A bunker fuel and oil report, detailing the day per day trading patterns and prices in the market.The report is prepared from OW Risk Management and covers all major bunker fuel oil markets around the world, including all major ports, ranging from Singapore to Rotterdam.

Market in Brief

Crude prices once again settled mixed yesterday with price action mainly focusing on the Brent/WTI spread. The May Brent settled at $106.45/bbl, +$0.60 while the April WTI expired at $99.44/bbl, down -$0.94. The May WTI contract lost -$0.27 to close at $98.90/bbl. The weekly US initial jobless claims yesterday came out at 322K vs 330K expected while February existing home sales were within expectations. Encouraging US data only reinforced the expectations that the Fed will begin tightening earlier than expected. The US equities rebounded yesterday while the dollar strengthened as a changing reflection of confidence on the US economy. On the other hand, the latest Chinese economic data showed slower growth this quarter and the Chinese government annual expansion target of 7.5% presents a challenge without possible stimulus measures. Goldman Sachs cut its estimates for China’s GDP growth from 7.6% to 7.3% for 2014. This morning, crude is trading higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed another day quasi flat. Suppliers reported good demand and improving prompt product avails in Rotterdam. Antwerp reported a relatively quiet day though with the majority of suppliers well booked for weekend deliveries. The Singapore fuel oil prices inched slightly up (+$0.25) during the Asian Platts window yesterday. The delivered bunker premiums were seen around $5.0 above cargo prices. Visco spreads have gained some strength during the last days and closed at $11.74/mt yesterday. April is trading at app.$7.5/7.75 while forward prices remain stable trading in a range of $7.0-7.5/mt for the rest of the year. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) (0,27) 98,90 ↑ 98,81 98,01 96,19 97,98 95,29 92,62 ICE Brent Swap (1st month) 0,60 106,45 ↑ 106,78 106,49 106,09 105,56 105,05 102,70 ICE Gasoil Swap (1st month) 1,75 888,75 ↑ 896,58 896,25 895,83 896,56 892,08 - 3.5% Barges FOB Rtdm (1,25) 570,75 ↑ 576,25 574,50 573,50 571,50 567,00 565,25 3.5% Cargoes FOB Med (0,75) 565,25 ↑ 571,75 572,50 571,50 569,25 564,75 563,75 1.0% Cargoes FOB NWE 6,00 631,25 ↑ 614,75 607,00 604,75 601,50 592,75 582,50 3% no. 6 USGC WB (0,15) 88,43 ↑ 89,70 89,58 89,71 89,21 88,51 88,16 380 CST Cargoes FOB S'pore 0,00 591,75 ↑ 596,50 595,75 594,75 592,75 590,25 588,50 0.1 % GO Barges FOB Rtdm 2,25 888,25 ↑ 898,25 897,25 897,25 894,25 890,25 - Physical Rotterdam 380 CST 0,00 574,00 ↑ 581,00 579,75 578,75 576,75 572,25 570,50 Physical Singapore 380 CST (0,50) 597,25 ↑ 601,75 601,00 600,00 598,00 595,50 593,75

Focus of the day: Piraeus

This week started off busy in Piraeus, but things slowed down a bit towards the end. What looked like a massive drop in crude did not affect cargo prices in the MED as much as expected; CIF MED 3.5% remained at almost same levels like last week on average. HSFO 380 levels, although lower than last week, are still not as low as buyers might have hoped for. Availability at the refineries is very good and all suppliers can offer for prompt enquiries. Deliveries have been smooth all week long, weather is excellent and no supply disruptions are expected in the near future.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Mar 8:30 AM Mar 2.0 4.5 5.6 Industrial Production Medium 17-Mar 9:15 AM Feb -0.1% -0.3% 0.6% Housing Starts Medium 18-Mar 8:30 AM Feb 875K 880K 907K Building Permits Medium 18-Mar 8:30 AM Feb 945K 937K 1018K Core CPI High 18-Mar 8:30 AM Feb 0.1% 0.1% 0.1% FOMC Rate Decision High 19-Mar 2:00 PM Mar 0.25% 0.25% 0.25% Initial Claims Medium 20-Mar 8:30 AM 15-mar 330K 315K 320K Existing Home Sales Medium 20-Mar 10:00 AM Feb 4.55M 4.62M 4.6K Philadelphia Fed Medium 20-Mar 10:00 AM Mar 2.0 -6.3 9.0 Leading Indicators Medium 20-Mar 10:30 AM 15-mar 0.2% 0.3% 0.5%

Source: OW Risk Management