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

Days pass but prices are unchanged. Since the beginning of the month Oil has been trading in roughly a $2usd range. Without any major catalyst Oil prices are stuck between the Ukraine crisis (bullish) and plenty of Oil stocks (bearish). June WTI closed @ $100,59 up $0,60 and Brent at $108,41 up $0,52. Tomorrow weekly Oil numbers will probably show a draw at Cushing for the 14th time in 15 weeks since the southern portion of the Keystone XL pipeline began moving oil in January from the U.S Midwest to the Gulf coast. Bear in mind that Crude supplies are at/close to the highest level since the EIA started to compile information in 1982. April China’s factory production rose 8,7% vs 8,9% exp. showing the slowdown is deepening as well in investment and retail sales which could test Chinese authorities reluctance  to step up some monetary stimulus. Today the US Retail Sales will be published and later in the day the API Weekly stocks with an expected draw in Oil. This morning Oil is trading slightly down.

Fueloil Specifics

The NWE bunker fuel oil prices started the week on a higher note. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$1/mt up from previous close. Suppliers continuously reported tight avails for both hsfo and lsfo products with premiums for prompt avails remaining on the higher side. The Singapore fuel oil prices traded lower on Monday, assessed app. - $2/mt during the Asian Platts window. Today the Singapore market is closed for public holiday and will reopen on Wednesday.

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) 0,60 100,59 ↓ 99,65 98,73 97,72 95,11 92,87 91,06 ICE Brent Swap (1st month) 0,52 108,41 ↓ 107,37 106,75 106,15 104,70 102,67 102,29 ICE Gasoil Swap (1st month) - 903,25 ↓ 900,67 898,58 897,00 892,88 - - 3.5% Barges FOB Rtdm 1,25 570,00 ↑ 570,25 569,25 567,50 561,75 560,25 556,25 3.5% Cargoes FOB Med (0,25) 571,75 ↑ 567,25 567,00 566,00 558,75 556,75 564,50 1.0% Cargoes FOB NWE (0,25) 612,50 ↑ 609,75 604,75 601,00 589,50 579,25 576,25 3% no. 6 USGC WB 0,27 92,60 ↑ 89,45 88,82 88,49 87,65 87,25 86,55 380 CST Cargoes FOB S'pore (1,75) 587,50 ↑ 588,75 587,25 586,50 583,75 582,50 579,00 0.1 % GO Barges FOB Rtdm 1,25 906,75 ↓ 901,25 899,25 898,25 893,25 - - Physical Rotterdam 380 CST 1,00 572,00 ↑ 575,50 574,50 572,75 567,00 565,50 561,50 Physical Singapore 380 CST (2,00) 592,75 ↑ 594,00 592,50 591,75 589,00 587,75 584,25

Focus of the day: ARA

Demand wise it was a very quiet week. Most of the action was to be found in the window. High sulphur remains well supplied. The low sulphur premium remains at a high level, as last week there was a continuous struggle to get actual fuel on the water. However, last weekend some batches got delivered resulting in a slightly better prompt avails. Though supply chain is rather vulnerable still, so it is advised to order in advance. Later this month it is expected to improve a bit and we should see lower premiums. No changes really regarding the gasoil supply. Discounts and premiums for lower density remain steady. Notification periods for the different grades; four days for high sulphur enquiries and five working days for low sulphur enquiries; two days for gasoil enquiries.

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% - Business Inventories Medium 13-May 10:00 AM Mar 0.4% 0.4% - Core PPI Medium 14-May 8:30 AM Apr 0.2% 0.6% - 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