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

Last Friday Crude Oil extended its rebound and closed higher. The July WTI futures rose +$1.27 to  $96.03/bbl and  Brent closed at $104.56/bbl, up +$0.95. Markets were lifted by a slightly better US May nonfarm payrolls than expected at 175k vs 164k even though the US May unemployment rate came out higher at 7.6% from 7.5%. While these numbers are encouraging the US economy is improving at a slow path –although regular- and far from the v shape rebound some were hoping for. The market is looking for the Federal Reserve to progressively stop its huge Bond buying program by the end of the year. The latest Chinese May trade exports indicated softness and could point to a slower growth in the second quarter. This morning, crude prices are around -0,30% down.

Fueloil Specifics

The NWE bunker fuel oil prices strengthened last Friday with delivered 380cst product both in Rotterdam and Antwerp gaining app.$3/mt. Suppliers reported mixed demand, aggressive prices and premiums up to $10/mt for prompt deliveries. The Singapore fuel oil markets inched up +$0.5 to +$2.0 during the Asian Platts window last Friday. Bunker demand was said to be slow as the recent stronger outright prices have discouraged buying and most waited for the prices to dip. The delivered bunker premiums eased to around +$5.50 above cargoes prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,27 96,03 ↓ 95,93 95,84 95,66 95,81 94,68 91,40 ICE Brent Swap (1st month) 0,95 104,56 ↓ 103,75 103,34 102,97 103,35 102,30 99,64 ICE Gasoil Swap (1st month) 9,50 875,25 ↓ 869,67 871,83 874,08 872,86 878,97 866,08 3.5% Barges FOB Rtdm 0,00 580,75 ↑ 578,75 576,50 574,50 577,00 571,25 563,75 3.5% Cargoes FOB Med 0,50 583,75 ↑ 575,75 573,00 570,50 573,50 566,00 561,00 1.0% Cargoes FOB NWE 1,25 608,75 ↑ 611,25 609,25 607,50 609,25 603,75 593,50 3% no. 6 USGC WB 0,65 90,86 ↑ 90,80 90,80 90,55 90,55 89,80 89,60 380 CST Cargoes FOB S'pore 1,75 601,00 ↑ 601,00 599,00 597,75 599,50 595,25 589,00 0.1 % GO Barges FOB Rtdm 9,75 875,25 ↓ 870,25 872,25 874,25 872,25 876,25 866,25 Physical Rotterdam 380 CST 3,00 587,75 ↑ 584,00 582,25 579,75 581,75 576,50 568,50 Physical Singapore 380 CST 1,00 605,50 ↑ 607,75 605,50 604,50 606,25 602,25 595,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Jun 10:00 AM Apr 0.2% 0.4% - Treasury Budget Medium 12-Jun 2:00 PM May -$139.0B -$124.6B - Initial Claims Medium 13-Jun 8:30 AM 8-June 350K 346K - Continuing Claims Medium 13-Jun 8:30 AM 1-June 2975K 2952K - Retail Sales High 13-Jun 8:30 AM May 0.1% 0.1% - Business Inventories Medium 13-Jun 10:00 AM Apr 0.2% 0.0% - Core PPI Medium 14-Jun 8:30 AM May 0.2% 0.1% - Industrial Production Medium 14-Jun 9:15 AM May 0.1% -0.5% - Capacity Utilization Medium 14-Jun 9:15 AM May 77.9% 77.8% - Mich Sentiment High 14-Jun 9:55 AM Jun 81.5 84.5 -

Source: OW Risk Management