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 edged lower as concerns over Ukraine eased, however rebounded on close yesterday, led mostly by strong US crude futures. The company in charge of the Seaway pipeline has plans to expand the capacity which will move oil out of Cushing inventory at much higher rate. This triggered buying on the crude futures yesterday. The May Brent futures settled at $106.79/bbl, up +$0.55 while the April WTI contracts gained +$1.62 to close at $99.70/bbl. The API report yesterday showed a build in crude stocks of 5.9 mbbl and a draw in gasoline and distillates of -1.4 mbbl and -0.67 mbbl respectively. The more widely watched US inventory report by the Department of Energy will be released later today and the expectations are as follows: Crude +2.61 mbbl, Gasoline -1.54 mbbl, Distillates -0.63 mbbl. Today, we will also see FOMC announcement on its update of the bond buying program. Market is expecting another $10 billion reduction in purchases. This morning, crude is trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw strengthening demand levels after Monday’s drop in prices. Delivered 380cst product in Rotterdam and Antwerp yesterday was assessed largely unchanged. Lsfo premiums eased as loadings improved though suppliers were still reporting delays to scheduled loading dates. The Singapore fuel oil prices fell app. -$5.0 during the Asian Platts window yesterday tracking the fall in crude prices. The delivered bunker premiums moved higher to around $6.0 on stronger demand as outrights prices softened. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 1,62 99,70 ↓ 98,30 97,40 96,49 97,40 94,81 92,67 ICE Brent Swap (1st month) 0,55 106,79 ↓ 106,23 105,94 105,56 105,06 104,58 102,18 ICE Gasoil Swap (1st month) 2,00 891,50 ↓ 889,25 889,50 889,33 889,44 885,06 - 3.5% Barges FOB Rtdm 2,50 574,25 ↓ 573,75 572,75 571,75 570,00 565,50 564,00 3.5% Cargoes FOB Med 1,75 569,75 ↓ 571,25 571,00 570,00 567,75 563,25 562,25 1.0% Cargoes FOB NWE 5,50 629,50 ↓ 606,50 601,00 599,25 597,50 590,25 580,75 3% no. 6 USGC WB 0,55 88,87 ↓ 89,45 89,27 89,37 88,82 88,12 87,72 380 CST Cargoes FOB S'pore (5,00) 592,75 ↓ 593,25 592,75 592,00 590,50 588,25 587,00 0.1 % GO Barges FOB Rtdm 3,25 890,50 ↓ 890,25 891,25 890,25 890,25 886,25 - Physical Rotterdam 380 CST 1,00 574,25 ↓ 579,00 578,00 577,00 575,25 570,75 569,25 Physical Singapore 380 CST (4,25) 598,25 ↓ 598,50 598,00 597,25 595,75 593,50 592,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Mar 8:30 AM Mar 2.0 4.5 5.6 Industrial Production Medium 17-Mar 9:15 AM Feb -0.1% -0.3% 0.6% Housing Starts Medium 18-Mar 8:30 AM Feb 875K 880K 907K Building Permits Medium 18-Mar 8:30 AM Feb 945K 937K 1018K Core CPI High 18-Mar 8:30 AM Feb 0.1% 0.1% 0.1% FOMC Rate Decision High 19-Mar 2:00 PM Mar 0.25% 0.25% - Initial Claims Medium 20-Mar 8:30 AM 15-mar 330K 315K - Existing Home Sales Medium 20-Mar 10:00 AM Feb 4.55M 4.62M - Philadelphia Fed Medium 20-Mar 10:00 AM Mar 2.0 -6.3 - Leading Indicators Medium 20-Mar 10:30 AM 15-mar 0.2% 0.3% -

Source: OW Risk Management