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

Brent crude oil rose to a near five-month high above $117/bbl on Thursday after Iran rejected calls for direct talks with the United States, while U.S. crude prices fell amid pressure from growing domestic stockpiles in the Midwest. Concerns around Europe are slowly weighing on sentiment, and ECB’s Mario Draghi, yesterday, expressed concern about the recent Euro strength impacting growth prospects. This however should be noted that Brent in euro is nowhere near the high of 95 and above, which the market experienced last Aug12 similar to Apr12 and Jul08. Brent is being supported by some North Sea oil field maintenance. The European benchmark also appears more reactive to geopolitical risk items that have been featured by civil unrest in Tunisia. Same time continued up trend in Brent charts keeping the speculative community engaged in accumulation on even minor headlines. Today we await UIS industrial production and trade balance figures later in the afternoon. This morning crude is trading higher.

Fueloil Specifics

The NWE bunker fuel oil markets saw one more day with subdued demand. Delivered 380cst product in Rotterdam was assessed app.$3/mt versus previous day’s close. Lsfo avails for prompt deliveries remained tight both in Rotterdam and Antwerp ports lifting the prices. Spread between Rtdam 380cst hsfo and 380cst lsfo widened to $40/mt, increasing $8/mt day-on-day. Asia fuel oil cash differentials strengthened in Thursday, with the 380cst differential flipping into positive territory amid an improving market outlook. The 380cst differential gained a dollar to a premium of 25 cents/mt to Singapore spot quote, the highest in a month. Singapore onshore residual fuel oil stocks for the week to Feb. 6 fell 1.218 million barrels to a two-week low 19.427 million barrels, data released by International Enterprise (IE) showed.  The drawdown of stocks was mainly due to higher exports to China and Korea, according to the data. This morning both markets are trading higher

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) (0,79) 95,83 ↑ 96,61 97,15 97,49 97,45 97,88 97,25 ICE Brent Swap (1st month) 0,51 117,24 ↑ 116,14 115,28 114,52 114,52 112,19 110,18 ICE Gasoil Swap (1st month) 2,75 1014,50 ↑ 1001,17 991,50 982,92 983,83 969,64 956,86 3.5% Barges FOB Rtdm 1,50 638,00 ↑ 636,00 634,25 632,50 632,50 627,50 622,50 3.5% Cargoes FOB Med 1,00 626,50 ↑ 628,25 628,25 627,25 627,25 623,00 618,00 1.0% Cargoes FOB NWE 4,25 677,75 ↑ 677,75 675,75 673,75 673,75 666,75 657,00 3% no. 6 USGC WB 0,10 99,55 ↑ 100,20 99,70 99,45 99,45 98,70 97,95 380 CST Cargoes FOB S'pore 4,00 657,00 ↑ 657,50 657,00 655,50 655,25 650,75 646,25 0.1 % GO Barges FOB Rtdm 3,75 1012,00 ↑ 1001,25 992,25 983,25 985,25 967,25 955,25 Physical Rotterdam 380 CST 3,00 644,00 ↑ 643,25 641,50 639,75 639,75 634,75 629,75 Physical Singapore 380 CST 3,50 661,75 ↑ 665,25 664,75 663,25 663,00 658,50 654,00

Focus of the day: Piraeus

This week started slow in Piraeus; a strike by the Seafarers Union that started last week was prolonged until Monday and operators avoided bunkering in Piraeus as they mistakenly thought the strike would affect bunkering operations. Crude market was bullish all through the week and CIF MED 3.5% average was higher by $ 12.55 compared to last week. Demand increased towards the end of the week, as Asian owners rushed to fix before the Chinese New Year Holiday. Product and barge availability remains very good.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 04-feb 10:00 AM Dec 3.0% 0.0% 1.8% ISM Services Medium 05-feb 10:00 AM Jan 55.5 56.1 55.2 MBA Mortgage Index Medium 06-feb 7:00 AM 02-feb NA -8.1% 3.4% Initial Claims Medium 07-feb 8:30 AM 02-feb 365K 368K 366K Continuing Claims Medium 07-feb 8:30 AM 26-jan 3200K 3198K 3224K Consumer Credit Medium 07-feb 3:00 PM Dec $10.0B $16.0B $14.6B Trade Balance Medium 08-feb 8:30 AM Dec -$42.5B -$48.7B - Wholesale Inventories Medium 08-feb 10:00 AM Dec 0.7% 0.6% -

Source: OW Risk Management