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 continue to be under pressure. The July WTI contract closed $94.28/bbl, down -$1.90 and Brent closed at $102.60, down -$0.89. The US Federal Reserve Chairman announced a possible reduction of the bond buying program in the near future if the unemployment market continues to improve. The US dollar strengthened which pressured the US dollar denominated crude futures downward. The US inventory data from Energy department was mostly bearish as gasoline stockpile showed a bigger built;  normally preparing for the US summer driving season. The Chinese manufacturing data reported a contraction for May which confirms the Chinese slowdown the last months. The Japanese Nikkei stock market reacted instantly (China is their major trading partner) losing more than 7%. Today, we will see the US new home sales and weekly jobless claims data to provide further guidance. This morning, crude is trading more than 1,2% down.

Fueloil Specifics

The Northwest European bunker fuel oil prices continued to fall yesterday. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$4/mt down versus previous days close. Rotterdam continuously reported average demand and tight avails. Antwerp saw average demand and prompt deliveries offered from May 27th. The Singapore fuel oil market extended its loss by -$4.0 to -$2.0 yesterday. The market demand remained soft as strong incoming cargo continued to weigh on fundamentals. The delivered bunker premiums were around +$5.5 above cargoes prices yesterday. Singapore market will be closed tomorrow for public holiday and will reopen on the coming Monday. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) (1,90) 94,28 ↓ 93,08 93,11 93,01 92,94 91,87 90,10 ICE Brent Swap (1st month) (0,89) 102,60 ↓ 101,27 101,03 100,74 100,74 99,95 97,79 ICE Gasoil Swap (1st month) (9,00) 866,75 ↓ 852,17 854,67 857,83 857,47 859,53 851,16 3.5% Barges FOB Rtdm (0,25) 581,50 ↓ 570,75 568,25 566,50 567,50 564,50 556,25 3.5% Cargoes FOB Med (0,50) 570,25 ↓ 565,25 563,00 561,50 562,50 557,75 552,50 1.0% Cargoes FOB NWE (2,25) 599,00 ↓ 595,25 597,50 596,75 597,00 591,75 582,75 3% no. 6 USGC WB (1,11) 89,87 ↓ 89,55 89,30 89,05 89,30 88,55 87,80 380 CST Cargoes FOB S'pore (4,00) 598,00 ↓ 592,00 592,50 591,00 589,50 586,00 580,50 0.1 % GO Barges FOB Rtdm (8,00) 866,75 ↓ 852,25 855,25 858,25 858,25 863,25 853,25 Physical Rotterdam 380 CST (4,00) 583,25 ↓ 576,00 574,00 572,25 572,75 567,75 562,00 Physical Singapore 380 CST (4,00) 604,25 ↓ 599,25 599,25 597,75 596,75 593,25 589,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 22-May 7:00 AM 18-May NA -7.3% -9.8% Existing Home Sales Medium 22-May 10:00 AM Apr 5.05M 4.92M 4.97 FOMC Minutes Medium 22-May 2:00 PM 1-May - - - Initial Claims Medium 23-May 8:30 AM 18-May 350K 360K - Continuing Claims Medium 23-May 8:30 AM 11-May 3015K 3009K - New Home Sales Medium 23-May 10:00 AM Apr 425K 417K - Durable Orders Medium 24-May 8:30 AM Apr -1.5% -6.9% -

Source: OW Risk Management