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 closed higher last Friday. The May Brent contract rose +$0.57 to end the session at $106.72/bbl and WTI futures were also up +$0.85 to $101.14/bbl. Prices were supported by the March Nonfarm Payroll figures which is pointing out at a regular recovery with  +197k new jobs created. The US March unemployment figures remain at 6.7%. Developing East Asian countries will grow slower than forecasted this year (7.1% vs 7.2% exp.) said the World Bank as China expansion moderates (7.6% exp. from 7.7%) .This morning Crude Oil opened with a gap down on news during the week-end that rebels in Libya agreed to handle ports to the government. It could triple the current export volume in a month which is as low as 170kbbl/d today. This morning, crude prices are trading sensibly lower, especially Brent hit by the Libya news (-1,02%). The Brent /WTI is trading at a month's low just above $5.0.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week higher supported by increasing Brent values and continuously tight product avails throughout the area. Delivered 380cst product in Rotterdam was assessed nearly $4/mt up and a dollar more in Antwerp. Suppliers reported relatively low demand and mainly small volumes. Product avails were tight with only two suppliers able to deliver during the weekend. The Singapore fuel oil prices rose between +$4.5 to +$6.0 during the Asian window last Friday. The latest Singapore heavy residual stockpile rose +3.36 mbbl to 21.84 mbbl. The delivered bunker premiums were ranging around +$3.5 to $4.5 above cargo prices last Friday. This morning both markets are trading lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. May Jun Jul Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,85 101,14 ↓ 99,75 98,90 97,97 99,70 97,03 94,59 ICE Brent Swap (1st month) 0,57 106,72 ↓ 105,56 105,31 105,31 104,89 103,08 101,62 ICE Gasoil Swap (1st month) 12,00 893,50 ↓ 885,92 885,67 884,20 883,97 880,44 - 3.5% Barges FOB Rtdm 2,00 577,25 ↓ 567,25 566,25 565,50 564,75 561,00 559,50 3.5% Cargoes FOB Med 4,25 570,50 ↓ 564,00 563,00 562,00 561,75 558,00 556,50 1.0% Cargoes FOB NWE (3,00) 622,25 ↓ 598,50 595,50 594,50 593,75 585,25 577,00 3% no. 6 USGC WB 0,82 88,65 ↓ 88,10 87,95 88,10 87,75 87,22 86,92 380 CST Cargoes FOB S'pore 4,25 584,25 ↓ 585,00 585,25 585,25 585,00 583,25 582,00 0.1 % GO Barges FOB Rtdm 11,00 891,75 ↓ 887,25 887,25 886,25 886,25 883,25 - Physical Rotterdam 380 CST 4,00 581,00 ↓ 572,50 571,50 570,75 570,00 566,25 564,75 Physical Singapore 380 CST 5,00 589,75 ↓ 590,25 590,50 590,50 590,25 588,50 587,25

Focus of the day: Gibraltar

The week is having a smooth start operations-wise at the Mediterranean bunker hub of Gibraltar. Deliveries are taking place without delays and all barges running smoothly except for just one supplier who is slightly behind schedule in both Gibraltar and Algeciras. Weather forecast for the rest of the week is good so no major delays are expected. Prompt deliveries are still possible to accommodate at the three ports. CIF Med 3.5% is trading some $8.0/mt above FOB Barges Rotterdam. The HILO is narrowing to around $66/mt in the Med and the CIF Med 1% premium over FOB NWE 1% on $28/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Apr 3:00 PM Feb $13.5B $13.7B - Wholesale Inventories Medium 9-Apr 10:00 AM Feb 0.6% 0.6% - Intial Claims Medium 10-Apr 8:30 AM 05-apr 325K 326K - Continuing Claims Medium 10-Apr 8:30 AM 29-mar 2850K 2836K - Treasury Budget Medium 10-Apr 2:00 PM Mar NA -$106.5B - Core PPI Medium 11-Apr 8:30 AM Mar 0.1% -0.2% - Mich Sentiment Medium 11-Apr 9:55 AM Apr 81.0 80.0 -

Source: OW Risk Management