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

Despite a dire opening -Crude Oil traded at a three month low yesterday-but managed to rebound back on latter trading session. The April WTI contract settled at $93.74/bbl, and managed to hold above parity,  up +$0.29 while the May Brent dipped only -$0.31 to close at $109.51/bbl. Crude prices were pressured down by a weak Euro as the European Union asked for a tax on all deposits for Cyprus to get a bail out. It seems this morning that a Eurogroup is keen for concessions and said there would be “more progressivity“introduced to the original scheme. Bond yields shot up as risk aversion set back into the market. On a better note, most US states reported lower than expected unemployment rates and in terms of payroll, 48 states saw jobs opening increased. Saudi Arabia, OPEC largest producing member, commented that current crude prices are “acceptable” and will not create demand destruction. This morning, crude is trading -0,50 % for Brent and -0,10% for WTI.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with low liquidity. Even though prices for delivered 380cst product in Rotterdam and Antwerp loss a few dollars, customers were still fixing only volume that was needed as soon as possible. Lsfo avails remain tight in Rotterdam hindered by delays at loading installations, with March 22 as earliest delivery date. The Singapore fuel oil market started the week dropping more than -$3.2 during the Platts window yesterday. The Asian Fuel Oil crack continues to firm as supply is getting tighter with lower incoming cargoes. The delivered bunker premiums shot up to range between $7.25 to $9.0 above cargo prices yesterday. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,29 93,74 ↓ 94,18 94,39 94,43 93,95 92,86 90,64 ICE Brent Swap (1st month) (0,31) 109,51 ↓ 108,58 108,08 107,58 106,47 104,86 101,71 ICE Gasoil Swap (1st month) (5,00) 913,00 ↓ 913,00 914,25 914,67 914,53 910,11 890,93 3.5% Barges FOB Rtdm (2,25) 603,75 ↓ 603,25 601,25 599,50 596,25 592,75 579,25 3.5% Cargoes FOB Med (3,25) 598,50 ↓ 597,75 597,75 596,75 592,25 585,75 575,25 1.0% Cargoes FOB NWE (5,50) 616,75 ↓ 621,25 625,00 626,50 625,25 620,25 606,75 3% no. 6 USGC WB (0,15) 97,69 ↓ 95,50 95,00 94,75 94,00 93,25 88,75 380 CST Cargoes FOB S'pore (3,25) 629,75 ↓ 627,75 625,00 623,25 620,75 616,50 605,25 0.1 % GO Barges FOB Rtdm (4,75) 911,50 ↓ 914,25 915,25 915,25 915,25 911,25 892,25 Physical Rotterdam 380 CST (2,00) 609,00 ↓ 610,50 608,50 606,75 603,50 598,00 586,50 Physical Singapore 380 CST (0,50) 638,00 ↓ 635,50 632,75 631,00 628,50 624,25 613,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-mar 10:00 AM Mar 48 46 44 Housing Starts Medium 19-mar 8:30 AM Feb 905K 890K - Biulding Permits Medium 19-mar 8:30 AM Feb 915K 904K - FOMC Rate Decision Medium 20-mar 2:00 PM Mar 0.25% 0.25% - Initial Claims Medium 21-mar 8:30 AM 16-mar 345K 332K - Existing Home Sales Medium 21-mar 10:00 AM Feb 5.00M 4.92M - Philadelphia Fed Medium 21-mar 10:00 AM Mar 2.0 -12.5 - Leading Indicators Medium 21-mar 10:00 AM Feb 0.5% 0.2% -

Source: OW Risk Management