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

Yesterday was a non event for the Oil market. March  Brent Crude closed at  $107,95 up only 10 cents but WTI consolidated and closed at $98,23  down -$0,87 after nearly two weeks of gains. Brent Oil prices have been stuck in a tight range between solid US economic data and slow Europe recovering but fears of a slowing Chinese economy on the other side.  OPEC Crude production dropped to the lowest level in more than two years in January to 29,9 mios bbl due to Angola sharp crude production fall from 1,48 mbbl to 0,26 mios bbl this month. All the forecast show that Saudi Arabia will have to cut production later this year especially if Iranian barrels come back into the market. The US GDP came out at +3,2% in line with expectations while initial jobless claims and pending home sales below expectations. With Singapore close today and China the whole next week for Lunar New Year celebration we do not expect big price moves. We still have some US data with December Personal Spending and Income, the Chicago Purchasing Manager and University of Michigan Confidence later today. This morning crude is trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil prices continued to firm yesterday with suppliers reporting mixed demand. Delivered 380cst product in Rotterdam and Antwerp was assessed nearly $3/mt higher vs previous close. Rotterdam port reported picking up demand and firming premiums for prompt product while Antwerp saw a relatively quiet day and good avails. Singapore fuel oil market continued to firm yesterday. Demand picked up significantly as buyers were eager to fix before the Lunar New Year weekend. The delivered bunker premiums were heard as high as $10/mt above cargo prices. Singapore market is closed today and will reopen on Monday. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) (0,87) 98,23 ↓ 97,81 97,17 95,41 95,39 92,63 90,42 ICE Brent Swap (1st month) 0,10 107,95 ↓ 107,48 106,97 106,55 106,12 104,64 102,88 ICE Gasoil Swap (1st month) 0,25 924,00 ↓ 920,08 914,17 909,08 906,31 900,13 894,19 3.5% Barges FOB Rtdm 3,50 574,25 ↓ 575,75 575,50 574,75 574,00 571,25 567,00 3.5% Cargoes FOB Med 1,75 580,25 ↓ 576,50 573,75 572,50 571,50 568,50 564,25 1.0% Cargoes FOB NWE 6,25 605,25 ↓ 603,75 601,75 600,75 599,50 595,25 587,75 3% no. 6 USGC WB (0,03) 89,95 ↓ 89,70 89,95 90,10 89,75 89,35 89,36 380 CST Cargoes FOB S'pore 0,25 615,00 ↓ 610,25 601,50 597,75 596,25 593,00 590,50 0.1 % GO Barges FOB Rtdm 0,25 922,50 ↓ 921,25 915,25 910,25 906,25 900,25 894,25 Physical Rotterdam 380 CST 3,00 575,00 ↓ 581,00 580,75 580,00 579,25 576,50 572,25 Physical Singapore 380 CST 1,00 627,50 ↓ 615,50 606,75 603,00 601,50 598,25 595,75

Focus of the day: Piraeus

Week 5 has been quite busy in Piraeus and Istanbul. Both ports saw some good demand and an increasing number of large volume enquiries. Crude market was bullish throughout the week and CIF MED 3.5% followed closely, rising on average by $ 7.3 compared to last week. The rising cargo prices boosted buying interest and the East Med hubs were faced with increased demand for prompt enquiries. Piraeus is currently the only port in the East Med where LSFO 380 and 180 are available, as Malta has been dry on 1% fuel for quite some time now. Both Greek refineries are working normally and supply conditions are very good. Product availability is very good in Istanbul as well.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual New Home Sales Medium 27-Jan 10:00 AM Dec 440K 464K 414K Durable Orders High 28-Jan 8:30 AM Dec 2.8% 3.4% -4.3% Case-Shiller 20-city Index Medium 28-Jan 9:00 AM Nov 13.8% 13.6% 13.7% Consumer Confidence High 28-Jan 10:00 AM Jan 77.0 78.1 80.7 FOMC Rate Decision High 29-Jan 2:00 PM Jan 0.25% 0.25% 0.25% Initial Claims Medium 30-Jan 8:30 AM 25-jan 330K 326K 348K GDP-Adv. High 30-Jan 8:30 AM Q4 3.5% 4.1% 3.2% PCE Prices-Core High 31-Jan 8:30 AM Dec 0.2% 0.1% - Chicago PMI Medium 31-Jan 9:45 AM Jan 57.0 60.8 - Michigan Sentiment- Final Medium 31-Jan 9:55 AM Jan 80.0 80.4 -

Source: OW Risk Management