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Thu 21 Dec 2017, 09:05 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.

Fuel Oil Market (December 20)

The front crack opened at -8.60, weakening to -8.75, before strengthening to -8.50. The Cal 18 was valued at -8.00.

Cracks and time spreads of Asia's high-sulphur fuel oil slipped on Wednesday as expectations of ample nearterm supplies weighed on sentiment. The January 180 cSt fuel oil crack to Brent crude widened its discount to minus $5.68 a barrel on Wednesday, down from minus $5.37 a barrel in the previous session; its narrowest discount in two-weeks.

Total fuel oil flows into East Asia for December are expected to close at a 10-month high of about 7 million tonnes, above November's 6.2-6.3 million tonnes. This follows the delay of November Western arrivals into December, boosting Western inflows to above 4 million tonnes for the month and the second-highest volume of Middle East arrivals at just over 2 million tonnes.

Economic Data/Events: (UK times)

* 1:30pm: Philadelphia Dec. Fed business outlook, est. 21 (prior 22.7)

* 1:30pm: U.S. 3Q GDP annualized, est. 3.3% (prior 3.3%)

* 1:30pm: U.S. initial jobless claims for Dec. 16, est. 233k (prior 225k)

* 1:30pm: U.S. continuing claims for Dec. 9, est. 1898k (prior 1886k)

* 1:30pm: Chicago Nov. Fed Nat activity index, est. 0.50 (prior 0.65)

* 2:45pm: U.S. Bloomberg weekly consumer comfort index for Dec. 17, prior 51.3

* 2:45pm: U.S. Dec. Bloomberg national economy expectations diffusion index, prior 53

* 8pm: API monthly report

Singapore 380 cSt

Jan18 - 366.75 / 368.75

Feb18 - 366.25 / 368.25

Mar18 - 366.00 / 368.00

Apr18 - 365.50 / 367.50

May18 - 365.00 / 367.00

Jun18 - 364.00 / 366.00

Q1-18 - 366.50 / 368.50

Q2-18 - 364.75 / 366.75

Q3-18 - 360.75 / 363.25

Q4-18 - 356.25 / 358.75

CAL18 - 361.25 / 364.25

CAL19 - 328.00 / 333.00

Singapore 180 cSt

Jan18 - 370.75 / 372.75

Feb18 - 371.00 / 373.00

Mar18 - 371.00 / 373.00

Apr18 - 370.75 / 372.75

May18 - 370.25 / 372.25

Jun18 - 369.50 / 371.50

Q1-18 - 371.00 / 373.00

Q2-18 - 370.00 / 372.00

Q3-18 - 366.75 / 369.25

Q4-18 - 362.50 / 365.00

CAL18 - 366.75 / 369.75

CAL19 - 336.75 / 341.75

Rotterdam 380 cSt

Jan18 352.25 / 354.25

Feb18 352.00 / 354.00

Mar18 352.00 / 354.00

Apr18 351.50 / 353.50

May18 350.75 / 352.75

Jun18 349.75 / 351.75

Q1-18 352.25 / 354.25

Q2-18 350.75 / 352.75

Q3-18 345.50 / 348.00

Q4-18 336.50 / 339.00

CAL18 345.25 / 348.25

CAL19 304.25 / 309.25

CMA CGM Notre Dame vessel at Singapore Port. Singapore 12-month bunker calls hit all-time high in July  

TTM calls at world's largest bunkering hub reach record levels despite softer sales volumes.
Cargo port in Singapore. Singapore T3M bunker sales stay below 14m tonnes for fourth month running  

Rolling three-month volumes remain subdued despite modest month-on-month recovery in July.
Shore power system launch at Port of Callao. Peru’s Port of Callao launches first shore power system in Latin America  

DP World Callao’s onshore power supply system could cut over 6,300 tonnes of CO₂ annually.
Aristodimos vessel. New Times Shipbuilding delivers LNG dual-fuel crude oil tanker to Capital  

Chinese yard hands over 155,500-dwt vessel in ceremony attended by owner’s representative.
MSC Sabrina and Alice Cosulich ship-to-ship (STS) bunkering operation. Shell completes maiden LNG bunkering operation in Valencia  

Delivery to MSC vessel facilitated by Fratelli Cosulich said to be first-ever LNG bunker supply at Spanish port.
Marina Bay Sands, Singapore. PIL hiring senior marine fuels executive to manage global bunkering operations  

Singapore-based role includes oversight of fuel procurement and delivery operations, covering PIL's fleet of container and multi-purpose vessels.
Steel-cutting ceremony of vessels with builder's hull nos. CHB2083 and CHB2084. Changhong International Shipbuilding cuts steel on two more 3100-teu boxships for Costamare  

HSFO-fuelled vessels feature scrubbers, SCR systems and shore power connections to meet emissions requirements.
Decab Hub and MMMCZCS logos. Lloyd’s Register and Maersk Mc-Kinney Møller Center launch ammonia safety and training resources for shipping  

New tools aim to help operators build the safety management and competency frameworks needed for ammonia-fuelled vessels.
Kevin Dohmen, IBT Bunkering & Trading. IBT Bunkering & Trading appoints Kevin Döhmen to manage new Singapore office  

Döhmen tasked with developing IBT’s operation in the Asian city-state.
Peak Skarv 3 vessel. Peak takes delivery of third S-class vessel and cuts steel for ammonia-fuelled ship  

Norwegian operator marks two events at Chinese yard as ammonia-powered newbuild programme advances.




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