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

It was a slow trading day yesterday as the US market was closed for holiday. There was no settlement for WTI futures and the February contract expires today. The March Brent futures slipped -$0.18 to settle at $111.71/bbl. The implication of the Algerian terrorist gas plant attack will mean an escalating cost to operating in unstable regions, increasing the risk premium. The Bank of Japan set a 2% inflation target without adding stimulus at least until next year. The US December Existing Home Sale data is to be released later today. The US inventory from API and DOE will be delayed by one day due to the US public holiday yesterday. This morning, crude is trading slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week with low liquidity. Prices in Rotterdam port were only marginally higher compared to Friday’s closing, 380cst product assessed app.$2/mt up. Lsfo avails in the port are tight and suppliers still report delays at loading installations. The Singapore fuel oil market prices fell between $4.0- 2.0/mt during the morning Platts window yesterday. Market remains weak with decent demand but ample supply. The delivered bunker premiums were around $3.0-4.0 above cargo prices. Bunker fuel oil swaps gained $1.5-0.-5/mt along the curve both for Rotterdam and Singapore papers. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q213 Q313 Q413 NYMEX WTI Swap (1st month) - - ↑ 96,01 96,38 96,68 96,82 96,52 95,53 ICE Brent Swap (1st month) 0,11 111,71 ↑ 111,42 110,57 109,88 109,27 107,41 107,41 ICE Gasoil Swap (1st month) 5,00 964,50 ↑ 964,92 955,75 947,25 942,94 932,47 924,51 3.5% Barges FOB Rtdm 1,75 612,25 ↓ 608,50 606,75 605,25 603,50 598,25 593,00 3.5% Cargoes FOB Med (5,75) 604,75 ↓ 603,00 602,00 601,00 599,25 594,00 589,00 1.0% Cargoes FOB NWE 6,75 646,25 ↓ 645,75 643,50 641,75 640,00 633,75 625,25 3% no. 6 USGC WB 0,47 96,25 ↓ 96,05 95,80 95,30 94,55 93,80 92,80 380 CST Cargoes FOB S'pore 1,75 635,25 ↓ 631,75 631,25 629,75 627,75 623,00 618,25 0.1 % GO Barges FOB Rtdm 9,50 965,50 ↑ 965,25 956,25 947,25 942,25 927,25 919,25 Physical Rotterdam 380 CST 2,00 617,00 ↓ 615,75 614,00 612,50 610,75 605,50 600,25 Physical Singapore 380 CST 1,25 638,00 ↓ 639,00 638,50 637,00 635,00 630,25 625,50

Focus of the day: ARA

It has been a pretty quiet week. Low demand made it a competitive market amongst the suppliers and traders. Low sulphur premiums appeared to soften a bit, but still remain strong. As for the gasoil market, not much has changed. Discounts remained intact there. Notification periods for the different grades remain unchanged; four days for high sulphur enquiries and three working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-jan 10:00 AM Dec 5.1M 5.04M - MBA Mortgage Index Medium 23-jan 7:00 AM 19-jan NA 15.2% - Initial Claims Medium 24-jan 8:30 AM 19-jan 365K 335K - Leading Indicators Medium 24-jan 10:00 AM Dec 0.5% -0.2% - New Home Sales Medium 25-jan 10:00 AM Dec 360K 377K -

Source: OW Risk Management