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 started the week lower together with the diminishing cold weather spell in Northern America. Market was also reacting to a weaker than expected US December New Home sales figures. Generally, the pullback in prices across the board was due to concerns over the last Chinese economic data suggesting a possible slowdown. Also the market is waiting for the US Federal Reserve FOMC meeting outcome tomorrow where the US Federal Reserve is expected to continue to scale down its bond buying program. The March WTI futures settled at $95.72/bbl, down -$0.92 and Brent similarly fell -$1.19 to $106.69/bbl. Today, we will see the US December Durable Goods Orders, the Schiller -20 city- Index and the January Consumer Confidence. Later the weekly API where some builds are still expected for Crude Oil and Gasoline but a draw on Distillates.This morning, crude prices are trading around half a dollar higher.

Fueloil Specifics

The NWE bunker fuel oil markets reported relatively busy Monday. Delivered 380cst product in was assessed app.$4/mt up in Antwerp and a dollar more in Rotterdam. Later port reported good demand and competitive prices offered by suppliers. Antwerp saw steady demand and good product avails. The Singapore fuel oil markets started the week mixed during the Asian Platts window yesterday ranging around parity. The delivered bunker premiums were between +$8.5 to +$11.0 above cargo prices amidst a tightening market also firm buying interst before the major regional holiday this week. Visco spreads weakened significantly during the last couple of days in the front with spot closing at $2.70/mt yesterday. February is trading at app.$5.5-5.0 while forward prices remain stable trading in a range of $8.0-7.5/mt for the rest of the year. 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) 95,72 ↑ 96,03 95,60 94,17 94,12 91,57 89,44 ICE Brent Swap (1st month) (1,19) 106,69 ↑ 106,89 106,38 106,00 105,62 104,39 102,85 ICE Gasoil Swap (1st month) (7,25) 914,50 ↑ 911,75 906,67 902,67 900,03 893,44 887,19 3.5% Barges FOB Rtdm 5,75 564,00 ↑ 571,00 572,50 572,50 572,25 570,50 566,75 3.5% Cargoes FOB Med 3,75 567,50 ↑ 568,50 569,75 569,75 569,50 567,75 564,00 1.0% Cargoes FOB NWE 0,50 581,25 ↑ 590,00 592,50 594,75 595,00 593,25 586,25 3% no. 6 USGC WB 0,05 88,15 ↑ 89,15 89,15 89,40 89,15 89,15 88,90 380 CST Cargoes FOB S'pore 0,50 610,75 ↑ 607,75 599,50 594,75 593,25 590,50 588,50 0.1 % GO Barges FOB Rtdm (7,50) 912,75 ↑ 913,25 908,25 904,25 901,25 896,25 890,25 Physical Rotterdam 380 CST 5,00 564,00 ↑ 576,25 577,75 577,75 577,50 575,75 572,00 Physical Singapore 380 CST 1,50 619,75 ↑ 613,00 604,75 600,00 598,50 595,75 593,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual New Home Sales Medium 27-Jan 10:00 AM Dec 440K 464K 414K Durable Orders High 28-Jan 8:30 AM Dec 2.8% 3.4% - Case-Shiller 20-city Index Medium 28-Jan 9:00 AM Nov 13.8% 13.6% - Consumer Confidence High 28-Jan 10:00 AM Jan 77.0 78.1 - FOMC Rate Decision High 29-Jan 2:00 PM Jan 0.25% 0.25% - Initial Claims Medium 30-Jan 8:30 AM 25-jan 330K 326K - GDP-Adv. High 30-Jan 8:30 AM Q4 3.5% 4.1% - PCE Prices-Core High 31-Jan 8:30 AM Dec 0.2% 0.1% - Chicago PMI Medium 31-Jan 9:45 AM Jan 57.0 60.8 - Michigan Sentiment- Final Medium 31-Jan 9:55 AM Jan 80.0 80.4 -

Source: OW Risk Management