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 seven days of gains crude prices closed mostly flat last Friday. The crude complex and equities had firm gains during the week as markets have an optimistic economic outlook forward so far. The Euro rose against the US dollar to a 11 month high after the ECB reported that Eurozone banks will pay back close to double the amount expected of the 3-year loans. The IFO German business confidence figures rose for the 3rd consecutive months, supporting the Euro. The gains were later capped as the latest US December New Homes sales data were lower than expected. The March WTI futures settled at $95.88/bbl, slipped a mere -$0.07 while Brent remained unchanged at $113.28/bbl. On the data side today will be published the US December Durable Goods Orders and US December Pending Home sales. This morning, crude is trading mixed with Brent app. 0.2% down.

Fueloil Specifics

The Northwest European fuel oil markets saw stronger demand at the end of the week. Prices in the area remained largely unchanged, with Rotterdam 380cst delivered product assessed app. $1/mt down. Delays at loading installations continue to hinder operations in Rotterdam; however some suppliers reported reduced waiting time. The Singapore fuel oil market rose more than $4.5 during the morning Platts window last Friday. The bunker demand was said to be muted in the light of higher outright prices. The delivered bunker premiums were seen app. $4.5 above cargo prices last Friday. 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 Q213 Q313 Q413 NYMEX WTI Swap (1st month) (0,07) 95,88 ↑ 96,04 96,47 96,88 97,16 96,80 95,72 ICE Brent Swap (1st month) 0,00 113,28 ↓ 112,54 111,53 110,69 109,98 107,98 107,98 ICE Gasoil Swap (1st month) (7,50) 968,50 ↓ 964,00 956,50 948,83 944,58 934,36 924,64 3.5% Barges FOB Rtdm (2,00) 614,50 ↑ 614,00 612,50 611,25 610,00 605,25 600,00 3.5% Cargoes FOB Med (3,50) 604,50 ↑ 607,75 607,50 606,50 605,75 600,75 595,75 1.0% Cargoes FOB NWE (4,00) 647,25 ↑ 649,50 648,25 647,25 646,25 640,25 631,50 3% no. 6 USGC WB 0,31 97,81 ↓ 97,05 96,30 96,05 95,80 95,05 94,05 380 CST Cargoes FOB S'pore 5,25 635,00 ↑ 634,00 635,25 634,50 633,50 629,00 624,50 0.1 % GO Barges FOB Rtdm (7,75) 968,50 ↓ 964,25 957,25 949,25 944,25 929,25 921,25 Physical Rotterdam 380 CST (1,00) 619,25 ↑ 621,25 619,75 618,50 617,25 612,50 607,25 Physical Singapore 380 CST 5,50 638,75 ↑ 641,25 642,50 641,75 640,75 636,25 631,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 28-jan 8:30 AM Dec 2.5% 0.8% - Pending Home Sales Medium 28-jan 8:30 AM Dec 0.0% 1.7% - Case-Shiller 20-city Index Medium 29-jan 9:00 AM Nov 5.0% 4.3% - Consumer Confidence High 29-jan 10:00 AM Jan 61.0 65.1 - ADP Employment Change Medium 30-jan 8:15 AM Jan 175K 215K - GDP- Adv. High 30-jan 8:30 AM Q4 0.2% 3.1% - FOMC Rate Decision High 30-jan 2:15 PM Jan 0.25% 0.25% - Initial Claims Medium 31-jan 8:30 AM 26-jan 365K 330K - PCE Prices- Core Medium 31-jan 8:30 AM Dec 0.1% 0.0% - Chicago PMI Medium 31-jan 9:45 AM Jan 50.0 48.9 - Nonfarm Payrolls High 01-feb 8:30 AM Jan 195K 155K - Unemployment Rate High 01-feb 8:30 AM Jan 7.7% 7.8% - Michigan Sentiment- Final Medium 01-feb 9:55 AM Jan 70.5 71.3 - ISM Index High 01-feb 10:00 AM Jan 49.5 50.7 -

Source: OW Risk Management