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 ended mixed after another volatile session yesterday. Prices came off more than -$1.0 as the weak fundamentals weighted on the market. The publeshed data displayed a more fragile outlook of the US economy as the Weekly  jobless claims came out at 354k, 13k more than expected and the 1st Quarter US GDP was +2.4%; 0,1% below consensus. The US April Pending Homes sales fell to +0.3% from 1.5% last month. As mentioned yesterday, lately good news are bearish on the market and bad ones are bullish as the latter gives a bigger probability that the US Federal Reserve longer maintains its  stimulus program (and vice versa). The US inventory reported big builds in both crude and distillates stockpile while gasoline  showed a surprise draw of -1.5 mbbl which could implied better than expected demand before the US summer driving season starts. The July WTI contract closed at $93.61, up +$0.48 and Brent settled at $102.19/bbl, slipping -$0.24. OPEC meeting is scheduled today and its members should keep production limits at 30mb/d (30,24mb/d was pumped in April). Japanese deflation eased slightly and Industrial production rose 1,7% in April. This morning, crude is trading around -0,50% down.

Fueloil Specifics

The NWE bunker fuel oil markets reported mixed demand and slightly lower prices yesterday. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$3-2/mt down versus previous days close. Prompt hsfo product remains tight and is offered at higher premiums. The Singapore fuel oil market gave up its several days of gains, assessed more than -$8.0 during the Platts window yesterday. The latest Singapore heavy residual inventory reported a slight build of +0.35 mbbl to 21.02 mmbl. The delivered bunker premiums were app. $6.5 above cargoes prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) (1,88) 93,61 ↓ 93,02 93,16 93,11 93,02 92,10 89,66 ICE Brent Swap (1st month) (1,80) 102,19 ↓ 101,54 101,29 100,94 100,94 99,96 97,74 ICE Gasoil Swap (1st month) (10,50) 858,75 ↓ 851,92 853,58 856,08 856,00 860,08 850,69 3.5% Barges FOB Rtdm (5,25) 575,75 ↓ 573,75 571,00 569,00 570,00 565,50 558,50 3.5% Cargoes FOB Med (4,00) 570,00 ↓ 568,00 565,75 564,25 565,25 559,75 555,00 1.0% Cargoes FOB NWE (2,50) 599,25 ↓ 601,00 603,75 602,25 602,50 596,25 586,50 3% no. 6 USGC WB (0,50) 90,02 ↓ 90,25 90,00 89,75 89,75 89,00 88,05 380 CST Cargoes FOB S'pore (8,75) 596,50 ↓ 596,25 594,50 592,00 593,00 588,75 582,25 0.1 % GO Barges FOB Rtdm (6,75) 859,00 ↓ 852,25 854,25 856,25 856,25 860,25 851,25 Physical Rotterdam 380 CST (3,00) 583,25 ↓ 579,00 576,75 574,75 575,25 569,75 564,25 Physical Singapore 380 CST (9,00) 603,50 ↓ 603,50 601,25 598,75 599,25 595,00 591,00

Focus of the day: Piraeus

It has been a busy week for Piraeus and Istanbul so far. Crude market was volatile and this sparked buying interest in the East Med ports. MOH refinery, which had not been able to supply for the last couple of weeks because of a major cargo export taking place, will be back online Sunday night. Hellenic Petroleum refinery has been supplying the whole bunker market in Greece during the last few weeks and avails on HSFO and LSFO have been satisfactory. Situation in Istanbul however is different; almost all physical suppliers report very tight avails with replenishments only expected to take place next week. This lack of available fuel cargoes has driven prices much higher and supply premiums have shot up by more than $15 compared to the port standard.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Schiller 20-city Index Medium 28-May 9:00 AM Mar 10.0% 9.3% 10.9% Consumer Confidence High 28-May 10:00 AM May 72.5 68.1 76.2 Initial Claims Medium 30-May 8:30 AM 25-May 345K 340K 354K Continuing Claims Medium 30-May 8:30 AM 18-May 3000K 2912K 2986K GDP-2nd estimate High 30-May 8:30 AM Q1 1.2% 1.2% 1.1% Pending Home Sales Medium 30-May 10:00 AM Apr 0.0% 1.5% 0.3% Personal Income Medium 31-May 8:30 AM Apr -0.2% 0.2% - Chicago PMI Medium 31-May 9:45 AM May 49.5 49.0 - Michigan Sentiment Medium 31-May 9:55 AM May 82.5 83.7 -

Source: OW Risk Management