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 firmly higher yesterday. The March WTI futures settled at $96.73/bbl, up +$1.76 and Brent was up +$1.54 to $108.27/bbl. Market was boosted by the start of the Keystone pipeline in the US, drawing oil from Cushing to the Gulf Coast. The weekly API stocks showed builts in Crude and Gasoline of 4.9mbbl and 1.1mbbl respectively and a draw in Distillates of -2.3mbbl. In Asia, China’s preliminary Manufacturing data for January showed a surprise contraction at 49,6 , the first time for 6 months, translating to a possible slowing in China Oil demand. The US Energy Department will release its Inventory Report later today instead of the usual schedule due to a public holiday the past Monday. The expectations are as follows: Crude +0.59 mbbl, Distillates -0.85 mbbl, Gasoline +2.08 mbbl. Today, we will see a slew of US economic data; namely the weekly Jobless claims, PMI and Home Sales data. This morning, crude prices are trading around flat.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported relatively quiet day yesterday. Delivered 380cst product both in Antwerp and Rotterdam ports was assessed only a dollar higher versus previous close. Even though suppliers saw some increased demand, good product avails kept the premiums at the current levels. The Singapore fuel oil markets rose more than $2.0 during the Asian Platts window yesterday. The fuel oil cargo market remains firm. The delivered bunker premiums were ranging between +$7.0 to +$7.5 above cargo prices yesterday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) 1,76 96,73 ↑ 96,73 96,26 94,77 94,74 92,15 89,97 ICE Brent Swap (1st month) 1,54 108,27 ↓ 107,74 107,08 106,59 106,16 104,75 103,17 ICE Gasoil Swap (1st month) 11,25 919,00 ↑ 917,42 912,92 908,83 905,61 900,64 894,83 3.5% Barges FOB Rtdm (2,25) 558,25 ↑ 569,75 571,75 572,50 572,25 570,75 567,25 3.5% Cargoes FOB Med 1,50 567,00 ↑ 565,75 567,50 569,00 569,25 568,00 564,50 1.0% Cargoes FOB NWE 3,00 580,75 ↑ 586,75 590,00 592,75 593,75 592,75 586,00 3% no. 6 USGC WB 0,34 88,19 ↓ 89,65 89,90 89,90 89,65 89,40 89,40 380 CST Cargoes FOB S'pore 2,00 606,50 ↑ 608,25 601,50 597,25 595,75 593,25 591,50 0.1 % GO Barges FOB Rtdm (0,75) 916,75 ↑ 918,25 914,25 910,25 907,25 900,25 894,25 Physical Rotterdam 380 CST 1,00 564,25 ↑ 575,00 577,00 577,75 577,50 576,00 572,50 Physical Singapore 380 CST 2,00 613,75 ↑ 613,50 606,75 602,50 601,00 598,50 596,75

Focus of the day: Houston

USG3% prices increased yesterday on higher underlying swaps prices and a stronger Brent crude futures contract, together with supply tightness and higher demand. In the US Gulf Coast, supply was tight for both HS and LS in Houston. HSFO levels were around $585-590/mt ex-wharf. Based on the limited supply in the face of firm buying interest, IFO 380 CST Houston was assessed $2.50/mt higher to $589/mt ex-wharf. Hi-Lo spread has moved in the last two week dramatically from $50/mt max. to $80-85/mt.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 22-Jan 7:00 AM 18-jan NA 11.9% 4.7% Initial Claims Medium 23-Jan 8:30 AM 18-jan 330K 326K - Existing Home Sales Medium 23-Jan 10:00 AM Dec 4.87M 4.90M - Leading Indicators Medium 23-Jan 10:00 AM Dec 0.1% 0.8% -

Source: OW Risk Management