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 ,for a second day in a row, closed higher last Friday. The June WTI futures settled at $95.61/bbl, up +$1.62 and Brent at $104.19/bbl, up +$1.34. Crude prices gained on strong US labor data with the US unemployment rate surprisingly falling to a four year low of 7.5% and the US April nonfarm payroll rising 165k against 140k expected. The recent commitment by the US Federal Reserve to maintain loose monetary policies and the ECB decision last week to reduce rate also helped jumpstart a stronger market. Weak manufacturing data from China, however still clouds the outlook for global demand as non-manufacturing PMI data from China fell to 54.5 last month (55.6 in March). Today we await data on Eurozone PMI and Retail Sales. This morning, crude is trading up.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week with double digit gains driven by strengthening crude. Delivered 380cst product in Rotterdam was assessed app.$13/mt up and a dollar less in Antwerp. Rotterdam port reported increased buying interest, better supply avails, however still barge delays. The Singapore fuel oil markets rose more than +$7.5 during the morning Platts window last Friday. The Asian fuel oil cracks widened after the previous day sharp narrowing. The delivered bunker premiums were $8.0-11.0 above cargo prices. 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 Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,62 95,61 ↑ 96,43 96,33 96,11 96,01 94,62 90,98 ICE Brent Swap (1st month) 1,34 104,19 ↑ 103,93 103,58 103,15 103,18 102,30 99,58 ICE Gasoil Swap (1st month) 23,25 858,00 ↓ 864,25 868,00 871,92 871,61 877,64 869,66 3.5% Barges FOB Rtdm 10,50 589,50 ↑ 590,00 588,00 586,00 586,50 581,25 571,50 3.5% Cargoes FOB Med 10,75 581,75 ↑ 584,50 583,25 581,50 583,00 575,75 567,75 1.0% Cargoes FOB NWE 17,50 602,25 ↑ 611,50 615,50 614,50 614,75 610,75 599,00 3% no. 6 USGC WB 0,49 93,11 ↑ 93,00 92,75 92,25 92,50 91,75 90,50 380 CST Cargoes FOB S'pore 10,75 610,25 ↑ 613,50 610,50 609,00 610,25 605,75 596,75 0.1 % GO Barges FOB Rtdm 22,00 858,00 ↓ 865,25 869,25 873,25 872,25 878,25 870,25 Physical Rotterdam 380 CST 13,00 595,75 ↑ 597,25 595,25 593,25 593,75 588,50 578,75 Physical Singapore 380 CST 9,50 618,25 ↑ 620,75 617,25 615,75 616,50 612,00 604,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 07-maj 3:00 PM Mar $16.0B $16.3B - Initial Claims Medium 09-maj 8:30 AM 4-May 340K 324K - Continuing Claims Medium 09-maj 8:30 AM 4-May 3050K 3019K - Wholesale Inventories Medium 09-maj 10:00 AM Mar 0.3% -0.3% - Treasury Budget Medium 10-maj 2:00 PM Apr NA $59.1B -

Source: OW Risk Management