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 closed lower as higher than expected Chinese inflation data diminished possibility of Chinese easing rates. However, China’s unexpected surge in exports last month renewed concern from analysts at big houses that statistics from the nation can be unreliable. Crude recovered some losses at the end of the session. The February WTI futures closed at $93.56/bbl, down -$0.26 and Brent lost-$1.25 to settle at $110.64/bbl. The Shanghai Exchange closed +3% at a two-week high after regulators said China can boost 10 times quotas for foreign investment in its financial market. There is no economic data released from the US today, tomorrow is scheduled the Dec US Retail Sales and Producer Price Index. This morning, crude is trading around 0,50% up.

Fueloil Specifics

The Northwest European fuel oil markets closed the week with double digit losses following weakening crude. Delivered 380cst product in Rotterdam was assessed app.$11/mt down while cargo prices lost more than $19/mt. NWE ports reported good trading activity. Supplies in Rotterdam and Antwerp still were hindered by delays due to congestions at loading installations. The Singapore fuel oil market prices fell more than -$3.0 during the morning Platts window last Friday. Despite lower outright prices, demand was said to be slow. The delivered bunker premium slipped to between $3.5- 5.0 above cargo prices. Bunker fuel oil swaps lost nearly $18/mt at the front of the forward curve for 3.5% Rtdam barges and app.$16/mt at the back end. Singapore papers were $1.0-2.0/mt stronger along the curve. 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) (0,26) 93,56 ↑ 94,59 94,93 95,23 95,36 95,11 94,19 ICE Brent Swap (1st month) (1,25) 110,64 ↑ 110,02 109,35 108,74 108,17 106,47 107,44 ICE Gasoil Swap (1st month) (8,75) 939,75 ↑ 947,83 941,42 934,25 929,11 918,36 924,30 3.5% Barges FOB Rtdm (19,50) 599,75 ↑ 606,00 604,75 603,50 602,25 598,00 600,00 3.5% Cargoes FOB Med (17,50) 601,75 ↑ 601,50 600,75 599,75 597,50 593,25 595,50 1.0% Cargoes FOB NWE (15,75) 632,75 ↑ 642,00 640,75 639,50 638,25 633,25 634,50 3% no. 6 USGC WB (1,20) 95,17 ↑ 95,50 95,50 95,25 94,50 94,00 94,25 380 CST Cargoes FOB S'pore (4,00) 634,25 ↑ 631,75 629,50 628,00 626,50 622,50 616,25 0.1 % GO Barges FOB Rtdm (20,50) 939,50 ↑ 948,25 942,25 934,25 930,25 917,25 924,25 Physical Rotterdam 380 CST (11,00) 610,25 ↑ 613,25 612,00 610,75 609,50 605,25 607,25 Physical Singapore 380 CST (5,00) 638,00 ↑ 639,00 636,75 635,25 633,75 629,75 623,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 15-jan 8:30 AM Dec 0.4% 0.3% - Core PPI High 15-jan 8:30 AM Dec 0.1% 0.1% - Empire Manufacturing Medium 15-jan 8:30 AM Jan 0.0 -8.1 - MBA Mortgage Index Medium 16-jan 7:00 AM 12-jan NA 11.7% - Core CPI High 16-jan 8:30 AM Dec 0.1% 0.1% - Industrial Production Medium 16-jan 9:15 AM Dec 0.1% 1.1% - Initial Claims Medium 17-jan 8:30 AM 12-jan 375K 371K - Housing Starts Medium 17-jan 8:30 AM Dec 880K 861K - Building Permits Medium 17-jan 8:30 AM Dec 880K 899K - Philadelphia Fed Medium 17-jan 10:00 AM Jan 1.0 4.6 - Mich Sentiment High 18-jan 9:55 AM Jan 76.0 72.9 -

Source: OW Risk Management