Market in Brief

Crude prices opened the week higher after the Greek vote but it did not last. The July WTI contract closed at $83.27/bbl, down -$0.76 and August Brent down -$1.56 to close at $96.05/bbl. The initial post Greek vote cheers were short lived when attention shifted to Spain and Italy. The record high yield bonds for Spain and Italy do reflect the lack of confidence of investors which in a majority think that a global European long term solution has yet to be found. The Euro stayed under pressure the whole day. Going into the FOMC meeting, the market is looking for hints for any forms of easing from the US Federal Reserve to shore back market confidence. The G-20 leaders’ summit is underway in Mexico and will focus on Europe financial crisis. This morning, crude is trading down.
 

Fueloil Specifics

Fuel oil prices in the NWE started the week posting double digit losses. Cargo prices were down more than $15.5/mt while delivered 380cst product in Rotterdam was assessed down by app.$12/mt supported by ongoing tight avails for both LSFO and HSFO in the area and kept suppliers busy even in the weakening market. The Singapore fuel oil markets fell more than $5.75 during the morning Platts window yesterday as crude softened. There was more selling pressure, weakening the Asian crack spread. The delivered bunker premiums inched up around $7.25 above cargo prices. Bunker fuel oil swaps lost nearly $12.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was a few dollars stronger. This morning both markets are trading down.
 

Settlement & Indications (mid values)

Economy fundamentals this week