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

Yesterday Crude prices extended their gains for sixth consecutive day.. The August WTI contract settled at $89.70/bbl, up +$0.65 and September Brent was up +$1.16 to $105.16/bbl. Crude prices were trading higher supported by better than expected US corporate earnings reports and also a jump in the US June new housing construction number, at the fastest pace since 2008. The US Weekly Inventory Report proved to be supportive as the gasoline stockpile saw a massive draw of -1.8 mbbl against estimate of +1.2 mbbl which reflected stronger demand during this summer driving season. The crude inventory was within expectations while distillates inventory surged. Also on the geopolitical side with an escalating civil war in Syria coupled with Israel pointing at Iran for a bombing of a bus in Bulgaria. This morning, crude is trading up. Please, note we will not publish the market update tomorrow. The next issue will be published on Monday, the 23-rd of July.

Fueloil Specifics

NWE bunker fuel prices were up again yesterday. Cargo prices were up by approx. $8/mt while 380cst bunker fuel gained a dollar less. ARA hub prices had been pushed higher by stronger crude values while the local supply from Russia remains healthy and demand is modest at the best. The Singapore fuel oil market prices inched up gaining approx. $0.5/mt at the Platts window. The Asian fuel oil cracks widened again yesterday. The incoming July cargo volume is estimated to equal 3.0 to 3.5 million mt while August arbitrage is calculated at 2.5 - 3.0 million mt. The delivered bunker premiums softened to approx. $7.50/mt above cargo prices yesterday. Bunker fuel swaps were strongly up yesterday with a slightly different dynamic in Europe and Asia. Rotterdam 3.5% Barges FOB papers gained approx. $8.5/mt in the front while prices forward were a little less strong, adding approx. $7.25/mt to the price of the 2013 papers. Singapore 180 cst Cargo FOB papers were even stronger. Front month was assessed up by almost $12/mt. Forward prices were even stronger gaining a few cents more than August papers. Both markets continue moving up this morning.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q412 Q113 2013 NYMEX WTI Swap (1st month) 0.65 89.87 ↑ 90.99 91.30 91.63 91.96 92.64 91.96 ICE Brent Swap (1st month) 1.16 105.16 ↑ 105.61 105.04 104.67 104.34 103.40 104.34 ICE Gasoil Swap (1st month) 11.75 906.25 ↑ 913.92 911.17 907.75 904.53 851.50 891.14 3.5% Barges FOB Rtdm 8.25 602.25 ↑ 605.50 601.75 599.00 597.00 592.00 585.25 3.5% Cargoes FOB Med 5.50 597.50 ↑ 602.00 597.50 594.75 592.75 587.75 581.50 1.0% Cargoes FOB NWE 7.25 646.25 ↑ 647.50 641.25 636.25 632.75 625.00 618.50 3% no. 6 USGC WB 1.10 93.60 ↑ 93.15 92.65 92.40 90.90 90.15 90.65 380 CST Cargoes FOB S'pore 0.75 617.25 ↑ 628.50 625.50 623.75 621.25 615.75 608.50 0.1 % GO Barges FOB Rtdm 10.75 903.00 ↑ 915.25 913.25 909.25 909.25 900.25 893.25 Physical Rotterdam 380 CST 7.00 610.00 ↑ 615.75 612.00 609.25 607.25 602.25 595.50 Physical Singapore 380 CST 1.00 625.50 ↑ 638.75 635.75 634.00 632.00 626.50 619.25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 16-Jul 8:30 AM June 0.2% -0.2% -0.5% Business Inventories Medium 16-Jul 10:00 AM May 0.2% 0.2% -0.4% CPI High 17-Jul 8:30 AM June 0.1% -0.3% 0.0% Industrial Production High 17-Jul 9:15 AM June 0.3% -0.1% 0.4% Housing Strats High 18-Jul 8:30 AM June 743K 708K 760K Initial Claims Medium 19-Jul 8:30 AM 14-Jul 365K 350K - Existing Home Sales Medium 19-Jul 10:00 AM June 4.65M 4.55M - Leading Indicators Low 19-Jul 10:00 AM June -0.2% 0.3% -

Technical indicators

Daily Charts Resistance Brent WTI GO Near 107.45 92.70 917.45 Next 108.25 94.10 930.40 Strong 109.50 94.25 935.20 Support Brent WTI GO Near 104.25 89.05 908.50 Next 103.55 88.50 897.35 Strong 102.55 87.65 888.80       All three contracts we up again in line with expectations. We remain positive and move targets to 50% Fibo of the March – June correction, which is @ 108.25 for Brent. Please note the contracts departed from s/t MAs and gained quite a bit very quickly. We therefore may encounter a degree of correction on the way higher. This positive view remains unchanged while the contracts trade above s/t MAs or overbought conditions are signaled by oscillators. An eventual advance of the EUR/USD above the resistance @ 1.2351 would reinforce the bullish view.

Source: OW Risk Management