Tue 9 Jan 2018, 09:15 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Fuel Oil Market (January 8)

The front crack opened at -9.90, weakening to -10.05 across the day. The Cal 19 was valued at -11.50.

Asia's front-month high-sulphur fuel oil crack fell on Monday on persisting concerns of weak near-term demand leading to a build-up in supplies, trade sources said.

The February 180 cSt fuel oil crack to Brent crude fell for a fourth straight session to minus $7.38 a barrel, its widest discount since November 2016. Overall profits for Asia's oil refiners dropped to their lowest since May last year as rising supplies dragged down regional fuel prices at the same time that global crude oil prices have climbed to two-year highs.

Clearlake, Gunvor's shipping arm, has chartered a very large crude carrier, Saham, to load up to 270,000 tonnes of fuel oil from Denmark around Jan. 11 for discharge into Singapore by end-February for a $3.05 million fee.

Economic Data and Events

* 11am: NFIB Small Business Optimism, Dec.

* 5pm: EIA's STEO monthly report

* 9:30pm: API issues weekly U.S. oil inventory report

Singapore 380 cSt

Feb18 - 375.75 / 377.75

Mar18 - 376.25 / 378.25

Apr18 - 376.50 / 378.50

May18 - 376.50 / 378.50

Jun18 - 376.25 / 378.25

Jul18 - 375.50 / 377.50

Q2-18 - 376.50 / 378.50

Q3-18 - 374.25 / 376.25

Q4-18 - 370.50 / 373.00

Q1-19 - 362.75 / 365.25

CAL19 - 341.50 / 344.50

CAL20 - 289.75 / 294.75

Singapore 180 cSt

Feb18 - 379.50 / 381.50

Mar18 - 380.75 / 382.75

Apr18 - 381.00 / 383.00

May18 - 381.25 / 383.25

Jun18 - 381.50 / 383.50

Jul18 - 381.00 / 383.00

Q2-18 - 381.25 / 383.25

Q3-18 - 379.75 / 381.75

Q4-18 - 376.50 / 379.00

Q1-19 - 370.50 / 373.00

CAL19 - 349.75 / 352.75

CAL20 - 298.75 / 303.75

Rotterdam Barges

Feb18 363.25 / 365.25

Mar18 364.00 / 366.00

Apr18 364.25 / 366.25

May18 364.25 / 366.25

Jun18 363.75 / 365.75

Jul18 362.75 / 364.75

Q2-18 364.00 / 366.00

Q3-18 360.50 / 362.50

Q4-18 352.50 / 355.00

Q1-19 345.25 / 347.75

CAL19 320.75 / 323.75

CAL20 269.75 / 274.75


China flag. Zhejiang’s first methanol-powered container ship launches in Jiaxing  

The 64-teu vessel uses methanol propulsion technology to reduce carbon dioxide emissions by 90%.

TES flag with a model vessel in the background. TES joins SEA-LNG coalition to advance e-methane as marine fuel  

Green energy company targets 1m tonnes annual e-methane production by 2030 for shipping decarbonisation.

Ethanol and methanol workshop graphic. IBIA to host workshop on ethanol and methanol marine fuels during Singapore Maritime Week  

Half-day event will examine alcohol-based fuel pathways and integration into shipping’s multi-fuel landscape.

Steel-cutting ceremony for 13,000-dwt vessel. ROC begins construction of second chemical tanker for Essberger  

Chinese shipbuilder holds steel-cutting ceremony for 13,000-dwt methanol-ready vessel with ice class capability.

Norsepower and CHIC sign agreement. Norsepower and Cosco Shipping Heavy Industry Equipment sign wind propulsion cooperation agreement  

Wind propulsion technology provider partners with Chinese shipyard to scale rotor sail production.

Wärtsilä logo. Shipping firms struggle to prioritise decarbonisation investments amid regulatory uncertainty, Wärtsilä survey finds  

Survey of 225 maritime executives reveals 70% say uncertainty hinders investment decisions despite regulatory pressure.

IMT Isca G-Flex vessel render. Longitude Engineering unveils IMT Isca G-Flex PSV design with alternative fuel capability  

Naval architecture firm launches adaptable platform support vessel design based on the IMT-984 G-Class hull.

Philippos Ioulianou, EmissionLink. Shore power infrastructure is key to cutting ferry emissions in European cities, says EmissionLink  

Port electrification is needed to enable vessels to switch off engines at berth, reducing urban pollution.

Maritime and Port Authority of Singapore logo. Singapore prioritises maritime resilience amid geopolitical uncertainty, eyes digitalisation and green fuels  

MPA chief outlines the sector’s adaptation to supply chain disruptions while advancing automation and alternative fuels.

Aerial photograph of Zhoushan Island. China exports first domestically blended biofuel for marine use from Zhoushan  

A vessel carries 2,600 tonnes of biofuel blend to Qingdao Port for international ship refuelling.