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

Wednesday was one more day with crude trading sideways. The US inventory report yesterday had little impact on prices with a slight build in crude while products stockpiles fell within acceptable expectations. The much anticipated US FOMC outcome had marginal initial impact on crude prices as stimulus package was left intact. However subsequent comments of possible reduction of the size of the bond purchasing program later this year dampened market sentiment which sent the equities prices down. The interest rate remained unchanged until the unemployment rate falls to 6.5% and likely to remain status quo until 2015. The July WTI futures (expiring later today) slipped -$0.20 to $98.24/bbl while the next most active August WTI closed at $98.48/bbl. The August Brent settled $106.12/bbl, inching up +$0.10. Today, we will see a series of US economic data with US weekly jobless claims, May existing home sales data and June Leading Indicators to provide further guidance. This morning data from China showed June factory activity weakening to a nine-month low, increasing concerns about slowdown in the World’s no.2 economy. Crude prices lost nearly $2 on the news and remain in the negative area.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed higher yesterday supported by improving demand and tight prompt product avails. Delivered 380cst product both in Rotterdam and Antwerp was assessed app. $3/mt higher versus previous days close. Suppliers in Rotterdam were reporting up to 3 days qeueing time to get loaded for hsfo. Premiums for prompt deliveries were around $9/mt over 3.5% Rtdam FOB barges. The Singapore fuel oil markets rose up to $4/mt during the Asian Platts window yesterday. Market continues to be supported by several major trading houses on the 180cst while the bunker grade 380cst products looks to be ample. The delivered bunker premiums were higher, app. $8.0 above cargoes prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q413 Q114 2014 NYMEX WTI Swap (1st month) (0,20) 98,24 ↓ 96,52 96,49 96,21 95,10 94,49 92,59 ICE Brent Swap (1st month) 0,10 106,12 ↓ 104,22 103,90 103,54 102,86 100,77 99,95 ICE Gasoil Swap (1st month) 5,00 897,75 ↓ 885,25 885,33 886,00 887,47 882,36 869,97 3.5% Barges FOB Rtdm 1,75 591,00 ↓ 583,00 580,50 578,25 575,50 574,25 568,25 3.5% Cargoes FOB Med 3,75 593,25 ↓ 580,25 576,75 574,00 570,00 568,00 565,50 1.0% Cargoes FOB NWE (1,00) 621,75 ↓ 614,75 612,00 610,25 606,50 605,00 597,00 3% no. 6 USGC WB (0,28) 91,48 ↓ 91,60 91,25 90,75 90,50 90,25 89,75 380 CST Cargoes FOB S'pore 2,75 611,25 ↓ 605,75 603,75 601,50 599,25 596,50 592,75 0.1 % GO Barges FOB Rtdm 5,50 900,75 ↓ 886,25 886,25 886,25 887,25 882,25 870,25 Physical Rotterdam 380 CST 3,00 597,75 ↓ 588,25 586,25 583,50 580,25 579,00 573,00 Physical Singapore 380 CST 3,50 619,75 ↓ 611,50 610,00 608,25 606,00 603,00 599,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Jun 8:30 AM Jun 1.0 -1.4 7,8 NAHB Housing Market Index High 17-Jun 10:00 AM Jun 45 44 52 Core CPI High 18-Jun 8:30 AM May 0.1% 0.1% 0.2% Housing Starts Medium 18-Jun 8:30 AM May 925K 853K 914K Building Permits Medium 18-Jun 8:30 AM May 975K 1017K 974K FOMC Rate Decision High 19-Jun 2:00 PM Jun 0.25% 0.25% 0.25% Initial Claims Medium 20-Jun 8:30 AM 15-jun 345K 334K - Existing Home Sales Medium 20-Jun 10:00 AM May 4.95M 4.97M - Philadelphia Fed Medium 20-Jun 10:00 AM Jun 2.0 -5.2 - Leading Indicators Medium 20-Jun 10:30 AM 15-jun 0.2% 0.6% -

Source: OW Risk Management