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 managed to shrug off the sharp sell off in equities and stay resilient. The July WTI futures rose +$0.43, to close at $93.74/bbl and Brent settled at $103.04, down -$0.20. Market was supported by a rather bullish crude inventory report with an impressive -6.3 mbbl draw. The gasoline stockpile also saw a slight draw as it is at the peak season for driving and gasoline consumption. The US May ISM manufacturing data came out slightly better at 53.7% vs 53.5% expected while the US April factory orders were lower than expected. Financial markets have started to move in anticipation of possible tapering of the quantitative easing program from the Federal Reserve. It could happen by year-end, and, as a result, the US 10-year treasury yield could rise to 2.75%/3% (was 1,60% in May) in six months and the dollar is likely to strengthen. Today is another busy day in terms of data with the ECB and Bank of England Rate announcements, US weekly jobless claims and the challenger job cuts which –for the latter- is another indicator before the US labor data tomorrow. This morning, crude is trading around 0,40% up.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported a relatively quiet day. Delivered 380sct product in Rotterdam and Antwerp gained some $6-7/mt and most of buyers were reluctant to place their orders, waiting for the prices to drop. The Singapore fuel oil markets rose around $7.00 during the Asian Platts window. The bunker demand was said to be quiet on higher outright bunker prices. The delivered bunker premiums eased back down to app.$6.0 above cargoes prices. this morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,43 93,74 ↑ 94,43 94,27 93,79 94,17 92,99 90,12 ICE Brent Swap (1st month) (0,20) 103,04 ↑ 102,84 102,41 102,04 102,43 101,21 98,95 ICE Gasoil Swap (1st month) 13,25 871,00 ↓ 865,33 867,25 869,33 867,31 872,94 861,97 3.5% Barges FOB Rtdm 8,50 584,00 ↓ 577,75 575,50 573,50 575,50 570,00 562,50 3.5% Cargoes FOB Med 10,00 582,50 ↓ 574,25 571,75 569,50 570,75 562,75 559,00 1.0% Cargoes FOB NWE 8,25 609,75 ↓ 610,25 608,25 606,00 608,00 602,00 592,25 3% no. 6 USGC WB (0,28) 89,58 ↑ 91,45 91,20 90,95 90,95 90,45 89,75 380 CST Cargoes FOB S'pore 7,50 600,75 ↓ 595,25 597,00 597,00 598,50 594,50 587,75 0.1 % GO Barges FOB Rtdm 11,50 870,75 ↓ 866,25 868,25 870,25 868,25 871,25 861,25 Physical Rotterdam 380 CST 7,00 587,75 ↓ 583,00 581,25 578,75 580,75 575,25 567,75 Physical Singapore 380 CST 6,00 607,25 ↓ 602,50 604,25 604,25 605,75 601,75 595,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 3-Jun 10:00 AM May 49.5 50.7 49.0 Construction Spending Medium 3-Jun 10:00 AM Apr 0.5% -1.7% 0.4% Trade Balance Medium 4-Jun 8:30 AM Apr -$41.0B -$38.8B -$40.3B ADP Employment Change Medium 5-Jun 8:15 AM May 140K 119K 135K Productivity- Rev. Medium 5-Jun 8:30 AM Q1 0.9% 0.7% 0.5% Factory Orders Medium 5-Jun 10:00 AM Apr 1.5% -4.9% 1.0% ISM Services Medium 5-Jun 10:00 AM May 52.5 53.1 53.7 Initial Claims Medium 6-Jun 8:30 AM 1-June NA 347K - Nonfarm Payrolls High 7-Jun 8:30 AM May 170K 165K - Unemployment Rate High 7-Jun 8:30 AM May 7.5% 7.5% - Consumer Credit Medium 7-Jun 3:00 PM Apr $10.0B $8.0B -

Source: OW Risk Management