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 despite a volatile session. The US March Existing Homes Sales data fell slightly below the expected yesterday. The May WTI contract closed at $89.19/bbl, up +$0.75 and June Brent closed above the psychological $100 level at $100.39/bbl, up +$0.74. Today, the Chinese April PMI data published by HSBC eased to 50.5 reflecting that expansion is slowing in the Manufacturing sector. Standard & Poor, the Rating agency, say that there is more than 1-in 3 chances it will downgrade Japan. Their long- term debt is rated AA- by S&P. Today, the US March New Home sales figure will be published and later on the API Weekly Oil Inventory Report which is a precursor to the US Energy Department report on Wednesday. This morning, crude is trading down.

Fueloil Specifics

The Singapore fuel oil markets fell between -$5.0 to -4.0 during the Platts window yesterday. The delivered bunker premiums were around $10.25 above cargo prices yesterday.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Yesterday's Values Forward Indications               Product Change Last Dir. May Jun jul Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,18 89,19 ↓ 88,35 88,59 88,56 88,31 87,78 86,66 ICE Brent Swap (1st month) 0,52 100,39 ↓ 99,25 99,17 99,00 98,76 97,99 96,30 ICE Gasoil Swap (1st month) 4,25 836,75 ↓ 835,58 839,67 843,00 845,83 849,56 845,87 3.5% Barges FOB Rtdm (0,25) 566,75 ↓ 563,00 561,00 559,50 558,00 553,50 547,00 3.5% Cargoes FOB Med 1,50 562,00 ↓ 557,25 556,00 555,00 552,75 547,00 543,50 1.0% Cargoes FOB NWE 2,00 575,25 ↓ 576,50 581,00 584,00 583,25 580,00 573,50 3% no. 6 USGC WB 0,42 88,57 ↓ 89,55 89,05 88,55 88,05 88,30 86,30 380 CST Cargoes FOB S'pore (4,25) 592,75 ↓ 582,25 579,50 585,00 576,75 573,50 568,00 0.1 % GO Barges FOB Rtdm 4,00 835,00 ↓ 837,25 841,25 845,25 847,25 851,25 848,25 Physical Rotterdam 380 CST 0,00 573,75 ↓ 570,25 568,25 566,75 565,25 560,75 554,25 Physical Singapore 380 CST (3,00) 604,00 ↓ 589,50 586,75 592,25 584,00 580,75 575,25

Focus of the day: ARA

The market seems to be in less troubled waters at the moment. That is mainly because the flat price is not speeding downhill, as it did over the last two weeks. Still caution is advised regarding the high sulphur as loading problems are far from over yet. Low sulphur premium is firming again, as expected last week. Still we believe the premium is rather soft, therefore it is advised to procure the low sulphur fuel well in advance. The gasoil market remains unchanged.   Notification periods for the different grades; five days for high sulphur enquiries and four working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-apr 10:00 AM Mar 5.01M 4.98M 4.92M New Home Sales Medium 23-apr 10:00 AM Mar 415K 411K   Durable Orders High 24-apr 8:30 AM Mar -3.1% 5.6%   Crude Inventories Medium 24-apr 10:30 AM 20-apr NA -1.23M   Initial Claims Medium 25-apr 8:30 AM 20-apr 351K 352K   GDP-Adv. High 26-apr 8:30 AM Q1 2.8% 0.4%   Michigan Sentiment - Final High 26-apr 9:55 AM Apr 72.4 72.3

Source: OW Risk Management