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 erased the previous day gains weakening during the US session and losing about -$1.0 on close. The September WTI futures closed at $102.07/bbl, down -$1.05 and Brent fell -$0.96 to settle at $107.07/bbl. Brent has been trading in a tight 1,5 usd band for the last eight sessions. There was no bearish news to explain the price slide yesterday; on the contrary the good preliminary Manufacturing number from China for July should have boosted Oil prices. The only bearish factor is the unusual large build in the US gasoline stockpile during the peak US driving season.  On the US economic data release, the US weekly jobless claims fell lower than expected however, the June New Home Sales fell below expectation and the Markit PMI also slipped. Today, we will see the US June Durable Goods order numbers. This morning, crude prices are trading marginally higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices dropped slightly following weakening Brent values. Delivered 380cst product in Antwerp and Rotterdam was assessed app.$2/mt down vs previous close. Suppliers reported average demand and sufficient product avails though some had issues with delays at loading installations. The Singapore fuel oil prices tracking crude prices rose app. $4.0 during the Asian Platts window yesterday. The Singapore heavy residual inventory saw a massive draw of -4. 44 mbbl to 18.29 mbbl. The delivered bunker premiums were seen around $10.0-8.0 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Aug Sep Oct Q414 Q115 Q215 NYMEX WTI Swap (1st month) (1,05) 102,07 ↑ 101,72 100,54 99,04 99,06 97,20 95,62 ICE Brent Swap (1st month) (0,96) 107,07 ↑ 107,48 107,78 107,74 107,32 106,45 105,68 ICE Gasoil Swap (1st month) (1,50) 885,75 ↑ 889,25 892,25 894,75 896,17 - - 3.5% Barges FOB Rtdm (2,25) 572,00 ↑ 571,25 568,75 567,50 566,75 569,00 567,25 3.5% Cargoes FOB Med (1,75) 573,50 ↑ 569,75 567,00 564,75 563,75 566,00 564,25 1.0% Cargoes FOB NWE (4,00) 584,75 ↑ 586,25 588,25 587,75 586,50 586,50 585,75 3% no. 6 USGC WB (0,82) 87,75 ↑ 89,05 88,82 88,67 88,52 88,54 88,24 380 CST Cargoes FOB S'pore 4,50 598,25 ↑ 594,25 592,00 590,75 589,75 590,25 588,50 0.1 % GO Barges FOB Rtdm (2,00) 883,50 ↑ 888,25 891,25 894,25 895,25 - - Physical Rotterdam 380 CST (2,00) 574,00 ↑ 576,50 574,00 572,75 572,00 574,25 572,50 Physical Singapore 380 CST 3,75 605,00 ↑ 599,50 597,25 596,00 595,00 595,50 593,75

Focus of the day: Piraeus

Crude market was rather flat this week and CIF MED 3.5% average for the week went up only by $ 2.00. Demand in Piraeus was steady and the port's barges managed to accommodate the volume enquired. However higher volumes seen in the port, topped up by tight barge availability in Istanbul and major Black Sea ports are expected to cause tight barge avails in Piraeus in the coming days. Suppliers are already finding it hard to offer for the weekend. Piraeus is nowadays one of the most competitive ports in the Mediterranean; HSFO 380 was traded this week below $ 595/mt.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Core CPI High 22-Jul 8:30 AM Jun 0.2% 0.3% 0.1% Existing Home Sales Medium 22-Jul 10:00 AM Jun 4.95M 4.89M 5.04M Initial Claims Medium 24-Jul 8:30 AM 19-jul 315K 302K 284K Continuing Claims Medium 24-Jul 8:30 AM 12-jul 2550K 2507K 2500K New Home Sales Medium 24-Jul 10:00 AM Jun 430K 504K 406K Durable Orders High 25-Jul 8:30 AM Jun 0.3% -0.9% -

Source: OW Risk Management