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

It was a copy/paste session from the day before with Crude Oil closing slightly higher. Market was lifted by Mr Draghi - head of the European Central Bank (ECB) -comments that the ECB is preparing to intervene to reduce soaring yields in Spain and Italy. The US weekly jobless claims posted a lower than expected number and the US June durable goods orders were up +1.6%, higher than expected. The September WTI contract closed at $89.39/bbl, up $0.42 and Brent settled at $105.26/bbl, up +$0.88. The US Q2 GDP figures will be released later today and general expectation are in a +1.3% / +1.5% range, one of the slowest growth since Q2 last year. This could set up higher expectation by the market for some US Federal Reserve stimuli. This morning, crude is trading 0,5 % up. Dear reader, Please note that due to summer vacation, we will not publish Market Update next week. We will be back on Monday 6 August.

Fueloil Specifics

The Northwest European fuel oil prices surged up yesterday following boost in Brent values. Delivered 380cst product gained app.$14/mt while cargo prices were a dollar stronger. Higher prices resulted in mixed sentiment in the area. Rotterdam port continues to struggle with prompt HSFO and LSFO avails and delays at loading installations. Situation is expected to improve at the beginning of next month. The Singapore fuel oil market prices rose more than $5.5 during the morning window yesterday tracking crude movements. The latest Singapore heavy residual inventory reported a slight build of 0.23 mbbl to 17.61 mbbl. The delivered bunker premiums were around $7.0 above cargo prices yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q412 Q113 2013 NYMEX WTI Swap (1st month) 0.42 89.39 ↑ 89.58 89.89 90.26 90.68 91.77 90.68 ICE Brent Swap (1st month) 0.88 105.26 ↑ 105.13 104.25 103.76 103.40 102.47 103.40 ICE Gasoil Swap (1st month) 18.75 905.50 ↑ 905.83 903.92 903.67 899.00 890.50 884.19 3.5% Barges FOB Rtdm 15.00 602.50 ↑ 603.50 600.25 597.50 595.25 590.00 581.00 3.5% Cargoes FOB Med 14.25 590.75 ↑ 597.00 594.25 592.25 590.25 585.50 577.25 1.0% Cargoes FOB NWE 13.25 639.25 ↑ 639.25 634.50 630.75 627.50 620.50 612.00 3% no. 6 USGC WB 1.05 94.00 ↑ 94.40 93.90 93.40 91.90 91.15 91.40 380 CST Cargoes FOB S'pore 5.75 620.75 ↑ 626.75 623.25 621.50 619.25 613.75 604.50 0.1 % GO Barges FOB Rtdm 19.25 903.25 ↑ 906.25 904.25 904.25 901.25 893.25 886.25 Physical Rotterdam 380 CST 14.00 612.00 ↑ 613.75 610.50 607.75 605.50 600.25 591.25 Physical Singapore 380 CST 5.00 628.25 ↑ 637.00 633.50 631.75 630.00 624.50 615.25

Focus of the day: Piraeus

Traffic in Piraeus increased during the last week of July and so did the number of enquiries. Boosted by the volatile market, demand for spot enquiries increased as well. Barge availability has been good and supplies have been running smoothly. There has been a shortage of LSFO 380 all through this week and the port is dry of 1% fuel at the moment. Hellenic Petroleum Refinery is expected to get back into production during the weekend and the situation is expected to improve beginning of next week.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual FHFA Housing Price Index Medium 24-Jul 10:00 AM May NA 0.8% 0.8% MBA Mortgage Index Medium 25-Jul 7:00 AM 21-Jul NA NA 0.9% New Home Sales Medium 25-Jul 10:00 AM June 375K 369K 350K Initial Claims Medium 26-Jul 8:30 AM 21-Jul 365K 386K 353K Durable Orders High 26-Jul 8:30 AM June 1.0% 1.3% 1.6% Pending Home Sales Medium 26-Jul 10:00 AM June 1.0% 5.9% -1.4% GDP- Adv. High 27-Jul 8:30 AM Q2 NA 1.9% - Michigan Sentiment- Final Medium 27-Jul 9:55 AM July 71.5 72.0 -

Source: OW Risk Management