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 yesterday on the back of supply concern in Libya and Sudan, together with a rally in U.S equities as investors bet that the economy should bounce back, after a cold winter, despite the FED’s bond-buying program. The WTI gained on speculation of further decline in Cushing inventories where the Southern Keystone XL link began moving oil to the Texas Gulf Coast. The pipeline was initially flowing at 288,000bbl a day and should increase, over the course of the year, towards an expected 700,000bbl capacity. Brent crude settled $0.79/bbl higher at $110.64/bbl, and WTI closed up $0.62/bbl at $102.82/bbl. Technically the market is still bullish with a close above $103 on WTI needed to spark another bull leg; but corrective dips closer to $101 are also quite possible.  China’s Crude imports are forecasted to rise to 6,08 mbbl  in 2014, the fastest pace in four years, with some stocks building and steady growth in consumption. China  equity market dropped the most in five months along the yuan (the most since 2010) on fears that a weaker property market and  currency will pressure earnings. This morning crude is trading down (Brent -0,3% and WTI -0,55%).

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week with mixed demand and slightly higher prices. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$2/mt higher vs previous close. Market participants reported slightly easing LSFO supplies and better prompt product avails. The Asian fuel oil cash premium for 380cst hit a five-week low, dragged down by weak bunker demand. Sellers were under pressure to dispose their cargoes in a market by ample supplies. Bunker ex-wharf 380cst came off -$2.50/mt and was assessed at 615.50/mt. Bunker premium in North Asia has weakened as supply increased in South Korea and Shanghai, premium 380cst versus MOPS now around $30.00/mt and couple of USD higher for Shanghai $33.00/mt and for both ports lowest since Nov 2013. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,62 102,82 ↓ 101,99 101,24 99,40 100,33 97,40 94,83 ICE Brent Swap (1st month) 0,79 110,64 ↓ 110,06 109,60 109,17 109,16 107,52 106,22 ICE Gasoil Swap (1st month) 4,50 934,25 ↓ 928,67 926,17 922,92 923,22 915,86 909,36 3.5% Barges FOB Rtdm 2,25 588,25 ↓ 587,50 586,25 585,50 585,50 583,25 579,00 3.5% Cargoes FOB Med 3,00 588,00 ↓ 586,00 584,00 583,00 583,00 580,50 576,25 1.0% Cargoes FOB NWE (1,25) 633,50 ↓ 627,00 619,00 615,75 616,00 610,00 602,25 3% no. 6 USGC WB 0,45 91,32 ↓ 91,85 91,67 91,77 91,53 91,13 88,86 380 CST Cargoes FOB S'pore (3,75) 610,00 ↓ 610,25 608,25 606,75 607,00 604,75 602,75 0.1 % GO Barges FOB Rtdm 4,25 934,00 ↓ 930,25 927,25 924,25 924,25 917,25 910,25 Physical Rotterdam 380 CST 2,00 590,00 ↓ 592,75 591,50 590,75 590,75 588,50 584,25 Physical Singapore 380 CST (4,00) 616,00 ↓ 615,50 613,50 612,00 612,25 610,00 608,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller Home Price Index Medium 25-Feb 9:00 AM Dec 13.38% 13.7% - Consumer Confidence High 25-Feb 10:00 AM Feb 80.5 80.7 - New Home Sales Medium 26-Feb 10:00 AM Jan 405K 414K - Initial Jobless Claims Medium 27-Feb 8:30 AM 22-feb 335K 336K - Durable Goods Orders High 27-Feb 8:30 AM Jan -2.5% -4.2% - Chicago PMI Medium 28-Feb 8:30 AM Feb 56.4 59.6 - GDP (Annualized) High 28-Feb 8:30 AM Q4 2.6% 3.2% -

Source: OW Risk Management