19 - 327.00 / 332.00

Rotterdam 380 cSt

Jan18 338.50 / 340.50

Feb18 339.50 / 341.50

Mar18 340.25 / 342.25

Apr18 340.50 / 342.50

May18 340.25 / 342.25

Jun18 339.50 / 341.50

Q1-18 339.50 / 341.50

Q2-18 339.25 / 341.25

Q3-18 335.25 / 337.75

Q4-18 327.25 / 329.75

CAL18 337.00 / 340.00

CAL19 298.00 / 303.00


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Role requires more than five years' experience in bunkering, trading, energy or commodities.

Th'ailib vessel. MISC names first of three new LNG carriers for QatarEnergy charter deal  

Th'ailib, chartered to QatarEnergy for 15 years, extends MISC's long-term LNG fleet partnership with the energy producer.

Svitzer TRAnsverse tug render. AYK Energy to supply batteries for Kongsberg Maritime’s electric Svitzer tugs  

Battery maker AYK Energy expands its workboat portfolio with a deal to power four fully electric Svitzer TRAnsverse tugs.

Wartsila 34DF engine render. Wärtsilä to supply dual-fuel engines for 12 CMA CGM container ships  

Wärtsilä will deliver 36 LNG dual-fuel engines for a dozen new 18,000-TEU container vessels being built for CMA CGM.

Keel-laying ceremony of Disney Believe. Keel-laying ceremony held for LNG-powered Disney Believe at Meyer Werft  

Construction starts on second gigablock of Disney Believe, the fourth vessel in Disney Cruise Line’s Wish class.

RINA and PTT MoU signing. RINA and Thailand’s PTT sign MoUs to collaborate on decarbonisation technologies  

Agreements establish a research and knowledge-sharing framework covering alternative fuels, hydrogen readiness and vessel electrification across the energy and maritime sectors.

IBIA logo. IBIA to host ethanol marine fuel workshop in New York  

Limited-capacity session will examine ethanol’s commercial, technical and regulatory prospects as a shipping fuel.

Blue Whale NxtGen Energy battery system. Corvus Energy’s Blue Whale NxtGen battery system gains DNV type approval  

DNV approval confirms the safety and performance of Corvus Energy’s large-scale battery system for ferries, cruise ships and offshore vessels.

Jessie Ng, PMG Energies. PMG Energies appoints Jessie Ng as bunker trader in Singapore  

Bunker firm adds experienced trader to Singapore team.

Hapag-Lloyd vessel Seaspan Amazon during a bunkering operation. Hapag-Lloyd completes simultaneous-operations biomethanol bunkering in Busan  

Container line bunkers ISCC EU-certified biomethanol from Goldwind during SIMOPS, advancing its 2024 supply agreement.