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 corrected lower after last week gains: August Brent softened to $114.12, down -$0.69 while August WTI closed at $106.17/bbl, down -$0.66. The latest Brent premium over the WTI futures remains around $8. Yesterday news that the government has retaken some towns near the Syrian and Jordanian borders sent Crude lower and so far no supply disruption has occurred from the south keeping Iraqi production intact. Libyan oil exports are improving slowly but still from a very low level (roughly 20% of pre-war level). This morning Iraqi forces said they regained control of the Baiji Refinery. On the economic front, the US May Existing home sales were higher than expected and the June Markit Manufacturing was stronger- at 57,5 while Eurozone one was weaker particularly due to France. Today we will look at the April S&P 20 city Case- Shiller Index, June Richmond Fed Manufacturing and New Home Sales and later the API Weekly Oil stock. This morning, crude is trading nearly half a dollar lower.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with low demand and volatile prices. Despite weakening crude values, suppliers in the area were reluctant to lower prices while buyers held away from the market waiting for further drop. Delivered 380cst product in the main ports of Antwerp and Rotterdam was assessed some $2-3/mt higher vs previous close. The Singapore fuel oil prices started the week gaining another $2.0 during the Asian Platts window tracking the strength in crude prices. The delivered bunker premiums were ranging between $3.0 and $4.5 above cargo prices. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jul Aug Sep Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,66) 106,17 ↓ 105,35 104,53 102,62 101,77 99,42 96,96 ICE Brent Swap (1st month) (0,69) 114,12 ↓ 113,50 113,10 112,16 111,16 109,61 108,63 ICE Gasoil Swap (1st month) (6,50) 928,75 ↓ 930,00 933,42 936,33 936,00 - - 3.5% Barges FOB Rtdm (0,25) 601,25 ↓ 599,75 597,50 594,75 590,75 589,75 586,25 3.5% Cargoes FOB Med (3,00) 593,50 ↓ 595,25 594,00 593,00 587,75 586,00 594,25 1.0% Cargoes FOB NWE (2,00) 638,25 ↓ 630,00 628,50 626,50 617,50 609,50 606,25 3% no. 6 USGC WB (0,03) 95,13 ↓ 93,65 93,25 92,92 92,39 92,06 91,41 380 CST Cargoes FOB S'pore 2,00 623,00 ↓ 617,50 616,25 613,50 611,50 610,25 607,00 0.1 % GO Barges FOB Rtdm (8,00) 925,25 ↓ 931,25 934,25 937,25 936,25 - - Physical Rotterdam 380 CST 2,00 604,75 ↓ 605,00 602,75 600,00 596,00 595,00 591,50 Physical Singapore 380 CST 2,50 626,00 ↓ 623,75 621,50 618,75 616,75 615,50 612,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 23-Jun 10:00 AM May 4.7M 4.65M 4.70M Case- Shiller 20-city Index Medium 24-Jun 9:00 AM Apr 12.0% 12.4% - New Home Sales Medium 24-Jun 10:00 AM May 425K 433K - Consumer Confidence Medium 24-Jun 10:00 AM Jun 83.5 83.0 - Durable Orders Medium 25-Jun 8:30 AM May 0.5% 0.6% - GDP- third estimate High 25-Jun 8:30 AM Q1 1.3% 1.3% - Initial Claims Medium 26-Jun 8:30 AM 21-jun 315K 312K - PCE Prices- Core Medium 26-Jun 8:30 AM May 0.2% 0.2% - Michigan Snetiment- Final Medium 27-Jun 9:55 AM Jun 82.5 81.2 -

Source: OW Risk Management