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 plunged again yesterday largely on Eurozone concerns led by worries over the Italian election result which with no strong majority in the parliament is a recipe for uncertainty. The Italian bond yields rose to new high while the market on a risk-off mode rushed towards safer assets like US Treasury or German Bonds. Expectations from the market towards a positive outcome from Iranians nuclear talks are not very high. The US economic data released yesterday were positive with the US February Consumer Confidence index at 69,2 cvs 62 exp. and the US January new home sales figures at a six-year high. US equities rebounded after the last days sharp sell off. The April WTI futures closed at $92.63/bbl, down -$0.48 and Brent settled at $112.71/bbl, down -$1.73. The Inventory Report by the US Energy Department will be released later today and the expectations are as follows: Crude +2.4 mbbl, Distillates -1.4 mbbl, Gasoline -0.9 mbbl. This morning, crude is trading 0,3% up.

Fueloil Specifics

The NWE bunker fuel oil markets closed lower yesterday. Main ports in the area saw average trading, with Rotterdam reporting tight avails on lsfo with some suppliers not able to quote before 1 March. Delivered 380cst product in Rotterdam was assessed app. $9/mt down. The Singapore fuel oil market fell app. -$3.5 during the morning Platts window yesterday tracking crude values. The Asian Fuel Oil crack is strengthening on improving fundamentals. The delivered bunker premiums were around $5.0 above cargo prices. Bunker fuel oil swaps lost app.$6/mt along the curve both for Rotterdam and Singapore papers. This morning both markets are trading flat.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) (0,48) 92,63 ↑ 93,03 93,40 93,70 93,68 93,84 93,29 ICE Brent Swap (1st month) (1,73) 112,71 ↑ 112,65 111,81 111,02 111,05 108,99 107,21 ICE Gasoil Swap (1st month) (22,00) 956,75 ↑ 957,58 954,92 950,25 950,44 940,53 932,28 3.5% Barges FOB Rtdm (8,00) 610,25 ↑ 611,25 610,25 609,25 609,25 605,75 601,00 3.5% Cargoes FOB Med (7,75) 609,00 ↑ 605,75 606,25 605,25 605,50 602,00 596,75 1.0% Cargoes FOB NWE (8,25) 640,50 ↑ 640,25 643,00 642,75 642,50 638,50 631,50 3% no. 6 USGC WB (1,18) 96,89 ↓ 96,70 96,45 95,95 95,95 95,45 94,70 380 CST Cargoes FOB S'pore (3,75) 633,50 ↓ 632,75 631,50 631,25 631,00 628,25 624,50 0.1 % GO Barges FOB Rtdm (21,00) 954,25 ↑ 958,25 955,25 950,25 951,25 940,25 932,25 Physical Rotterdam 380 CST (9,00) 616,00 ↑ 618,50 617,50 616,50 616,50 613,00 608,25 Physical Singapore 380 CST (4,50) 638,50 ↓ 640,50 639,25 639,00 638,75 636,00 632,25

Focus of the day: Singapore

Singapore's onshore fuel oil stocks climbed almost 10% this last week. They rose 1.787 million barrels to a three-week high of 20.628 million barrels. Arbitrage volumes from the West were up 67% week-on-week at around 1.04 million metric tonnes. Arrivals from the United States and Venezuela were also high, at 213,000 mt and 297,000 mt respectively. Exports to China totaled 183,000 mt, three times the volume of the previous week, reflecting a revival in demand for straight-run fuel oil from China's independent 'teapot refiners’. Bunker prices continued falling in all key Asian ports this Tuesday. Singapore's price of benchmark 380cst bunker fuel dropped $2 to average at $640/mt while marine gas oil dropped $5.50 to $972.50/mt. Demand was mostly average for traders, with few reporting "low" demand. Supplies were fine and earliest avails would be from February 27 to March 4, subject to supplier.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case Shiller 20-city Index Medium 26-feb 9:00 AM Dec 6.0% 5.5% 6.8% New Home Sales Medium 26-feb 10:00 AM Jan 375K 369K 437K Consumer Confidence High 26-feb 10:00 AM Feb 62.5 58.6 69.0 Durable Orders High 27-feb 8:30 AM Jan -5.0% 4.3% - Initial Claims Medium 28-feb 8:30 AM 23-feb 365K 362K - GDP- Second Estimate High 28-feb 8:30 AM Q4 0.1% -0.1% - Chicago PMI Medium 28-feb 9:45 AM Feb 54.0 55.6 - Personal Income Medium 01-mar 8:30 AM Jan -2.4% 2.6% - Personal Spending Medium 01-mar 8:30 AM Jan 0.1% 0.2% - PCE Price- Core Medium 01-mar 8:30 AM Jan 0.2% 0.0% - Michigan Sentiment-Final Medium 01-mar 9:55 AM Feb 75.0 76.3 - ISM Index High 01-mar 10:00 AM Feb 52.0 53.1 -

Source: OW Risk Management