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.
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Crude futures plummeted last Friday as market sentiment continued to be negative; news which fed on an already anxious market. Oil fell to a four month low. Markets were driven down by a disappointing US Nonfarm Payroll (New jobs creations) at +120 k well below market expectation although the general Unemployment figure improved slightly from 8,2% to 8,1 %. The June WTI contract closed below the $100 mark at $98.49/bbl, down -$4.05 and Brent at $113.18/bbl, down -$2.90. Elections in France and Greece brought more uncertainty, as most of the previous majorities lost their seats. Today in terms of data it will be a quiet start of the week with only the Factory Orders from Germany. This morning, crude is trading down.
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Bunker fuel oil prices in the Northwest European markets closed the week with double digit losses. Both cargo and delivered 380cst product in Rotterdam were assessed down by more than -$28/mt. Following large drop in crude in the afternoon, most players stayed away from the market. The Singapore fuel oil market extended its loss last Friday by more than -$12.5 during the morning Platts window tracking the weak crude movement. The delivered bunker premiums inched up slightly around $7.0 above cargo prices. Market was firm last Friday on stronger bunker demand boosted by lower outright prices and also fulfilling requirements before the weekend. Bunker fuel oil swaps lost up to -$25/m at the front and a few dollars less at the backend of the forward curve both for Singapore and Rotterdam papers. This morning both markets are trading higher.
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Settlement & Indications (mid values)
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Product
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Yesterday's Values
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Forward Indications
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Product
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Change
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Last
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Dir.
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Jun
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Jul
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Aug
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Q312
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Q412
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2013
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NYMEX WTI Swap (1st month)
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(4.05)
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98.49
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↓
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98.08
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98.36
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98.54
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98.55
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98.91
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98.91
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ICE Brent Swap (1st month)
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(2.90)
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113.18
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↓
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111.99
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111.58
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111.10
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111.09
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109.72
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109.72
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ICE Gasoil Swap (1st month)
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(31.50)
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956.75
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↑
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950.67
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948.17
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947.83
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947.78
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945.42
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928.08
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3.5% Barges FOB Rtdm
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(28.25)
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643.75
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↑
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645.25
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642.25
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639.00
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639.00
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628.75
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607.00
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3.5% Cargoes FOB Med
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(37.75)
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629.25
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↑
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637.50
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635.25
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632.75
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632.75
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623.50
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602.75
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1.0% Cargoes FOB NWE
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(32.25)
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687.00
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↑
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687.25
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684.25
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680.50
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680.50
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666.25
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643.50
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3% no. 6 USGC WB
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(3.33)
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102.23
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↑
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102.55
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102.25
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101.85
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99.80
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98.40
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96.34
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380 CST Cargoes FOB S'pore
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(13.00)
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697.25
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↑
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675.75
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682.25
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668.00
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668.00
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656.75
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633.25
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0.1 % GO Barges FOB Rtdm
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(31.00)
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958.00
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↓
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950.25
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948.25
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948.25
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948.25
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947.25
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931.25
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Physical Rotterdam 380 CST
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(28.00)
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654.00
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↑
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655.50
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652.50
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649.25
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649.25
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639.00
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617.25
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Physical Singapore 380 CST
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(12.00)
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705.00
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↑
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686.00
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692.50
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678.25
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678.75
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667.50
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644.00
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Economy fundamentals this week
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Fundamental Indicators
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Statistic
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Importance
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Date
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Time
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Period
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Consensus
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Last
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Actual
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Customer Credit
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Medium
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07-May
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3:00 PM
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Mar
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$11.0B
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$8.7B
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-
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MBA Mortgage Index
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Medium
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09-May
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7:00 AM
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05-May
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NA
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0.9%
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-
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Wholesale Inventories
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Medium
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09-May
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10:00 AM
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Mar
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0.6%
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0.9%
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-
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Initial Claims
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Medium
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10-May
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8:30 AM
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05-May
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365K
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365K
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-
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Trade Balance
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Medium
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10-May
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8:30 AM
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Mar
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-$499B
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-$46.0B
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-
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Treasury Budget
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Medium
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10-May
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2:00 PM
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Apr
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NA
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-$40.4B
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-
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PPI
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Medium
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11-May
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8:30 AM
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Apr
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0.2%
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0.3%
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-
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Mich Sentiment
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High
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11-May
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9:55 AM
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May
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76.2
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76.4
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-
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OW Risk Management
OW Risk Management (OW RMS) is the risk management arm of OW Bunker Group, one of the world’s leading suppliers of marine fuels and lubricants. OW RMS is pricing the derivatives traded by the OW Bunker Group with approximate volume of 40 million metric tonnes per year. OW RMS offers to shipping companies, local suppliers and other counterparts a wide range of risk management products and tools.
We are experts in fuel and gasoil trading both as physically delivered products and derivatives. Based on our long experience in risk management and shipping we together with our clients devise a hedging strategy that is right for them. RMS can offer a tailored solution individually to our clients by using a number of hedging tools. In that way we meet the demand of the customers with various risk profiles.
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Source: OW Risk Management