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 closed mixed yesterday with the Brent/WTI spread narrowing to $6.76/bbl. Brent Oil remains supported by the ongoing geopolitical risks naming Libya and  Ukraine. The July WTI futures closed higher up +$1.03 to settle at $102.61/bbl and Brent slipped -$0.38 to close at $109.37/bbl. No economic data from the US today and it will really start with tomorrow’s FOMC minutes. Later in the day the API Weekly Oil Inventories will be published with no supply change expected. This morning, crude is trading slightly up.

Fueloil Specifics

Despite weakening Brent, the NWE bunker fuel oil prices rose yesterday. Delivered 380cst product both in Rotterdam and Antwerp gained up to $3/mt vs previous close. Market players reported relatively low demand with lsfo avails varying from supplier to supplier. The Singapore fuel oil prices opened the week moving up $5.5-4.0 during the Asian Platts window yesterday. Market is expected to be getting tighter as incoming volume for next month falls below the average and cargo premiums have shifted from discount to premiums now. The delivered bunker premiums maintained around $4.0-2.5 above cargo prices. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) 1,03 102,61 ↑ 101,93 100,96 99,96 97,04 94,53 92,60 ICE Brent Swap (1st month) (0,38) 109,37 ↑ 109,15 108,39 107,09 106,13 103,48 103,48 ICE Gasoil Swap (1st month) (4,00) 912,25 ↓ 909,83 908,42 907,33 902,69 - - 3.5% Barges FOB Rtdm 2,25 580,75 ↓ 578,75 577,75 575,00 568,25 566,75 562,75 3.5% Cargoes FOB Med (2,50) 579,50 ↓ 576,25 575,25 574,25 565,75 563,25 572,00 1.0% Cargoes FOB NWE 2,75 634,50 ↓ 630,25 622,75 616,75 600,25 588,00 583,75 3% no. 6 USGC WB (1,74) 91,00 ↑ 90,50 90,02 89,67 88,72 88,32 87,57 380 CST Cargoes FOB S'pore 4,00 598,25 ↓ 596,00 594,25 593,00 589,75 588,50 585,00 0.1 % GO Barges FOB Rtdm (3,75) 911,25 ↓ 910,25 909,25 908,25 902,25 - - Physical Rotterdam 380 CST 2,00 582,00 ↓ 584,00 583,00 580,25 573,50 572,00 568,00 Physical Singapore 380 CST 5,50 603,25 ↓ 601,25 599,50 598,25 595,00 593,75 590,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-May 7:00 AM 17-May NA 3.6% - Initial Claims Medium 22-May 8:30 AM 17-May 320K 279K - Continuing Claims Medium 22-May 8:30 AM 12-May 2700K 2667K - Existing Home Sales Medium 22-May 10:00 AM Apr 4.62M 4.59M - New Home Sales Medium 23-May 10:00 AM Apr 400K 384K -

Source: OW Risk Management