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

It was a volatile session for Crude Oil yesterday rallying two dollars during the European morning and losing all the gains into the US evening. The April WTI contract settled at $93.11/bbl, (-$0.02) and Brent closed at $114.44/bbl, up only +$0.34. Uncertainty and confusion about the Italian election results sent the Euro/Usd sharply lower. Also fears that US Crude supplies are increasing-probably climbing to a seven month high- are adding pressure. Today, we will see US February consumer confidence index and also the US New homes sales figures. This morning, crude is trading 0,80% lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week on firmer levels. Delivered 380cst product in Rotterdam was assessed up by $7/mt. Liquidity levels remained low in ARA hub, while trading in Scandinavian ports was medium. The Singapore fuel oil market rebounded and gained more than $1.5 during the morning Platts window yesterday after several days of softening. The delivered bunker premiums were seen between $5.0 to $6.0 above cargo prices as stronger crude values lifted outright bunker prices after the window. Bunker fuel oil swaps gained up to $6/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly weaker, with cal2014 papers gaining app.$3.5/mt. This morning both markets are trading lower.

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) (0,02) 93,11 ↓ 92,48 92,87 93,19 93,15 93,47 93,30 ICE Brent Swap (1st month) 0,34 114,44 ↓ 113,06 112,20 111,42 111,44 109,34 107,37 ICE Gasoil Swap (1st month) 1,00 978,75 ↓ 964,75 961,58 957,08 957,06 941,92 931,56 3.5% Barges FOB Rtdm 5,75 619,00 ↓ 613,25 612,25 611,25 611,25 608,00 603,25 3.5% Cargoes FOB Med 6,50 616,25 ↓ 607,75 608,00 607,00 607,25 604,00 598,75 1.0% Cargoes FOB NWE 6,00 648,00 ↓ 644,25 646,00 645,75 645,25 641,00 633,50 3% no. 6 USGC WB 0,42 98,07 ↓ 97,15 96,65 96,15 96,15 95,40 94,65 380 CST Cargoes FOB S'pore 1,25 637,25 ↓ 634,50 633,50 633,75 633,25 630,50 626,25 0.1 % GO Barges FOB Rtdm 0,25 975,75 ↓ 965,25 962,25 957,25 958,25 945,25 936,25 Physical Rotterdam 380 CST 7,00 624,75 ↓ 620,50 619,50 618,50 618,50 615,25 610,50 Physical Singapore 380 CST 1,50 643,75 ↓ 642,25 641,25 641,50 641,00 638,25 634,00

Focus of the day: ARA

Finally the market has been showing some volatility, resulting in interesting spot prices and supplier behaviour. The fuel market got more backwardated at the beginning of this week. This may result in sharp spot levels for prompt enquiries by suppliers stuck with stock and not willing to pay the backwardation. On the physical side there seems to be no lack of high sulphur avails at this moment, even though the forward curve indicates otherwise.  On the low sulphur market, not much has changed. A little more notification is advised. The gasoil market has not moved much. Notification periods for the different grades; four days for high sulphur enquiries and four working days for low sulphur enquiries.

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% - New Home Sales Medium 26-feb 10:00 AM Jan 375K 369K - Consumer Confidence High 26-feb 10:00 AM Feb 62.5 58.6 - 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