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

Still the same picture on Crude prices with low volatility and trading in a tight range. The July WTI contract settled at $103.58/bbl, up +$0.86 and Brent closed at $109.97/bbl, up +$0.16. This narrowed the Brent/ WTI spread further to around $6.3. The US WTI contract was lifted by the Department of Energy Inventory report which showed a draw in Cushing of -1.53 mbbl, declining for the 16th straight sessions to 21.7 mbbl. The southern leg of the keystone XL pipeline project has managed to ease the past bottleneck moving oil to the Gulf coast refineries since the start of this year. The US weekly jobless claims came out at 300k much better than the week before figure of 327 k while April Pending Home sales only grew +0.4% against the previous +3.4%. Today the April US Consumer spending and Personal income data will be published. This morning, crude prices are trading slightly lower.

Fueloil Specifics

Singapore fuel oil prices managed to stay flat to inching up +$1.0 during the Platts window. The latest Singapore heavy residual inventory saw a build of +2.62 mbbl to 23.40 mbbl. Delivered bunker premiums were between +$3.5 to +$4.0 above cargo prices yesterday. The activity in ARA was low due to public holiday in most of the countries. Barges closed at $580.25 while delivered prices traded roughly a Dollar 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) 0,86 103,58 ↓ 102,91 102,01 99,99 98,19 95,68 93,59 ICE Brent Swap (1st month) 0,16 109,97 ↓ 109,52 108,77 107,48 106,49 105,19 104,02 ICE Gasoil Swap (1st month) 1,75 905,25 ↓ 902,00 903,08 904,33 900,64 - - 3.5% Barges FOB Rtdm 2,00 580,00 ↓ 579,75 579,00 576,50 570,50 569,25 565,25 3.5% Cargoes FOB Med 4,50 583,50 ↓ 578,00 576,25 575,25 567,50 565,75 573,50 1.0% Cargoes FOB NWE 2,50 635,00 ↓ 632,25 622,50 617,25 600,50 590,00 586,25 3% no. 6 USGC WB (0,34) 92,35 ↓ 91,20 90,45 90,07 89,15 88,75 88,05 380 CST Cargoes FOB S'pore 0,00 600,25 ↓ 599,25 597,00 593,75 591,25 590,00 586,25 0.1 % GO Barges FOB Rtdm 2,00 905,00 ↓ 903,25 904,25 905,25 902,25 - - Physical Rotterdam 380 CST 2,00 581,00 ↓ 585,00 584,25 581,75 575,75 574,50 570,50 Physical Singapore 380 CST 0,00 604,25 ↓ 604,50 601,25 598,00 595,50 594,25 590,50

Focus of the day: Piraeus

This week was busy enough in Piraeus to keep barges occupied, but there is still room for prompt supplies. Monday was a bank holiday in the UK, so there were no price assessments and buyers were reluctant to purchase; and with Thursday a holiday in northern Europe things were slow overall. However cruisers and liners provide the local market with sufficient demand and Piraeus is going through what is considered as the high season. Cargo prices this week were still on the high side, with a rise of almost $ 3.00 compared to last week; product avails are very good and we expect demand to peak during the next few weeks.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders Medium 27-May 8:30 AM Apr -2.0% 2.9% 0.8% Case-Shiller 20-city Index Medium 27-May 9:00 AM Mar 12.0% 12.9% 12.4% Consumer Confidence Medium 27-May 10:00 AM May 81.5 82.3 83.0 Initial Claims Medium 29-May 8:30 AM 25-May 325K 326K 300K GDP- Second Estimate High 29-May 8:30 AM Q1 1.3% 1.3% -1.0% Pending Home Sales Medium 29-May 10:00 AM Apr 1.0% 3.4% 0.4% PCE Prices- Core Medium 30-May 8:30 AM Apr 0.2% 0.2% - Chicago PMI Medium 30-May 9:45 AM May 60.0 63.0 - Michigan Sentiment Medium 30-May 9:55 AM May 81.0 81.8 -

Source: OW Risk Management