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

Friday Crude prices were quasi unchanged. The June WTI futures closed the week losing only -$0.27 to $99.99/bbl and Brent lost -$0.15 to settle at $107.89/bbl. Market remains pulled between the Ukraine crisis and Libya supply challenges. Parts of East Ukraine organized a referendum vote for secession while Ukrainian troops and pro-Russia forces continue to sporadically clash. The newly elected Libyan Prime Minister has come to a consensus with rebels to reopen ports to export although it needs to be applied now. The ECB has kept its main interest rate unchanged and after Draghi speech the market is pricing a symbolic rate cut in June. OPEC said they “won’t change its crude oil output level when it meets next month “.  This morning, crude prices are trading 0,30% and 0,45% higher for WTI and Brent respectively.

Fueloil Specifics

The Northwest European bunker fuel oil prices rose last Friday following firming crude values. Delivered 380cst product both in Rotterdam and Antwerp was assessed nearly $2/mt up vs previous close. Suppliers reported mixed demand and limited offers for prompt deliveries keeping premiums on the higher side. The Singapore fuel oil prices traded higher by another +$1.5 to +$2.5 during the Asian Platts window last Friday. The delivered bunker premiums were around +$4.25 to +$5.25 above cargo prices. Please note that the Singapore market will be closed tomorrow for public holiday and will reopen on Wednesday. This morning both markets are trading 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) (0,27) 99,99 ↑ 99,32 98,41 97,42 94,73 92,40 90,61 ICE Brent Swap (1st month) (0,15) 107,89 ↑ 107,43 106,77 106,12 104,69 102,72 102,35 ICE Gasoil Swap (1st month) 3,25 906,50 ↑ 901,33 899,33 898,08 893,83 - - 3.5% Barges FOB Rtdm (0,50) 568,00 ↑ 570,75 569,50 567,50 561,50 560,00 556,00 3.5% Cargoes FOB Med 1,00 571,00 ↑ 567,75 567,25 566,25 558,50 556,50 564,50 1.0% Cargoes FOB NWE 3,75 612,75 ↑ 609,25 605,25 601,00 588,75 578,50 575,75 3% no. 6 USGC WB 0,00 92,58 ↑ 89,45 88,95 88,63 87,83 87,48 86,78 380 CST Cargoes FOB S'pore 2,50 590,00 ↑ 589,25 587,75 586,50 583,50 582,25 578,75 0.1 % GO Barges FOB Rtdm 4,00 904,75 ↑ 902,25 900,25 899,25 893,25 - - Physical Rotterdam 380 CST 2,00 572,00 ↑ 576,00 574,75 572,75 566,75 565,25 561,25 Physical Singapore 380 CST 3,50 595,00 ↑ 594,50 593,00 591,75 588,75 587,50 584,00

Focus of the day: Gibraltar

Bunker deliveries are taking place as per schedule at the Gibraltar Strait today, with only a couple of suppliers facing some minor delays which should be cleared within this morning. All suppliers show good product availability and the weather forecast for the rest of the week is quite good so no major issues are expected. Most suppliers still have room for accommodating potential prompt requirements if necessary. CIF Med 3.5% is trading some $15/mt above FOB Barges Rotterdam. The HILO spread is currently around $52 /mt in the Med and the CIF Med 1% premium over FOB NWE 1% is at $22/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 12-May 2:00 PM Apr $114.0B $112.9B - Retail Sales Medium 13-May 8:30 AM Apr 0.0% 1.2% - Business Inventories Medium 13-May 10:00 AM Mar 0.4% 0.4% - Core PPI Medium 14-May 8:30 AM Apr 0.2% 0.6% - Initial Claims Medium 15-May 8:30 AM Apr 325K 319K - Core CPI High 15-May 8:30 AM Apr 0.2% 0.2% - Empire Manufacturing Medium 15-May 8:30 AM May 5.0 1.3 - Philadelphia Fed Medium 15-May 10:00 AM May 10.0 16.6 - Housing Starts Medium 16-May 8:30 AM Apr 950K 946K - Building Permits Medium 16-May 8:30 AM Apr 1000K 990K - Mich Sentiment Medium 16-May 9:55 AM May 83.5 84.1 -

Source: OW Risk Management