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 closed the week slightly lower after two strong days. The June WTI contract closed at $93.00/bbl, -$0.64 and the Brent contract at $103.16/bbl, down -$0.25 last Friday. Crude prices were initially under pressure but rebounded on later trading session. Crude prices have displayed some level of resilience after the recent sharp sell-off, rebounding $6 /bbl. on Brent on better US Quarterly earnings and hope of more monetary easing from Japan and the ECB this Thursday with a 0,25% cut. On Friday the US first quarter GDP was reported at +2.5%; lower than the expected +3% but still a decent number compared to Q4 2012 at 0,4%. It remains to be seen whether the recent run up in Crude prices is sustainable amidst general soft sentiment, especially with all the questions about China’s economic strength. This morning, crude is trading slightly down.

Fueloil Specifics

The Singapore fuel oil markets were up by more than +$8.5 during the Platts window last Friday tracking the stronger crude movement. The Singapore heavy residual inventory saw a marginal draw -0.03 mbbl to 16.46 mbbl. The delivered bunker premiums slipped to around $8.25 above cargo prices last Friday as the higher outright prices dampened buyers interest.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Yesterday's Values Forward Indications               Product Change Last Dir. May Jun jul Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,57 93,00 ↑ 93,47 93,66 93,60 93,23 91,88 89,45 ICE Brent Swap (1st month) 1,43 103,16 ↑ 102,98 102,68 102,32 101,94 100,89 98,53 ICE Gasoil Swap (1st month) 11,25 858,75 ↓ 857,00 861,08 865,00 866,56 869,25 858,67 3.5% Barges FOB Rtdm 3,75 583,25 ↑ 582,75 580,00 577,75 575,75 570,00 562,00 3.5% Cargoes FOB Med 2,50 576,25 ↑ 577,25 575,25 574,25 571,50 563,75 558,75 1.0% Cargoes FOB NWE 3,75 588,75 ↑ 594,75 598,75 602,25 601,25 597,25 588,75 3% no. 6 USGC WB 0,70 91,25 ↑ 88,80 88,05 87,80 87,05 87,30 86,80 380 CST Cargoes FOB S'pore 8,50 610,00 ↑ 607,50 603,25 608,25 599,25 594,50 587,75 0.1 % GO Barges FOB Rtdm 0,00 857,00 ↓ 858,25 862,25 866,25 868,25 872,25 860,25 Physical Rotterdam 380 CST 3,00 585,25 ↑ 590,00 587,25 585,00 583,00 577,25 569,25 Physical Singapore 380 CST 8,50 618,75 ↑ 614,75 610,50 615,50 606,50 601,75 595,00

Focus of the day: Gibraltar

Both sides of the Algeciras bay are running smoothly this morning, without major delays at any of the ports. There is good product avails at the three ports and prompt deliveries can still be accommodated. Weather forecast is good for the week so no major issues are expected. CIF Med 3.5% is trading some +$9 above FOB Barges Rotterdam and the HILO spread is currently around $11/mt. in the Med, with the premium of CIF Med 1% over FOB NWE 1% is currently on $15/mt. The spread between the Gibraltar Strait and some of the Mainland ports is narrowing to quite competitive levels for those working cargo in places such as Barcelona. The Gibraltar Strait is seeing quite healthy demand this morning and the Mediterranean market is trading up.

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual Personal Income Medium 01-apr 8:30 AM Mar 0.3% 1.1%   PCE Prices - Core High 01-apr 8:30 AM Mar 0.1% 0.1%   Chicago PMI Medium 01-apr 9:45 AM Apr 52.0 52.4   Construction Spending Medium May 1 10:00 AM Mar 0.4% 1.2%   Initial Claims Medium May 2 8:30 AM 01-apr 346K 339K   Productivity-Prel Medium May 2 8:30 AM Q1 1.2% -1.9%   Nonfarm Payrolls High May 3 8:30 AM Apr 150K 88K   Trade Balance High May 2 8:30 AM Mar -$43.5B -$43.0B   Unemployment Rate High May 3 8:30 AM Apr 7.6% 7.6%   Factory Orders Medium May 3 10:00 AM Mar -2.5% 3.0%   ISM Services High May 3 10:00 AM Apr 54.0 54.4

Source: OW Risk Management