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 range-trade. The March WTI contract will expire later today and settled at $96.66/bbl, up +$0.80 while the next active April WTI contract settled at $97.10/bbl. The April Brent closed at $117.52/bbl, inching up +$0.14. The market was initially softer but retraced towards the session end. The seaway crude oil pipeline in the US will operate below capacity for the foreseeable future denting hopes of clearing a glut of supply in the Midwest. The US inventory report from the Energy Department will be delayed by one day to tomorrow due to the public holiday on Monday. Today, we will have the US Producer Price Index (PPI) and the US January Housing Starts and Building Permits figures. The FOMC minutes from the 29-30 Jan meeting will be released later today. The 10year US yield is rising on speculation they could announce an end to the Bond buying program for year-end. This morning, crude is trading slightly higher.

Fueloil Specifics

The NWE bunker fuel oil prices closed slightly lower yesterday. Delivered 380cst product in Rotterdam lost app.$3/mt while the same product in Antwerp was assessed nearly $5/mt down from previous days close. Trading activity remained low as many market participants have been away for IP week. Avails in Rotterdam improved slightly however still remained hindered by delays at loading installations. The Singapore fuel oil market fell more than $4.0 during the morning Platts window yesterday. The delivered bunker premiums were seen app. $3.5 above cargo prices. The demand was said to be slowly picking up yesterday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) 0,80 96,66 ↑ 97,57 97,98 98,29 98,23 98,27 97,40 ICE Brent Swap (1st month) 0,14 117,52 ↑ 117,10 116,27 115,54 115,55 113,36 111,29 ICE Gasoil Swap (1st month) (8,00) 999,75 ↑ 1001,50 996,42 990,33 990,72 978,03 966,75 3.5% Barges FOB Rtdm (2,00) 630,00 ↑ 635,25 635,00 634,50 634,50 631,75 627,25 3.5% Cargoes FOB Med (1,50) 624,25 ↑ 629,50 630,50 629,50 630,25 627,25 622,50 1.0% Cargoes FOB NWE (4,75) 670,75 ↑ 676,25 675,00 674,00 674,00 669,00 660,00 3% no. 6 USGC WB (1,16) 99,67 ↑ 99,85 99,85 99,60 99,60 99,10 98,35 380 CST Cargoes FOB S'pore (5,75) 652,25 ↑ 657,00 656,75 656,75 656,00 653,25 649,50 0.1 % GO Barges FOB Rtdm (9,00) 998,75 ↑ 1002,25 997,25 990,25 992,25 977,25 966,25 Physical Rotterdam 380 CST (3,00) 634,75 ↑ 642,50 642,25 641,75 641,75 639,00 634,50 Physical Singapore 380 CST (5,50) 655,75 ↑ 664,75 664,50 664,50 663,75 661,00 657,25

Focus of the day: Singapore

Singapore's onshore residual fuel oil stocks fell to a two-week low this week. They were down nearly 6%, a fall of 1.218 million barrels, to 19.427 million barrels. Increased outflows to China, which jumped to around 221,000mt, contributed to the drawdown. Observers said more shipments also headed to South Korea, where utilities have been purchasing product to cope with power requirements during winter. Imports from Western countries, however, remained high at around 584,000mt. Bunker prices were still falling in Asian ports on Tuesday. In Singapore, the price of benchmark 380cst bunker fuel fell $3.50 to average at $654.50/mt. MGO slid $4 to $990.50/mt. Demand was generally good, with only one trader reporting it as 'thin'. Supplies were fine and earliest deliveries were from February 22-25.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Housing Starts Medium 20-feb 8:30 AM Jan 900K 954K - Building Permits Medium 20-feb 8:30 AM Jan 915K 903K - Core PPI Medium 20-feb 8:30 AM Jan 0.1% 0.1% - Initial Claims Medium 21-feb 8:30 AM 16-feb 365K 341K - Continuing Claims Medium 21-feb 8:30 AM 09-feb 3200K 3114K - Core CPI High 21-feb 8:30 AM Jan 0.1% 0.1% - Existing Home Sales Medium 21-feb 10:00 AM Jan 4.95M 4.94M - Philadelphia Fed Medium 21-feb 10:00 AM Feb 2.0 -5.8 - Leading Indicators Medium 21-feb 10:00 AM Jan 0.3% 0.5% -

Souce: OW Risk Management