Wed 18 Jul 2018, 10:21 GMT

Oil and fuel oil hedging market update


By the Oil Desk at Freight Investor Services.



Commentary

Brent futures were down 40 cents, or 0.6 percent, at $71.76 a barrel by 00:27 GMT. They rose 32 cents to $72.16 a barrel on Tuesday, after earlier touching a three-month low. U.S. WTI crude was down 27 cents, or 0.4 percent, at $67.82. It settled up 2 cents at $68.08 a barrel the session before, coming off a nearly one-month low. The most unsurprising thing has happened again this week with the API stocks data disagreeing with just about every other group who has reported an opinion on them. A poll of analysts reported a predicted draw of 3.6 mil bbls; however, the API has gone for a build of 600k bbls. Looking at the market this morning, it seems to have built into pricings the predicted draw, having dropped around 1% so far. No one knows what's going to happen, I think is a fair conclusion. Well, at least everything else in the world is rosy: world economy healthy and not under attack by protectionist demagogues. Democracy and the fine running of governments is being upheld across the world. Big political decisions are being made by well-informed experts and not thrown out to Dick or Harry to decide. I am one 'David Attenborough in intensive care' news story from packing my bags and emigrating to the Bahamas. Just kidding. Keep an eye out 3.30pm UK time for EIA data, as well as any further clarification statements from Donald Trump. Maybe he misspoke years ago and said "I want" instead of "I don't want" to be President. Good day.

Fuel Oil Market (Jul 17)

The front crack opened at -8.35, before weakening to -8.70. The Cal 19 was valued at -15.25.

Asia's 380 cSt fuel oil cash premium extended gains on Tuesday climbing to fresh multi-year highs as ongoing concerns of supply constraints continued to fuel bullish sentiment.

Adding to a persistent shortage of finished-grade fuel oil that has characterised the Singapore market since May, some trade sources said the delay of at least two tankers laden with fuel oil bound for Singapore could see prompt supply tightness being prolonged over the near term

The 380 cSt fuel oil cash premium climbed to $6.25 a tonne to Singapore quotes on Tuesday, up from $5.56 per tonne in the previous session and its widest premium since so-called 'bull play' in June 2015

Economic data/events (Times are London.)

* 12pm: MBA Mortgage Applications, July 13

* 1:30pm: U.S. Housing Starts, June

* 7pm: U.S. Fed Reserve Beige Book

* Genscape weekly ARA crude stockpiles report

* JODI issues oil export and output data

Singapore 380 cSt

Aug18 - 419.00 / 421.00

Sep18 - 412.00 / 414.00

Oct18 - 407.50 / 409.50

Nov18 - 404.25 / 406.25

Dec18 - 401.25 / 403.25

Jan19 - 398.25 / 400.25

Q4-18 - 404.25 / 406.25

Q1-19 - 395.75 / 397.75

Q2-19 - 386.25 / 388.75

Q3-19 - 359.50 / 362.00

CAL19 - 369.25 / 372.25

CAL20 - 295.00 / 301.00

CAL20 - 295.75 / 301.75

Singapore 180 cSt

Aug18 - 427.50 / 429.50

Sep18 - 421.25 / 423.25

Oct18 - 417.50 / 419.50

Nov18 - 414.50 / 416.50

Dec18 - 411.75 / 413.75

Jan19 - 409.00 / 411.00

Q4-18 - 414.50 / 416.50

Q1-19 - 406.50 / 408.50

Q2-19 - 398.00 / 400.50

Q3-19 - 375.00 / 377.50

CAL19 - 383.75 / 386.75

CAL20 - 318.25 / 324.25

CAL20 - 319.00 / 325.00

Rotterdam 3.5%

Aug18 - 398.00 / 400.00

Sep18 - 392.75 / 394.75

Oct18 - 388.50 / 390.50

Nov18 - 384.50 / 386.50

Dec18 - 381.00 / 383.00

Jan19 - 378.75 / 380.75

Q4-18 - 384.50 / 386.50

Q1-19 - 375.50 / 377.50

Q2-19 - 364.50 / 367.00

Q3-19 - 337.50 / 340.00

CAL19 - 346.75 / 349.75

CAL20 - 282.50 / 288.50


Titan Optimus alongside Peony Leader vessel. Titan Clean Fuels completes first FuelEU Maritime pooling exercise with DNV verification  

Pool included several hundred vessels, with LNG and biomethane helping balance compliance deficits.

AiP handover ceremony for ammonia-fuelled Panamax bulk carrier. ClassNK grants world-first approval for ammonia-fuelled bulk carrier with Type B fuel tanks  

Japanese classification society issues AiP for Panamax design with tanks installed on exposed deck.

Philippos Ioulianou, EmissionLink. EmissionLink warns UK ETS preparations at risk amid Strait of Hormuz focus  

Maritime emissions compliance provider says regulatory deadline cannot be delayed despite geopolitical disruptions.

FortisBC Tanker truck. FortisBC completes 10,000th LNG bunkering operation for marine vessels  

Canadian utility reaches refuelling milestone as West Coast LNG marine fuel demand grows.

AiP handover ceremony for two next-generation 80m tanker designs. Bureau Veritas approves dual-fuel tanker designs for Australian coastal operations  

SeaTech Solutions receives approval in principle for 80 m vessels designed to carry methanol and biofuels.

Kawasaki Kisen Kaisha (K Line), Sumitomo Corporation and NYK Line logo. Japanese shipping firms secure government funding for Singapore ammonia bunkering trial  

Sumitomo, K Line and NYK to demonstrate ship-to-ship ammonia fuel supply operations.

Kota Ocean vessel. PIL and PSA launch Singapore’s first joint land-sea green shipping service  

DNV-verified service allows shippers to reduce Scope 3 emissions through lower-carbon fuel allocation.

Mercedes Pinto vessel. Baleària begins sea trials of dual-fuel catamaran Mercedes Pinto in Gijón  

Third LNG-powered fast ferry expected for delivery in May, destined for Canary Islands routes.

Nave Amaryllis vessel. Navios Partners takes delivery of dual-fuel-ready Aframax tanker  

Nave Amaryllis is equipped with LNG and methanol readiness alongside shore power capability.

IBIA logo. IBIA backs IMO as global shipping regulator ahead of MEPC 84  

Marine fuel industry body supports joint shipping statement emphasising multi-stakeholder approach to decarbonisation.