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 Oil traded sideway yesterday waiting for today’s US Unemployment number. A North Sea Brent oil pipeline previously shut down for a leak reopened. This led to the narrowing of theWTI-Brent spread to $19,38. The April WTI contract surged up +$1.13 to close at $91.56/bbl and  Brent closed at $111.15/bbl, inching up only +$0.09. The US weekly jobless claims came out lower. The Chinese February exports data released today far exceeded expectations with 21,8% growth vs 8,1% exp., while February imports fell 15,2% compared to a median forecast of -8,5%. However, analyst believed the stronger figure could be attributed to the Lunar New Year period in February. Today, we will have the US February Nonfarm Payroll and Unemployment rate figures. This morning, crude is trading down.

Fueloil Specifics

The Northwest European bunker fuel oil markets remained quiet yesterday with no significant price movements, enough product and limited buying interest. Delivered 380cst product in Rotterdam fell app.1/mt. The Singapore fuel oil market fell between -$4.0 to -$1.0 during the morning Platts window yesterday. The market fundamentals look like turning after several months of supply overhang. Supplies are drawing down and could be more balanced moving forward as the market structure got more backwardated. The delivered bunker premiums were ranging between $3.5 to $6.0 above cargo prices. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,13 91,56 ↓ 92,15 92,44 92,62 92,45 91,57 89,36 ICE Brent Swap (1st month) 0,09 111,15 ↓ 109,65 108,96 108,29 107,02 105,22 101,83 ICE Gasoil Swap (1st month) 4,00 931,00 ↓ 932,42 928,67 925,42 922,64 915,83 894,79 3.5% Barges FOB Rtdm 0,75 606,75 ↓ 605,00 603,75 602,25 599,25 593,75 581,75 3.5% Cargoes FOB Med 1,50 606,00 ↓ 601,00 601,00 600,00 596,00 588,25 577,75 1.0% Cargoes FOB NWE 2,00 632,25 ↓ 634,00 635,75 635,25 632,50 625,25 610,50 3% no. 6 USGC WB 0,27 96,11 ↓ 95,05 94,55 94,30 93,80 92,80 88,30 380 CST Cargoes FOB S'pore (4,00) 635,25 ↓ 628,25 627,25 626,00 623,50 619,00 607,25 0.1 % GO Barges FOB Rtdm 1,50 929,25 ↓ 932,25 928,25 925,25 922,25 916,25 895,25 Physical Rotterdam 380 CST (1,00) 607,00 ↓ 612,25 611,00 609,50 606,50 601,00 589,00 Physical Singapore 380 CST (3,50) 641,25 ↓ 636,00 635,00 633,75 631,25 626,75 615,00

Focus of the day: Piraeus

Crude market traded down this week and CIF MED 3.5% average was lower by $ 8.8. Although demand in Piraeus was higher than the previous week, activity is still below expected levels for this time of the year. Product availability for all grades high and low sulphur is very good and barge availability is very good amid a lack of enquiries. A spell of bad weather caused problems in Malta and Gibraltar this week and a number of vessels with very prompt enquiries shifted to Piraeus where supplies took place normally. We expect higher demand next week as cruise season has opened and the number of vessels calling Piraeus will increase.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Services Medium 05-mar 10:00 AM Feb 56.0 55.2 56.0 ADP Employment Change Medium 06-mar 8:15 AM Feb 150K 192K 198K Factory Orders Medium 06-mar 10:00 AM Jan -3.0% 1.8% -2.0% Initial Claims Medium 07-mar 8:30 AM 02-mar 355K 344K 340K Trade Balance Medium 07-mar 8:30 AM Jan -$45.0B -$38.5B -$44.4B Consumer Credit Medium 07-mar 3:00 PM Jan $10.0B $14.6B $16.2B Nonfarm Payroll High 08-mar 8:30 AM Feb 170K 157K - Unemployment Rate High 08-mar 8:30 AM Feb 7.9% 7.9% - Wholesale Inventories Medium 08-mar 10:00 AM Jan 0.2% 0.2% -

Source: OW Risk Management