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

Crude prices rebounded yesterday after the sharp last days sell off. More than 10% drop in prices also provided an entry for hedgers. IMF cut its 2013 global economic forecast yesterday. Asian stocks rose for the first time in three days as US March Housing Starts jumped 7%. The May WTI contract closed at $88.71/bbl, up 1 cent while the June Brent settled at $99.91/bbl, down -$0.72. The API inventory report yesterday showed a crude draw of more than -6.0 mbbl which supported Crude Oil. Note that a Chinese auditor said that local government debt is “out of control”, and that it could trigger a bigger financial crisis that the 2008 US Housing market crash. Market is awaiting the US Energy Department inventory later today and the expectations are as follows: Crude +1.4 mbbl, Distillates -0.3 mbbl, Gas -0.8 mbbl. This morning, crude is trading slightly down.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with significantly lower prices and moderate demand. Delivered 380cst product in Rotterdam lost app.$8/mt and a dollar more in Antwerp. Product avails improved slightly and operations were running smoothly. The Singapore fuel oil markets fell more than $10.0 during the Platts window on the start of the week tracking the weaker crude values. The Asian fuel oil crack continued to narrow as fuel oil values lagged. The delivered bunker premiums were seen $8.5-7.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. May Jun Jul Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,01 88,72 ↓ 88,67 88,92 89,07 88,92 88,20 87,10 ICE Brent Swap (1st month) 0,72 99,91 ↓ 99,73 99,69 99,56 99,33 98,64 97,04 ICE Gasoil Swap (1st month) (11,50) 835,75 ↑ 841,75 846,08 850,00 853,31 857,53 853,97 3.5% Barges FOB Rtdm (3,75) 568,50 ↑ 568,25 566,50 565,00 563,50 559,00 554,25 3.5% Cargoes FOB Med (0,25) 560,25 ↑ 562,25 561,25 560,00 560,25 555,00 550,50 1.0% Cargoes FOB NWE (1,75) 578,50 ↑ 586,75 590,25 592,50 591,25 587,00 581,00 3% no. 6 USGC WB (0,44) 89,45 ↓ 89,75 89,50 89,25 89,25 88,25 87,50 380 CST Cargoes FOB S'pore (11,00) 592,75 ↑ 593,25 591,25 590,50 589,00 585,50 581,25 0.1 % GO Barges FOB Rtdm (11,25) 833,75 ↓ 843,25 847,25 851,25 854,25 858,25 855,25 Physical Rotterdam 380 CST (6,00) 571,75 ↑ 575,50 573,75 572,25 570,75 566,25 561,50 Physical Singapore 380 CST (9,00) 602,50 ↑ 600,50 598,50 597,75 596,25 592,75 588,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 15-apr 8:30 AM Apr 5.0 9.2 3.1 NAHB Housing Market Index Medium 15-apr 10:00 AM Apr 45 44 42 Core CPI High 16-apr 8:30 AM Mar 0.2% 0.2% 0.1% Housing Starts Medium 16-apr 8:30 AM Mar 935K 917K 1036K Building Permits Medium 16-apr 8:30 AM Mar 955K 946K 902K Industrial Production Medium 16-apr 9:15 AM Mar 0.4% 0.7% 0.4% Initial Claims Medium 18-apr 8:30 AM 13-apr 350K 346K - Philadelphia Fed Medium 18-apr 10:00 AM Apr 3.0 2.0 - Leading Indicators Medium 18-apr 10:00 AM Mar 0.0% 0.5% -

Source: OW Risk Management