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

Yesterday Oil Crude prices closed sharply higher for Brent and quasi unchanged for WTI in a light trading session due to Easter holidays in most parts of Europe. The trading was concentrated on WTI-Brent spread liquidations which widened again above $14,16. ExxonMobil shut down a pipeline leading to the US Gulf which will likely boost momentarily the US crude stock inventory. A slight rebound in Euros/usd -from a 4 month low at 1,2751- also supported Crude Oil. A surprisingly weaker than expected US March manufacturing data coming out at 51.3 from 54.2 for February, sent US equities lower yesterday. The March Chinese manufacturing PMI figures were reported at 50.9; an increase from 50.1 for February, reaching a 11 month high but still  short of general market expectations. The May WTI contract settled at $97.07/bbl, down -$0.16 while the May Brent futures closed at $111.08/bbl, +$1.06 yesterday. This morning, crude is trading slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week with little changes in fundamentals. Delivered 380cst product both in Rotterdam and Antwerp ports last Thursday was assessed app. $2/mt higher versus previous day close. There was no Platts assessment in Europe on Monday due to Easter while the Singapore fuel oil market opened the week yesterday, dropping more than -$2.5. The market is temporarily tight due to various reasons such as lack of on specification bunker grade product and congestions in the loading terminals. The delivered bunker premiums were higher yesterday around $8.50 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) (0,16) 97,07 ↑ 97,17 97,44 97,57 97,15 95,89 93,17 ICE Brent Swap (1st month) 1,06 111,08 ↑ 111,20 110,86 110,41 109,24 107,53 104,12 ICE Gasoil Swap (1st month) 3,50 919,00 ↑ 934,33 936,75 938,33 940,56 935,67 916,24 3.5% Barges FOB Rtdm (3,25) 602,50 ↑ 617,75 616,00 614,25 611,25 608,00 596,25 3.5% Cargoes FOB Med (3,50) 598,00 ↑ 611,00 610,25 609,75 607,75 601,00 592,25 1.0% Cargoes FOB NWE (5,00) 614,50 ↑ 630,75 636,25 638,75 639,00 634,25 623,25 3% no. 6 USGC WB 0,75 97,75 ↑ 97,25 96,75 96,50 95,75 94,75 92,75 380 CST Cargoes FOB S'pore (3,50) 634,00 ↑ 641,00 639,00 637,50 635,00 631,25 622,25 0.1 % GO Barges FOB Rtdm 2,00 910,25 ↑ 935,25 938,25 939,25 939,25 933,25 917,25 Physical Rotterdam 380 CST 2,00 609,75 ↑ 625,00 623,25 621,50 618,50 613,25 603,50 Physical Singapore 380 CST (3,00) 641,50 ↑ 648,75 646,75 645,25 642,75 639,00 630,00

Focus of the day: ARA

As expected, the days before Easter have shown an increased demand. Now we should expect a normal fundamentally driven spot market for the coming 7 weeks up to Pentecost. As flat price being up by quite a bit, there might be a good chance of beating the benchmark fairly easily due to length acquired just before the holidays by various suppliers. As we are in the beginning of the month, we should expect suppliers not to be too pre-occupied by the time spreads yet, so only pressure there may derive from traders in need of creating allege in their tanks for fresh cargoes. As market only just starting, there is not much to say about this week’s avails or notification. We therefore maintain the same notification advice as previous week: five days for high sulphur enquiries and five working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 01-apr 10:00 AM Mar 54.5 54.2 51.3 Factory Orders Medium 02-apr 10:00 AM Feb 2.5% -2.0% - ADP Employment Change Medium 03-apr 8:15 AM Mar 200K 198K - ISM Services Medium 03-apr 10:00 AM Mar 55.0 56.0 - Challenger Job Cuts Medium 04-apr 7:30 AM Mar NA 7.0% - Initial Claims Medium 04-apr 8:30 AM 30-mar 340K 357K - Nonfarm Payrolls High 05-apr 8:30 AM Mar 185K 236K - Unemployment Rate High 05-apr 8:30 AM Mar 7.8% 7.7% - Consumer Credit Medium 05-apr 3:00 PM Feb $12.0B $16.2B -