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

Oil prices rose sharply on Thursday ahead of the US Unemployment figures. On the geopolitical front Russia said they will raise gas prices to Ukraine 44%. Brent gained $1.36/bbl to settle at $106.15/bbl, after touching an intraday high of $106.32/bbl. WTI closed $0.67/bbl higher at $100.29/bbl.  The European Central Bank held its main interest rate at a record low of 0.25% on Thursday.  This morning Germany February Factory orders rose 0,6% vs 0,2% expected,  adding signs that growth in Europe’s largest economy is gathering pace. Iran and the US, UK, France, Germany, Russia and China have begun expert-level meetings on Tehran's nuclear programme in Vienna. This pre-meeting is to prepare for a new round of higher-level discussions next week between government negotiators, which will include Iranian Foreign Minister Mohammad Javad Zarif. Market is pausing for breath ahead of the US Non Farm Payroll (+200k exp.) later in the day. Front Brent trading up +0.40 at 106.55/bbl.

Fueloil Specifics

The Northwest European bunker fuel oil prices followed increasing Brent values and closed yesterday higher. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$2/mt up from previous close supported by tightening supply which also kept the delivered premiums on the higher side. Singapore FO 180cst cash premium rebounded yesterday to a one week high reflecting healthier fundamentals, incremental demand seen from Vietnam, Bangladesh and India. Ex-wharf 380cst was assessed at $582.50/mt down $4.0/mt. In general 380cst looks ample supplied and avg. delivered price 380cst yesterday was seen at $575.00/mt. FO paper market were seen weaker just after the window and consumer interest looked stronger, but after all owners/operators still hoping for lower levels. We should bear in mind that FO haven’t been at this level since June last year; and only for a short note before market went up again. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,67 100,29 ↑ 100,73 99,99 98,18 99,95 97,19 94,54 ICE Brent Swap (1st month) 1,36 106,15 ↑ 106,59 106,43 106,15 105,68 103,94 103,03 ICE Gasoil Swap (1st month) 8,00 881,50 ↑ 894,50 894,17 893,67 894,11 891,27 - 3.5% Barges FOB Rtdm 3,25 575,25 ↑ 575,75 570,50 569,50 567,75 564,00 562,50 3.5% Cargoes FOB Med 2,25 566,50 ↑ 568,25 567,00 566,50 564,75 561,00 559,50 1.0% Cargoes FOB NWE (2,25) 626,25 ↑ 620,75 606,00 601,00 598,75 589,75 580,50 3% no. 6 USGC WB 0,53 88,83 ↑ 88,60 88,65 88,83 88,44 87,92 87,62 380 CST Cargoes FOB S'pore (3,50) 580,50 ↑ 588,00 589,50 589,75 588,50 587,00 585,50 0.1 % GO Barges FOB Rtdm 8,50 881,00 ↑ 896,25 895,25 895,25 893,25 890,25 - Physical Rotterdam 380 CST 2,00 576,00 ↑ 581,00 575,75 574,75 573,00 569,25 567,75 Physical Singapore 380 CST (4,00) 584,75 ↑ 593,25 594,75 595,00 593,75 592,25 590,75

Focus of the day: Piraeus

Crude market was volatile this week and cargo prices in the Med were climbing one day and dropping the next, confusing buyers. Despite this volatility though, average CIF MED 3.5% for the week remained almost unchanged compared to last week. Demand in the East Med was high; cruise season has begun and there is a steady volume coming from liner vessels, while the spot market was also very busy in Piraeus and somewhat slower in Istanbul. Supply conditions in Greek and Turkish ports were very good, with good product and barge availability, even for prompt supplies during the weekend.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Chicago PMI Medium 31-Mar 9:45 AM Mar 60.0 59.8 55.9 ISM Index High 1-Apr 10:00 AM Mar 54.2 53.2 53.7 ADP Employment Change Medium 2-Apr 8:15 AM Mar 215K 139K 191K Factory Orders Medium 2-Apr 10:00 AM Feb 1.1% -0.7% 1.6% Initial Claims Medium 3-Apr 8:30 AM 29-mar 320K 311K 326K Trade Balance Medium 3-Apr 8:30 AM Feb -$40.5B -$39.1B -$42.3B ISM Services High 3-Apr 10:00 AM Mar 53.0 51.6 53.1 Nonfarm Payrolls High 4-Apr 8:30 AM Mar 185K 175K - Unemployment Rate High 4-Apr 8:30 AM Mar 6.6% 6.7% -

Source: OW Risk Management