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

On Friday Crude Oil prices had significant losses- for a third day in a row- as the US labor data disappointed. The US March Nonfarm Payroll rose only by 88k, -a big drop- as compared to 268k new jobs created in February. US equities fell from their record level as market sentiment turned south. Brent futures have lost more than 6.0% while WTI around 4.8% in the past week and the front month Brent futures turned in slight contango, a condition which reflects a softer demand in general. Seasonal demand for crude oil remains weak due to an increase in refineries turnaround in Europe and Asia while US refineries are gradually coming back on-stream. The May WTI futures closed at $92.70/bbl, dropping only -$0.56 while Brent lost a heavy -$2.22 to hit last December level at $104.12/bbl. We reached the 50% Fibonacci retracement at $103,80 for June Brent from the wave Jun 12 – Jan 13 from $90,92 to $116,67. It will be interesting to see if this level holds in the short term. Nigeria experienced some rebel militant attacks on its oil rich delta region which provide support to the fundamentally weak oil prices. In Europe, Portugal announced new austerity cuts to offset the negative constitutional court ruling. Market will look -even closer after the weak Payroll number - at this coming Wednesday FOMC meeting and comments from the Fed.The US earnings season kicks off today with Alcoa. This morning, crude is trading nearly 1% up.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week lower following weakening crude. Delivered 380cst product in Rotterdam was assessed app.$4/mt down and a dollar more in Antwerp. Suppliers reported average demand during the day with tight to no avails for prompt deliveries in Rotterdam. Antwerp port reported healthy volumes and stems. The Singapore fuel oil markets managed to stay flat to +$0.5 during the morning Platts window last Friday. The Asian Fuel Oil crack narrowed as fuel oil values lagged behind the sharp fall in crude. The delivered bunker premiums were seen around $9.25 above cargo prices. Rotterdam bunker fuel oil swaps were assessed app. $1.5/mt down at the front of the forward curve while backend was a few dollars weaker. Singapore papers versus Rotterdam were seen app.$1/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. May Jun Jul Q313 Q413 2014 NYMEX WTI Swap (1st month) (0,56) 92,70 ↑ 93,87 94,06 94,06 93,59 92,35 90,08 ICE Brent Swap (1st month) (2,22) 104,12 ↑ 105,15 104,99 104,71 104,32 103,07 101,12 ICE Gasoil Swap (1st month) (8,00) 880,00 ↑ 890,08 893,08 895,33 896,47 895,86 883,72 3.5% Barges FOB Rtdm (3,00) 584,25 ↑ 591,50 590,25 589,00 587,75 584,25 577,25 3.5% Cargoes FOB Med (3,00) 571,00 ↑ 584,50 584,75 583,50 584,00 578,00 574,25 1.0% Cargoes FOB NWE (5,25) 592,50 ↑ 610,50 615,00 617,50 617,00 613,25 606,50 3% no. 6 USGC WB (0,85) 92,68 ↑ 93,35 93,10 92,60 92,60 91,85 90,35 380 CST Cargoes FOB S'pore 0,00 618,00 ↑ 615,75 614,25 613,00 612,50 609,25 604,75 0.1 % GO Barges FOB Rtdm (8,00) 880,00 ↑ 891,25 894,25 896,25 897,25 897,25 885,25 Physical Rotterdam 380 CST (5,00) 587,00 ↑ 598,75 597,50 596,25 595,00 590,50 585,50 Physical Singapore 380 CST 0,50 627,00 ↑ 623,00 621,50 620,25 619,75 616,50 612,00

Focus of the day: Gibraltar

The Gibraltar Strait is having a smooth start of the week with good weather conditions at the three ports and operations running smoothly. There are good product avails at the three ports even if some suppliers are fully booked for prompt deliveries. CIF Med 3.5% is trading only 1 usd above FOB Barges Rotterdam and the HILO spread is widening in the Med to some 24 usd/mt, with the premium of CIF Med 1% over FOB NEW 1% recovering to 17 usd/mt after some low levels during the last couple of weeks. The Gibraltar Strait is relatively quiet this morning and the Med market is trading up.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 09-apr 10:00 AM Feb 0.5% 1.2% - Treasury Budget Medium 10-apr 2:00 PM Mar -$107.0B -$198.2B - Initial Claims Medium 11-apr 8:30 AM 06-apr 355K 385K - Continuing Claims Medium 11-apr 8:30 AM 06-apr 3050K 3063K - Retail Sales High 12-apr 8:30 AM Mar 0.0% 1.1% - Core PPI High 12-apr 8:30 AM Mar 0.2% 0.2% - Mich Sentiment High 12-apr 9:55 AM Apr 76.0 78.6 - Business Inventories Medium 12-apr 10:00 AM Feb 0.6% 1.0% -

Source: OW Risk Management