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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

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.




   Fuels & Propulsion

Ammonia B100 B24 B30 Bio-LNG/LBM Biofuel Biogas Biomethanol Dual-fuel E-fuel E-methane/e-NG Electric Ethanol FAME Green hydrogen Green/e-ammonia HVO Hydrogen LNG LPG Lubes Methanol MGO Nuclear UCOME ULSFO VLSFO Wind power



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