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 oil prices finished lower again. The June WTI contract expired at $91.66/bbl, down -$0.91 and the July future closed at $91.85/bbl, down -$1.01. The July Brent contract lost only -$0.40 to close at $108.41/bbl. Market gave up its initial gains on hopes of today’s EU summit after a former Prime Minister, Mr. Papademos, mentioned that the risk of a “Grexit” is possible. The Greek election on the 17th June is now seen as a plebiscite for the Euro. US have approved a new sanction package against Iran but market reaction was smoothed by the announcement that Iran was accepting again inspectors from the International Energy. Today the market continues to be under pressure with Eur/Usd trading below 1,2650. The US Energy department will release its Inventory Report later today and the expectations are as follows: Crude +1.6 mbbl, Distillates -0.2 mbbl, Gasoline -4.5 mbbl. This morning, crude is trading down.

Fueloil Specifics

The Northwest European bunker fuel oil prices posted gains yesterday for a second day in a row. Delivered 380cst product was up app.$7/mt on higher cargo prices that were assessed more than $5/mt higher versus previous day close. Ports in the NWE area reported increased buying interest. Product avails for prompt deliveries remain on the low side in Rotterdam. The Singapore fuel oil markets extended its second day gain more than $3.5 during the morning Platts window yesterday tracking the firm crude movement. The delivered bunker premiums slipped to around $5.0 above cargo prices. Bunker fuel oil swaps gained more than $9/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend again was weaker, with calendar 2013 papers assessed app.$5.5/mt up versus previous day close. This morning both markets are trading lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q312 Q412 2013 NYMEX WTI Swap (1st month) (0.91) 91.85 ↓ 91.16 91.43 91.64 91.67 92.49 92.49 ICE Brent Swap (1st month) (0.40) 108.41 ↓ 107.00 106.42 105.88 105.89 104.71 104.71 ICE Gasoil Swap (1st month) 6.25 917.75 ↓ 905.17 903.00 903.02 903.00 902.19 890.08 3.5% Barges FOB Rtdm 5.50 624.50 ↓ 612.75 609.25 606.25 606.25 597.75 580.50 3.5% Cargoes FOB Med 8.00 621.50 ↓ 607.75 604.50 601.75 601.75 593.25 576.00 1.0% Cargoes FOB NWE 6.50 662.25 ↓ 654.75 652.75 649.75 649.25 636.25 617.00 3% no. 6 USGC WB (0.33) 96.63 ↓ 95.95 95.53 95.13 93.98 92.93 91.43 380 CST Cargoes FOB S'pore 4.50 651.50 ↓ 641.00 637.50 634.25 635.00 625.75 606.75 0.1 % GO Barges FOB Rtdm 5.25 921.00 ↓ 905.25 902.25 902.25 902.25 902.25 893.25 Physical Rotterdam 380 CST 7.00 632.00 ↓ 623.00 619.50 616.50 616.50 608.00 590.75 Physical Singapore 380 CST 3.00 657.00 ↓ 651.25 647.75 644.50 645.75 636.50 617.50

Focus of the day: Singapore

Onshore stocks of fuel oil in Singapore have fallen to a four-week low and inventories were down by 7.5% in the week ending May 16, slipping by 1.5 million barrels to stand at 18.371 million barrels. Observers said Western arbitrage arrivals totaled just over 500,000mt, down more than 200,000mt week-on-week. More volumes were also being sent to Malaysia, contributing to the draw-down. More than 300,000mt was moved from Singapore in the last seven days, twice as much as in the week ending May 10. The decline in stocks coincided with a fall in fixed-price levels for intermediate fuel oil (IFO) in the Singapore bunker market. That fall contributed to a rise in demand, although activity had slowed in recent days with end-users holding out for lower prices. Bunker prices were firming in key Asian markets on Tuesday. In Singapore, the price of 380cst gained $4 to $655/mt. Marine gas oil prices were also up by $4 to average $918.50/mt. Demand was average and supplies fine, according to traders. Earliest dates for bunker deliveries were from May 27 to May 30.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-May 10:00 AM Apr 4.65M 4.48M 4.62M New Home Sales Medium 23-May 10:00 AM Apr 340K 328K - FHFA Housing Price Index Medium 23-May 10:00 AM Mar NA 0.3% - Initial Claims Medium 24-May 8:30 AM 19-May 365K 370K - Durable Orders High 24-May 8:30 AM Apr 0.3% -3.9% - Michigan Sentiment-Final Medium 25-May 9:55 AM May 77.5 77.8 -

Source: OW Risk Management