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

Happy New Year! Crude prices traded lower on the last day of the year. The February WTI futures closed down-$0.87 to $98.42/bbl while the February Brent contract also similarly lost -$0.41 to settle at $110.80/bbl. The crude market has been supported by the geopolitical tensions stirring in the Middle East and Africa last year especially in Iran and Libya. The latest developments are that Libya production is said to be resuming after the government has been in talks with the rebels to end the shutdown of the oil producing facilities. Chinese Manufacturing PMI data published this morning came out at 51.0 (exp. 51.2) showing that factory activity in the country expanded at the slowest pace in three months. However, it remained above 50 showing still growing business activity. Today, we will see the weekly US jobless claims and December ISM manufacturing data later this afternoon. The US DOE inventory report is postponed due to the holidays and will be released tomorrow. This morning, crude prices are trading marginally higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets remained quiet on the last day of the year. Delivered 380cst product in Rotterdam was assessed app.$1/mt down compared to previous close while Antwerp posted nearly $5/mt losses. The Singapore fuel oil markets dipped more than $2.0 during the Platts window on Tuesday. The latest Singapore heavy residual stockpile reported a draw -0.98 mbbl to 20.67 mbbl. The delivered bunker premiums were at around +$5.0 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. Jan Feb Mar Q114 Q214 Q314 NYMEX WTI Swap (1st month) (0,87) 98,42 ↑ 98,79 98,84 98,08 98,74 97,18 94,85 ICE Brent Swap (1st month) (0,41) 110,80 ↑ 110,89 110,67 110,35 110,67 109,58 107,96 ICE Gasoil Swap (1st month) (1,25) 944,25 ↓ 942,42 941,42 939,17 941,00 933,08 926,94 3.5% Barges FOB Rtdm (1,00) 580,25 ↑ 586,00 587,25 587,00 586,75 586,75 585,25 3.5% Cargoes FOB Med (1,25) 574,00 ↑ 584,75 585,50 585,00 585,00 584,50 583,75 1.0% Cargoes FOB NWE (6,25) 594,00 ↑ 598,00 602,75 604,50 601,75 606,25 606,75 3% no. 6 USGC WB (1,20) 91,25 ↑ 92,40 92,15 92,15 92,15 91,65 91,65 380 CST Cargoes FOB S'pore (2,50) 616,75 ↑ 614,00 611,00 608,00 611,00 606,00 604,50 0.1 % GO Barges FOB Rtdm (1,50) 943,50 ↓ 943,25 942,25 940,25 942,25 935,25 928,25 Physical Rotterdam 380 CST (1,00) 589,25 ↑ 591,25 592,50 592,25 592,00 592,00 590,50 Physical Singapore 380 CST (2,00) 621,25 ↑ 619,25 616,25 613,25 616,25 611,25 609,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Initial Claims Medium 2-Jan 8:30 AM 28-dec 340K 338K - Continuing Claims Medium 2-Jan 8:30 AM 21-dec 2875K 2923K - ISM Index Medium 2-Jan 10:00 AM Dec 56.7 57.3 -

Source: OW Risk Management