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 rebounded after several days of weakness and closed more than $1.0 higher yesterday. The May WTI contract closed at  $87.73/bbl, up +$1.05 and June Brent futures at $99.13/bbl, up +$1.44. Crude prices have been under heavy selling pressure the last weeks over worries of the global state of the economy and softer demand for oil as Asian refinery turnaround is at its peak. The lower refinery margin has also discouraged refineries from coming onstream too quickly. The recent lower outright crude and product prices have attracted hedgers and investors who hold a longer view. Yesterday the US weekly jobless were neutral with claims data higher but continuous lower. There is no US economic data scheduled today. This morning, crude is trading more than +0,50% up.

Fueloil Specifics

The NWE bunker fuel oil markets closed yesterday with firming prices and tighter product avails. 380cst delivered product in Rotterdam and Antwerp was assessed app.$4/mt up versus previous close. Restrained prompt product avails resulted in higher premiums and earliest deliveries were heard to be from mid next week. The Singapore fuel oil markets fell around -$6.25 during the morning Platts window. The Singapore heavy residual inventory draw -1.46 mbbl to 16.49 mbbl. The delivered bunker premiums climbed higher to around $12.75 above cargo prices yesterday as sellers were reluctant to sell at lower outright prices and also crude values were trending higher after the window. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. May Jun Jul Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,05 87,73 ↑ 88,83 88,97 88,93 88,72 87,50 85,32 ICE Brent Swap (1st month) 1,44 99,13 ↑ 99,60 99,44 99,19 98,89 97,96 96,16 ICE Gasoil Swap (1st month) 3,00 828,25 ↑ 839,25 842,83 845,00 849,96 854,32 850,24 3.5% Barges FOB Rtdm 2,75 568,25 ↑ 570,25 568,75 567,00 565,75 560,50 554,00 3.5% Cargoes FOB Med 5,50 561,50 ↑ 565,25 563,75 562,00 561,50 555,75 550,50 1.0% Cargoes FOB NWE 3,00 576,00 ↑ 585,75 590,25 592,50 592,00 587,75 580,25 3% no. 6 USGC WB 1,35 88,35 ↑ 89,70 89,45 88,95 88,95 87,95 87,20 380 CST Cargoes FOB S'pore (6,25) 589,25 ↑ 594,00 592,00 590,25 589,75 585,75 579,75 0.1 % GO Barges FOB Rtdm 4,25 828,00 ↑ 840,25 844,25 846,25 848,25 850,25 850,25 Physical Rotterdam 380 CST 4,00 574,75 ↑ 577,50 576,00 574,25 573,00 567,75 561,25 Physical Singapore 380 CST (3,00) 603,00 ↑ 601,25 598,75 597,00 596,00 592,00 587,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 15-apr 8:30 AM Apr 5.0 9.2 3.1 NAHB Housing Market Index Medium 15-apr 10:00 AM Apr 45 44 42 Core CPI High 16-apr 8:30 AM Mar 0.2% 0.2% 0.1% Housing Starts Medium 16-apr 8:30 AM Mar 935K 917K 1036K Building Permits Medium 16-apr 8:30 AM Mar 955K 946K 902K Industrial Production Medium 16-apr 9:15 AM Mar 0.4% 0.7% 0.4% Initial Claims Medium 18-apr 8:30 AM 13-apr 350K 346K 352K Philadelphia Fed Medium 18-apr 10:00 AM Apr 3.0 2.0 1.3 Leading Indicators Medium 18-apr 10:00 AM Mar 0.0% 0.5% -0.1%

Source: OW Risk Management