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 were trading sideways during European time and moved up during the US session showing no sign of fatigue so far. The weak US dollar was also Oil supportive. The June WTI contract closed at $94.50/bbl, up $1.50 and Brent at $103.81/bbl, up $0.65. The US Energy Information Administration (EIA) revised higher the February Oil demand but it is still lower year on year. Today, we will see a series of US economic data with the US February Home price index and the US April consumer confidence among others. The market is also likely to be on hold before tomorrow’s US FOMC, Thursday’s ECB announcements and also the US April employment index on Friday. Market volumes are also likely to be more subdued due to Labor Day holiday tomorrow for a number of countries. This morning, crude is trading slightly down.

Fueloil Specifics

The Northwest European bunker fuel oil markets opened the week with marginal gains. Delivered 380cst product in Rotterdam and Antwerp gained app.$2/mt. Demand in the area remained sluggish while deliveries have been improving. Trading is expected to be limited today due to national holiday in Netherlands. The Singapore fuel oil markets remained largely flat; ranging between -$0.5 to +$1.5 during the Platts window yesterday. The delivered bunker premiums were heard to be $6.0-8.0 above cargo prices. The Singapore market is closed tomorrow on Labor Day holiday and reopens on Thursday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. May Jun Jul Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,50 94,50 ↓ 94,58 94,72 94,63 94,24 92,92 90,12 ICE Brent Swap (1st month) 0,65 103,81 ↓ 103,53 103,15 102,78 102,40 101,30 98,73 ICE Gasoil Swap (1st month) (1,25) 857,50 ↓ 857,92 862,42 866,33 868,92 871,56 861,59 3.5% Barges FOB Rtdm 1,50 584,75 ↑ 585,75 583,50 581,25 579,75 574,00 566,25 3.5% Cargoes FOB Med 1,50 578,00 ↑ 579,75 578,75 577,00 576,50 568,50 563,00 1.0% Cargoes FOB NWE 0,75 589,50 ↑ 595,75 600,75 604,00 603,50 599,50 591,75 3% no. 6 USGC WB 0,00 91,50 ↓ 92,10 91,85 91,35 91,35 90,35 89,35 380 CST Cargoes FOB S'pore (0,50) 609,75 ↑ 611,00 607,25 604,25 603,50 598,75 592,00 0.1 % GO Barges FOB Rtdm (0,75) 855,75 ↓ 859,25 863,25 867,25 869,25 875,25 863,25 Physical Rotterdam 380 CST 2,00 587,25 ↑ 593,00 590,75 588,50 587,00 581,25 573,50 Physical Singapore 380 CST (1,00) 618,25 ↑ 618,25 614,00 611,00 609,75 605,00 599,25

Focus of the day: ARA

The story remains basically unchanged compared to last week. We are moving into May, whereas the low sulphur market is in contango and the high sulphur market is more backwardated, you could see there was a slight urge of getting rid of the high sulphur before paying the backwardation. The low sulphur premium is still struggling finding more strength. Our advice to procure well in advance therefore remains, since a short term rise is still to be expected. The gasoil market seems to gain strength. The real steals are seldom seen at this moment and it is to be expected that the discounts will decrease even further. Notification periods for the different grades; five 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 Personal Income Medium 29-apr 8:30 AM Mar 0.3% 1.1% 0.2% PCE Prices - Core High 29-apr 8:30 AM Mar 0.1% 0.1% 0.0% Chicago PMI Medium 30-apr 9:45 AM Apr 52.0 52.4 - Construction Spending Medium 30-apr 10:00 AM Mar 0.4% 1.2% - Initial Claims Medium 02-maj 8:30 AM 24-apr 346K 339K - Productivity-Prel Medium 02-maj 8:30 AM Q1 1.2% -1.9% - Trade Balance High 02-maj 8:30 AM Mar -$43.5B -$43.0B - Nonfarm Payrolls High 03-maj 8:30 AM Apr 150K 88K - Unemployment Rate High 03-maj 8:30 AM Apr 7.6% 7.6% - Factory Orders Medium 03-maj 10:00 AM Mar -2.5% 3.0% - ISM Services High 03-maj 10:00 AM Apr 54.0 54.4 -

Source: OW Risk Management