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 higher last Friday with geopolitical tensions being the main driver. The fights are increasing in Libya and continue to support Brent prices also reflected with the backwardation in the curve. The Ukrainian forces clashes with pro-Russian insurgents maintain uncertainty especially in the running to elections this weekend. Therefore fears of energy supply cuts from Russia to Ukraine are adding a hefty premium to Oil. The July Brent contract rose +$0.69 to $109.75/bbl while the June WTI contract expiring tomorrow rose +$0.52 at $102.02/bbl. The more-active July WTI contract closed at $101.58/bbl. There is no major economic data today. This morning, crude prices are trading higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed the week slightly higher following stronger Brent. Delivered 380cst product in Antwerp and Rotterdam was assessed nearly $2/mt up vs previous close. Suppliers reported low demand as the majority of buyers held away from the market expecting prices to come down. Prompt avails for both lsfo and hsfo remain tight. The Singapore fuel oil prices were trading $3.0-0.0 during the Asian Platts window last Friday. The delivered bunker premiums were seen at app.$2.5 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. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,52 102,02 ↑ 101,97 101,06 100,04 97,05 94,57 92,55 ICE Brent Swap (1st month) 0,69 109,75 ↑ 109,64 108,82 107,42 106,47 103,90 103,90 ICE Gasoil Swap (1st month) 2,25 916,25 ↑ 914,83 913,00 911,83 906,79 - - 3.5% Barges FOB Rtdm 4,00 578,00 ↑ 581,00 580,25 576,75 569,50 568,25 564,50 3.5% Cargoes FOB Med 4,00 582,25 ↑ 578,50 578,00 577,00 568,50 566,00 574,75 1.0% Cargoes FOB NWE 6,00 632,75 ↑ 629,75 623,00 618,00 602,50 591,00 586,75 3% no. 6 USGC WB (0,55) 92,24 ↑ 91,00 90,35 90,00 89,04 88,59 87,89 380 CST Cargoes FOB S'pore 3,25 595,00 ↑ 598,50 597,00 595,00 590,75 590,00 586,75 0.1 % GO Barges FOB Rtdm 0,75 915,25 ↑ 915,25 914,25 912,25 907,25 - - Physical Rotterdam 380 CST 2,00 579,25 ↑ 586,25 585,50 583,00 576,25 575,00 571,25 Physical Singapore 380 CST 2,50 597,75 ↑ 603,25 602,25 601,25 598,00 597,00 593,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-May 7:00 AM 17-May NA 3.6% - Initial Claims Medium 22-May 8:30 AM 17-May 320K 279K - Continuing Claims Medium 22-May 8:30 AM 12-May 2700K 2667K - Existing Home Sales Medium 22-May 10:00 AM Apr 4.62M 4.59M - New Home Sales Medium 23-May 10:00 AM Apr 400K 384K -

Source: OW Risk Management