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

After a day of choppy trading, crude prices closed mixed yesterday. The June WTI futures settled at $96.39/bbl, down -$0.23 while Brent, inched up +$0.13to $104.47. Persistent doubts over Chinese economy weighed on sentiment as recent data showed that while April consumer inflation rose, China’s factory prices fell for the 14th month in a row. Faster that expected increase in the inflation rate limits the ability of the Central Bank to introduce easing measures to boost economic growth in the country. Yesterday the US weekly jobless claims saw a drop to one of the lowest since January 2008 at 323k giving mixed signals about demand for the world’s top two consumers. Spread between WTI and Brent narrowed to a new high below $8.0/bbl previously but corrected slightly yesterday to settle at $8.11. This morning, crude is trading down.

Fueloil Specifics

The NWE bunker fuel oil markets reported subdued activity and poor demand yesterday mainly due to the public holidays in the number of countries. Prices in the main ports were mixed as suppliers on duty were said to add holiday premiums due to limited avails. Delivered 380cst product in Rotterdam was assessed app.$2/mt down while same product in Antwerp was app.$1/mt up versus previous close. The Singapore fuel oil markets lost around $3.0 during the Platts window yesterday. The latest Singapore heavy residual inventory report saw another build of +1.2 mbbl to 19.71 mbbl. The delivered bunker premiums were seen app.$8.5 above cargo 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) (0,23) 96,39 ↓ 95,92 95,87 95,66 95,64 94,50 91,71 ICE Brent Swap (1st month) 0,13 104,47 ↓ 103,54 103,29 103,01 103,00 102,14 99,76 ICE Gasoil Swap (1st month) 3,75 867,50 ↓ 870,67 873,33 876,25 876,14 880,03 870,76 3.5% Barges FOB Rtdm 1,75 591,50 ↓ 585,00 583,00 581,50 582,50 577,50 568,50 3.5% Cargoes FOB Med 3,00 581,25 ↓ 578,75 577,75 576,50 575,50 569,00 563,75 1.0% Cargoes FOB NWE 2,00 610,00 ↓ 612,25 613,75 612,00 612,50 607,25 595,75 3% no. 6 USGC WB 0,05 91,93 ↓ 92,50 92,00 91,75 92,00 91,25 90,25 380 CST Cargoes FOB S'pore (3,50) 612,75 ↓ 608,25 606,50 605,00 606,00 601,75 593,50 0.1 % GO Barges FOB Rtdm 5,50 868,75 ↓ 871,25 874,25 876,25 876,25 880,25 871,25 Physical Rotterdam 380 CST (2,00) 593,75 ↓ 590,25 588,75 587,25 587,75 582,75 573,75 Physical Singapore 380 CST (1,50) 621,50 ↓ 615,50 613,25 611,75 612,25 608,00 600,75

Focus of the day: Piraeus

This week was busy in the East Med. Piraeus was faced with increased demand after business resumed on 8/5, at the end of the Greek Orthodox Easter holiday, during which Customs Offices were closed. Crude market traded up this week and CIF MED 3.5% was higher by $ 9.00 compared to last week of April; the bullish market boosted buying interest, however the majority of physical suppliers are still able to offer even for prompt enquiries. Product availability is very good, LSFO 380 is available and both refineries are working normally. Demand in Istanbul was also high; pricewise the port has become very competitive, with HSFO 380 levels being very close to those in Piraeus these days. The increased demand caused some suppliers to report being fully committed until beginning of next week, especially for large gasoil quantities. Barge availability will be very good beginning of next week.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 07-maj 3:00 PM Mar $16.0B $16.3B $8.0B Initial Claims Medium 09-maj 8:30 AM 4-May 340K 324K 323K Continuing Claims Medium 09-maj 8:30 AM 4-May 3050K 3019K 3005K Wholesale Inventories Medium 09-maj 10:00 AM Mar 0.3% -0.3% 0.4% Treasury Budget Medium 10-maj 2:00 PM Apr NA $59.1B -

Source: OW Risk Management