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

Once again Crude Oil bounce was short lived as it reached new lows for the year towards the US close. The February WTI contract came off -$0.76 to close at $91.66/bbl and Brent fell -$0.67 to settle at $106.39/bbl. US weekly jobless claims fell to a recent record low pointing to a possible strong Nonfarm Payroll number later today.  An upbeat job data would further add justification to the US Federal Reserve tapering measures. The European Central Bank (ECB) chairman reiterated its commitment to ultra-low interest rates as he said it was too early to declare the Eurozone debt crisis over and would “take further decisive action if required”. Chinese imports rose the most in five months in December to 7,6% on renminbi –adjusted basis, making China the world’s biggest trader in goods overtaking the US in 2013, indicating that domestic demand will support economic growth while exports decelerated slightly. Today, the market is waiting for the US December Nonfarm Payroll and Unemployment Rate. This morning, crude prices are trading marginally higher (+0,90% for WTI and +0,40% for Brent).

Fueloil Specifics

The NWE bunker fuel oil prices remained largely unchanged yesterday. Suppliers reported picking up demand and good product avails. The Singapore fuel oil markets gained $4.5-2.0/mt during the Asian Platts window yesterday. The latest heavy residual inventory report showed builds of 1.61 mbbl to 20.66 mbbl. The delivered bunker premiums were seen at app.$7.0 above cargo prices. Bunker fuel oil swaps gained few cents along the curve for 3.5% Rtdam fob barges. Singapore 180cst product gained up to $3.5/mt in the front while backend remained largely unchanged. Visco spreads gained back some strength at the front with spot closing at $8.88/mt yesterday. February is trading at app.$9.75-10.0 while forward prices remain stable trading in a range of $7.5-8.00/mt for cal14. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) (0,76) 91,66 ↑ 92,72 92,56 92,22 91,71 89,60 87,65 ICE Brent Swap (1st month) (0,67) 106,39 ↑ 106,18 105,90 103,12 105,35 104,23 103,12 ICE Gasoil Swap (1st month) (5,00) 907,25 ↑ 903,92 901,17 899,42 897,56 894,31 889,25 3.5% Barges FOB Rtdm 0,00 559,00 ↑ 565,75 566,50 567,00 566,75 565,50 562,00 3.5% Cargoes FOB Med (0,50) 565,50 ↑ 562,75 564,00 564,50 564,25 559,50 562,00 1.0% Cargoes FOB NWE (1,75) 582,00 ↑ 584,00 586,75 588,75 589,25 589,00 581,75 3% no. 6 USGC WB (0,30) 87,60 ↑ 88,45 88,45 88,95 88,20 88,70 88,45 380 CST Cargoes FOB S'pore 2,25 599,75 ↑ 596,50 591,50 590,25 589,50 587,50 585,75 0.1 % GO Barges FOB Rtdm (4,75) 906,50 ↑ 905,25 902,25 899,25 898,25 895,25 890,25 Physical Rotterdam 380 CST 0,00 564,25 ↑ 571,00 571,75 572,25 572,00 570,75 567,25 Physical Singapore 380 CST 2,00 607,25 ↑ 601,75 596,75 595,50 594,75 592,75 591,00

Focus of the day: Piraeus

The first 2 weeks of 2014 were characterized by strong demand in the ports of Piraeus and Istanbul. Crude market dropped significantly this week and CIF MED 3.5% weekly average was lower by $ 9 compared to last week. Product availability in Piraeus was good. MOH refinery is undertaking a major export since the beginning of the year and is not able to allocate almost any HSFO in the Greek bunker market. However Hellenic Petroleum Refinery is working normally and can cover the local demand without any shortages being reported. Product availability is also good in Istanbul, with all physical suppliers being able to offer for all grades of fuel and gasoil.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 6-Jan 10:00 AM Nov 2.0% -0.9% 1.8% ISM Services High 6-Jan 10:00 AM Dec 53.0 53.9 53.0 Trade Balance Medium 7-Jan 8:30 AM Nov -$41.5B -$40.6B -$34.3B ADP Employment Change Medium 8-Jan 8:15 AM Dec 185K 215K 238K FOMC Minutes High 8-Jan 2:00 PM 18-dec - - - Consumer Credit Medium 8-Jan 3:00 PM Nov $15.0B $18.2B $12.3B Initial Claims Medium 9-Jan 8:30 AM 04-jan 340K 345K 330K Continuing Claims Medium 9-Jan 8:30 AM 28-dec 2875K 2815K 2865K Nonfarm Payrolls High 10-Jan 8:30 AM Dec 185K 203K - Unemployment Rate High 10-Jan 8:30 AM Dec 7.1% 7.0% - Wholesale Inventories Medium 10-Jan 10:00 AM Nov -0.2% 1.4% -

Source: OW Risk Management