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 ended mixed on Friday night with Brent traded up $0.56/bbl to settle at $109.08/bbl, while WTI slipped $0.05/bbl to $100.30/bbl. Improved economic outlook in the US and some  supply disruptions from Libya and Angola provide a good support for Brent at the moment. Technically, it is looking bullish short term and could target a rally to $111.0 also supported by a weaker USD. This morning signs of credit growth in China has put Asian bourses on an upbeat momentum despite Japan growth falling short of estimates +0,3% vs 0,7% exp. for the last quarter. Due to President Day in the US there will be no data published and certainly low volumes. Brent is trading more or less flat this morning at $109.10/bbl and front month WTI up 0,35%.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed last week without any major changes. Delivered 380cst product in Rotterdam and Antwerp was assessed some $1-2/mt up versus previous close. On the other hand, suppliers reported tight LSFO avails ahead of planned refinery maintenance lifting the premiums for prompt deliveries much higher. The Singapore fuel oil markets closed slightly higher last Friday, posting app.$1-1.5/mt gains at Asian Platts window. Market payers reported mixed demand and continuously tight avails with some suppliers quoting for the deliveries from 19-21 February. This morning both markets are trading slightly 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) (0,05) 100,30 ↑ 100,15 99,40 98,72 98,71 96,14 93,58 ICE Brent Swap (1st month) 0,56 109,08 ↓ 108,90 108,55 108,17 107,73 106,72 104,46 ICE Gasoil Swap (1st month) 1,75 920,25 ↑ 923,92 919,67 916,92 916,83 910,72 905,36 3.5% Barges FOB Rtdm (0,75) 577,50 ↑ 580,00 579,00 578,50 578,50 576,75 573,25 3.5% Cargoes FOB Med 0,75 567,25 ↑ 577,00 576,25 575,75 575,75 574,00 570,25 1.0% Cargoes FOB NWE (1,50) 619,50 ↑ 616,00 609,75 608,25 608,25 603,50 596,50 3% no. 6 USGC WB 0,24 91,11 ↓ 90,95 90,75 90,82 90,59 90,18 88,25 380 CST Cargoes FOB S'pore 1,50 607,50 ↑ 604,50 601,25 599,25 599,75 597,25 596,00 0.1 % GO Barges FOB Rtdm 1,00 920,00 ↑ 925,25 921,25 917,25 917,25 911,25 906,25 Physical Rotterdam 380 CST 1,00 580,00 ↑ 585,25 584,25 583,75 583,75 582,00 578,50 Physical Singapore 380 CST 1,00 617,50 ↑ 609,75 606,50 604,50 605,00 602,50 601,25

Focus of the day: Gibraltar

Week 8 is having a relatively slow start, which is the expected trend at least until Thursday due to IP week. Operations wise the Strait of Gibraltar is running smoothly at its three ports, with only a couple of suppliers slightly delayed and all the rest well within schedule. There are good product avails and prompt requirements are still acceptable for some suppliers. Bunker premiums this morning remain quite competitive. The CIF Med 3.5% - FOB Barges Rotterdam 3.5% spread has already come down to “natural” levels and is currently at some 8 usd/mt while the HILO keeps widening and is currently around 67 usd/mt in the Med. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire State Index Medium 18-Feb 8:30 AM Feb 9.0 12.5 - Producer Price Index Medium 19-Feb 8:30 AM Jan 0.1% 0.4% - Core PPI High 19-Feb 8:30 AM Jan 0.2% 0.3% - Weekly Jobless Claims Medium 20-Feb 8:30 AM 15-feb 325K 339K - Core CPI High 13-Feb 8:30 AM Jan 0.2% 0.1% - Leading Indicators Medium 20-Feb 10:00 AM Jan - 0.1% - Existing Home Sales Medium 21-Feb 10:00 AM Jan 4.7M 4.87M -

Source: OW Risk Management