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

The market calendar was set on politics for a while and finally played out this week, with Crude Oil pricing an optimistic outcome. The compromise hasn’t really addressed any core issues (next deadline @ 1st March 2013), but the market took the vote as a sign of things to come, and the expectations that the other items at issue will also end with an acceptable conclusion. Also the US ISM Manufacturing came out better than expected at 50,7 showing that this sector is expanding and so did the Chinese ISM Non Manufacturing. In terms of data, focus will be on Friday’s Non-Farm Payrolls report- and Weekly Department of Energy stock Report. Today we will have some kind of pre-numbers with the US ADP Employment Change and Initial Jobless Claims. This morning Crude Oil is trading lower.

Fueloil Specifics

The Northwest European fuel oil markets started the year with a relatively quiet day, with most buyers hesitant to fix any deals. Both delivered 380cst product in Rotterdam and cargo prices were assessed up by more than $14/mt following surging crude oil. Barges avails for prompt deliveries remain tight in Rotterdam while Hamburg reported tight LSFO avails. Asian fuel oil prompt viscosity spreads were weaker on Wednesday, with January plunging to a 14-month low. Market fundamentals remained weak with the supply glut persisting. Western arbitrage arrivals this month are also expected to be high. Delivered 380cst in Singapore was seen yesterday in a range between $600-608/mt.  Today as yesterday swaps traded up - Bal Jan 380FO value 618.50 (+4.75). This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jan Feb Mar Q213 Q313 2013 NYMEX WTI Swap (1st month) 1,30 93,12 ↓ 92,82 93,27 93,73 94,25 94,28 93,95 ICE Brent Swap (1st month) 1,36 112,47 ↓ 111,35 110,29 109,50 108,26 106,45 107,48 ICE Gasoil Swap (1st month) 15,50 942,50 ↓ 937,92 937,08 933,83 926,61 919,50 923,45 3.5% Barges FOB Rtdm 15,75 591,50 ↑ 595,75 597,75 598,75 599,75 599,00 598,00 3.5% Cargoes FOB Med 16,00 584,50 ↑ 586,75 589,75 588,75 593,75 593,75 592,25 1.0% Cargoes FOB NWE 17,25 657,50 ↑ 617,25 621,75 623,75 626,25 627,00 624,25 3% no. 6 USGC WB 1,63 96,88 ↑ 95,05 94,55 94,30 93,80 93,55 93,80 380 CST Cargoes FOB S'pore 7,75 613,50 ↑ 619,25 621,50 622,75 624,00 623,75 622,50 0.1 % GO Barges FOB Rtdm 16,25 941,75 ↓ 938,25 938,25 934,25 928,25 919,25 921,25 Physical Rotterdam 380 CST 14,00 598,00 ↑ 606,00 608,00 609,00 610,00 609,25 608,25 Physical Singapore 380 CST 8,00 617,25 ↑ 629,50 631,75 633,00 634,75 634,50 633,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 02-jan 10:00 AM Dec 51.0 49.5 50.7 Construction Spending Medium 02-jan 10:00 AM Nov 0.5% 1.4% -0.3% MBA Mortgage Index Medium 03-jan 7:00 AM 29-dec NA -12.3% - Challenger Job Cuts Medium 03-jan 7:30 AM Dec NA 34.4% - ADP Employment Change Medium 03-jan 8:15 AM Dec 150K 118K - Initial Claims Medium 03-jan 8:30 AM 29-dec 365K 350K - Nonfarm Payrolls Medium 04-jan 8:30 AM Dec 150K 146K - Unemployment Rate High 04-jan 8:30 AM Dec 7.7% 7.7% - Factory Orders Medium 04-jan 10:00 AM Nov 0.5% 0.8% - ISM Services Medium 04-jan 10:00 AM Dec 53.5 54.7 -

Source: OW Risk Management