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

Brent prices have been trapped in a tight one dollar band for a week now. The July WTI futures closed at $104.11/bbl, down -$0.24 and Brent at $110.02/bbl, down -$0.32. Market remained supported by geopolitical uncertainty in Ukraine and Libya. Libyan rebels shut down a recently re-opened oil port in protest over the appointment of the country’s new prime minister. Libyan Oil output at the moment is as low as 175k bbl/day. Meanwhile escalating violence between the incumbent and pro-Russian rebels is reported in Ukraine. The usual US Weekly Inventory Report by US Energy Department will be delayed to tomorrow due to the public holiday last Monday. We will have a preview tonight with the weekly API tonight. This morning, crude prices are trading slightly up.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw a mixed day yesterday. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$1/mt down vs previous close. Suppliers reported slightly better product avails over the long weekend. Prompt product was also available for any dates. The Singapore fuel oil prices slipped only -$0.5 during the Asian Platts window yesterday. The delivered bunker premiums were seen between +$3.5 to +$5.0 above cargo prices. Bunker fuel oil swaps lost nearly $3/mt at the front of the forward curve for both Rotterdam and Singapore papers. The backend was slightly stronger with Cal15 papers assessed app. $1.5/mt down vs previous close. This morning both markets are trading slightly 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) (0,24) 104,11 ↑ 103,92 102,94 100,68 98,65 95,95 93,78 ICE Brent Swap (1st month) (0,32) 110,02 ↑ 109,92 109,20 107,99 107,05 105,74 104,50 ICE Gasoil Swap (1st month) 2,75 912,00 ↓ 910,17 910,42 910,50 904,75 - - 3.5% Barges FOB Rtdm (1,00) 580,25 ↑ 580,75 579,75 577,00 570,75 569,50 565,75 3.5% Cargoes FOB Med (2,25) 580,50 ↑ 577,75 576,75 575,75 568,00 566,00 574,00 1.0% Cargoes FOB NWE (6,00) 637,50 ↑ 635,00 625,75 619,75 602,25 591,50 588,00 3% no. 6 USGC WB (0,05) 91,20 ↓ 91,00 90,48 90,15 89,27 88,86 88,21 380 CST Cargoes FOB S'pore (0,50) 603,00 ↑ 600,75 598,00 594,75 592,50 591,25 588,00 0.1 % GO Barges FOB Rtdm (0,75) 910,00 ↑ 911,25 911,25 911,25 906,25 - - Physical Rotterdam 380 CST (1,00) 581,75 ↑ 586,00 585,00 582,25 576,00 574,75 571,00 Physical Singapore 380 CST (0,50) 606,50 ↑ 606,00 603,25 600,00 597,75 596,50 593,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders Medium 27-May 8:30 AM Apr -2.0% 2.9% 0.8% Case-Shiller 20-city Index Medium 27-May 9:00 AM Mar 12.0% 12.9% 12.4% Consumer Confidence Medium 27-May 10:00 AM May 81.5 82.3 83.0 Initial Claims Medium 29-May 8:30 AM 25-May 325K 326K - GDP- Second Estimate High 29-May 8:30 AM Q1 1.3% 1.3% - Pending Home Sales Medium 29-May 10:00 AM Apr 1.0% 3.4% - PCE Prices- Core Medium 30-May 8:30 AM Apr 0.2% 0.2% - Chicago PMI Medium 30-May 9:45 AM May 60.0 63.0 - Michigan Sentiment Medium 30-May 9:55 AM May 81.0 81.8 -

Source: OW Risk Management