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 managed to close firmly higher breaking three days of sideway trading. The August WTI futures settled at $97.05/bbl, up +$1.55 and  Brent at $102.82/bbl, up +$1.16. Equities were firm as comments by numerous Federal officials helped ease concerns that the US central bank could move soon to scale down its stimulus measures. US economic data continue to be positive; the weekly US jobless claims dipped slightly to 346k from 355k while the May US personal income rose by 0.5%. The US May pending homes sales shot up 6.7%. “With shale Oil boom, the US is on course to be the largest Oil producer by 2017 but only if the price of crude stays above $75/bbl  in the next few years according to a much detailed study. Shale Oil production could increase from 1,5m b/d in 2012 to 5m b/d in 2017. With conventional Oil it would take US production to 10,9m b/d comparable to a peak in 1970. Today, the market is waiting for the June Chicago PMI and US June consumer sentiment index. This morning, crude is trading up(+0,41%).

Fueloil Specifics

The Northwest European bunker fuel oil prices rose in the main ports yesterday. Delivered 380cst product in Rotterdam and Antwerp gained app.$6/mt. Demand in the area remained low. Product avails improved in Rotterdam, with some suppliers able to offer for most prompt deliveries without any restrictions. Antwerp suppliers were booked until June 29-30 with prompt product offered at higher premiums. The Singapore fuel oil markets fell between -$10.0 to -$2.0 during the Asian Platts window yesterday. The big difference in the fall was mainly due to the lack of support for the 180cst cargo after nearly one month of bull play. The delivered bunker premiums were around $7.25 above cargoes prices. This morning both markets are trading flat.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,18 97,05 ↑ 97,60 97,29 96,58 95,01 92,77 90,65 ICE Brent Swap (1st month) 0,40 102,82 ↑ 103,08 102,66 102,24 101,49 100,39 98,87 ICE Gasoil Swap (1st month) (7,75) 882,75 ↑ 883,50 879,33 876,92 875,06 872,19 862,06 3.5% Barges FOB Rtdm 5,50 571,25 ↑ 572,25 569,25 567,25 564,25 562,50 557,00 3.5% Cargoes FOB Med 4,50 569,00 ↑ 567,25 564,50 562,00 558,50 556,50 553,75 1.0% Cargoes FOB NWE 9,75 595,50 ↑ 598,25 598,25 597,00 594,50 593,25 585,50 3% no. 6 USGC WB 0,15 88,63 ↑ 89,75 89,75 89,25 88,75 88,50 87,75 380 CST Cargoes FOB S'pore (2,25) 582,00 ↑ 588,75 589,25 589,25 588,00 585,00 582,00 0.1 % GO Barges FOB Rtdm 20,00 886,00 ↑ 884,25 880,25 877,25 874,25 869,25 861,25 Physical Rotterdam 380 CST 6,00 576,25 ↑ 577,50 574,50 572,50 569,50 567,75 562,25 Physical Singapore 380 CST (2,50) 589,00 ↑ 596,00 596,50 596,50 595,25 592,25 589,25

Focus of the day: Piraeus

Demand in Piraeus and Istanbul was high this week. Crude market was very volatile and CIF MED 3.5% dropping $25.00 on average compared to last week. Despite the soft market the number of enquiries in both Greece and Turkey was high, as traffic in the East MED is higher during the summer months, both because of the liners/cruisers calling the major ports in this area, as well as the spot market, which has picked up during the last months. Product availability in Piraeus is very good and both Hellenic Petroleum and MOH refinery are operating to their full capacity. In Istanbul the tight product avails situation has been resolved and all physical suppliers are able to quote HSFO, even for prompt enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 25-Jun 8:30 AM May 4.5% 3.5% 3.6% Case-Shiller 20-city Index Medium 25-Jun 9:00 AM Apr 105% 10.9% 12.1% Consumer Confidence High 25-Jun 10:00 AM Jun 72.0 76.2 81.4 New Home Sales Medium 25-Jun 10:00 AM May 470K 454K 476K GDP- Third Estimate Medium 26-Jun 8:30 AM Q1 2.4% 2.4% 1.8% Initial Claims Medium 27-Jun 8:30 AM 22-jun 345K 354K 346K Personal Income Medium 27-Jun 8:30 AM May 0.1% 0.0% 0.5% PCE Prices Medium 27-Jun 8:30 AM May 0.2% 0.0% 0.2% Pending Home Sales Medium 27-Jun 10:00 AM May 1.5% 0.3% 6.7% Chicago PMI Medium 28-Jun 9:45 AM Jun 52.0 58.7 - Michigan Sentiment Medium 28-Jun 9:55 AM Jun 81.0 82.7 -

Source: OW Risk Management