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

The Oil contracts kept their previous day momentum to settle higher at $107.98/bbl up +$0.31 for Brent and +$1.04 to $103.60/bbl for WTI. The US weekly inventory showed another solid crude build of +4.03 mbbl as refinery utilization rate fell -0.2%. Gasoline stockpile fell -5.19 mbbl; much more than expected implying a strong demand negating the bearish oil stock number. The US Federal Reserve reiterated its dovish stance by reassuring the market that interest rate will not be raise soon which lifted US equities. China latest exports and imports saw a surprise drop in March which added further worries about the Chinese economy. Market is increasingly expecting some kind of stimulus measures from the Chinese government. This morning, crude prices are trading mixed: Brent down -0,1% and WTI up +0,1%. Dear readers,   Please note that due to Easer Holidays the Daily Market Update will not be published during 14-21 April. The publication will start again on Tuesday, April 22.

Fueloil Specifics

The NWE bunker fuel oil prices closed one more day with gains. Delivered 380cst product in Antwerp and Rotterdam was assessed $5.0-6.0/mt higher vs previous close. Rotterdam suppliers reported relatively quiet day with low demand and tight prompt hsfo avails. Antwerp, on the other hand, saw healthy demand levels. The Singapore fuel oil prices rose yesterday $5.5-3.5 during the Asian Platts window. The delivered bunker premiums softened to $4.5-2.5/mt impacted by muted demand and ample supply. Visco spread weakened in the front with spot closing at $5.21/mt yesterday. May is trading at app.$6.75/7.25 while forward prices remain stable trading in a range of $6.75-7.0/mt for the rest of the year. This morning both markets are trading marginally up.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. May Jun Jul Q314 Q414 Q115 NYMEX WTI Swap (1st month) 1,04 103,60 ↑ 102,45 101,49 100,37 102,44 99,33 96,44 ICE Brent Swap (1st month) 0,31 107,98 ↓ 107,76 107,51 107,51 107,02 104,99 103,42 ICE Gasoil Swap (1st month) 12,75 903,50 ↑ 906,42 905,50 906,08 905,78 902,25 - 3.5% Barges FOB Rtdm 5,25 577,50 ↑ 576,50 576,25 575,75 575,00 571,25 569,75 3.5% Cargoes FOB Med 5,50 567,25 ↑ 572,25 573,00 572,00 572,00 568,25 566,75 1.0% Cargoes FOB NWE 9,75 631,50 ↑ 613,00 608,75 606,75 605,50 596,50 588,25 3% no. 6 USGC WB (0,08) 91,19 ↓ 89,95 89,73 89,63 89,55 89,06 88,71 380 CST Cargoes FOB S'pore 5,25 587,25 ↑ 593,75 595,25 595,50 595,50 594,25 592,75 0.1 % GO Barges FOB Rtdm 13,50 902,25 ↑ 907,25 906,25 905,25 904,25 900,25 - Physical Rotterdam 380 CST 6,00 580,25 ↑ 581,75 581,50 581,00 580,25 576,50 575,00 Physical Singapore 380 CST 4,50 590,50 ↑ 599,00 600,50 600,75 600,75 599,50 598,00

Focus of the day: Houston

The U.S. Gulf Coast bunker market closed on a strong and strong note as uncertainty and volatility took the general market on an upward move Wednesday. Firm demand prevailed in Houston amid fierce supplier competition. Based on a slight price increase on Brent crude and ample supplies, IFO 380 CST Houston was assessed by Platts at $692/mt, up $4.50/mt from Tuesday, which narrowed the hi-lo spread in Houston by $3/mt to $106.00. LSFO Houston was assessed at $692/mt, $1.50/mt higher from Tuesday. Imports gained 481,000 barrels a day, following a drop of 786,000 barrels in the previous week because the Houston Ship Channel was shut. It was obvious the need to catch up in the aftermath of the Houston Ship Channel closure; however, the build in Cushing stocks is also expected to be temporary. In Panama bunker fuel prices edged up amid decent demand despite competition for business among suppliers. Selling ideas for HSFO in Balboa - the most flexible side in terms of pricing and avails - was at around $608-$610/mt while LSFO and MGO remained tight.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Apr 3:00 PM Feb $13.5B $13.7B $16.5B Wholesale Inventories Medium 9-Apr 10:00 AM Feb 0.6% 0.6% 0.5% Intial Claims Medium 10-Apr 8:30 AM 05-apr 325K 326K - Continuing Claims Medium 10-Apr 8:30 AM 29-mar 2850K 2836K - Treasury Budget Medium 10-Apr 2:00 PM Mar NA -$106.5B - Core PPI Medium 11-Apr 8:30 AM Mar 0.1% -0.2% - Mich Sentiment Medium 11-Apr 9:55 AM Apr 81.0 80.0 -

Source: OW Risk Management