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 oil prices increased recent gains after US crude oil inventories plunged for a second week in a row and showed the biggest 2-week decline. The August Brent settled at $108.51, up $0.70, while WTI surged nearly $3/mt to $106.52 and continues to trade near the highest levels in 15 months. Stats last night confirmed the large draws of crude and gasoline, though the numbers remain suspect, as do all of the explanations circling around why WTI has exploded the way that it has. Stats showed a near 10 MM barrel draw in crude, despite the fact that runs were flat, and imports and production were both slightly higher. So, it remains unclear where the large draw originated from. OPEC report offered a slight reduction in 2013 global demand. Finally, the FOMC minutes appeared to provide further bullish impetus as the comments flipped the stock market from the negative back to the positive column in reviving a “risk-on” mentality. It would appear that this strong short term bull move that is well into its 3rd week is clicking on all cylinders with the EIA and Fed offering some fresh bullish impetus, a possibility that we had alluded earlier in the week. This morning front Brent is trading app. 0.3% up.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported relatively quiet day in the main harbors. Prices for 380hsfo product in Rotterdam and Antwerp gained a few dollars while lsfo products shed app.$2/mt following physical hilo changes. Rotterdam suppliers were able to offer product from July 13 onwards while Antwerp prompt avails are from Monday onwards. Demand has not been great in Singapore, but we are still in the midst of the demand period. Stocks have put on an impressive build in the region the last few months. Correction was due and was largely being held up by physical players on the 180cst. With cracks coming off, Singapore demand is expected to pick up. Thus, we should see some retracement from these levels short term, but without a pick up in demand we are not too sure strength can be sustained longer term. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) 2,99 106,52 ↑ 105,59 104,00 102,33 100,60 96,55 93,79 ICE Brent Swap (1st month) 0,70 108,51 ↑ 107,51 106,84 106,23 105,66 103,95 101,53 ICE Gasoil Swap (1st month) 4,50 913,75 ↑ 915,92 914,50 915,00 913,50 905,58 890,10 3.5% Barges FOB Rtdm 5,00 598,75 ↑ 593,25 589,25 588,00 585,75 584,75 576,25 3.5% Cargoes FOB Med 4,25 586,25 ↑ 586,75 583,75 581,25 578,75 576,75 571,75 1.0% Cargoes FOB NWE 0,25 598,25 ↑ 609,75 612,75 614,00 612,75 612,00 602,00 3% no. 6 USGC WB 0,36 92,03 ↑ 92,00 92,00 91,50 91,70 91,00 90,25 380 CST Cargoes FOB S'pore (0,50) 593,00 ↑ 604,50 606,75 608,00 610,00 607,50 602,50 0.1 % GO Barges FOB Rtdm 3,00 913,25 ↑ 917,25 916,25 914,25 911,25 903,25 888,25 Physical Rotterdam 380 CST 2,00 600,00 ↑ 598,50 594,50 592,25 590,50 589,00 580,50 Physical Singapore 380 CST (1,25) 596,75 ↑ 609,75 612,00 613,25 613,75 610,75 605,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 8-Jul 3:00 PM May $10.5B $11.1B $19.6B Wholesale Intentories Medium 10-Jul 10:00 AM May 0.4% 0.2% -0.5% FOMC Minutes High 10-Jul 2:00 PM 16-jun - - - Initial Claims Medium 11-Jul 8:30 AM 06-jul 345K 343K - Continuing Claims Medium 11-Jul 8:30 AM 29-jun 2950K 2933K - Treasury Budget Medium 11-Jul 2:00 PM Jun NA -$59.7B - Core PPI Medium 12-Jul 8:30 AM Jun 0.1% 0.1% - Mich Sentiment High 12-Jul 9:55 AM Jul 85.5 84.1 -

Source: OW Risk Management