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

For the third day in a row crude prices are trading in $1 range. The February WTI futures lost -$0.92 to close at $91.80/bbl and Brent -$0.50 to settle at $106.75/bbl. Crude prices slipped following weak equities despite a lower US dollar. News of interim resolutions between Iran and the West over the nuclear issue will take effect next week while the final settlements of the negotiation will be set in February which would lift economic sanctions especially on the oil export. The quite contained downside price pressure on Crude is showing that the market did not “buy” too much the low US NFP number, considering that the "normal" job creation trend around 190k will restart next month. The US December Retail Sales figures will be released today and later the Weekly API numbers where a draw is expected on crude and solid builds in products. This morning, crude prices are trading marginally up.

Fueloil Specifics

The NWE bunker fuel oil prices rose slightly on Monday. Delivered 380cst product in Rotterdam gained app.$2/mt and a dollar more in Antwerp. Suppliers in Rotterdam reported low demand and good product avails. Lsfo avails in Antwerp continue to be hindered by delays at loading installations, keeping the premiums for prompt deliveries on the higher side. The Singapore fuel oil markets dipped only a few cents during the Asian Platts window yesterday. The cargo premiums strengthened on a reflection of a tight market next month. The delivered bunker premiums were seen app.$5.5 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. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) (0,92) 91,80 ↑ 92,48 92,29 91,95 91,41 89,29 87,42 ICE Brent Swap (1st month) (0,50) 106,75 ↑ 106,08 105,71 102,67 104,99 103,74 102,67 ICE Gasoil Swap (1st month) (0,25) 907,00 ↓ 904,17 900,08 896,08 895,44 891,81 886,61 3.5% Barges FOB Rtdm 3,25 559,75 ↑ 565,50 567,00 567,50 567,50 566,50 563,25 3.5% Cargoes FOB Med 0,25 562,75 ↑ 562,25 563,75 564,75 564,75 560,50 562,50 1.0% Cargoes FOB NWE 0,75 578,25 ↑ 580,75 584,25 587,00 588,00 588,25 581,75 3% no. 6 USGC WB (0,40) 87,35 ↑ 88,65 88,90 89,15 88,65 88,90 88,65 380 CST Cargoes FOB S'pore (0,75) 601,25 ↑ 597,25 591,75 590,00 589,25 587,75 586,25 0.1 % GO Barges FOB Rtdm 7,50 906,75 ↓ 905,25 901,25 897,25 894,25 890,25 885,25 Physical Rotterdam 380 CST 2,00 562,75 ↑ 570,75 572,25 572,75 572,75 571,75 568,50 Physical Singapore 380 CST (1,50) 608,00 ↑ 602,50 597,00 595,25 594,50 593,00 591,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 14-Jan 8:30 AM Dec -0.3% 0.7% - Business Inventories Medium 14-Jan 10:00 AM Nov 0.2% 0.7% - Core PPI Medium 15-Jan 8:30 AM Dec 0.1% 0.1% - Empire Manufacturing Medium 15-Jan 8:30 AM Jan 4.0 1.0 - Initial Claims Medium 16-Jan 8:30 AM 11-jan 335K 330K - Core CPI High 16-Jan 8:30 AM Dec 0.2% 0.2% - Philadelphia Fed Medium 16-Jan 10:00 AM Jan 8.0 6.4 - Housing Start Medium 17-Jan 8:30 AM Dec 945K 1091K - Building Permits Medium 17-Jan 8:30 AM Dec 1000K 1007K - Industrial Production Medium 17-Jan 9:15 AM Dec 0.3% 1.1% - Mich Sentiment High 17-Jan 9:55 AM Jan 81.5 82.5 -

Source: OW Risk Management