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 lost all their previous day gains in a volatile session. The July WTI contract closed at $93.13, down -$1.88 and Brent was - $1.80 to settle at $102.43. Short term, ironically, better US economic data have a negative impact on the market as it would be the sign that the US Federal Reserve is close to reducing its loose monetary policy. OPEC is likely to hold production target when they meet this coming Friday. The API inventory reported a more than expected build across the crude and product stockpiles with Oil stock rising to the highest level for three decades at 395,1 mbbl. Note that Global stocks decline as Japanese shares correction continues losing  more than 5%. Today the more widely watched US Energy department will release its weekly inventory report and the expectations are as follows: Crude -0.35 mbbl, Distillates +0.02 mbbl, Gasoline +0.06 mbbl. The market will be focusing on the US weekly jobless claims, April Pending homes sales data and also the US 1st Q GDP revision to provide further guidance. This morning, crude is trading around -0,40% down.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported subdued trading activity and higher premiums for prompt deliveries. Some suppliers were not able to offer any hsfo before next week. Delivered 380cst product in Rotterdam and Antwerp was assessed $6-7/mt down versus previous days close. The Singapore fuel oil markets extended gains by more than $3.0 during the morning Platts window yesterday. Bunker demand was said to be soft and supply was ample. The delivered bunker premiums remained around $7.00 above cargoes prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) (1,88) 93,13 ↓ 92,69 92,88 92,88 92,81 91,86 89,34 ICE Brent Swap (1st month) (1,80) 102,43 ↓ 102,08 101,84 101,50 101,47 100,50 98,15 ICE Gasoil Swap (1st month) (10,50) 865,25 ↓ 860,33 861,83 863,83 863,61 866,17 856,17 3.5% Barges FOB Rtdm (4,50) 581,75 ↓ 576,00 573,25 571,25 572,25 568,00 560,50 3.5% Cargoes FOB Med (5,00) 574,25 ↓ 570,00 568,00 566,50 567,50 562,25 557,00 1.0% Cargoes FOB NWE (5,25) 602,50 ↓ 601,25 604,00 602,25 602,75 597,50 587,25 3% no. 6 USGC WB (1,41) 90,02 ↓ 90,10 89,85 89,60 89,60 88,85 88,15 380 CST Cargoes FOB S'pore 3,50 605,25 ↓ 597,75 596,75 594,25 595,00 591,00 584,25 0.1 % GO Barges FOB Rtdm (10,50) 865,75 ↓ 861,25 862,25 864,25 864,25 866,25 857,25 Physical Rotterdam 380 CST (6,00) 586,75 ↓ 581,25 579,00 577,00 577,50 572,25 566,25 Physical Singapore 380 CST 3,00 612,50 ↓ 605,00 603,50 601,00 601,25 597,25 593,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Schiller 20-city Index Medium 28-May 9:00 AM Mar 10.0% 9.3% 10.9% Consumer Confidence High 28-May 10:00 AM May 72.5 68.1 76.2 Initial Claims Medium 30-May 8:30 AM 25-May 345K 340K - Continuing Claims Medium 30-May 8:30 AM 18-May 3000K 2912K - GDP-2nd estimate High 30-May 8:30 AM Q1 1.2% 1.2% - Pending Home Sales Medium 30-May 10:00 AM Apr 0.0% 1.5% - Personal Income Medium 31-May 8:30 AM Apr -0.2% 0.2% - Chicago PMI Medium 31-May 9:45 AM May 49.5 49.0 - Michigan Sentiment Medium 31-May 9:55 AM May 82.5 83.7 -

Source: OW Risk Management