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 oil prices inched higher yesterday supported by worries that violence in Iraq could disrupt oil supplies. The July WTI contract closed at $104.40/bbl, up +$0.05 while Brent settled at $109.95/bbl, up +$0.43. The US inventory report showed a crude draw of -2.60mbbl despite a decline in the refinery utilization rate of -2.9%. The draw was mostly brought about by a 15 year low decline in crude imports as local crude oil is used. The supportive inventory report however was negated by a gasoline stockpiles build of +1.70mbbl suggesting a pretty weak demand during the current summer driving season. OPEC has decided to remain status quo at 30 mbpd for the fifth straight session which is below the forecast demand for the balance of this year. Today, we will see the release of a series of US economic data namely; the US weekly jobless claims and also the US May retail sales figures. This morning, crude prices are trading significantly higher with Brent touching $111.42/bbl, the highest level since March.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported a relatively quiet day. Delivered 380cst product in the main ports of Rotterdam and Antwerp was assessed app.$3/mt compared to previous day. Even though lsfo avails for prompt deliveries improved, some suppliers still struggled with delays at loading installations. The Singapore fuel oil prices extended gains yesterday and rose up to $2.0 during the Asian Platts window. The delivered bunker premiums were firmer ranging between $4.5 and $6.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jul Aug Sep Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,05 104,40 ↑ 104,24 103,25 102,20 100,10 97,14 94,86 ICE Brent Swap (1st month) 0,43 109,95 ↑ 110,15 109,47 108,91 107,95 106,38 105,77 ICE Gasoil Swap (1st month) 8,25 893,00 ↑ 904,92 906,67 907,92 906,50 - - 3.5% Barges FOB Rtdm 2,75 578,25 ↑ 583,75 581,50 579,00 575,25 574,25 570,75 3.5% Cargoes FOB Med 2,75 569,25 ↑ 579,75 578,75 577,75 572,50 570,50 578,50 1.0% Cargoes FOB NWE 1,25 628,25 ↑ 622,75 620,00 614,75 603,50 594,50 591,25 3% no. 6 USGC WB 0,85 91,33 ↑ 91,85 91,05 90,72 89,93 89,56 88,86 380 CST Cargoes FOB S'pore 2,00 599,25 ↑ 604,50 601,25 599,00 597,25 596,50 593,25 0.1 % GO Barges FOB Rtdm 6,75 891,00 ↑ 905,25 907,25 908,25 906,25 - - Physical Rotterdam 380 CST 3,00 579,25 ↑ 589,00 586,75 584,25 580,50 579,50 576,00 Physical Singapore 380 CST 3,00 604,50 ↑ 609,75 606,50 604,25 602,50 601,75 598,50

Focus of the day: Houston

In the USA, high sulfur bunker prices increased following higher fuel oil prices, despite weak demand and ample supplies in Houston on Wednesday. IFO 380 CST Houston levels were around $598/mt, which was a discount of $9/mt to the same product in Panama, the narrowest level ever seen between the two ports.

Economy fundamentals this week

Fundamental Indicators Wholesale Inventories Medium 10-Jun 10:00 AM Apr 0.2% 1.1% 1.1% Intial Claims Medium 12-Jun 8:30 PM 07-jun 320K 312K - Continuing Claims Medium 12-Jun 8:30 AM 07-jun 2625K 2603K - Retail Sales High 12-Jun 8:30 AM May 1.3% 0.7% - Core PPI High 13-Jun 8:30 AM May 0.2% 0.5% - Michigan Sentiment Medium 13-Jun 9:55AM Jun 82.5 82.9 -

Source: OW Risk Management