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

After a three-day gains, crude prices dropped Tuesday afternoon. The day started with a solid run-up in prices supported by stronger German economic data and the growing geopolitical tension between Israel and Syria. However, crude prices came off in latter session as the monthly US EIA reported a downward revision for oil consumption in 2013 and 2014 due to declines in Europe and Japan. It was also reported that Saudi Arabia increased its oil production by nearly 2% in April to 9.3 million barrel per day. The June WTI futures closed at $95.62/bbl, down -$0.54 while Brent settled at $104.40/bbl, down -$1.06. The US Energy department will be releasing the inventory report later today and the expectations are as follows: Crude +1.9 mbbl, Distillates +0.5 mbbl, Gasoline -0.4 mbbl. This morning, crude is trading mixed with Brent down 0.15.

Fueloil Specifics

Fuel oil prices in the main NWE ports rose on Monday and bounced back yesterday. Suppliers in Rotterdam reported mixed demand levels and improving product avails. Tight avails for prompt deliveries were reported in Antwerp; mainly due to congestions at loading installations. The Singapore fuel oil markets gained between +$0.25 to +$2.0 during the morning Platts window yesterday. Bunker demand was said to be slow. The delivered bunker premiums slipped to app. $8.0 above cargo prices yesterday. This morning both markets are trading down.

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) (0,54) 95,62 ↑ 95,95 95,83 95,47 95,42 94,01 91,00 ICE Brent Swap (1st month) (1,06) 104,40 ↓ 103,77 103,45 103,11 103,12 102,16 99,70 ICE Gasoil Swap (1st month) 9,75 868,50 ↓ 868,42 871,50 874,17 874,22 878,94 868,75 3.5% Barges FOB Rtdm 7,25 596,00 ↓ 588,75 586,25 584,25 585,25 580,00 570,75 3.5% Cargoes FOB Med 3,00 584,75 ↓ 582,75 581,00 579,50 578,50 571,50 566,00 1.0% Cargoes FOB NWE 13,00 615,50 ↓ 615,25 616,75 615,25 615,50 610,00 598,75 3% no. 6 USGC WB (0,71) 93,24 ↑ 92,75 92,50 92,00 92,25 91,50 90,25 380 CST Cargoes FOB S'pore 1,75 619,50 ↓ 610,75 608,25 606,50 607,75 603,25 595,00 0.1 % GO Barges FOB Rtdm 10,25 867,50 ↓ 869,25 872,25 874,25 874,25 879,25 869,25 Physical Rotterdam 380 CST 4,00 600,00 ↓ 594,00 592,00 590,00 590,50 585,25 576,00 Physical Singapore 380 CST 0,00 626,50 ↓ 618,00 615,00 613,25 614,00 609,50 602,25

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 $8.0B 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