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

Oil dipped slightly lower over night as market expected lower demand during the refinery maintenance season. WTI slipped $0.02 to close at $100.35 while Brent dipped $0.06 to finish at $108.73. However the overall oil complex still have a good support on the back of the higher forecast for oil demand this year (from both OPEC and EIA) while IEA reported a fall of 60,000 bpd for Saudi Arabia output in January and a decline of 140,000 bpd for Iraq. The slightly worse jobless data was compounded by weak US retail sales probably impacted by the cold winter suggesting consumers saved  money toward soaring  heating fuel prices . China  “teapot” refineries cut run rates to the lowest level since August: They use fuel oil and crude as feedstock to produce gasoline and diesel. Their imports of fuel oil account for about 30% of China’s total demand. Brent is trading softer today down -0.20c at $108.28/bbl.

Fueloil Specifics

3.5% Barges closed at 577.5 usd/mt in the window up 2.25 usd/mt. There are still plenty of High sulfur in the area while while low sulfur prices are surging over tight avails. Going into march the market sees an improvement of the situation showing a 7 usd/mt backwardation between February and March I Asia physical market where firmer and the cash premium for both 180cst and 380cst strengthened slightly for the second straight session due to tensions around tighter on -specifications supply. Asia will receive a higher supply of fuel oil from the West in March, estimated at about 3.84 million tonnes, as compared to February’s 3.33 million tonnes, it is still below the monthly average of 4.5 million tonnes last year. The cargoes are also of heavier viscosity and density qualities that need to be further blended using low-density, low-viscosity material before it is suitable for cash trading in Asia. The market is currently facing less availability for such low density cargoes as Iran has trimmed exports due to higher domestic demand during winter followed by a planned refinery maintenance.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) (0,02) 100,35 ↓ 99,35 98,60 97,87 97,86 95,58 93,31 ICE Brent Swap (1st month) 0,17 108,52 ↓ 108,16 107,80 107,42 106,99 106,03 103,90 ICE Gasoil Swap (1st month) (1,00) 918,50 ↓ 917,92 913,83 911,33 911,75 908,28 902,44 3.5% Barges FOB Rtdm 2,75 577,50 ↓ 578,25 577,50 577,00 577,00 575,25 571,75 3.5% Cargoes FOB Med (3,50) 566,50 ↓ 575,25 574,75 574,50 574,50 572,50 568,75 1.0% Cargoes FOB NWE 5,75 621,00 ↓ 607,50 604,75 602,75 603,00 601,50 593,75 3% no. 6 USGC WB 0,27 90,87 ↓ 90,50 90,30 90,42 90,17 89,78 87,85 380 CST Cargoes FOB S'pore (3,00) 606,50 ↓ 604,50 601,00 599,00 599,25 597,25 595,00 0.1 % GO Barges FOB Rtdm (2,00) 919,25 ↓ 919,25 915,25 911,25 912,25 907,25 902,25 Physical Rotterdam 380 CST (1,00) 579,00 ↓ 583,50 582,75 582,25 582,25 580,50 577,00 Physical Singapore 380 CST (1,50) 616,50 ↓ 609,75 606,25 604,25 604,50 602,50 600,25

Focus of the day: Piraeus

East med saw high demand this week. Crude market was dropping and cargo values decreased significantly. Piraeus was faced with increased activity as product availability improved and bad weather in Gibraltar and Malta prompted some operators to shift their vessels to the Greek hub, where the weather rarely affects supplies, for bunker only calls. Istanbul remains very competitive, with the spread on HSFO between this port and Piraeus remaining close to $ 10. Both ports report very good product and barge availability and although one out of two local refineries in Piraeus was not allowing loadings to take place during the last few weeks, prices have not been affected and the Greek port remains the most competitive option in the East Med.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Feb 10:00 AM Dec 0.6% 0.5% 0.3% Treasury Budget Medium 12-Feb 2:00 PM Jan -10.4B $2.9B -10.4B Initial Claims Medium 13-Feb 8:30 AM 08-feb 335K 331K 339K Retail Sales High 13-Feb 8:30 AM Jan -0.2% 0.2% -0.4 Business Inventories Medium 13-Feb 10:00 AM Dec 0.6% 0.4% 0.5% Industrial Production Medium 14-Feb 9:15 AM Jan 0.6% 0.3% - Mich Sentiment High 14-Feb 9:55 AM Jan 79.8% 79.2% -

Source: OW Risk Management