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 the week on a higher note. The May Brent futures settled at $106.92/bbl, up +$0.47 while WTI closed at $99.46/bbl, up +$0.03. Market remains in a range mode without any strong. News from Ukraine are supporting for Oil prices: Nato’s warned on Sunday that Russia was massing troops along the Ukraine border ahead of President’s Obama arrival in Europe. The latest HSBC China Manufacturing PMI was lower than expected with a reading of 48.1 vs 48.5 the month before. A reading below 50 shows a contraction in growth which continues to underscore weaker Chinese economic sentiment. Today, we will see the March US Markit manufacturing PMI data. This morning, crude prices are trading mixed with Brent down -0,15% and WTI up +0,2%.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed higher last Friday following stronger Brent. The delivered 380cst product both in Rotterdam and Antwerp was assessed nearly $4/mt up vs previous close. Suppliers in ARA area reported healthy demand levels and improved lsfo avails with delivered premiums easing on improved loadings. The Singapore fuel oil prices strengthened during the Asian Platts window last Friday and were assessed some $1.5-3.0/mt higher. There have been large volumes of incoming cargo over the last two months however, the lack of blending materials continues to support the physical 180cst cargoes value. It was also reflected in the strong cargo premiums that were seen around $5.0 above cargo prices last Friday. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,03 99,46 ↑ 99,40 98,55 96,61 98,52 95,58 93,12 ICE Brent Swap (1st month) 0,47 106,92 ↓ 106,65 106,34 105,93 105,39 104,87 102,24 ICE Gasoil Swap (1st month) 11,75 900,50 ↓ 893,83 894,00 893,83 891,64 886,66 - 3.5% Barges FOB Rtdm 2,25 573,00 ↓ 575,75 574,75 574,00 572,25 568,00 566,25 3.5% Cargoes FOB Med 4,75 569,50 ↓ 571,50 572,75 572,00 570,00 565,75 564,75 1.0% Cargoes FOB NWE 5,00 636,25 ↓ 616,50 608,25 605,50 602,75 593,75 583,75 3% no. 6 USGC WB 0,00 89,18 ↑ 89,48 89,40 89,55 89,17 88,52 88,17 380 CST Cargoes FOB S'pore 3,75 595,25 ↓ 595,00 594,50 593,75 592,50 590,25 588,75 0.1 % GO Barges FOB Rtdm 10,75 899,00 ↓ 895,25 895,25 895,25 893,25 888,25 - Physical Rotterdam 380 CST 4,00 577,75 ↓ 581,00 580,00 579,25 577,50 573,25 571,50 Physical Singapore 380 CST 3,50 601,25 ↓ 600,25 599,75 599,00 597,75 595,50 594,00

Focus of the day: Gibraltar

There is a mixed picture for operations at the Gibraltar Strait this morning, with all supplies in Algeciras and Ceuta running smoothly but a bit of congestion in Gibraltar though. There are a couple of suppliers behind schedule and some others being affected by lack of space at the bunkering anchorage which is expected to be cleared within today. The weather forecast for the rest of the week is quite good so operations should improve within the next few hours. There is good products availability and prompt requirements still possible to accommodate by most of the local players. CIF Med 3.5% is trading some 12 usd/mt above Rtdam FOB barges. The HILO keeps widening and is currently app. 72 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 down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller 20-city Index Medium 25-Mar 9:00 AM Jan 13.5% 13.4% - Consumer Confidence Medium 25-Mar 10:00 AM Mar 77.8 78.1 - New Home Sales Medium 25-Mar 10:00 AM Feb 430K 468K - Durable Orders High 26-Mar 8:30 AM Feb 1.0% -1.0% - Initial Claims Medium 27-Mar 8:30 AM 22-mar 330K 320K - GDP- 3rd estimate High 27-Mar 8:30 AM Q4 2.6% 2.4% - Pending Home Sales Medium 27-Mar 10:00 AM Feb -0.2% 0.1% - Personal Income Medium 28-Mar 8:30 AM Feb 0.0% 0.3% - PCE Prices- Core Medium 28-Mar 8:30 AM Feb 0.1% 0.1% - Michigan Sentiment- Final Medium 28-Mar 9:55 AM Mar 79.5 79.9 -

Source: OW Risk Management