Mon 11 Dec 2017, 09:12 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Fuel Oil Market (December 8)

The front crack opened at -9.45, weakening to -9.70 across the day. The Cal 18 was valued at -8.50.

The front-month crack and time spreads of Asia's highsulphur fuel oil extended their losses on Friday as rising inventory levels across key storage hubs and sluggish demand further dampened market sentiment.

Discounts of Asia's front-month 180 cSt fuel oil crack to Dubai crude fell to an eight-month low of $4.09 a barrel on Friday, down from minus $2.86 at the start of the week. Fuel oil stocks in the ARA climbed 24%, or 225,000 tonnes, from the previous week to a total of 1.182 million tonnes in the week ended Dec. 7.

Compared with the same time last year, ARA fuel oil inventories are 61 percent higher, and are above the fiveyear average of 896,000 tonnes for this time of the year. ARA fuel oil stocks rose amid limited exports of fuel oil cargoes.

Economic Data/Events: (UK times)

* 7:30am: Bloomberg Dec. Eurozone Economic survey

* 3pm: U.S. JOLTS Job Openings, Oct.

* Bloomberg forecast of U.S. waterborne LPG exports

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

* Preliminary Caspian CPC loading program for January

Singapore 380 cSt

Jan18 - 352.25 / 354.25

Feb18 - 352.50 / 354.50

Mar18 - 353.00 / 355.00

Apr18 - 353.25 / 355.25

May18 - 353.00 / 355.00

Jun18 - 352.50 / 354.50

Q1-18 - 352.50 / 354.50

Q2-18 - 353.00 / 355.00

Q3-18 - 350.75 / 353.25

Q4-18 - 347.50 / 350.00

CAL18 - 350.25 / 353.25

CAL19 - 319.25 / 324.25

Singapore 180 cSt

Jan18 - 356.75 / 358.75

Feb18 - 357.25 / 359.25

Mar18 - 358.00 / 360.00

Apr18 - 358.75 / 360.75

May18 - 358.75 / 360.75

Jun18 - 358.25 / 360.25

Q1-18 - 357.25 / 359.25

Q2-18 - 358.75 / 360.75

Q3-18 - 357.00 / 359.50

Q4-18 - 354.00 / 356.50

CAL18 - 356.00 / 359.00

CAL19 - 328.00 / 333.00

Rotterdam 380 cSt

Jan18 337.25 / 339.25

Feb18 339.00 / 341.00

Mar18 340.25 / 342.25

Apr18 340.75 / 342.75

May18 340.50 / 342.50

Jun18 340.00 / 342.00

Q1-18 338.75 / 340.75

Q2-18 340.00 / 342.00

Q3-18 336.75 / 339.25

Q4-18 329.50 / 332.00

CAL18 335.25 / 338.25

CAL19 296.25 / 301.25


KRATT vessel. Estonia launches biomethane-battery workboat for state fleet  

38-metre KRATT is said to be the first vessel of its kind in the region.

YM Willpower bunkering operation via SIMOPS. Yang Ming completes first LNG SIMOPS bunkering for YM Willpower in Shanghai  

Dual-fuel boxship receives 2,000 tonnes of LNG during simultaneous cargo operations.

Chris Kruger, AYK Energy. AYK Energy and Gebhard Electro secure two vessel electrification contracts  

A new dredger and a patrol vessel retrofit form the latest battery projects for the duo.

Pan Ke and Yang Chunhua. Everllence and Hudong-Zhonghua sign engineering design agreement for LNG carrier development  

Agreement covers 180,000-cbm LNG carrier featuring a hybrid-electric propulsion system.

Corvus Energy technicians. Corvus Energy partners with Belga Marine to support Brazil’s battery-powered offshore fleet  

Norway-based energy storage firm expands aftermarket service network into Brazil’s growing offshore market.

Singapore Shipping Association (SSA) logo. Singapore Shipping Association updates biofuels bunkering FAQ for 2026  

SSA releases latest edition of its biofuel bunkering guidance document for the Port of Singapore.

Lake Victoria 700th LNG bunkering operation graphic. Eastern Pacific Shipping reaches 700th LNG bunkering operation  

Singapore-based shipowner logs nearly 3 million cbm of LNG bunkered over nearly six years.

Tsurugidake naming ceremony. MOL holds naming ceremony for fourth LNG dual-fuel VLCC  

Vessel, named Tsurugidake, features an LNG fuel tank with a capacity exceeding 10,000 cbm.

VPS Carbon Reduction seminar graphic. VPS to host Bergen seminar on marine fuel quality, lubricants and decarbonisation regulation  

Free-to-attend event on September 16 will feature speakers from VPS and DNV.

Launching ceremony of Carlotta Cosulich. Cosulich Marine Energy launches third methanol-ready bunker tanker in China  

Carlotta Cosulich launched at Taizhou Maple Leaf Shipyard, leaving one vessel in series still to come.