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 Oil closed quasi unchanged on Friday with WTI up + $0,19 and Brent + $0,11. Market was under pressure during most of the European session but all eyes were already on Ukraine's escalating tension. The International community condemned Russia's creeping invasion of Ukraine’s Crimean peninsula and said they could face economic sanctions. Gazprom warned that they might raise gas prices to Ukraine in the next quarter showing signs that they would be willing to use its gas exports to apply pressure to the interim government in Kiev. These morning stock markets are under pressure with the Russian Index close to -10% down. Crude Oil opened $2 usd higher as investors are flying to safe assets. Today  in terms of economic data the February European Manufacturing data came out slightly better than expected at 53,2 vs 53 and later in the day will be looking at the Personal Income and Spending from the US and the ISM Manufacturing. Brent is trading up +1,96% and WTI up 1,40%.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported a quiet day last Friday with largely unchanged prices and slow trading activity. Suppliers in the area reported continuously tight LSFO avails that kept the premiums at the high level for delivered product. Singapore bunker fuel oil markets closed last week with slightly lower prices and average demand. 380cst delivered product lost app. 2/mt during the Asian Platts window. The bunker premiums weakened on high outright prices and slow demand. The delivered premiums were around +$2.0 above cargo prices last Friday.  Bunker fuel oil swaps gained $2.50-3.00/mt along the curve both for Rotterdam and Singapore papers. This morning both markets are trading significantly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,19 102,59 ↑ 103,75 102,97 100,81 101,91 98,67 95,51 ICE Brent Swap (1st month) 0,11 109,07 ↑ 110,75 110,30 109,90 109,90 108,26 106,41 ICE Gasoil Swap (1st month) 2,50 920,75 ↑ 934,42 931,17 927,50 928,86 923,56 917,56 3.5% Barges FOB Rtdm 2,00 581,75 ↑ 591,75 591,25 590,75 590,75 588,75 584,50 3.5% Cargoes FOB Med 2,00 581,25 ↑ 590,00 589,00 588,50 588,50 586,00 581,75 1.0% Cargoes FOB NWE 3,00 631,75 ↑ 637,75 627,25 623,25 623,75 617,50 609,50 3% no. 6 USGC WB (0,05) 90,45 ↑ 92,10 92,12 92,27 92,02 91,69 89,64 380 CST Cargoes FOB S'pore (2,75) 600,00 ↑ 612,25 611,25 611,00 611,00 609,75 607,75 0.1 % GO Barges FOB Rtdm 2,50 919,25 ↑ 935,25 932,25 929,25 929,25 921,25 916,25 Physical Rotterdam 380 CST 0,00 581,00 ↑ 597,00 596,50 596,00 596,00 594,00 589,75 Physical Singapore 380 CST (2,00) 605,75 ↑ 617,50 616,50 616,25 616,25 615,00 613,00

Focus of the day: Gibraltar

Bunkering operations at the Mediterranean hub of Gibraltar Strait are running smoothly this morning, with most suppliers delivering within schedule at the three ports except for Ceuta, where barge deliveries at the anchorage are currently suspended due to bad weather conditions. Product avails are good and prompt requirements are still acceptable for most suppliers. Bunker premiums this morning remain quite competitive. CIF Med 3.5% is trading some 14 usd/mt above FOB Barges Rotterdam. The HILO is currently around 57 usd/mt in the Med and the CIF Med 1% premium over FOB NWE 1% is at 21 usd/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Personal Income Medium 3-Mar 8:30 AM Jan 0.2% 0.0% - PCE Prices- Core Medium 3-Mar 8:30 AM Jan 0.1% 0.1% - ISM Index High 3-Mar 10:00 AM Feb 51.0 51.3 - ADP Employment Change Medium 5-Mar 8:15 AM Feb 150K 175K - ISM Services High 5-Mar 10:00 AM Feb 53.5 54.0 - Initial Claims Medium 6-Mar 8:30 AM 01-mar 335K 348K - Productivity- Rev. Medium 6-Mar 8:30 AM Q4 2.5% 3.2% - Factory Orders Medium 6-Mar 10:00 AM Jan -0.3% -1.5% - Nonfarm Payrolls High 7-Mar 8:30 AM Feb 165K 113K - Unemployment Rate High 7-Mar 8:30 AM Feb 6.5% 6.6% - Trade Balance Medium 7-Mar 8:30 AM Jan -$37.0B -$38.7B -

Source: OW Risk Management