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

Despite making a new year high and after reaching some strong resistances Crude prices closed lower. The July WTI futures settled at $103.74/bbl, down -$0.33 while Brent slipped -$0.19 to $110.36/bbl. The US weekly jobless claims rose slightly more than expected above the 300k mark at 326k while the April Markit flash PMI reported 56.2 which is higher than the previous reading of 55.4, showing growth in the US Manufacturing sector. Today will be published the US April New Home sales figures. Note that the US and UK are closed on Monday so volume should be very subdued going into the week-end.  This morning, crude prices are trading marginally higher. Dear readers, Please note that due to Spring Bank Holiday in UK and Memorial Day in the US the Daily Market Update will not be published next Monday, May 26. The publication will start again on Tuesday, May 27. Should you need any information or price indications please contact us: Telephone: +45 70 20 46 64 E-mail: [email protected] Kind regards OW Risk Management Team

Fueloil Specifics

The NWE bunker fuel oil prices edged slightly higher yesterday following Brent move. Delivered 380cst product both in Rotterdam and Antwerp gained app.$2/mt vs previous day. Suppliers reported average demand and mixed product avails with prompt lsfo product remaining tight due to ongoing loading delays. The Singapore fuel oil prices rose by $6.5- 3.0 during the Asian Platts window. The latest Singapore heavy residual inventory saw a build of +0.95 mbbl to 20.78 mbbl. The delivered bunker premiums were seen around +$3.0 above cargo prices. Visco spreads have gained some strength again and closed at $15.01/mt yesterday. June is trading at app.$10.50/mt while forward prices remain stable trading at app.$8.5/mt for Q3 and app.$7.25/mt for Q4. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,33) 103,74 ↑ 103,56 102,67 100,45 98,45 95,72 93,62 ICE Brent Swap (1st month) (0,19) 110,36 ↑ 109,99 109,22 107,95 106,93 105,49 104,26 ICE Gasoil Swap (1st month) 5,00 913,50 ↓ 911,33 911,08 910,67 905,72 - - 3.5% Barges FOB Rtdm 2,75 583,25 ↑ 583,50 582,50 579,75 573,00 571,50 567,25 3.5% Cargoes FOB Med 2,00 585,50 ↑ 580,00 579,50 578,50 570,25 568,00 576,75 1.0% Cargoes FOB NWE 3,75 645,00 ↑ 640,50 631,50 625,25 605,50 593,75 589,50 3% no. 6 USGC WB (0,11) 92,00 ↑ 91,55 91,07 90,72 89,75 89,30 88,55 380 CST Cargoes FOB S'pore 3,25 600,75 ↑ 602,50 600,50 598,50 595,00 594,00 590,25 0.1 % GO Barges FOB Rtdm (1,50) 911,50 ↓ 912,25 912,25 911,25 906,25 - - Physical Rotterdam 380 CST 2,00 584,25 ↑ 588,75 587,75 585,00 578,25 576,75 572,50 Physical Singapore 380 CST 3,25 604,25 ↑ 607,75 605,75 603,75 600,25 599,25 595,50

Focus of the day: Piraeus

Demand in Piraeus was sluggish this week, following the bullish crude market that pushed cargo prices unexpectedly high. CIF MED 3.5% was higher by $ 6.85 compared to last week and spot volume was quite low as buyers have been waiting to see where prices are going. On the liner/cruiser side though demand was steady and there were a number of large volume enquiries in the local market. Product and barge availability is very good, both refineries are working normally and there is good product availability for all grades.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-May 7:00 AM 17-May NA 3.6% 0.9% Initial Claims Medium 22-May 8:30 AM 17-May 320K 279K 326K Continuing Claims Medium 22-May 8:30 AM 12-May 2700K 2667K 2653K Existing Home Sales Medium 22-May 10:00 AM Apr 4.62M 4.59M 4.65M New Home Sales Medium 23-May 10:00 AM Apr 400K 384K -

Source: OW Risk Management