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

The dollar trading weak and another snow storm forecasted to hit North America have continued to put a floor under distillate and natural gas prices. Inventories have been reduced to significant lows but not crisis lows yet. In addition, better data and expectations out of China are also helping crude to grind higher instead of the usual Middle East drama that has caused price upswings in the recent years. WTI structure strengthened and was the outperformer compared to Brent in both flat price and spreads. WTI has officially cleared the $100/bbl level and is now set to test the $105/bbl resistance and we should get some selling in the $105-110/bbl zone. Brent has also cleared the $110/bbl resistance and should face some selling pressure above $112.50 which we were stuck with most part of the 2013. In terms of economic data we will see the US Housing Starts and Building Permits numbers as well as Producer Price Index for January. The US Energy Department Inventory Report will be delayed by one day due to President Day holiday on Monday and will be released tomorrow. This morning crude is trading mixed with Brent down -0.4% and WTI up 0.1%.

Fueloil Specifics

The Northwest European bunker fuel prices rose yesterday following strengthening Brent values. Delivered 380cst product in the main ports of Rotterdam and Antwerp was assessed some $4-5/mt higher vs previous close. LSFO prices remain on the higher side supported by tight product avails that are expected to improve at the beginning of March. Singapore fuel oil market reported relatively quiet day yesterday with demand matching supply and prices remained at previous day’s levels. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) 2,13 102,43 ↑ 101,77 100,80 99,85 99,85 97,02 94,49 ICE Brent Swap (1st month) 1,28 110,46 ↓ 109,89 109,51 109,09 108,58 107,48 105,96 ICE Gasoil Swap (1st month) 9,00 933,00 ↑ 931,75 927,83 923,67 924,19 917,58 911,11 3.5% Barges FOB Rtdm 1,00 580,75 ↑ 585,25 584,25 583,75 583,75 581,75 577,75 3.5% Cargoes FOB Med 4,25 580,25 ↑ 582,75 581,50 581,00 581,00 579,00 574,75 1.0% Cargoes FOB NWE 9,00 629,75 ↑ 625,25 617,50 614,50 614,75 609,50 602,00 3% no. 6 USGC WB 0,99 91,85 ↓ 91,85 91,65 91,73 91,50 91,07 91,15 380 CST Cargoes FOB S'pore 0,00 607,75 ↑ 608,25 606,75 605,50 605,50 603,25 601,25 0.1 % GO Barges FOB Rtdm 9,00 933,75 ↑ 933,25 929,25 925,25 925,25 920,25 912,25 Physical Rotterdam 380 CST 5,00 587,00 ↑ 590,50 589,50 589,00 589,00 587,00 583,00 Physical Singapore 380 CST (0,50) 617,00 ↑ 614,50 612,00 610,75 610,75 608,50 606,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire State Index Medium 18-Feb 8:30 AM Feb 9.0 12.5 - Core PPI High 19-Feb 8:30 AM Jan 0.2% 0.3% - Weekly Jobless Claims Medium 20-Feb 8:30 AM 15-feb 325K 339K - Core CPI High 13-Feb 8:30 AM Jan 0.2% 0.1% - Leading Indicators Medium 20-Feb 10:00 AM Jan - 0.1% - Existing Home Sales Medium 21-Feb 10:00 AM Jan 4.7M 4.87M -

Source: OW Risk Management