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 closed lower erasing nearly all gains since the beginning of the year. Crude oil extended its losses on US Spending cuts, weaker Chinese Manufacturing number and Italy politic problems. The Chinese factory activities data has softened in February to a five month low last Friday. Despite a stronger than expected US ISM manufacturing data at 54.2 the market mood stayed negative. The April WTI contract closed at $90.68/bbl, down -$1.37 and Brent settled at $110.40/bbl, down by -$0.98. Today the Shanghai stock exchange closed heavily in the red (-3,7%) on new property market tightening rules. This morning, crude prices are trading flat (Brent) to -0,30% (WTI).

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week with lower prices following weakening crude values. Delivered 380cst product in Rotterdam was assessed app.$9/mt down while Antwerp 380cst lost $7/mt. Despite lower prices, demand remained sluggish in the main ports. Rotterdam and Antwerp ports continue to report tight barge avails for prompt deliveries. The Singapore fuel oil market fell by more than -$4.0 during the morning Platts window last Friday. Market fundamentals continue to weigh on ample supply. The delivered bunker premiums were ranging between $5.0 to $7.5 above cargo prices. Bunker fuel oil swaps lost more than $9/mt at the front of the forward curve both for Singapore and Rotterdam papers. Backend was slightly stronger with cal 2014 papers assessed app. $7/mt down versus previous days close. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) (1,37) 90,68 ↓ 90,52 90,97 91,33 91,30 91,58 91,23 ICE Brent Swap (1st month) (0,98) 110,40 ↓ 109,76 108,74 107,85 107,89 105,65 104,01 ICE Gasoil Swap (1st month) (17,75) 920,50 ↑ 922,75 921,42 917,83 917,92 912,87 905,50 3.5% Barges FOB Rtdm (10,25) 596,50 ↑ 600,00 599,75 599,00 599,00 595,00 589,50 3.5% Cargoes FOB Med (11,75) 595,00 ↑ 596,00 596,25 595,25 595,75 591,50 585,50 1.0% Cargoes FOB NWE (5,25) 627,50 ↑ 630,00 632,25 633,00 632,75 629,00 622,00 3% no. 6 USGC WB (0,49) 95,04 ↑ 94,60 94,35 94,10 94,35 93,60 92,85 380 CST Cargoes FOB S'pore (4,25) 628,00 ↑ 625,25 623,25 623,00 622,75 619,75 615,00 0.1 % GO Barges FOB Rtdm (17,75) 917,50 ↑ 923,25 922,25 918,25 919,25 910,25 903,25 Physical Rotterdam 380 CST (9,00) 601,25 ↑ 607,25 607,00 606,25 606,25 602,25 596,75 Physical Singapore 380 CST (3,00) 633,25 ↑ 633,00 631,00 630,75 630,50 627,00 622,25

Focus of the day: Gibraltar

Strong winds are hitting the Gibraltar Strait this morning, with some areas having suspended bunkering operations, and deliveries only taking place at the most sheltered part of the bay. The port of Ceuta, after having received cargo replenishment over the weekend has its bunkering operations suspended for the time being due to bad weather. There are currently some 10 vessels queuing to enter Gibraltar at the moment of issuing this report. CIF Med 3.5% is trading some 15 usd above FOB Barges Rotterdam and the HILO spread has widened in the Med to some 33 usd/mt. The Med market is trading up this morning and some suppliers are already fully booked for the next couple of days.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Services Medium 05-mar 10:00 AM Feb 56.0 55.2 - ADP Employment Change Medium 06-mar 8:15 AM Feb 150K 192K - Factory Orders Medium 06-mar 10:00 AM Jan -3.0% 1.8% - Initial Claims Medium 07-mar 8:30 AM 02-mar 355K 344K - Trade Balance Medium 07-mar 8:30 AM Jan -$45.0B -$38.5B - Consumer Credit Medium 07-mar 3:00 PM Jan $10.0B $14.6B - Nonfarm Payroll High 08-mar 8:30 AM Feb 170K 157K - Unemployment Rate High 08-mar 8:30 AM Feb 7.9% 7.9% - Wholesale Inventories Medium 08-mar 10:00 AM Jan 0.2% 0.2% -

Source: OW Risk Management