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 mixed last week mostly on Brent/WTI spread trading. The March WTI futures settled at $96.64/bbl, down -$0.68 and Brent slightly up +$0.30 to $107.88/bbl. This narrowed the spread to $10.81/bbl on close. The US cold weather is boosting the Heating oil demand as showed in the last US Inventory Report with a draw in Distillates while demand for gasoline was low as traveling stalls. This morning Asian Equity markets are under pressure (particularly Malaysia) as concern of a sell off in emerging market assets is still on the agenda after currencies from Turkey to Argentina sank last week. This week focus will be on the outcome of the FOMC meeting on Wednesday. The market expects another $10bln bond buying downscaling in view of the firm US macroeconomic data. Today, we will see the US December New Home sales and Dallas Fed Manufacturing Activity. This morning, crude prices are trading mixed with Brent lower -0,32 and WTI up +0,41.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed the week slightly lower supported by well supplied stocks. Delivered 380cst product in Rotterdam and Antwerp lost app.$3/mt. The Singapore fuel oil markets closed mixed during the Platts window last Friday ranging between -$4.0 and +$0.5. The fuel oil cargo market especially the bunker grade 380cst remains tight as cargo premium strengthened. The delivered bunker premiums were between +$7.5 to +$12.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) (0,68) 96,64 ↑ 96,88 96,35 94,69 94,68 91,94 89,87 ICE Brent Swap (1st month) 0,30 107,88 ↓ 107,30 106,75 106,34 105,93 104,54 102,85 ICE Gasoil Swap (1st month) (0,75) 921,75 ↑ 920,67 913,58 907,58 905,28 900,47 894,17 3.5% Barges FOB Rtdm (2,00) 558,00 ↑ 567,25 569,25 570,75 571,00 569,75 566,50 3.5% Cargoes FOB Med (4,50) 564,50 ↑ 564,25 567,25 568,00 568,25 567,00 563,75 1.0% Cargoes FOB NWE (3,25) 581,50 ↑ 588,25 591,00 593,25 594,50 593,75 587,00 3% no. 6 USGC WB 0,21 87,35 ↑ 89,15 89,40 89,90 89,65 89,40 89,40 380 CST Cargoes FOB S'pore 0,50 610,00 ↑ 607,25 599,25 594,25 592,75 590,50 589,00 0.1 % GO Barges FOB Rtdm 0,75 920,25 ↑ 922,25 915,25 909,25 905,25 898,25 892,25 Physical Rotterdam 380 CST (3,00) 559,00 ↑ 572,50 575,25 576,00 576,25 575,00 571,75 Physical Singapore 380 CST 1,00 618,25 ↑ 612,50 604,50 599,50 598,00 595,75 594,25

Focus of the day: Gibraltar

Activity is picking up this morning at the major Mediterranean hub of Gibraltar after a relatively weak demand last week. Most suppliers’ barge schedules are still available for accommodating prompt deliveries in a market that remains quite competitive. CIF Med 3.5% is trading some 25 usd/mt above FOB Barges Rotterdam and the HILO is currently around 29 usd/mt in the Med. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual New Home Sales Medium 27-Jan 10:00 AM Dec 440K 464K - Durable Orders High 28-Jan 8:30 AM Dec 2.8% 3.4% - Case-Shiller 20-city Index Medium 28-Jan 9:00 AM Nov 13.8% 13.6% - Consumer Confidence High 28-Jan 10:00 AM Jan 77.0 78.1 - FOMC Rate Decision High 29-Jan 2:00 PM Jan 0.25% 0.25% - Initial Claims Medium 30-Jan 8:30 AM 25-jan 330K 326K - GDP-Adv. High 30-Jan 8:30 AM Q4 3.5% 4.1% - PCE Prices-Core High 31-Jan 8:30 AM Dec 0.2% 0.1% - Chicago PMI Medium 31-Jan 9:45 AM Jan 57.0 60.8 - Michigan Sentiment- Final Medium 31-Jan 9:55 AM Jan 80.0 80.4 -

Source: OW Risk Management