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 Oil was supported going into what was expected to be a bearish Oil stock Report. It came out with a Crude stock build smaller than expected but refined product builds were significantly greater. The picture is always distorted as refiners and wholesalers reduce year-end- working capital through limiting receipt of oil volumes. Nevertheless it seems to emerge that weak demand has allowed gasoline stocks to be replenished more than normal. On the other hand the big distillate build does not mask the fact that inventories remain extremely tight in Northeast region. The February WTI futures slipped another -$0.05 to $93.10/bbl and Brent  lost marginally by -$0.18 to $111.76/bbl. Today Crude Oil price are boosted by a much stronger Chinese December Export number (+14,1%) from a year earlier-the fastest in seven months-and Imports increased 6% from a year earlier. Today it is Bank of England and ECB announcement rate with rumours of a cut by the European Central Bank. This morning, crude is trading more than 1% up.

Fueloil Specifics

The Northwest European fuel oil prices were trading in sideways range closing the day with slight gains. Both delivered 380cst product in Rotterdam and cargo prices assessed app.$3/mt up versus previous day’s close. Sources reported growing buying interest in major ports with Rotterdam still experiencing tight lsfo avails for prompt deliveries. The Singapore markets rose more than $2.5 during the morning Platts window yesterday. Bunker demand was said to be pretty slow and market is still seeing ample supply as demand lags. The delivered bunker premiums were firmer, between $4.5-6.5 above cargo prices yesterday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q213 Q313 2013 NYMEX WTI Swap (1st month) (0,05) 93,10 ↑ 95,10 95,49 95,80 95,88 95,35 94,84 ICE Brent Swap (1st month) (0,18) 111,76 ↑ 111,57 110,86 110,20 109,56 107,80 108,88 ICE Gasoil Swap (1st month) 3,25 948,50 ↑ 959,83 954,58 949,58 947,51 939,36 944,51 3.5% Barges FOB Rtdm 4,50 610,50 ↑ 616,25 615,50 614,75 613,75 609,75 611,25 3.5% Cargoes FOB Med 6,25 609,25 ↑ 610,00 610,00 609,00 608,50 604,75 606,25 1.0% Cargoes FOB NWE 9,50 640,50 ↑ 650,25 649,50 648,75 647,75 643,75 644,25 3% no. 6 USGC WB (0,28) 96,90 ↑ 97,95 97,45 96,95 96,45 95,70 96,20 380 CST Cargoes FOB S'pore 3,25 632,50 ↑ 641,50 640,00 639,00 638,00 634,25 635,75 0.1 % GO Barges FOB Rtdm 4,50 948,50 ↑ 960,25 955,25 950,25 946,25 934,25 941,25 Physical Rotterdam 380 CST 3,00 614,75 ↑ 623,50 622,75 622,00 621,00 617,00 618,50 Physical Singapore 380 CST 2,00 636,00 ↑ 648,75 647,25 646,25 645,25 641,50 643,00

Focus of the day: Houston

The US Gulf Coast bunker fuel prices took a hint from the residual fuel market and inched lower Wednesday. Today has been relatively quiet; competition for demand has pushed prices lower. In addition, market sources noted the resupply market. US Gulf Coast residual fuel is quite weak, it came down an equivalent of app.$2/mt. Platts assessed IFO 380 in Houston and in New Orleans $1/mt lower, at $629/mt and $641/mt respectively. One Houston source noted that the market for IFO 380 had begun the day in the low $630s/mt, but was "falling to the high 620s with competition."

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 08-jan 3:00 PM Nov $8.0B $14.2B $16.0B MBA Mortgage Index Medium 09-jan 7:00 AM 05-jan NA NA 11.7% Initial Claims Medium 10-jan 8:30 AM 05-jan 365K 372K - Wholesale Inventories Medium 10-jan 10:00 AM Nov 0.2% 0.6% - Trade Balance Medium 11-jan 8:30 AM Nov -$45.0B -$42.2B - Treasury Budget Medium 11-jan 2:00 PM Dec NA -$86.0B -

Source: OW Risk Management