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 closed higher for a seventh day in a row. The optimism wave on the general economy continues after yesterday’s better than expected China Manufacturing number. The US weekly jobless claims fell to a 5 years low. Euros and equities were also stronger reflecting a more positive market sentiment. In the flow of news, a relatively bearish US inventory weekly report yesterday was ignored. The crude and distillates stocks build more than expected with gasoline reporting a surprise draw of 1,6 Mios bbl. The March WTI futures closed at $95.95/bbl, up +$0.72 and March Brent edged up $0.48 to $113.28/bbl. The US December New Home sales figures will be released later today. This morning, crude is trading down.

Fueloil Specifics

The Northwest European fuel oil market prices moved up following stronger crude values. Delivered 380cst product in Rotterdam was assessed up by app.$4/mt. The port is still struggling with delays at loading installations, with many suppliers not able to offer before 28-29 January. The Singapore fuel oil market prices rose more than $3.0 during the morning Platts window yesterday. The Singapore heavy residual inventory saw a draw of -0.8 mbbl to 17.6 mbbl to a 5 month low citing stronger demand regionally. The delivered bunker premiums were around +$7.0- 4.0 above cargo prices yesterday. Bunker fuel oil swaps gained over $6/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was a few dollars weaker. This morning both markets are trading slightly 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) 0,72 95,95 ↑ 96,44 96,94 97,41 97,56 97,11 96,12 ICE Brent Swap (1st month) 0,48 113,28 ↓ 112,73 111,81 111,04 110,36 108,38 108,38 ICE Gasoil Swap (1st month) 5,25 976,00 ↓ 968,08 960,33 953,08 947,42 935,94 926,58 3.5% Barges FOB Rtdm 4,50 616,50 ↓ 615,75 614,50 613,25 612,00 607,50 602,50 3.5% Cargoes FOB Med 6,25 608,00 ↓ 609,50 609,50 608,50 607,75 603,00 598,25 1.0% Cargoes FOB NWE 7,75 651,25 ↓ 651,75 650,50 649,50 648,50 643,25 634,75 3% no. 6 USGC WB 0,57 96,75 ↑ 97,30 96,80 96,30 95,30 94,55 94,05 380 CST Cargoes FOB S'pore 3,75 629,00 ↓ 636,25 637,50 636,75 634,75 631,00 626,00 0.1 % GO Barges FOB Rtdm 6,00 977,00 ↓ 968,25 961,25 953,25 948,25 935,25 926,25 Physical Rotterdam 380 CST 4,00 620,25 ↓ 623,00 621,75 620,50 619,25 614,75 609,75 Physical Singapore 380 CST 2,00 633,25 ↓ 643,50 644,75 644,00 643,00 639,25 634,25

Focus of the day: Piraeus

Crude values went up this week, pushing cargo prices in the Med upwards. The higher prices increased demand after a week of reduced activity. However fuel prices in Piraeus were very low as the competition between suppliers is very strong, following days of poor demand. Product and barge availability was very good in Piraeus and both Hellenic Petroleum and MOH Refinery are working normally. The weather was rough during the last couple of days in the Mediterranean, causing disruptions in supplies in several ports; supplies in Piraeus anchorage were carried out normally.

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 4.94M MBA Mortgage Index Medium 23-jan 7:00 AM 19-jan NA 15.2% 7.0% Initial Claims Medium 24-jan 8:30 AM 19-jan 365K 335K 330K Leading Indicators Medium 24-jan 10:00 AM Dec 0.5% -0.2% 0.5% New Home Sales Medium 25-jan 10:00 AM Dec 360K 377K -

Source: OW Risk Management