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 closed mixed yesterday. Current Oil price movements are more attributed to the Brent-WTI spread moves as supply build up is expected in the US. The May WTI contract closed at $97.19/bbl, up only +$0.12. The US February Factory Orders data reported a solid growth of +3,0%. The US crude contract managed to stay supported by rallying equities despite a more bearish US API inventory report which showed a 4.71mbbl crude stockpile build and -5.02mbbl draw in gasoline. The May Brent futures on the other hand, slipped -$0.39 to settle at $110.69/bbl pressured by a weaker Euro-dollar. The Japanese stock market rose sharply as the BoJ board meeting is on the way. The US Energy department will release their Weekly Inventory Report later today and the expectations are as follows: Crude +2.2 mbbl, Distillates -1.1 mbbl, Gasoline -0.8 mbbl. This morning, crude is trading around 0,35% down.

Fueloil Specifics

The NWE bunker fuel oil prices edged up after long weekend, however retreated in the afternoon following lower crude values. Delivered 380cst product in Rotterdam and Antwerp was assessed nearly $6/mt up from previous close. The Singapore fuel oil market rose more than $6.5 during the morning Platts window yesterday on stronger previous crude close. The intermonth spreads softened on weaker demand seen from the Chinese buyers while incoming products are arriving steadily. The delivered bunker premiums were between $7.5- 8.25 above cargo prices. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,12 97,19 ↓ 96,93 97,22 97,29 96,77 95,93 93,11 ICE Brent Swap (1st month) (0,39) 110,69 ↓ 110,21 109,99 109,71 108,74 107,04 103,54 ICE Gasoil Swap (1st month) 10,50 929,50 ↓ 928,08 930,92 933,08 931,58 925,50 903,93 3.5% Barges FOB Rtdm 7,25 610,25 ↓ 609,50 608,25 606,75 604,00 601,00 590,00 3.5% Cargoes FOB Med 3,25 601,25 ↓ 602,75 602,50 602,25 600,50 594,00 586,00 1.0% Cargoes FOB NWE 5,50 620,25 ↓ 621,25 627,25 630,75 632,75 628,25 617,00 3% no. 6 USGC WB (0,65) 96,85 ↓ 96,75 96,25 95,75 95,25 94,25 92,50 380 CST Cargoes FOB S'pore 7,50 640,50 ↓ 633,50 631,75 630,75 628,25 624,50 616,25 0.1 % GO Barges FOB Rtdm 17,75 929,00 ↓ 929,25 932,25 934,25 933,25 928,25 904,25 Physical Rotterdam 380 CST 6,00 615,25 ↓ 616,75 615,50 614,00 611,25 606,25 597,25 Physical Singapore 380 CST 6,50 648,75 ↓ 640,75 639,00 638,00 635,50 631,75 623,50

Focus of the day: Singapore

The price of HSFO 380cSt bunker fuel rose +$6.50 to $648.50/mt while the Marine gas oil (MGO) was up +$10.0 to $924.50/mt yesterday tracking the rise in crude prices. The Singapore delivered bunker premiums were around +$8.00 above cargo prices as short term supply was said to be tight as on specification bunker grade products were not ready. There are arrivals of incoming vessels coming for discharging which also cause some level of congestions and difficulty in securing loadings. The earliest general deliveries were estimated to be around 10 April onwards.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 01-apr 10:00 AM Mar 54.5 54.2 51.3 Factory Orders Medium 02-apr 10:00 AM Feb 2.5% -2.0% 3.0% ADP Employment Change Medium 03-apr 8:15 AM Mar 200K 198K - ISM Services Medium 03-apr 10:00 AM Mar 55.0 56.0 - Challenger Job Cuts Medium 04-apr 7:30 AM Mar NA 7.0% - Initial Claims Medium 04-apr 8:30 AM 30-mar 340K 357K - Nonfarm Payrolls High 05-apr 8:30 AM Mar 185K 236K - Unemployment Rate High 05-apr 8:30 AM Mar 7.8% 7.7% - Consumer Credit Medium 05-apr 3:00 PM Feb $12.0B $16.2B -

Source: OW Risk Management