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

Yesterday crude prices ended with gains for a fifth day in a row for WTI. The February contract expired at $96.24/bbl, +$0.68 while the March WTI closed up +$0.64 at $96.68/bbl. The March Brent closed at $112.42/bbl, up +$0.72. Crude prices were higher on optimism in the market after a recent series of positive economic data from the US, China and no bad news from the Eurozone. The Germany ZEW confidence index-although more volatile than the IFO- came out much better than expected. The US December Existing Home sales was at 4.94 million vs 5.10 million expected, but the down figure was apparently due to a lack of offer. The weekly API Stocks will be published later in the day. This morning, crude prices are trading slightly down.

Fueloil Specifics

The NWE bunker fuel oil markets reported slow activity during Tuesday. Prices in the area remained largely unchanged, with Rotterdam 380cst delivered product assessed app.$2/mt down from previous day’s close. Suppliers in the port continuously report delays at loading installations while Antwerp suppliers struggle with tight lsfo avails. The Singapore fuel oil market prices fell more than $6.5 during the morning Platts window yesterday. There was strong selling interest in fuel oil swaps and cracks came off considerably. The delivered bunker premiums were around $6.0 above cargo prices yesterday as crude values strengthen after the window. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q213 Q313 Q413 NYMEX WTI Swap (1st month) 0,64 96,68 ↓ 96,73 97,05 97,26 97,37 97,03 95,96 ICE Brent Swap (1st month) 0,72 112,42 ↓ 111,74 110,82 110,04 109,30 107,29 107,29 ICE Gasoil Swap (1st month) 5,25 969,75 ↓ 961,25 953,58 945,50 940,06 926,75 918,97 3.5% Barges FOB Rtdm (3,75) 608,50 ↓ 607,25 606,25 605,25 604,00 599,75 595,25 3.5% Cargoes FOB Med (4,25) 600,50 ↓ 600,50 600,50 599,50 599,00 595,00 591,00 1.0% Cargoes FOB NWE (1,00) 644,50 ↓ 647,25 645,75 644,75 643,00 637,25 629,25 3% no. 6 USGC WB (0,78) 95,22 ↓ 96,55 96,30 95,80 95,30 94,30 93,55 380 CST Cargoes FOB S'pore (7,50) 628,00 ↓ 629,00 629,75 628,50 628,00 624,25 620,00 0.1 % GO Barges FOB Rtdm 4,25 970,25 ↓ 961,25 954,25 946,25 941,25 928,25 918,25 Physical Rotterdam 380 CST (2,00) 614,00 ↓ 614,50 613,50 612,50 611,25 607,00 602,50 Physical Singapore 380 CST (4,75) 633,75 ↓ 636,25 637,00 635,75 635,25 631,50 627,25

Focus of the day: Singapore

Singapore's onshore residual fuel oil stocks rose by 3.7% to 18.427 million barrels. The climb of 652,000 barrels left stocks at a two-week high. Demand for fuel oil from China's independent 'teapot' refiners dropped sharply, with exports to China down by nearly 97%, after several weeks of stock piling ahead of the Lunar New Year. The volume of product arriving as arbitrage from the West was also slightly lower than in previous weeks, but the fall was not enough to balance the softer demand. An estimated 5.6 million mt of western arrivals are expected in January. Preliminary estimates from brokers and traders suggest just 3.3 million mt will be unloaded in February. Bunker prices were weakening in key Asian ports on Tuesday. In Singapore, 380cst bunker fuel softened $4.50 to average $631/mt. Marine gas oil prices remained unchanged from the day before at $943/mt. Demand varied and there were no issues with supply. Earliest deliveries were from January 24-27.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-jan 10:00 AM Dec 5.1M 5.04M 4.94M MBA Mortgage Index Medium 23-jan 7:00 AM 19-jan NA 15.2% - Initial Claims Medium 24-jan 8:30 AM 19-jan 365K 335K - Leading Indicators Medium 24-jan 10:00 AM Dec 0.5% -0.2% - New Home Sales Medium 25-jan 10:00 AM Dec 360K 377K -

Source: OW Risk Management