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 Oil weakness continued yesterday accelerating on the European close. Crude finally rebounded slightly but still closed lower compared to Friday. The April WTI contract managed to close above the $90 mark at $90.12/bbl, down -$0.56 and  Brent  settled back above the $110 mark at $110.09/bbl, slipping by only -$0.31. Same drivers are weighting on the market, China’s slowdown, automatic spending cuts of 85 Bln usd in the US and sentiment of ample Oil supply in the market. The Chinese annual parliamentary meeting is underway and pledged its commitment to boost fiscal spending to continue to support a 7.5% economic growth this year. This morning crude prices are trading 0,6% up on speculation that Central Banks around the world will continue with measures to support the economic recovery.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week with weak demand and falling prices. Delivered 380cst product in Rotterdam lost app.$1/mt versus previous day. Lsfo avails remain tight in Rotterdam and could not be offered before Thursday. Antwerp port reported improving demand however suppliers were delayed due to tight barge avails. The Singapore fuel oil market extended its loss by -$3.5 to -$2.5 during the morning Platts window yesterday. Bunker demand was said to be average, slowing picking up in the latter trading session. The delivered bunker premiums were ranging between $5.0 to $6.5 above cargo prices. This morning both markets are trading higher.

Settlement & Indications

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,34 90,12 ↑ 91,05 91,44 91,70 91,72 90,88 89,05 ICE Brent Swap (1st month) 0,47 110,09 ↑ 109,25 108,39 107,69 106,28 104,45 101,21 ICE Gasoil Swap (1st month) 3,00 919,00 ↑ 924,08 921,33 918,75 915,11 907,64 886,40 3.5% Barges FOB Rtdm (1,50) 594,75 ↑ 603,00 602,25 601,50 601,50 596,50 582,75 3.5% Cargoes FOB Med (1,50) 592,75 ↑ 598,75 598,50 597,50 598,00 592,00 578,75 1.0% Cargoes FOB NWE (4,00) 623,75 ↑ 634,50 635,50 635,50 634,75 628,50 611,00 3% no. 6 USGC WB (0,27) 94,77 ↑ 94,95 94,95 94,70 94,20 93,45 88,45 380 CST Cargoes FOB S'pore (3,25) 625,50 ↑ 627,00 626,25 625,75 625,00 621,00 608,50 0.1 % GO Barges FOB Rtdm (0,50) 916,75 ↑ 924,25 922,25 919,25 916,25 907,25 886,25 Physical Rotterdam 380 CST (1,00) 600,00 ↑ 610,25 609,50 608,75 608,75 603,75 590,00 Physical Singapore 380 CST (3,50) 629,75 ↑ 634,75 634,00 633,50 632,25 628,25 615,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Services Medium 05-mar 10:00 AM Feb 56.0 55.2 - ADP Employment Change Medium 06-mar 8:15 AM Feb 150K 192K - Factory Orders Medium 06-mar 10:00 AM Jan -3.0% 1.8% - Initial Claims Medium 07-mar 8:30 AM 02-mar 355K 344K - Trade Balance Medium 07-mar 8:30 AM Jan -$45.0B -$38.5B - Consumer Credit Medium 07-mar 3:00 PM Jan $10.0B $14.6B - Nonfarm Payroll High 08-mar 8:30 AM Feb 170K 157K - Unemployment Rate High 08-mar 8:30 AM Feb 7.9% 7.9% - Wholesale Inventories Medium 08-mar 10:00 AM Jan 0.2% 0.2% -

Source: OW Risk Management