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 were trading mostly lower but closed little changed last Friday. The July WTI futures settled at $94.25/bbl, down -$0.10 while Brent inched up +$0.20 to $102.64/bbl. Crude prices were supported by a better German IFO business confidence and US April durable goods orders which rose +3.3% as compared to the expected +1.4%. Market remains under the risk that the US Federal Reserve will reduce its easing monetary policy, should US inflation be higher and more positive economic data continue to flow in. This could strengthen the US dollar and cap further crude price gains. Market was mostly flat as traders exited their short positions ahead of a long weekend.The US market closed for Memorial Day- which also traditionally signal the start of the US summer driving season- while UK market is closed on Spring Bank holiday. This morning, crude is trading around - 0,40% down.

Fueloil Specifics

The Northwest European bunker fuel oil prices rebounded slightly at the closing of the week with delivered 380cst product in Rotterdam assessed app. $2/mt higher vs previous days close. In Rotterdam suppliers reported mixed demand, restrained product avails and delays at some of the terminals. Only few suppliers were offering product before May 30 and premiums were said to be at $6/mt. Similar situation was in Antwerp with prompt deliveries quoted from May 28. The Singapore market was closed last Friday for public holiday and reopened today. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) -0,10 94,15 ↓ 93,53 93,65 93,61 93,53 92,37 92,37 ICE Brent Swap (1st month) 0,20 102,64 ↓ 102,09 101,83 101,51 101,50 100,50 100,50 ICE Gasoil Swap (1st month) 4,75 854,25 ↑ 857,08 859,25 861,83 861,83 866,00 856,26 3.5% Barges FOB Rtdm (0,25) 573,00 ↑ 575,50 573,00 571,00 571,00 567,00 561,25 3.5% Cargoes FOB Med 2,25 566,75 ↑ 34,75 567,75 566,00 566,00 561,25 557,75 1.0% Cargoes FOB NWE 5,50 657,50 ↑ 602,50 604,50 603,00 602,75 598,75 589,25 3% no. 6 USGC WB (0,49) 89,62 ↓ 90,20 89,97 89,70 89,71 88,95 88,70 380 CST Cargoes FOB S'pore (6,25) 592,00 ↑ 596,50 594,25 593,50 594,00 591,00 586,25 0.1 % GO Barges FOB Rtdm 4,75 855,75 ↑ 856,25 859,25 861,25 862,25 864,25 856,25 Physical Rotterdam 380 CST 2,00 577,75 ↑ 585,75 583,25 581,25 581,25 577,25 571,50 Physical Singapore 380 CST (5,50) 598,75 ↑ 606,75 604,50 603,75 604,75 601,75 597,00

Focus of the day: Gibraltar

Most suppliers in the Gibraltar Strait are running smoothly this morning, with only one supplier behind schedule in both sides of the bay. There are good avails of products in the hub and fine weather conditions. Relatively low demand and good weather forecast for the rest of the week give fine prospects in terms of congestion. CIF Med 3.5% is trading $6/mt above Rotterdam FOB Barges and the HILO spread is currently around $34/mt in the Med, with the premium of CIF Med 1% over FOB NWE 1% currently at $17/mt. The Med market this morning is trading up.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Schiller 20-city Index Medium 28-maj 9:00 AM Mar 10.0% 9.3% - Consumer Confidence High 28-maj 10:00 AM May 72.5 68.1 - Initial Claims Medium 30-maj 8:30 AM 25-May 345K 340K - Continuing Claims Medium 30-maj 8:30 AM 18-May 3000K 2912K - GDP-2nd estimate High 30-maj 8:30 AM Q1 1.2% 1.2% - Pending Home Sales Medium 30-maj 10:00 AM Apr 0.0% 1.5% - Personal Income Medium 31-maj 8:30 AM Apr -0.2% 0.2% - Chicago PMI Medium 31-maj 9:45 AM May 49.5 49.0 - Michigan Sentiment Medium 31-maj 9:55 AM May 82.5 83.7 -

Source: OW Risk Management