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

It was a volatile session yesterday after Cyprus managed to get a 10 billion Euros bailout package and  agreed to restructure the two biggest banks with losses to big depositors. After the Eurogroup declaration that it was a “school-case”, meaning that depositors are nowhere protected in the future in Euroland, the market plunged. The Eu/Usd lost two figures after this comment to trade below 1,2850. The Brent to WTI futures spreads continues to narrow and is trading below $13 this morning. The May WTI futures closed at $94.81/bbl, up +$1.10 and  Brent at $108.17/bbl, up by +$0.51. Today is busy in terms of US economic data with the Durable Goods Orders, S&P20 City Schiller prices, March consumer confidence index and the February New Home sales data. This morning, crude is trading 0,34% higher for WTI and -0,12% for Brent.

Fueloil Specifics

The Singapore Fuel Oil Market rose more than +$2.5 during the Platts window yesterday. The Asian Fuel Oil cracks were weaker than expected on stronger selling pressure. The delivered bunker premiums were higher, ranging between $7.75 to $8.5 above cargo prices as crude prices remain supported after the window.

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) 1,10 94,81 ↑ 95,62 95,88 95,97 95,38 93,87 90,96 ICE Brent Swap (1st month) 0,51 108,17 ↑ 108,28 107,98 107,57 106,47 104,65 101,75 ICE Gasoil Swap (1st month) 2,25 900,75 ↑ 909,83 912,25 913,83 915,64 914,53 894,57 3.5% Barges FOB Rtdm 2,25 597,75 ↑ 601,50 599,50 597,75 594,50 591,25 579,25 3.5% Cargoes FOB Med 4,50 591,75 ↑ 593,75 592,50 591,50 589,75 583,00 573,75 1.0% Cargoes FOB NWE 2,75 615,75 ↑ 619,50 623,00 625,00 623,75 618,00 606,00 3% no. 6 USGC WB 0,29 94,43 ↑ 94,55 94,30 94,05 93,80 92,80 89,05 380 CST Cargoes FOB S'pore 3,25 625,50 ↑ 622,75 620,75 619,25 617,25 613,25 604,00 0.1 % GO Barges FOB Rtdm 2,50 899,50 ↑ 911,25 913,25 915,25 915,25 911,25 895,25 Physical Rotterdam 380 CST (1,00) 604,00 ↑ 607,50 605,50 603,75 600,50 595,25 585,25 Physical Singapore 380 CST 4,50 633,25 ↑ 630,50 628,50 627,00 625,00 621,00 611,75

Focus of the day: ARA

As we are approaching the Easter holidays, an increase in demand is to be expected in order for everyone to secure their bunkers over the weekend. It is therefore advised to buy your products now rather than later, regardless direction of the flat-price. This is resulting in slightly less competitive prices, nonetheless there is still some backwardation, which puts some pressure on those suppliers with storage to get rid of their product. This is valid for either port, Rotterdam or Antwerp. The low sulphur market seems to be firming further, as a premium needs to be paid over paper for the moment. This is expected to continue for the coming time. Notification periods for the different grades; 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 Durable Orders High 26-mar 8:30 AM 5.0% -4.9%     Case Shiller 20-city Index Medium 26-mar 9:00 AM 7.5% 6.8%     Consumer Confidence High 26-mar 10:00 AM 65 69     New Home Sales Medium 28-mar 10:00 AM 400K 437K     Initial Claims Medium 28-mar 8:30 AM 335K 336K     GDP- Third Estimate High 28-mar 8:30 AM 0.3% 0.1%     Chicago PMI Medium 28-mar 9:45 AM 55 56.8     PCE Prices- Core High 29-mar 8:30 AM 0.2% 0.1%     Michigan Sentiment- Final High 29-mar 9:55 AM 72,00 71.8