Mon 9 Apr 2018, 09:04 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent closed down $1.22 on Friday to $67.11, WTI closed at $62.06, down $1.48, and INE was closed last Thursday and Friday for the Ching Ming festival. I think Brent will find some support at these kind of levels. $67.50: it's a nice round number and is slap bang in the middle of the 65 - 70 range we have been in all year. The trade war is still going on, quite who will fire the next shot is anyone's guess. I read an interesting article yesterday regarding the correlation between oil demand and the oil price. Quote: "It's not clear whether the global economies will continue to show a negative correlation between oil demand and oil prices from this point onwards, but the research suggests that in the United States, and even in China and India, oil demand is now more sensitive to oil prices than it was a decade or two ago, and that oil producers may be wrong to think that they still hold captive customers who would buy their product at any price". Oh by the way, the rig count in the US was up by 10 - now over 1,000. Just saying.

Fuel Oil Market (April 6)

The front crack opened at -11.25, strengthening to -10.70 across the day. The Cal 19 was valued at -14.50.

Asia's 380 cSt fuel oil cash differential flipped to a premium on Friday following strong buying interest for cargoes of the fuel for a second straight session. The 380 cSt fuel oil cash premiums were at $27 cents a tonne to Singapore quotes on Friday, up from minus $39 cents a tonne in the previous session and minus $82 cents a tonne on Monday.

Trade sources pointed to falling Singapore fuel oil inventories as well as renewed buying interest from Pakistan's state-oil company this week as bullish factors, but some were still puzzled by the abrupt shift in sentiment this week

Fuel oil stocks in the ARA oil hub fell 21 percent, or 222,000 tonnes, from the previous week to a three-week low of 839,000 tonnes in the week ended April 5.

Economic Data and Events

* 1:30pm: Bloomberg forecast of U.S. waterborne LPG exports

* Today, no exact timing:

** Bloomberg proprietary forecast of Cushing crude inventory change plus weekly analyst survey of crude, gasoline, distillates inventories before Wednesday's EIA report

** Bloomberg New Energy Finance Future of Energy Summit in New York, day 1 of 2

** BTC Blend loading program for May

Singapore 380 cSt

May18 - 368.00 / 370.00

Jun18 - 367.25 / 369.25

Jul18 - 366.00 / 368.00

Aug18 - 364.25 / 366.25

Sep18 - 362.50 / 364.50

Oct18 - 360.50 / 362.50

Q3-18 - 364.25 / 366.25

Q4-18 - 357.00 / 359.00

Q1-19 - 349.00 / 351.50

Q2-19 - 342.50 / 345.50

CAL19 - 321.25 / 326.25

CAL20 - 262.00 / 270.00

Singapore 180 cSt

May18 - 380.25 / 382.25

Jun18 - 378.50 / 380.50

Jul18 - 377.25 / 379.25

Aug18 - 75.50 / 377.50

Sep18 - 373.75 / 375.75

Oct18 - 371.75 / 373.75

Q3-18 - 375.50 / 377.50

Q4-18 - 368.75 / 370.75

Q1-19 - 360.75 / 363.25

Q2-19 - 354.50 / 357.50

CAL19 - 335.50 / 340.50

CAL20 - 286.00 / 294.00

Rotterdam Barges

May18 356.00 / 358.00

Jun18 355.00 / 357.00

Jul18 353.25 / 355.25

Aug18 351.00 / 353.00

Sep18 348.25 / 350.25

Oct18 - 345.00 / 347.00

Q3-18 350.75 / 352.75

Q4-18 341.25 / 343.25

Q1-19 334.00 / 336.50

Q2-18 325.50 / 328.50

CAL19 302.75 / 307.75

CAL20 253.25 / 261.25


Decab Hub and MMMCZCS logos. Lloyd’s Register and Maersk Mc-Kinney Møller Center launch ammonia safety and training resources for shipping  

New tools aim to help operators build the safety management and competency frameworks needed for ammonia-fuelled vessels.

Kevin Dohmen, IBT Bunkering & Trading. IBT Bunkering & Trading appoints Kevin Döhmen to manage new Singapore office  

Döhmen tasked with developing IBT’s operation in the Asian city-state.

Peak Skarv 3 vessel. Peak takes delivery of third S-class vessel and cuts steel for ammonia-fuelled ship  

Norwegian operator marks two events at Chinese yard as ammonia-powered newbuild programme advances.

Launching ceremony of Minerva Helen. New Times Shipbuilding launches LNG dual-fuel tanker for Minerva  

112,500-dwt Minerva Helen launched at shipyard in Jiangsu, China.

Hansa Drejoe vessel. Leonhardt & Blumberg equips first of four newbuilds with Econowind VentoFoils  

German shipowner installs wind-assisted propulsion technology aboard general cargo vessel Hansa Drejoe.

Green Pearl vessel at Port of Civitavecchia. Axpo and Vitol launch LNG bunkering at the Port of Civitavecchia  

Operation marks the extension of Axpo’s LNG bunkering network to third major Italian port.

Grande Pacifico vessel. Grimaldi takes delivery of ammonia-ready Grande Pacifico  

9,800-ceu ship is the largest PCTC in the Neapolitan Group’s fleet and the first of five sister vessels on order.

Regional seminar on alternative fuels and new technologies. IMO seminar in Trinidad and Tobago trains Caribbean maritime educators for the alternative fuels era  

A five-day regional seminar in Port of Spain addressed ammonia, methanol and hydrogen training for seafarers.

Summit Arbutus vessel. Corvus Energy wins 40 MWh battery contract for BC Ferries’ new biofuel-compatible Summit Class vessels  

Norwegian battery supplier to power four new hybrid-electric ferries for Canada’s BC Ferries.

Fleetzero Leviathan Battery Energy Storage System (BESS). ABS issues product design assessment for Fleetzero’s Leviathan battery system  

The first US-manufactured lithium iron phosphate marine battery system receives classification society approval.