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 remain trading sideways only closing with marginal changes. The May Brent contract settled at $106.81/bbl down -$0.11 while May WTI edged up +$0.14 to close at $99.60/bbl. The recent weak Chinese manufacturing data continues to press Oil despite the geopolitical risk in Ukraine. The US March Manufacturing data from Markit showed a decline to 55.5 from the prior reading of 57.1 suggesting a slowdown in expansion. The Euro PMI remains marginally unchanged. Today, we will see US February New Home sales and prices and the March Consumer Confidence index being released to provide further guidance. This morning, crude prices are trading slightly up.

Fueloil Specifics

The NWE bunker fuel oil prices slipped yesterday. Delivered 380cst product was assessed some $3.0-4.0/mt down in Antwerp and Rotterdam. Suppliers reported improved lsfo avails pushing delivered premiums down. The Singapore fuel oil prices fell on the start of the week by more than -$1.5 during the Asian Platts window. The delivered bunker premiums softened to between +$3.0 to $4.5 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,14 99,60 ↑ 99,57 98,77 96,91 98,74 95,90 93,32 ICE Brent Swap (1st month) (0,11) 106,81 ↑ 106,85 106,60 106,19 105,66 105,14 102,63 ICE Gasoil Swap (1st month) (5,25) 895,25 ↑ 897,00 896,50 895,75 895,39 891,58 - 3.5% Barges FOB Rtdm (1,75) 572,00 ↑ 574,00 573,00 572,25 570,50 566,25 564,50 3.5% Cargoes FOB Med (5,25) 565,00 ↑ 569,50 570,50 570,00 568,00 563,75 562,75 1.0% Cargoes FOB NWE (5,25) 630,75 ↑ 613,25 606,00 603,25 600,50 592,00 581,75 3% no. 6 USGC WB (0,72) 87,71 ↑ 89,38 89,41 89,63 89,15 88,52 88,17 380 CST Cargoes FOB S'pore (1,50) 593,75 ↑ 594,25 594,00 593,25 592,00 590,00 588,25 0.1 % GO Barges FOB Rtdm - 894,75 ↑ 898,25 898,25 897,25 895,25 891,25 - Physical Rotterdam 380 CST (4,00) 573,25 ↑ 579,25 578,25 577,50 575,75 571,50 569,75 Physical Singapore 380 CST (1,00) 600,50 ↑ 599,50 599,25 598,50 597,25 595,25 593,50

Focus of the day: ARA

Just like the previous two weeks, Crimea remained the biggest uncertainty for the market, reaching its climax last week with US/EU sanctions against Russia, driving up crude. However over the weekend it cooled off significantly, leaving us at an ever sideways trading market fuel oil wise. Combined with very low demand there was no real ground to reach for higher levels. Buying close to paper or even beneath those levels wasn’t exceptional. The low sulphur premium remains high, hitting as high as 80 dollars last week. Now it’s back to a more ‘normal’ 65 dollar, which is still very high. Rumour has it that we will continue to pay premium for this product into the next month. Gasoil discounts, still low, but the price spread amongst various suppliers is getting wider, implying that the DMA-prices will be less under pressure in the near future. Notification periods for the different grades; four days for high sulphur enquiries and five working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller 20-city Index Medium 25-Mar 9:00 AM Jan 13.5% 13.4% - Consumer Confidence Medium 25-Mar 10:00 AM Mar 77.8 78.1 - New Home Sales Medium 25-Mar 10:00 AM Feb 430K 468K - Durable Orders High 26-Mar 8:30 AM Feb 1.0% -1.0% - Initial Claims Medium 27-Mar 8:30 AM 22-mar 330K 320K - GDP- 3rd estimate High 27-Mar 8:30 AM Q4 2.6% 2.4% - Pending Home Sales Medium 27-Mar 10:00 AM Feb -0.2% 0.1% - Personal Income Medium 28-Mar 8:30 AM Feb 0.0% 0.3% - PCE Prices- Core Medium 28-Mar 8:30 AM Feb 0.1% 0.1% - Michigan Sentiment- Final Medium 28-Mar 9:55 AM Mar 79.5 79.9 -

Source: OW Risk Management