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

WTI traded sideways over the first half of the Asian session yesterday but some selling pressure emerged during Asia’s Platts window and we steadily grinded downwards reaching an intraday low of $104.65/bbl. However, this decline was short-lived and despite a weaker -than-expected US retails sales figure, crude rebounded to close near highs made last week. Crude structure traded firm yesterday with Brent prompt spreads outperforming, rallying 13c and 11c on the Aug/Sep and Sep/Oct. Brent looks constructive since it has only broken through its 200day MA last Friday and a further rally above Friday’s intraday high will confirm the break. Ahead of the DOE report release tomorrow night- the survey forecasts a decrease by 1.87 million barrels of US crude stockpiles- we will get the Weekly API tonight which will give us a guidance. This morning crude is trading marginally higher.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with weak demand and lower prices. Delivered 380sct product in Rotterdam was assessed app.$2/mt down from Fridays close and nearly $4/mt down in Antwerp. Later port reported tight product avails that were expected to improve in the next couple of days. The Singapore bunker differential – the price spread between delivered marine fuel prices and HSFO cargo values – dropped $7.53/mt to $5.45/mt discount to 380-CST quotes. Delivered 380cst in Singapore was seen avg. in range off 587-590-mt. For bunker prices, Singapore 380-CST ex-wharf prices were transacted at $600/mt on Monday.  In general Singapore fuel oil market was very quiet, and capped by weak demand and concerns over increasing supply. This morning both markets are trading slightly 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) 0,37 106,32 ↑ 105,53 104,09 102,58 100,98 97,30 94,59 ICE Brent Swap (1st month) 0,28 109,09 ↑ 107,87 107,19 106,61 106,07 104,30 101,88 ICE Gasoil Swap (1st month) 0,25 916,50 ↑ 920,67 919,75 917,08 914,61 907,14 888,58 3.5% Barges FOB Rtdm (2,50) 597,00 ↑ 592,00 588,00 586,75 584,75 583,50 575,50 3.5% Cargoes FOB Med (1,25) 594,00 ↑ 585,75 582,50 580,00 578,00 576,00 571,00 1.0% Cargoes FOB NWE (3,50) 597,00 ↑ 607,50 611,50 613,25 612,25 611,25 601,00 3% no. 6 USGC WB (0,39) 92,02 ↑ 91,75 91,75 91,50 91,70 91,00 90,50 380 CST Cargoes FOB S'pore 1,75 597,50 ↑ 604,25 606,25 608,00 609,25 606,50 600,50 0.1 % GO Barges FOB Rtdm 0,50 917,75 ↑ 922,25 921,25 918,25 914,25 904,25 888,25 Physical Rotterdam 380 CST (2,00) 602,25 ↑ 597,25 593,25 591,00 589,50 587,75 579,75 Physical Singapore 380 CST 2,00 602,75 ↑ 609,50 611,50 613,25 613,00 609,75 603,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 15-Jul 8:30 AM Jun 0.9% 0.6% 0.4% Empire Manufacturing Medium 15-Jul 8:30 AM Jul 3.0 7.8 9.46 Business Inventories Medium 15-Jul 10:00 AM May -0.2% 0.3% 0.1% Core CPI High 16-Jul 8:30 AM Jun 0.2% 0.2% - Industrial Production Medium 16-Jul 9:15 AM Jun 0.5% 0.0.% - NAHB Housing Market Index Medium 16-Jul 10:00 AM Jul 49 52 - Housing Starts Medium 17-Jul 8:30 AM Jun 925K 914K - Initial Claims Medium 18-Jul 8:30 AM 13-jul 345K 360K - Philadelphia Fed Medium 18-Jul 10:00 AM Jul 3.0 12.5 - Leading Indicators Medium 18-Jul 10:00 AM Jun 0.2% 0.1% -

Source: OW Risk Management