Market in Brief

Crude prices started to trade lower with high worries in Greece and Spain. Growing concerns on Spanish banks’ health sent 10 year Spanish yields above 6% and Greece’s political chaos increased the risk of credit insolvency for the country and a possible Euro exit. Nevertheless the market recouped again its losses during the US trading session to close firmer with news that Greece will receive its 4 Bln usd installment Thursday as expected. The June WTI contracts closed at $96.91/bbl, down -$0.20 and Brent by +$0.47 at $113.20/bbl. The US Energy department report yesterday showed crude inventory at their highest level since August 1990 with a +3.7 mbbl build while the product stockpiles reported much bigger draws than expected. In the midst of all the news around Eurozone and the economy, the US inventory was a bit in the background but gave some support to the market. In term of data we will watch Bank of England Rate decision and later in the day the US Trade Balance and Initial Jobless claims. This morning, crude is trading slightly down.
 

Fueloil Specifics

The Northwest European market saw some increased demand as crude rebounded slightly during the day. Delivered 380cst product in Rotterdam gained up to $4/mt while cargo prices were up by app.$2/mt. Rotterdam port continuously reports tight LSFO product avails. The Singapore fuel oil markets fell more than -$2.50 during the morning Platts yesterday. The delivered bunker premiums slipped to around $7.0- 8.0 above cargo prices as crude continues to soften after the window and demand was slow. Bunker fuel oil swaps were assessed up in a range of $2.50-4.75/mt along the curve both for Rotterdam and Singapore papers with gains on the higher side at the backend. This morning both markets are trading higher.
 

Settlement & Indications (mid values)

Economy fundamentals this week