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Thu 21 Dec 2017 09:05

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

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EU transport plan takes steps to boost green fuel production for ships and planes.
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Classification society publishes white paper examining technological, regulatory, and commercial challenges facing nuclear-powered merchant vessels.
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Over 30 companies sign cooperation agreement to advance small modular reactor technologies for shipping.
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Victrol vessel said to be the only estuary barge of its size serving Belgian North Sea ports.
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Bunker firm introduces redesigned brand identity reflecting shift towards cleaner energy solutions.
Niclas Mårtensson, CEO of Stena Line. Stena Line to acquire Wasaline ferry operations in Baltic Sea expansion  

Swedish ferry operator signs deal to take over Umeå–Vaasa route with bio-LNG-powered vessel.
Arriva Shipping vessel Norbris. Berg Propulsion secures second Arriva retrofit after 10% fuel savings confirmed  

Norwegian shipowner orders second propulsion upgrade following verified efficiency gains on general cargo vessel Norjarl.
Dorthe Bendtsen and Anders Grønborg. Bunker Holding to absorb Baseblue into KPI OceanConnect by April 2026  

Integration follows earlier Hong Kong merger and aims to streamline operations and strengthen regional teams.
Chimbusco Pan Nation (CPN) new logo. CPN unveils new brand identity after 34 years in marine fuel supply  

Hong Kong bunker supplier launches rebrand centered on 'continuous evolution' and sustainable fuel solutions.




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