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 stayed under pressure but have been pretty resilient so far. The July WTI contract fell by -$0.39 to close at $95.38/bbl and Brent settled at $102.96/bbl, down by -$0.99. Equities continue their correction as confusion over the direction of the Fed leaves the market with uncertainties. Bank of Japan kept their easy monetary policy unchanged reinforcing the perception of still fragile world economies. OPEC cut marginally its global oil -demand growth forecast for 2013 by 10 k barrels vs last month. The US Energy department trimmed Oil growth forecast for China -which still account for about half of global growth- to+365kb/d or 150k less than anticipated last month. Yesterday weekly numbers from API were bearish with US Crude Oil stocks up by nearly 9 Mios barrels. The US Energy Department will release its weekly inventory report and expectations are as follows: Crude -0.7 mbbl, Distillates +1.50 mbbl, Gasoline -0.64mbbl. This morning, crude is trading slightly up (+25%).

Fueloil Specifics

The NWE bunker fuel oil prices weakened yesterday following lower crude values. Delivered 380cst product in Rotterdam was assessed app.$7/mt down versus previous day close. Product avails remained tight and premiums for prompt hsfo deliveries were seen around $6/mt in Rotterdam. Lsfo premiums were quoted at around $10/mt over 1% FOB NWE Cargoes. The Singapore fuel oil markets were lifted from flat to +$2.5 during the morning Platts window yesterday. The 180 cst cargo market continued to be bid up strongly by Glencore and BP while the 380cst market remained pale in comparison. The delivered bunker premiums were around +$6.0 above cargoes prices. This morning both markets are trading up.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q313 Q413 2014 NYMEX WTI Swap (1st month) (0,39) 95,38 ↑ 95,69 95,65 95,15 95,50 94,11 91,02 ICE Brent Swap (1st month) (0,99) 102,96 ↑ 103,18 102,81 102,42 102,80 101,73 99,38 ICE Gasoil Swap (1st month) (10,75) 858,50 ↑ 866,50 869,00 872,17 869,89 875,61 867,68 3.5% Barges FOB Rtdm (4,25) 577,25 ↑ 577,75 576,00 574,25 576,50 572,25 565,50 3.5% Cargoes FOB Med (7,25) 575,75 ↑ 574,50 572,50 570,25 573,00 566,00 562,75 1.0% Cargoes FOB NWE (6,00) 603,25 ↑ 610,25 608,75 607,25 608,75 604,25 595,75 3% no. 6 USGC WB (0,43) 89,80 ↑ 90,25 90,55 90,55 90,55 89,90 89,25 380 CST Cargoes FOB S'pore (0,25) 600,75 ↑ 599,75 598,25 596,50 598,00 595,25 591,00 0.1 % GO Barges FOB Rtdm (12,00) 859,00 ↑ 867,25 869,25 871,25 869,25 873,25 866,25 Physical Rotterdam 380 CST (7,00) 579,75 ↑ 583,00 581,75 579,50 581,25 576,50 570,25 Physical Singapore 380 CST (0,50) 606,75 ↑ 605,50 604,75 603,25 604,75 601,75 597,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Jun 10:00 AM Apr 0.2% 0.4% 0.2% Treasury Budget Medium 12-Jun 2:00 PM May -$139.0B -$124.6B - Initial Claims Medium 13-Jun 8:30 AM 8-June 350K 346K - Continuing Claims Medium 13-Jun 8:30 AM 1-June 2975K 2952K - Retail Sales High 13-Jun 8:30 AM May 0.1% 0.1% - Business Inventories Medium 13-Jun 10:00 AM Apr 0.2% 0.0% - Core PPI Medium 14-Jun 8:30 AM May 0.2% 0.1% - Industrial Production Medium 14-Jun 9:15 AM May 0.1% -0.5% - Capacity Utilization Medium 14-Jun 9:15 AM May 77.9% 77.8% - Mich Sentiment High 14-Jun 9:55 AM Jun 81.5 84.5 -

Source: OW Risk Management