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

Yesterday the market continued to power ahead for a third day in a row. There was no special news and it seemed this move was more on momentum. The Market is ignoring bearish news for now.  June Brent closed at $110.19 up $0,94 and WTI at $102,37 up $0,67. The prospect of lower World economy growth and a more than balanced Demand-Supply market seems not to be priced in. Very accommodative rate policies in the US and Europe are encouraging investors to a search for yield. It looks like commodities are a good candidate and we could have seen some financial flows coming into the oil market again. The Ukrainian crisis is estimated to add around a $5 premium. Today is busy in terms of data from the US with the May Empire Manufacturing, the April CPI, Weekly jobless claims, April Industrial and Manufacturing Production. This morning WTI is trading -0,58% down and Brent around -0,25%.

Fueloil Specifics

The Northwest European bunker fuel oil prices rose yesterday following strengthening Brent. Delivered 380cst product in the ports of Antwerp and Rotterdam was assessed nearly $4/mt up vs previous close. Suppliers reported mixed buying interest while prompt avails remained tight at least until the next week. The Singapore markets gained $3.5-4.0/mt during the Platts window yesterday. HSFO market remains supported by expectations of lower arbitrage from the West in June. Visco spreads have gained some strength again and closed at $11.54/mt yesterday. June is trading at app.$10.50/mt while forward prices remain stable trading at app.$8.5/mt for Q3 and app.$7.25/mt for Q4. This morning both markets are trading slightly lower.

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) 0,67 102,37 ↓ 100,94 100,05 99,11 96,53 94,06 92,31 ICE Brent Swap (1st month) 0,94 110,19 ↓ 108,71 107,98 107,33 105,76 103,66 103,25 ICE Gasoil Swap (1st month) 9,25 915,25 ↓ 913,17 910,33 908,67 903,08 - - 3.5% Barges FOB Rtdm 4,25 574,75 ↓ 575,25 574,25 572,25 565,75 564,25 560,25 3.5% Cargoes FOB Med 4,50 579,00 ↓ 572,00 571,75 570,75 562,75 560,50 569,25 1.0% Cargoes FOB NWE 4,75 625,75 ↓ 620,75 615,00 610,75 596,25 585,25 581,50 3% no. 6 USGC WB 0,06 93,45 ↓ 90,35 89,72 89,39 88,40 88,00 87,25 380 CST Cargoes FOB S'pore 3,25 591,75 ↓ 593,25 592,00 590,75 587,75 586,50 583,00 0.1 % GO Barges FOB Rtdm 8,25 917,25 ↓ 914,25 911,25 909,25 904,25 - - Physical Rotterdam 380 CST 4,00 577,00 ↓ 580,50 579,50 577,50 571,00 569,50 565,50 Physical Singapore 380 CST 3,50 595,50 ↓ 598,00 597,25 596,00 593,00 591,75 588,25

Focus of the day: Houston

US Gulf Coast bunker fuel markets started its upward movement Tuesday following higher Brent crude. Supplies were characterized as sufficient, while demand was thin. High and low sulfur bunker fuel prices in Houston were traded $6/mt higher from Monday respectively to $599/MT ex-wharf and $699/MT ex-wharf. In New Orleans, physical bunker suppliers were offering HSFO at $605-615/MT ex-wharf while low sulfur bunker fuel was offered at $100 premium. Typically, the premium between New Orleans and Houston was $10-20/MT. However low demand and high prices have shortened this spread lately.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 12-May 2:00 PM Apr $114.0B $112.9B $106.9B Retail Sales Medium 13-May 8:30 AM Apr 0.0% 1.2% 0.1% Business Inventories Medium 13-May 10:00 AM Mar 0.4% 0.4% 0.4% Core PPI Medium 14-May 8:30 AM Apr 0.2% 0.6% 0.5% Initial Claims Medium 15-May 8:30 AM Apr 325K 319K - Core CPI High 15-May 8:30 AM Apr 0.2% 0.2% - Empire Manufacturing Medium 15-May 8:30 AM May 5.0 1.3 - Philadelphia Fed Medium 15-May 10:00 AM May 10.0 16.6 - Housing Starts Medium 16-May 8:30 AM Apr 950K 946K - Building Permits Medium 16-May 8:30 AM Apr 1000K 990K - Mich Sentiment Medium 16-May 9:55 AM May 83.5 84.1 -

Source: OW Risk Management