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 continue to trade in a tight range. The February WTI futures rose +$1.06 to close at $92.72/bbl and Brent erased it is previous loss, up +$0.86 to settle at $107.25/bbl. The US December Non Farm Payroll came out disappointingly at +74k against a revised November to +241k. Economists differ on the impact of a harsh winter month on the number; some see it as big as -100k while others see it as negligible. What they agree on is that the Federal Reserve could differ the next Bond tapering. The US unemployment rate fell to 6.7%, below the 7.0%, 60 months record low. This at first glance may look positive, however, the fall was due to more people dropping out of the labour count. The dollar weakened after the US NFP data which helped to support the US dollar denominated crude futures. The latest Chinese oil imports were reported to be record high which allays concerns on slowing demand from one of the world largest consumer of oil. This morning, crude prices are trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed lower last Friday. Delivered 380cst product both in Antwerp and Rotterdam was assessed some $4/mt down. Suppliers in the area reported low demand and plenty of hsfo product. Lsfo prices, on the other hand, remained on the higher side with premiums for prompt deliveries as high as $7/mt. The Singapore fuel oil markets moved higher by app. $2.25 during the Asian Platts window last Friday. The Asian Fuel Oil strengthened significantly with increased buying interests. The delivered bunker premiums were around +$6.5 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) 1,06 92,72 ↓ 92,60 92,47 92,19 91,64 89,61 87,89 ICE Brent Swap (1st month) 0,86 107,25 ↓ 106,23 105,92 102,81 105,29 104,01 102,81 ICE Gasoil Swap (1st month) 0,00 899,50 ↑ 903,75 900,42 897,25 897,06 894,67 889,19 3.5% Barges FOB Rtdm (2,50) 556,25 ↑ 565,25 566,25 566,75 566,75 565,75 562,50 3.5% Cargoes FOB Med (3,00) 563,25 ↑ 561,50 562,75 564,00 564,00 559,75 561,75 1.0% Cargoes FOB NWE (5,25) 577,50 ↑ 580,25 584,50 586,75 587,25 587,75 581,25 3% no. 6 USGC WB 0,15 87,25 ↑ 88,70 88,70 89,20 88,45 88,95 88,70 380 CST Cargoes FOB S'pore 2,25 602,25 ↑ 596,50 591,75 589,75 589,50 587,75 586,25 0.1 % GO Barges FOB Rtdm (7,25) 899,25 ↑ 905,25 901,25 896,25 896,25 893,25 888,25 Physical Rotterdam 380 CST (4,00) 560,75 ↑ 570,50 571,50 572,00 572,00 571,00 567,75 Physical Singapore 380 CST 2,00 608,75 ↑ 601,75 597,00 595,00 594,75 593,00 591,50

Focus of the day: Gibraltar

The Gibraltar Strait is running smoothly today with only some minor delays in the port of Ceuta. Outright bunker prices in the Gibraltar Strait are quite competitive this morning, with low premiums and good product avails for most suppliers and healthy demand since todays opening. Even prompt requirements are benefitting from such competitive numbers today. CIF Med 3.5% is trading some $24/mt above FOB Barges Rotterdam and the HILO is currently around $27/mt in the Med. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 14-Jan 8:30 AM Dec -0.3% 0.7% - Business Inventories Medium 14-Jan 10:00 AM Nov 0.2% 0.7% - Core PPI Medium 15-Jan 8:30 AM Dec 0.1% 0.1% - Empire Manufacturing Medium 15-Jan 8:30 AM Jan 4.0 1.0 - Initial Claims Medium 16-Jan 8:30 AM 11-jan 335K 330K - Core CPI High 16-Jan 8:30 AM Dec 0.2% 0.2% - Philadelphia Fed Medium 16-Jan 10:00 AM Jan 8.0 6.4 - Housing Start Medium 17-Jan 8:30 AM Dec 945K 1091K - Building Permits Medium 17-Jan 8:30 AM Dec 1000K 1007K - Industrial Production Medium 17-Jan 9:15 AM Dec 0.3% 1.1% - Mich Sentiment High 17-Jan 9:55 AM Jan 81.5 82.5 -

Source: OW Risk Management