Tue 20 Mar 2018, 08:54 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed down $0.16 to $66.05, WTI closed at $62.06 down $0.28. It is now time for me to bombard you with facts: U.S. crude oil exports in 2017 were nearly double those of 2016, and China accounted for 202,000 b/d (20 percent) of the 527,000 b/d total increase. U.S. crude was shipped to 37 destinations, compared with 27 in 2016. India, which did not receive U.S. crude oil exports in 2016, received 22,000 b/d in 2017, tying with Spain as the 10th-largest destination. U.S. crude oil exports grew to an average of 1.1 million barrels per day (b/d) in 2017. U.S. crude oil production reached 9.3 million b/d in 2017. Current US production is around 10.38mn b/d. And finally, Spot Brent crude oil prices averaged $3.36 per barrel more than WTI prices in 2017 compared with just $0.40/b more in 2016, providing a price incentive to export U.S. crude oil into the international market. Phew - I rest my case. But geopolitics is the fly in the ointment that has led to the collapse of my case in a more spectacular fashion than OJ Simpson. Have a good day.

Fuel Oil Market (March 19)

The front crack opened at -10.60, weakening to -10.85, before strengthening to -10.55, closing -10.85. The Cal 19 was valued at -14.55

Asia's 380 cSt cash differential slid into a wide discount on Monday amid an absence of willing buyers despite aggressive suppliers for cargoes of the fuel.

380 cSt fuel oil cash discounts fell to minus $1.17 a tonne to Singapore quotes on Monday, down from a premium of 5 cents on Friday and plus 17 cents a week ago.

The 380 cSt cash differential is now at its lowest since March 2017

Economic Data and Events

* 8:30pm: API issues weekly U.S. oil inventory report

* Bloomberg-compiled refinery snapshot for U.S. and Canada; gives offline capacity projections for crude units and FCCs

* Saudi Crown Prince Mohammed bin Salman meets with President Donald Trump at the White House as part of U.S. visit

Singapore 380 cSt

Apr18 - 361.75 / 363.75

May18 - 361.50 / 363.50

Jun18 - 359.00 / 361.00

Jul18 - 359.50 / 361.50

Aug18 - 358.00 / 360.00

Sep18 - 356.00 / 358.00

Q2-18 - 361.25 / 363.25

Q3-18 - 357.75 / 359.75

Q4-18 - 351.25 / 353.75

Q1-19 - 343.00 / 345.50

CAL19 - 316.50 / 320.50

CAL20 - 253.50 / 261.50

Singapore 180 cSt

Apr18 - 369.00 / 371.00

May18 - 368.75 / 370.75

Jun18 - 368.50 / 370.50

Jul18 - 367.50 / 369.50

Aug18 - 366.25 / 368.25

Sep18 - 364.25 / 366.25

Q2-18 - 368.75 / 370.75

Q3-18 - 365.25 / 367.25

Q4-18 - 359.25 / 361.75

Q1-19 - 351.50 / 354.00

CAL19 - 329.75 / 333.75

CAL20 - 277.50 / 285.50

Rotterdam Barges

Apr18 349.75 / 351.75

May18 349.50 / 351.50

Jun18 348.50 / 350.50

Jul18 347.00 / 349.00

Aug18 345.25 / 347.25

Sep18 342.75 / 344.75

Q2-18 349.25 / 351.25

Q3-18 345.00 / 347.00

Q4-18 335.75 / 338.25

Q1-19 328.00 / 330.50

CAL19 297.00 / 301.00

CAL20 242.00 / 250.00


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.

Seaspan Energy team. Seaspan Energy completes 150th LNG bunkering operation  

Canadian LNG bunker supplier reaches milestone in under two years since launching ship-to-ship operations.

Burando Energies logo. Burando Energies claims 30% share of Rotterdam biofuel bunker market in H1 2026  

Dutch bunker supplier says regulatory framework makes Rotterdam the most cost-effective port for biofuel compliance in Europe.

BGN logo. BGN launches marine bunkering business on US Gulf Coast  

Shipping company BGN enters retail marine fuels supply, partnering with Centerline Logistics to serve the US Gulf Coast.

Barge at Euromax terminal. Rotterdam bunker volumes fall 25% in first half of 2026 amid regulatory pressures and market shifts  

Fossil fuel sales slump as alternative fuels grow, with RED III cited as a key driver.

Keel-laying ceremony of vessel with builder's hull no. S1124. Avenir LNG marks keel laying of newbuild LNG bunker vessel in China  

Ceremony held to signal the formal start of the vessel's construction at CIMC SOE.

World Fuel logo. World Fuel seeks operations support representative in Dubai for marine fuels role  

Company looking for detail-oriented person with strong organizational skills who is able to manage multiple priorities.

Monjasa office in Limassol. Monjasa moves to new Limassol office in regional 'commitment'  

Bunker firm relocates to third office since establishing a presence in Limassol a decade ago.