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.
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Crude Oil was pretty volatile yesterday. Market was caught by
surprise when the People Bank of China announced a 25 bp interest rate cut
similar to ECB’s. Market prices softened towards the latter half of the session
as ECB Chairman warned on further downside in the Eurozone. The US inventory
report was bullish as crude and distillates inventories had a massive draw of
-4.3 mbbl and -1.1 mbbl respectively against expectation. The draws could also
be partly contributed by delays in both production and imports due to
disruptions caused by Tropical storm Debby. However, in the midst of other more
significant drivers, it failed to have great impact on prices. Today, markets
are widely focusing on the release of the US Nonfarm Payroll and Unemployment
rate. Analysts believe that the US labor figures today will be more positive as
US weekly jobless claims were lesser than expected yesterday. This morning,
crude is trading more than 1,5% down.
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The Northwest European fuel oil prices spiked up yesterday
supported by rising oil. Both cargo and delivered 380cst product posted
app.$8/mt gains versus previous day close. Higher prices resulted in sluggish
demand in the area. Both Rotterdam and Antwerp ports reported higher premiums
for high sulphur product. Avails for prompt deliveries remain tight with some
suppliers fully booked until July 10. The Singapore fuel oil market prices were
up more than +$2.75 during the morning Platts window. The Singapore heavy
residual inventory reported a strong build of +3.1 mbbl to 23.72 mbbl; a record
two year high. The bunker premiums rose to $11.25 above cargo prices yesterday
as on surging crude prices after the window. This morning both markets are
trading down.
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Settlement & Indications (mid
values) |
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| Product |
Yesterday's Values |
Forward Indications |
| Product |
Change |
Last |
Dir. |
Aug |
Sep |
Oct |
Q412 |
Q113 |
2013 |
| NYMEX WTI Swap (1st month) |
- |
87.22 |
↓ |
86.16 |
86.53 |
86.95 |
87.51 |
88.82 |
87.51 |
| ICE Brent Swap (1st month) |
0.93 |
100.70 |
↓ |
98.50 |
98.26 |
98.15 |
98.02 |
97.71 |
98.02 |
| ICE Gasoil Swap (1st month) |
12.25 |
889.00 |
↓ |
865.25 |
862.00 |
859.00 |
856.89 |
851.50 |
848.96 |
| 3.5% Barges FOB Rtdm |
7.75 |
584.50 |
↓ |
568.25 |
565.00 |
562.75 |
561.00 |
557.00 |
551.75 |
| 3.5% Cargoes FOB Med |
7.00 |
582.75 |
↓ |
564.75 |
561.00 |
558.75 |
557.00 |
552.75 |
547.50 |
| 1.0% Cargoes FOB NWE |
5.00 |
624.50 |
↓ |
606.50 |
601.75 |
598.75 |
596.00 |
590.50 |
585.50 |
| 3% no. 6 USGC WB |
- |
90.15 |
↓ |
88.25 |
87.88 |
87.63 |
86.93 |
86.43 |
86.22 |
| 380 CST Cargoes FOB S'pore |
7.50 |
608.50 |
↓ |
593.25 |
590.00 |
587.75 |
585.75 |
580.75 |
574.75 |
| 0.1 % GO Barges FOB Rtdm |
12.75 |
886.75 |
↓ |
865.25 |
863.25 |
859.25 |
858.25 |
855.25 |
848.25 |
| Physical Rotterdam 380 CST |
8.00 |
595.25 |
↓ |
578.50 |
575.25 |
573.00 |
571.25 |
567.25 |
562.00 |
| Physical Singapore 380 CST |
9.00 |
620.75 |
↓ |
603.50 |
600.25 |
598.00 |
596.50 |
591.50 |
585.50 |
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Focus of the day: Piraeus |
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The past week Piraeus was busy. Cruiser traffic is high as the
holiday season has begun and the spot market has been fairly active as well. A
shortage of HSFO in Augusta and LSFO in Malta has pushed many vessels towards
Piraeus, creating increased demand for prompt enquiries. Loadings and supplies
are affected smoothly and without delays, while product availability is very
good and both refineries are working normally. Crude market was volatile this
week, sparking buying interest, after a long time that prices were constantly
dropping. Average CIF MED 3.5% was higher this week by $ 30.5, compared to the
last week of June.
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Economy fundamentals this week |
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| Fundamental Indicators |
| Statistic |
Importance |
Date |
Time |
Period |
Consensus |
Last |
Actual |
| ISM Index |
Medium |
02-Jul |
10:00 AM |
Jun |
51.5 |
53.5 |
49.7 |
| Construction Spending |
Medium |
02-Jul |
10:00 AM |
May |
0.2% |
0.3% |
0.9% |
| Factory Orders |
Medium |
03-Jul |
10:00 AM |
May |
0.5% |
-0.6% |
0.7% |
| Challanger Job Cuts |
Medium |
05-Jul |
7:00 AM |
Jun |
NA |
66.7% |
-9.5% |
| ADP Employment Change |
Medium |
05-Jul |
8:15 AM |
Jun |
110K |
133K |
179K |
| Initial Claims |
Medium |
05-Jul |
8:30 AM |
30-Jun |
385K |
386K |
374K |
| ISM Services |
Medium |
05-Jul |
10:00 AM |
Jun |
53.0 |
53.7 |
52.1 |
| Nonfarm Payrolls |
Medium |
06-Jul |
8:30 AM |
Jun |
100K |
69K |
- |
| Unemployment Rate |
Medium |
06-Jul |
8:30 AM |
Jun |
8.1% |
8.2% |
- |
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Source: OW Risk Management