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 ended the day 56 cents lower at $108.96 and WTI -19 cents to $102.40. Brent fell in tandem with most equities markets around the world as traders remained suspicious of Russia's comments on Thursday that it will work with the West on resolving the crisis in Ukraine, while news from Crimea, near the Russian border, worsened. Yellen reiterated that the FED will continue tapering at a measured pace and that rates will be kept low beyond the 6.5% unemployment threshold. Reuters poll has revealed that Brent crude oil is expected to average $105/bbl in 2014, an increase from the $104/bbl average forecast from the same poll last month. This morning both Brent and WTI are trading app $0.4% down.

Fueloil Specifics

The NWE bunker fuel oil markets reported a relatively quiet day yesterday. Prices picked up slightly in the afternoon hours following higher Brent values. Delivered 380cst product in Rotterdam and Antwerp was assessed nearly $5/mt down compared to previous days close. LSFO avails remain tight keeping premiums for prompt deliveries on the higher side. Singapore physical bunker Ex-wharf 380cst prices came off $4.00/mt and were assessed at 605.50/mt, delivered bunker 380cst were seen depressed btw 590mt to 600mt depending on volume, ETA and vessel. Paper FO really got hammered during yesterday’s trade, front time-spreads opening up flat in the front and Asian fuel oil cracks 180FO fell to a near two month low $12.24 reflecting ample supply in Singapore. Traders view the lower current freight as a bearish factor as supply of FO cargo could continue to move East. Freight rate to move a Suezmax vessel on the MED-Singapore route has fallen to $2.4 million from more than $3.5 million three weeks ago. 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) (0,19) 102,40 ↓ 101,74 100,88 99,13 99,98 97,16 94,37 ICE Brent Swap (1st month) (0,56) 108,96 ↓ 108,27 107,91 107,57 107,59 106,03 104,80 ICE Gasoil Swap (1st month) (8,25) 918,25 ↓ 913,83 911,17 908,42 908,81 902,14 897,03 3.5% Barges FOB Rtdm (5,00) 579,75 ↑ 578,75 578,50 578,00 578,00 576,00 572,25 3.5% Cargoes FOB Med (5,00) 579,75 ↑ 576,50 575,50 575,50 575,50 573,25 569,50 1.0% Cargoes FOB NWE (6,25) 628,75 ↑ 624,00 614,25 610,50 611,00 604,50 597,00 3% no. 6 USGC WB (0,47) 90,00 ↓ 90,55 90,50 90,65 90,40 90,07 87,98 380 CST Cargoes FOB S'pore (2,75) 603,50 ↑ 600,00 599,00 598,50 598,50 597,00 595,50 0.1 % GO Barges FOB Rtdm (7,25) 917,00 ↓ 915,25 912,25 909,25 910,25 905,25 898,25 Physical Rotterdam 380 CST (5,00) 581,75 ↑ 584,00 583,75 583,25 583,25 581,25 577,50 Physical Singapore 380 CST (4,00) 607,25 ↑ 605,25 604,25 603,75 603,75 602,25 600,75

Focus of the day: Piraeus

Piraeus saw increased demand this week as well. A 48hr strike by Hellenic Petroleum refinery ended on 25/2 and loadings resumed as usual, although supplies had not been suspended and physicals had planned ahead of time for all vessels stemmed for supply during the strike. Product availability is very good in Piraeus and Istanbul, which was also faced with increased demand. Premiums in Istanbul have dropped significantly and the port is becoming very competitive, with levels being around $ 5-10 higher than those seen in Piraeus. Monday 3/3 is a holiday in Greece; as customs offices will be closed loadings will resume on 4/3.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller Home Price Index Medium 25-Feb 9:00 AM Dec 13.38% 13.7% 13.42% Consumer Confidence High 25-Feb 10:00 AM Feb 80.5 80.7 78.1 New Home Sales Medium 26-Feb 10:00 AM Jan 405K 414K 468K Initial Jobless Claims Medium 27-Feb 8:30 AM 22-feb 335K 336K 348K Durable Goods Orders High 27-Feb 8:30 AM Jan -2.5% -4.2% -1.0% Chicago PMI Medium 28-Feb 8:30 AM Feb 56.4 59.6 - GDP (Annualized) High 28-Feb 8:30 AM Q4 2.6% 3.2% -

Source: OW Risk Management