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 Oil volatility continues with Oil falling more than 2.2% before bouncing back nearly $3. The June contract managed to stay above parity, inching up 9 cents to settle at $94.30/bbl and Brent- which is expiring later today- closed at $103.68/bbl, up 1.08. The next active contract, July Brent, closed at $103.50. Initially, crude prices were under pressure after lower than expected 1st Quarter GDP in Germany and France. The US weekly Oil inventory report added to Oil woes as products showed heavy builts, over 2 Mios bbl. Although the crude stockpile drew marginally, the inventory level at Cushing- delivery point for WTI crude futures- saw a build. To comfort the bears the US April Industrial output fell -0.5% and the Empire Manufacturing figures were disappointing. However, crude prices finished in the green on market expectations that central banks will continue their loose monetary policies. Note that Japan’s economy expanded the most in 1 year in Q1 with +3,5% on exports gains and consumer spending. Today market will focus on the US weekly jobless claims, April core CPI, Housing Starts and Building Permits. This morning, crude is trading around 0,60% down.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported mixed demand and tight supplies yesterday. Delivered 380cst product in Rotterdam was assessed app.$6/mt down versus previous days close and nearly - $9/mt in Antwerp. Many suppliers were reporting delays at loading installations in Rotterdam with only few of them able to offer HSFO product for prompt deliveries. The Singapore fuel oil markets further fell more than $4.0 during the Platts window yesterday. Bunker demand was said to be slow. The delivered bunker premiums were around $6.5 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,09 94,30 ↓ 93,76 93,77 93,61 93,58 92,77 90,41 ICE Brent Swap (1st month) 1,08 103,68 ↓ 102,78 102,48 102,16 102,16 101,25 98,99 ICE Gasoil Swap (1st month) (14,00) 846,75 ↑ 861,58 864,33 867,58 867,47 871,42 865,58 3.5% Barges FOB Rtdm (7,25) 572,00 ↑ 577,75 575,75 574,00 574,00 569,25 563,25 3.5% Cargoes FOB Med (6,50) 560,75 ↑ 571,25 569,75 568,50 567,25 562,00 559,50 1.0% Cargoes FOB NWE (8,75) 591,00 ↑ 604,00 606,25 605,00 605,50 600,50 591,00 3% no. 6 USGC WB 0,96 91,36 ↓ 90,80 90,80 90,55 90,80 90,05 89,30 380 CST Cargoes FOB S'pore (4,50) 591,75 ↑ 599,50 598,50 597,50 597,25 593,25 587,75 0.1 % GO Barges FOB Rtdm (14,50) 846,50 ↑ 862,25 865,25 867,25 867,25 871,25 865,25 Physical Rotterdam 380 CST (6,00) 576,75 ↑ 583,00 581,50 579,75 580,25 575,50 571,00 Physical Singapore 380 CST (4,00) 597,75 ↑ 606,75 605,25 604,25 604,50 600,50 597,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 13-May 8:30 AM Apr -0.7% -0.4% 0.1% Business Inventories Medium 13-May 10:00 AM Mar 0.4% 0.1% 0.0% Core PPI Medium 15-May 8:30 AM Apr 0.2% 0.2% 0.1% Empire Manufacturing Medium 15-May 8:30 AM May 1.0 3.1 -1.4 Industrial Production Medium 15-May 9:15 AM Apr -0.5% 0.4% -0.5% Initial Claims Medium 16-May 8:30 AM 11-May 335K 323K - Continuing Claims Medium 16-May 8:30 AM 11-May 3015K 3005K - Core CPI High 16-May 8:30 AM Apr 0.2% 0.1% - Housing Starts Medium 16-May 8:30 AM Apr 915K 1036K - Building Permits Medium 16-May 8:30 AM Apr 950K 902K - Philadelphia Fed Medium 16-May 10:00 AM May 2.0 1.3 - Mich Sentiment Medium 17-May 9:55 AM May 79.0 76.4 - Leading Indicators Medium 17-May 10:00 AM Apr 0.3% -0.1% -

Source: OW Risk Management