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

Friday Crude prices took a small breather after three strong days where the Brent reached a new high at $115.71/bbl. The August contract closed lower at $114.81, down -$0.25. The July WTI contract expired last Friday up $0.83 at $107.26/bbl while the next front month contract, the August WTI closed at $106.83/bbl, up by $0.78. The Brent premium over the WTI futures is around $8. The latest news from Iraq is that insurgents have captured a couple of towns along the border with Jordan during the week-end. Iraq’s largest refinery in Baiji fate remains unclear. It is important to note that most of Iraqi production from the South remains intact and so far speculation only has driven the price higher. This week, the US secretary of state, John Kerry is travelling to Middle-East and Europe to win support for the creation of a new government on Iraq capable of bridging the sectarian differences that have brought the country on the brink of collapse. Note that the Kurdish government last Friday said that one million barrels of its oil piped through the Turkish port of Ceyhan and was safely delivered to Israel despite opposition from the US and Iraqi central government. On the economic front, the latest HSBC preliminary Chinese June PMI rose to a 7 month high at 50.8, surpassing the 49.7 estimate. A reading above the 50 level mark suggesting expansion. This morning, crude is trading more than 0,35% higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported relatively slow activity last Friday. Delivered 380cst product lost app.$1/mt in Rotterdam and nearly $3/mt in Antwerp. Premiums remained on the lower side as suppliers reported plenty of product and lots of competition among market players. The Singapore fuel oil prices rose more than $1.5 during the Asian Platts window last Friday. The latest Singapore heavy residual inventory reported a slight build of +0.22 mbbl to 21.90 mbbl. The delivered bunker premiums were ranging between $2.5 and $4.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jul Aug Sep Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,78 106,83 ↑ 106,79 105,88 103,81 102,80 99,86 97,41 ICE Brent Swap (1st month) (0,25) 114,81 ↑ 114,75 114,21 113,02 111,86 110,20 109,19 ICE Gasoil Swap (1st month) (3,50) 935,25 ↑ 938,33 941,67 944,08 943,06 - - 3.5% Barges FOB Rtdm (1,50) 602,00 ↑ 604,00 601,75 598,75 594,75 593,50 589,75 3.5% Cargoes FOB Med 0,50 596,50 ↑ 599,50 598,00 597,00 591,75 590,00 598,50 1.0% Cargoes FOB NWE (3,00) 640,00 ↑ 633,00 632,00 629,75 621,00 612,50 609,00 3% no. 6 USGC WB 0,56 94,41 ↑ 94,35 93,97 93,62 93,03 92,62 91,97 380 CST Cargoes FOB S'pore 2,25 620,50 ↑ 622,50 620,00 617,50 615,25 614,00 610,50 0.1 % GO Barges FOB Rtdm (2,50) 933,25 ↑ 939,25 942,25 946,25 945,25 - - Physical Rotterdam 380 CST (1,00) 602,75 ↑ 609,25 607,00 604,00 600,00 598,75 595,00 Physical Singapore 380 CST 2,50 624,50 ↑ 627,75 625,25 622,75 621,00 619,75 616,25

Focus of the day: Gibraltar

The Mediterranean hub of Gibraltar Strait is running smoothly this morning with only a couple of vessels queuing outside the bay to enter for bunkers. On the Moroccan side, Ceuta is also well within schedule both at the anchorage and at berth. Availability is good for all suppliers in the hub and the weather forecast for the rest of the week is quite good so no major issues are expected this week. Prompt requirements should be possible to accommodate even within today. CIF Med 3.5% is trading some $6/mt above FOB Barges Rotterdam and the HILO spread is currently at app.$44. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 23-Jun 10:00 AM May 4.7M 4.65M - Case- Shiller 20-city Index Medium 24-Jun 9:00 AM Apr 12.0% 12.4% - New Home Sales Medium 24-Jun 10:00 AM May 425K 433K - Consumer Confidence Medium 24-Jun 10:00 AM Jun 83.5 83.0 - Durable Orders Medium 25-Jun 8:30 AM May 0.5% 0.6% - GDP- third estimate High 25-Jun 8:30 AM Q1 1.3% 1.3% - Initial Claims Medium 26-Jun 8:30 AM 21-jun 315K 312K - PCE Prices- Core Medium 26-Jun 8:30 AM May 0.2% 0.2% - Michigan Snetiment- Final Medium 27-Jun 9:55 AM Jun 82.5 81.2 -

Source: OW Risk Management