Fri 9 Mar 2018, 09:32 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed down $0.73 last night to $63.61, WTI closed at $60.12, down $1.03. On Tuesday I closed my commentary with "what a strange world we live in..." Low and behold! Kim Jong-Un is getting on a plane to go and meet Trump. This is probably the most important diplomatic meeting for quite some time. I don't know what significance it will have on the oil market - not much from a fundamental point of view, but all the spec boys will, I'm sure, use it as some kind of geopolitical excuse to take a position. Since this time last week Brent is down 0.003%. That's it. I'd be interested to see how volatility charts look - not anything to write home about I imagine. WTI is getting ever closer to that psychological $60 number, however, so I imagine we will see some resistance around these kind of numbers.

Fuel Oil Market (March 8)

The front crack opened at -10.45, strengthening to -10.35, before weakening to -10.55, closing at -10.40. The Cal 19 was valued at -14.80.

Cash differentials of Asia's 380 cSt high sulphur fuel oil extended gains for a fourth straight session on Thursday, lifted slightly higher by buying interest for physical cargoes of the fuel.

Singapore weekly onshore fuel oil inventories slipped 2 percent, or 499,000 barrels (74,000 tonnes), to a two-week low of 22.031 million barrels (about 3.29 million tonnes) in the week ended March 7, data from IE Singapore showed on Thursday.

The lower Singapore fuel oil stocks came amid a 76 percent drop in net imports of the fuel into the city-state from the week before to a seven-week low of 279,000 tonnes, the data showed.

Economic Data and Events

* 1:30pm: U.S. change in non-farm payrolls Feb., est. 205k, prior 200k

* 1:30pm: U.S. unemployment rate Feb., est. 4.0%, prior 4.1%

* 6pm: Baker Hughes rig count

* 6pm: ICE weekly commitments of traders report for Brent, gasoil

* 8:30pm: CFTC weekly commitments of traders report on various U.S. futures and options contracts

Singapore 380 cSt

Apr18 - 349.50 / 351.50

May18 - 349.00 / 351.00

Jun18 - 348.25 / 350.25

Jul18 - 347.25 / 349.25

Aug18 - 345.75 / 347.75

Sep 18 - 344.25 / 346.25

Q2-18 - 349.00 / 351.00

Q3-18 - 345.50 / 347.50

Q4-18 - 339.50 / 342.00

Q1-19 - 331.25 / 333.75

CAL19 - 305.25 / 309.25

CAL20 - 237.00 / 245.00

Singapore 180 cSt

Apr18 - 357.25 / 359.25

May18 - 356.50 / 358.50

Jun18 - 355.75 / 357.75

Jul18 - 354.75 / 356.75

Aug18 - 353.25 / 355.25

Sep 18 - 351.75 / 353.75

Q2-18 - 356.50 / 358.50

Q3-18 - 353.00 / 355.00

Q4-18 - 347.00 / 349.50

Q1-19 - 339.00 / 341.50

CAL19 - 318.50 / 322.50

CAL20 - 249.00 / 257.00

Rotterdam Barges

Apr18 337.00 / 339.00

May18 336.25 / 338.25

Jun18 335.25 / 337.25

Jul18 333.50 / 335.50

Aug18 331.50 / 333.50

Sep 18 - 329.00 / 331.00

Q2-18 336.00 / 338.00

Q3-18 331.00 / 333.00

Q4-18 321.75 / 324.25

Q1-19 314.25 / 316.75

CAL19 284.00 / 288.00

CAL20 224.00 / 232.00


E-fuels volumes per country. Europe risks falling behind China in race to produce e-fuels for shipping  

Europe has 69 e-fuel projects but only six are operational, while China is scaling rapidly.

Hiring concept with highlighted candidate. Sing Fuels opens applications for junior bunker trader role  

Singapore-based firm seeks candidates with one to two years of experience in marine fuels or the wider maritime industry.

Eleven Energy logo. Eleven Energy eyes Athens expansion with trader hire  

Riyadh-headquartered firm looking to open its second office in Europe.

Scorpio team with representatives from Monaco's Department of Economic Development. Monaco backs Scorpio Ship Management in European hydrogen propulsion project  

Government co-finances Scorpio’s role in Project Mariner as Europe pushes to develop hydrogen propulsion technology for commercial shipping.

Arlon vessel. Exmar takes delivery of second dual-fuel ammonia carrier at HD Hyundai Heavy Industries  

Arlon is second in a planned series of four ammonia dual-fuel midsize gas carriers.

Singapore Marina Bay skyline. IBT Bunkering & Trading launches Singapore desk to complement Hamburg operation  

German bunker firm says the move gives it round-the-clock coverage across two continents.

Maritime and Port Authority of Singapore logo. Singapore awards eight new LNG bunkering licences ahead of September launch  

The Maritime and Port Authority of Singapore is expanding the city-state’s LNG bunkering capacity with eight new five-year licences.

Launching ceremony of Maran Melina. New Times Shipbuilding launches two LNG dual-fuel crude oil tankers for Maran and Capital Ship  

Two 155,500-dwt LNG dual-fuel tankers floated out for Greek shipping groups.

Lem Azalea and Lem Plumeria naming ceremony. Naming ceremony held for Huangpu Wenchong's first methanol dual-fuel bulkers  

Two 65,000-tonne vessels built for Limassol-based Lemissoler Navigation.

TSS Challenger vessel. Damen launches second CSOV 9020 for TSSM, prepared for future methanol operation  

The vessel, to be named TSS Challenger, is due for delivery in early 2027.