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 saw the biggest recent decline in a day with a massive drop of more than -$3.0/bbl yesterday. Bond prices, global equities and commodities plunged in a sharp sell-off triggered by US Federal Reserve plan to reduce the pace of monetary stimulus and to possibly end it by June next year. Market saw red in equities with the S&P down 2% while gold hit a two and half year low. The market sentiment was bearish driven down by additional negative news as Chinese June manufacturing activities hit a 9 month low. China’s economy grew at its slowest pace in 13 years and this year’s growth is weaker than expected. The US weekly jobless claims rose more than expected while the US May existing home sales were better than market expectation. The July WTI expired yesterday, loosing -$2.84 to $95.40/bbl while the next most active August contract closed at $95.40/bbl, down -$95.14/bbl. The August Brent contracts lost $3.97/mt to $102.15/bbl. This morning, crude rebounding and is trading 0,7% up.

Fueloil Specifics

The NWE bunker fuel oil markets tumbled yesterday following significant drop in crude prices. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$16/mt down versus previous days close. Prompt supplies were still hindered by ongoing congestions and operational delays. Waiting time was said to be up to 4 days. There was reported average demand and balanced supplies in Antwerp. The Singapore fuel oil markets fell more than -$8.0 during the Asian Platts window yesterday. The Singapore heavy residual inventory reported a massive build of +2.0 mbbl to 24.36 mbbl, a recent record high. The delivered bunker premiums were app. $6.0 above cargoes prices. This morning both markets are trading slightly higher.

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) - 95,14 ↑ 95,74 95,66 95,26 94,01 91,98 89,86 ICE Brent Swap (1st month) (3,97) 102,15 ↑ 102,82 102,46 102,11 101,40 99,36 98,87 ICE Gasoil Swap (1st month) (22,00) 875,75 ↑ 875,67 875,17 875,25 875,58 871,53 860,87 3.5% Barges FOB Rtdm (16,75) 574,25 ↑ 577,00 576,25 574,00 569,25 567,50 561,75 3.5% Cargoes FOB Med (16,00) 578,00 ↑ 574,00 570,50 567,75 563,75 561,75 559,00 1.0% Cargoes FOB NWE (18,75) 603,50 ↑ 605,75 603,75 602,50 599,25 597,75 589,75 3% no. 6 USGC WB (3,26) 88,22 ↑ 90,60 90,25 89,50 89,25 89,00 88,75 380 CST Cargoes FOB S'pore (8,75) 603,00 ↑ 596,50 596,25 594,50 593,00 590,25 586,75 0.1 % GO Barges FOB Rtdm (22,00) 878,75 ↑ 876,25 875,25 876,25 875,25 871,25 860,25 Physical Rotterdam 380 CST (17,00) 580,75 ↑ 582,25 580,00 577,25 574,00 572,25 566,50 Physical Singapore 380 CST (10,50) 608,75 ↑ 602,25 602,50 601,25 599,75 596,75 593,00

Focus of the day: Piraeus

This week has been busy in Piraeus. Demand is at a year high during the summer months due to the number of cruisers calling the port. Average 3.5% Cif Med for the week was higher by $7.45 compared to last week and the bullish market boosted demand. However crude market has been trading down the last couple of days and bunker prices in the MED are expected to drop significantly. Product availability in Piraeus has improved significantly and both refineries are able to offer both HSFO and LSFO. Istanbul demand was satisfactory this week as well, while the tight product avails situation we had experienced in this port has been resolved and almost all physical suppliers are now able to quote even for prompt enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Jun 8:30 AM Jun 1.0 -1.4 7,8 NAHB Housing Market Index High 17-Jun 10:00 AM Jun 45 44 52 Core CPI High 18-Jun 8:30 AM May 0.1% 0.1% 0.2% Housing Starts Medium 18-Jun 8:30 AM May 925K 853K 914K Building Permits Medium 18-Jun 8:30 AM May 975K 1017K 974K FOMC Rate Decision High 19-Jun 2:00 PM Jun 0.25% 0.25% 0.25% Initial Claims Medium 20-Jun 8:30 AM 15-jun 345K 334K 354K Existing Home Sales Medium 20-Jun 10:00 AM May 4.95M 4.97M 5.18M Philadelphia Fed Medium 20-Jun 10:00 AM Jun 2.0 -5.2 12.5 Leading Indicators Medium 20-Jun 10:30 AM 15-jun 0.2% 0.6% 0.1%

Source: OW Risk Management