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 Oil managed to close in the green on hope of a Cyprus deal during the weekend. The May WTI Oil contract closed at $93.71/bbl, up +$1.26 and May Brent closed at $107.66/bbl, up only +$0.19. The Brent to WTI spread continues to narrow and traded below $14 on friday. The economic gap is widening between the US, which has seen some better numbers lately, and a struggling Eurozone. Cyprus came to a last minute agreement with the Eurozone for a 10 bln dollars bailout. Apparently only depositors above 100.000 euros will be taxed but the two major banks in trouble Laiki Bank and Bank of Cyprus will be shrinked in a smaller entity and severely cut. Quite start of the week with only some minor data releases from the Chicago Fed National Activity and Dallas Fed. Manufacturing. So far the reaction to the bailout has been muted and Crude is trading moderately higher +0,43%

Fueloil Specifics

The Singapore Fuel Oil Market fell more than -$3.5 during the Platts window last Friday. The fundamentals in Singapore still look to be in firm with cargo premium last traded above $4.0/mt. The delivered bunker premiums were heard to be around $6.5 to $7.5 above cargo prices last Friday.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,26 93,71 ↑ 94,58 94,78 94,86 94,43 93,00 90,33 ICE Brent Swap (1st month) 0,19 107,66 ↑ 108,02 107,60 107,11 106,03 104,46 101,59 ICE Gasoil Swap (1st month) 0,25 898,50 ↑ 906,75 908,33 909,75 912,14 910,25 891,41 3.5% Barges FOB Rtdm (1,00) 595,50 ↑ 600,00 598,25 596,50 593,25 590,00 578,50 3.5% Cargoes FOB Med (2,00) 588,00 ↑ 593,50 593,00 592,00 590,50 583,25 574,50 1.0% Cargoes FOB NWE (0,50) 612,75 ↑ 618,50 622,50 624,75 623,50 617,75 596,25 3% no. 6 USGC WB (0,01) 94,14 ↑ 94,30 93,80 93,55 93,30 92,30 88,80 380 CST Cargoes FOB S'pore (3,50) 621,50 ↑ 623,25 621,00 619,50 617,25 613,25 604,50 0.1 % GO Barges FOB Rtdm (0,25) 896,25 ↑ 908,25 909,25 911,25 911,25 907,25 892,25 Physical Rotterdam 380 CST 0,00 604,75 ↑ 607,25 605,50 603,75 600,50 595,25 585,75 Physical Singapore 380 CST (2,50) 628,25 ↑ 631,00 628,75 627,25 625,00 621,00 612,25

Focus of the day: Gibraltar

Bunkering operations at the Gibraltar Strait are slowly improving this morning after a rather complicated weekend at least in the port of Gibraltar. However there are still some 8 vessels queuing outside Gib, waiting to enter for bunkering. There is good product avails and prompt deliveries are still possible to book. CIF Med 3.5% is trading some 6 usd above FOB Barges Rotterdam and the HILO spread keeps narrowing even further in the Med to some 14 usd/mt, with the premium of CIF Med 1% over FOB NWE falling even further to 3 usd/mt. There is healthy demand in the Strait this morning after a rather quiet end of the previous week. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Durable Orders High 26-mar 8:30 AM 5.0% -4.9%     Case Shiller 20—city Index Medium 26-mar 9:00 AM 7.5% 6.8%     Consumer Confidence High 26-mar 10:00 AM 65 69     New Home Sales Medium 28-mar 10:00 AM 400K 437K     Initial Claims Medium 28-mar 8:30 AM 335K 336K     GDP- Third Estimate High 28-mar 8:30 AM 0.3% 0.1%     Chicago PMI Medium 28-mar 9:45 AM 55 56.8     PCE Prices- Core High 29-mar 8:30 AM 0.2% 0.1%     Michigan Sentiment- Final High 29-mar 9:55 AM 72,0000 71.8

Source: OW Risk Management