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 lower yesterday. The biggest fall was seen in the US WTI contract  as it lost more than -$1 due to market expectation that the US inventory would build coupled with a stronger US dollar. The Brent futures kept stable, losing marginally on close yesterday. The July WTI contract settled at $102.72/bbl, down -$1.39 and the July Brent future closed $109.81/bbl, down -$0.21. This narrows the Brent/ WTI spread to around $7/bbl; the tightest in 6th week. The US Energy department will release its Weekly Inventory Report  later today due to a national holiday on Monday. The expectations are as follows: Crude -0.12 mbbl, Gasoline +0.19 mbbl, Distillates +0.45 mbbl. The US weekly jobless claims and Pending Home Sales will be released later today. This morning, crude prices are trading slightly higher.

Fueloil Specifics

The Singapore fuel oil prices extended its loss dropping between -$3.5 to -$2.0 during the Platts window. The delivered bunker premiums were around +$3.5 to +$5.0 above cargo prices yesterday. Barges closed at $578.25 down -$1.75 while delivered prices settled a dollar lower at $579.5.

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) (1,39) 102,72 ↑ 102,57 101,75 99,74 97,84 95,31 93,33 ICE Brent Swap (1st month) (0,21) 109,81 ↑ 109,70 108,98 107,78 106,81 105,53 104,41 ICE Gasoil Swap (1st month) (8,50) 903,50 ↑ 906,67 907,67 908,67 903,94 - - 3.5% Barges FOB Rtdm (1,75) 578,00 ↑ 581,00 580,25 577,75 571,50 570,25 566,50 3.5% Cargoes FOB Med (1,50) 579,00 ↑ 578,00 577,25 576,25 568,50 566,75 574,75 1.0% Cargoes FOB NWE (4,75) 632,50 ↑ 632,50 623,25 618,50 601,50 591,00 587,50 3% no. 6 USGC WB 0,74 92,69 ↑ 90,95 90,32 89,99 89,09 88,70 88,00 380 CST Cargoes FOB S'pore (2,25) 600,25 ↑ 600,75 598,25 596,00 593,25 592,25 588,75 0.1 % GO Barges FOB Rtdm (8,00) 903,00 ↑ 907,25 908,25 909,25 905,25 - - Physical Rotterdam 380 CST (2,00) 579,00 ↑ 586,25 585,50 583,00 576,75 575,50 571,75 Physical Singapore 380 CST (2,50) 604,25 ↑ 606,00 603,50 601,25 598,50 597,50 594,00

Focus of the day: Houston

Bunker fuel prices dropped for the second consecutive day on Wednesday tracking lower fuel oil values. High sulfur avails were tight in Houston according to market participants and levels were around $595 MTW. However, on the low sulfur segment, supplies were characterized as sufficient and spot levels were around $695 MTW. In New Orleans suppliers were wet amid sluggish demand, 380 HSFO was fixed at $600 MTW and 380 LSFO at $687 MTW respectively on the back of lower Brent crude and fuel oil prices.

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 - GDP- Second Estimate High 29-May 8:30 AM Q1 1.3% 1.3% - Pending Home Sales Medium 29-May 10:00 AM Apr 1.0% 3.4% - 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 -                                 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 - GDP- Second Estimate High 29-May 8:30 AM Q1 1.3% 1.3% - Pending Home Sales Medium 29-May 10:00 AM Apr 1.0% 3.4% - 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