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

Yesterday Crude Oil took a breather and closed lower for the first time in two weeks. The March WTI contract  settled at $96.17/bbl down  by -$1.60 and Brent at $115.60/bbl down, -$1.16. The market consolidated after the Euro/Usd lost two figures to 1,3511 and equities corrected  as well. There were renewed concerns on the Euro debts crisis as Italian and Spanish bond yields rose on fears about both countries’ leadership. The December US factory orders figures were lower at +1.8%  compared to  +2.3% expected. The willingness of Iran to negotiate with US directly over the nuclear program also helped to soften crude prices. China PMI services rose to 54,0 for January up from 51,7 in December showing the strongest growth in four months. This week, US economic data are relatively thin. The Eurozone leaders will meet at the Euro summit in the latter part of the week. This morning, crude is trading marginally higher. Dear readers, due to technical issues we are not able to post price indications this morning. We apologize for inconvenience.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with improved demand levels and product supplies in both Rotterdam and Antwerp ports. Delivered 380cst product in Rotterdam was assessed app. $2/mt down from Friday’s close while cargo prices lost a dollar more. The Singapore fuel oil market opened the week keeping its rally, moving up $4.0-1.5 during the morning Platts window yesterday. The demand was said to be slow and the Asian market will progressively wind down due to the Lunar New Year coming this weekend. The delivered bunker premiums were $6.0 to $9.0 above cargo prices. This morning both markets are trading slightly up.

Focus of the day: ARA

It has been an interesting week with January ending. Low demand made it a competitive market mostly amongst the suppliers, trying to get rid of their volume in order to prevent paying the backwardation over their stock. Especially on the low sulphur market the last trading day of January proved to be interesting. Heavy discounts during the day compared to paper, only to be corrected by a mere ten dollars in ten minutes on market’s close. Hence low sulphur premiums are at a stable 30 dollars again. As for enquiries, a notification of three days still proves to be sufficient in Rotterdam and Antwerp. On the high sulphur the backwardation remains intact, mainly due to congestion/queuing at the various terminals. 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 Factory Orders Medium 04-feb 10:00 AM Dec 3.0% 0.0% 1.8% ISM Services Medium 05-feb 10:00 AM Jan 55.5 56.1 - MBA Mortgage Index Medium 06-feb 7:00 AM 02-feb NA -8.1% - Initial Claims Medium 07-feb 8:30 AM 02-feb 365K 368K - Continuing Claims Medium 07-feb 8:30 AM 26-jan 3200K 3198K - Consumer Credit Medium 07-feb 3:00 PM Dec $10.0B $16.0B - Trade Balance Medium 08-feb 8:30 AM Dec -$42.5B -$48.7B - Wholesale Inventories Medium 08-feb 10:00 AM Dec 0.7% 0.6% -

Source: OW Risk Management