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

The bullish Crude Oil trend is still well alive. The July WTI futures contract closed up +$1.63 at $104.07/bbl, and Brent rose +$0.86 to settle at $110.55/bbl. No much to signal after the FOMC minutes release with the usual pledge to support the economy through  stimulus measure but no word on any rate  increase. Some economists say the Federal Reserve is behind the curve, as they expect a strong H2, and could be forced to raise rate abruptly. The US crude inventory showed a massive draw of -7.23 mbbl against an expected +0.75 mbbl which lifted the US crude prices higher. The draw was due to a combination of US crude imports falling to a 17 year low and US production growing strong. The latest Chinese Manufacturing gauge reported a 5 month high for May at 49.7 compared to the previous reading at 48.1. However, it is still below the 50 level which suggests contraction; also a lot of questions still hang around the real state of the Chinese Housing Market. The US will release a series of economic data later today: the weekly US jobless claims, the Markit flash PMI and April Existing Home Sales figures. This morning, crude prices are trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil prices rose yesterday following stronger crude values. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$4/mt higher vs previous close. Suppliers reported mixed demand with slightly improved lsfo avails in Rotterdam while it remained tight in Antwerp. The Singapore fuel oil prices gained $1.50 to $2.25 during the Asian Platts window. The delivered bunker premiums were around +$3.0 above cargo prices. This morning both markets are trading slightly higher.

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) 1,63 104,07 ↓ 103,69 102,74 100,50 98,49 95,79 93,59 ICE Brent Swap (1st month) 0,86 110,55 ↓ 110,03 109,22 107,89 106,88 105,48 104,19 ICE Gasoil Swap (1st month) 5,00 914,25 ↓ 911,58 911,17 910,83 904,72 - - 3.5% Barges FOB Rtdm 3,50 581,00 ↑ 582,50 581,75 579,00 572,25 571,00 567,00 3.5% Cargoes FOB Med 3,75 583,50 ↑ 579,00 579,00 578,00 569,75 567,50 576,00 1.0% Cargoes FOB NWE 4,00 641,25 ↑ 637,50 629,25 622,50 605,00 593,75 589,50 3% no. 6 USGC WB 0,56 92,11 ↑ 90,62 90,29 89,96 89,36 88,96 88,26 380 CST Cargoes FOB S'pore 2,25 597,50 ↑ 600,50 598,50 597,25 593,75 592,75 589,25 0.1 % GO Barges FOB Rtdm 4,50 914,00 ↓ 912,25 912,25 911,25 906,25 - - Physical Rotterdam 380 CST 4,00 583,00 ↑ 587,75 587,00 584,25 577,50 576,25 572,25 Physical Singapore 380 CST 1,50 601,00 ↑ 605,75 603,75 602,50 599,00 598,00 594,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-May 7:00 AM 17-May NA 3.6% 0.9% Initial Claims Medium 22-May 8:30 AM 17-May 320K 279K - Continuing Claims Medium 22-May 8:30 AM 12-May 2700K 2667K - Existing Home Sales Medium 22-May 10:00 AM Apr 4.62M 4.59M - New Home Sales Medium 23-May 10:00 AM Apr 400K 384K -

Source: OW Risk Management