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

Yesterday Crude prices traded in a range without any fresh drivers. The June WTI futures lost -$0.51 to close at $100.26/bbl and Brent slipped -$0.09 to $108.04/bbl. Crude prices were impacted by a stronger US dollar. The weekly US jobless claims came out slightly lower than expected which continues to underscore an improving US labor market. Brent prices stayed bid on continuing uncertainty on Libya Oil export. Although ports in Eastern Libya appear to be opened it is another story in the West where divers tribal factions do not agree with the government to free some ports. Gazprom said it will only supply Ukraine with gas on pre-payment basis from June, raising the prospect of disruption in gas supplies through Ukraine where 15% of European gas transits. This morning, crude prices are trading firmly higher (+0,80%).

Fueloil Specifics

The NWE bunker fuel oil markets saw a mixed day yesterday. The main ports of Antwerp and Rotterdam reported sufficient demand with delivered 380cst product closing largely unchanged at the end of the day. Product availability remains tight both for LSFO and HSFO over the weekend. The Singapore fuel oil prices were trading $1.5-3.0/mt higher during the Platts window yesterday. The latest Singapore heavy residual inventory saw a draw of -2.4 mbbl to 19.96 mbbl. The delivered bunker premiums were seen app.$3.25 above cargo prices. Visco spreads have gained some strength during the last days and closed at $11.47/mt yesterday. May is trading at app.$10/mt while forward prices remain stable trading in a range of $7.0-7.5/mt for the rest of the year. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,51) 100,26 ↑ 100,03 99,06 98,04 95,34 92,79 90,99 ICE Brent Swap (1st month) (0,09) 108,04 ↑ 108,03 107,39 106,75 105,16 103,39 103,03 ICE Gasoil Swap (1st month) 1,25 903,25 ↑ 907,08 905,00 905,33 901,42 - - 3.5% Barges FOB Rtdm (0,25) 569,00 ↑ 575,00 573,50 571,50 565,50 564,00 560,00 3.5% Cargoes FOB Med (1,50) 570,25 ↑ 572,00 571,25 570,25 562,50 560,50 568,50 1.0% Cargoes FOB NWE 0,25 609,00 ↑ 612,25 608,75 604,75 593,25 583,00 579,75 3% no. 6 USGC WB (0,17) 91,58 ↑ 89,80 89,32 88,97 88,09 87,74 87,04 380 CST Cargoes FOB S'pore 0,75 586,75 ↑ 592,75 591,25 589,75 586,75 585,50 581,75 0.1 % GO Barges FOB Rtdm 0,75 901,00 ↑ 908,25 906,25 904,25 899,25 - - Physical Rotterdam 380 CST (1,00) 569,25 ↑ 580,25 578,75 576,75 570,75 569,25 565,25 Physical Singapore 380 CST (0,50) 590,75 ↑ 598,00 596,50 595,00 592,00 590,75 587,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Service Medium 5-May 10:00 AM Apr 54.0 53.1 55.2 Trade Balance Medium 6-May 8:30 AM Mar -$42.5B -$42.3B -$40.4B Initial Claims Medium 8-May 8:30 AM 3-May 325K 344K 319K Wholesale Inventories Medium 9-May 10:00 AM Mar 1.1% 0.5% - JOLTS- Job Openings Medium 9-May 10:00 AM Mar NA 4.173M -

Source: OW Risk Management