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 fell on Thursday as negative economic guidance out of Europe managed to dent the bullish macro factor. Economic output in the Eurozone fell 0,6% in the final quarter of 2012, versus 0,4% decline expected. Unemployment data from the US in the afternoon offered limited support to crude prices as initial claims dropped 27k to a seasonally adjusted 341k vs. 360k expected. March WTI contract gained 30 cents to 97.31, while Brent lost 72 cents to 118.00. Worries about Middle East oil supplies also limited further price fall as Tehran refused access to UN nuclear inspectors as the IAEA tries to gauge the military dimensions of the nuclear program. Crude prices were further supported as higher US gasoline futures drew the complex up. Today we await retail sales figures from UK and an index of US manufacturing and industrial production later this afternoon. This morning crude is trading down.

Fueloil Specifics

The NWE bunker fuel oil markets saw sluggish demand on Thursday as ship owners were waiting, expecting prices to fall further today. Both Antwerp and Rotterdam continuously report tight hsfo and lsfo avails, especially for prompt deliveries. Delivered 380cst product in Rotterdam closed the day unchanged while Antwerp 380cst was assessed app.$1/mt down from previous day. Singapore fuel oil markets fell slightly with 380cst HSFO settling app.$1/mt down from previous day’s close. Statistics from Singapore state agency IE Singapore showed that fuel oil stocks dropped 586,000 barrels to a three-week low of 18.841 million bbl in the week to February 13 because of lower western arrivals, in line with traders' expectations for fewer arbitrage cargoes in February and March. A total of 3.9 million tonnes of Western fuel oil is expected to berth at Asian ports in February, 25.7% lower than the previous month. Traders also expect around 4.1 million tonnes of arbitrage arrival in March, lower than 5.26 million tonnes in December. This morning both markets are trading down.

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) 0,30 97,31 ↓ 97,64 98,14 98,61 98,55 98,77 97,92 ICE Brent Swap (1st month) (0,72) 118,00 ↓ 117,29 116,48 115,67 115,68 113,38 111,29 ICE Gasoil Swap (1st month) 0,25 1011,25 ↓ 1007,08 999,25 992,00 993,12 980,07 968,24 3.5% Barges FOB Rtdm 1,50 641,25 ↓ 636,50 635,00 633,75 633,75 629,50 624,50 3.5% Cargoes FOB Med 0,00 634,75 ↓ 630,25 630,00 629,00 629,00 624,50 619,25 1.0% Cargoes FOB NWE 2,50 686,50 ↓ 679,75 677,75 676,50 676,50 669,25 659,25 3% no. 6 USGC WB 0,20 100,53 ↓ 100,40 99,90 99,65 99,65 98,90 98,15 380 CST Cargoes FOB S'pore (1,25) 663,75 ↓ 657,75 656,50 656,25 655,75 651,75 647,50 0.1 % GO Barges FOB Rtdm 0,50 1014,25 ↓ 1007,25 1000,25 992,25 993,25 977,25 965,25 Physical Rotterdam 380 CST 0,00 645,25 ↓ 643,75 642,25 641,00 641,00 636,75 631,75 Physical Singapore 380 CST (1,00) 668,50 ↓ 665,50 664,25 664,00 663,50 659,50 655,25

Focus of the day: Piraeus

This week begun slowly, with sluggish demand, as Asia was closed for the Chinese New Year Holiday, but markets quickly gained in demand when business resumed. Piraeus was very active and apart from the liner vessels a big number of large volume spot enquiries were brought into the market. Crude market was bullish and CIF MED 3.5 gained another $10.00 on average compared to the previous week, boosting buying interest, while at the same time the rough weather and tight avails situation in Malta caused for many vessels to switch to Piraeus.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 13-feb 8:30 AM Jan -0.4% 0.5% 0.1% Business Inventories Medium 13-feb 10:00 AM Dec 0.1% 0.3% 0.1% Initial Claims Medium 14-feb 8:30 AM 09-feb 365K 366K 341K Continuing Claims Medium 14-feb 8:30 AM 02-feb 3200K 3224K 3114K Empire Manufacturing Medium 14-feb 8:30 AM Feb -2.0 -7.8 - Industrial Production Medium 15-feb 9:15 AM Jan 0.4% 0.3% - Michigan Sentiment High 15-feb 9:55 AM Feb 73.0 73.8 -

Source: OW Risk Management