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

Crude prices closed lower last week in a pretty range bound 2nd quarter. The Brent/WTI spread ended at $5.57/bbl- the narrowest since January 2011 as the bottleneck at Cushing; the delivery point of the WTI futures; was gradually alleviated allowing more flow out of  inventory. The August WTI contract closed at $96.56/bbl, down -$0.49 and  Brent settled at $102.16/bbl, lower by -$0.66. Today the Chinese June PMI index came lower at 50.1 which underscores a sustaining slowdown in the Manufacturing sector. This week in terms of data the market will watch particularly ECB meeting on Thursday and the US Unemployment on Friday. This morning, crude prices are trading flat.

Fueloil Specifics

Bunker fuel oil prices in the Northwest European ports closed slightly higher last Friday. Delivered 380cst product both in Rotterdam and Antwerp ports was assessed app.$2/mt higher versus previous close. There was reported low demand and premiums for spot deliveries fell as suppliers were eager to empty tanks before arrival of fresh product. Some suppliers in Antwerp reported tight lsfo avails. The Singapore fuel oil markets rose $5.0-2.5/mt during the Asian Platts window last Friday. The Singapore heavy residual inventory reported a draw of -2.96 mbbl to 21.41 mbbl, down by -12%. The fall was a result of heavy trading volume over the month of June when players were on a strong buying spree especially on the 180cst physical cargo. The delivered bunker premiums were seen app.$5.50 above cargoes prices. This morning both markets are trading slightly lower.

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) (0,49) 96,56 ↓ 96,52 96,21 95,57 94,12 92,09 89,98 ICE Brent Swap (1st month) (0,66) 102,16 ↑ 102,08 101,62 101,15 100,35 99,30 97,80 ICE Gasoil Swap (1st month) 0,50 883,25 ↑ 879,00 873,67 870,42 869,19 865,22 855,70 3.5% Barges FOB Rtdm 4,50 575,75 ↑ 575,25 570,75 568,00 564,25 562,50 556,75 3.5% Cargoes FOB Med 2,00 570,00 ↑ 570,50 566,00 562,75 558,50 556,50 553,50 1.0% Cargoes FOB NWE 2,00 598,50 ↑ 601,75 600,25 598,25 595,00 593,50 585,25 3% no. 6 USGC WB 0,10 89,48 ↑ 89,50 89,50 88,75 88,25 88,00 87,00 380 CST Cargoes FOB S'pore 5,25 587,75 ↑ 586,25 588,75 588,50 587,00 584,00 581,00 0.1 % GO Barges FOB Rtdm (2,25) 883,00 ↑ 879,25 874,25 871,25 867,25 864,25 854,25 Physical Rotterdam 380 CST 2,00 578,75 ↑ 580,50 576,00 573,25 569,50 567,75 562,00 Physical Singapore 380 CST 3,50 592,75 ↑ 593,50 596,00 595,75 594,25 591,25 588,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 1-Jul 10:00 AM Jun 50.5 49.0 - Construction Spending Medium 1-Jul 10:00 AM May 0.5% 0.4% - Factory Orders Medium 2-Jul 10:00 AM May 2.0% 1.0% - Challenger Job Cuts Medium 3-Jul 7:30 AM Jun NA -41.2% - ADP Employment Change Medium 3-Jul 8:15 AM Jun 150K 135K - Initial Claims Medium 3-Jul 8:30 AM 29-jun 345K 346K - Trade Balance Medium 3-Jul 8:30 AM May -$42.0B -$40.3B - ISM Services Medium 3-Jul 10:00 AM Jun 53.5 53.7 - Nonfarm Payrolls High 5-Jul 8:30 AM Jun 175K 175K - Unemployment Rate High 5-Jul 8:30 AM Jun 7.6% 7.6% -

Source: OW Risk Management