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

On Friday Crude prices managed to keep their gains from the previous day low. The May WTI contract closed $88.01/bbl, inched up +$0.28 while the June Brent futures settled $99.65/bbl, +$0.52. Crude prices have lost close to 15% since the beginning of the month, not spared by the heavy commodity sell-off. Bank analysts are in general predicting a better second semester for Commodities and that Oil demand should improve. Hedge Funds reduced bullish bets on Crude by the most in almost two months according to the CFTC. The UAE Energy minister said that Oil markets are not oversupplied and are well balanced at the moment. It is a slow start in terms of data with only the Chicago Fed Activity Index and later on the Existing Home sales. This morning, crude is trading slightly up $0.7/bbl.

Fueloil Specifics

The Singapore Fuel Oil markets were up ranging between +$4.5 to +$7.5 during the Platts window last Friday. The Singapore delivered premiums were also higher ranging +$9.0 to +$12.0 above cargo prices last Friday. Market is said to be tight on specification of bunker grade products.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Yesterday's Values Forward Indications               Product Change Last Dir. May Jun jul Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,28 88,01 ↑ 89,07 89,24 89,25 88,94 87,77 85,56 ICE Brent Swap (1st month) 0,52 99,65 ↑ 100,56 100,31 100,05 99,79 98,97 97,13 ICE Gasoil Swap (1st month) 4,25 832,50 ↑ 844,75 848,00 850,50 853,50 856,78 852,54 3.5% Barges FOB Rtdm (0,50) 567,00 ↑ 570,25 568,00 566,25 564,50 561,25 552,25 3.5% Cargoes FOB Med 0,00 560,50 ↑ 565,00 563,00 562,00 560,75 554,50 548,75 1.0% Cargoes FOB NWE (3,50) 573,50 ↑ 583,75 588,25 591,00 589,75 585,50 578,25 3% no. 6 USGC WB (0,45) 88,15 ↑ 88,55 88,05 87,55 87,05 87,05 84,55 380 CST Cargoes FOB S'pore 7,75 597,00 ↓ 588,25 585,50 591,25 582,75 578,75 572,50 0.1 % GO Barges FOB Rtdm 3,00 830,00 ↑ 846,25 849,25 851,25 854,25 858,25 854,25 Physical Rotterdam 380 CST (1,00) 574,00 ↓ 577,50 575,25 573,50 571,75 566,50 559,50 Physical Singapore 380 CST 4,00 606,75 ↓ 595,50 592,75 598,50 590,00 586,00 579,75

Focus of the day: Gibraltar

Fine weather conditions are allowing a smooth start of the week in the Gibraltar Strait. There are good product avails at the three ports and prompt deliveries can still be accommodated. The new terminal in Algeciras is already up and running and some of the Gibraltar suppliers are already loading barges in Algeciras for delivery at the other side of the bay. CIF Med 3.5% is trading almost 10 $ above FOB Barges Rotterdam. The HILO spread keeps narrowing these days in the Mediterranean, to hardly $8/mt, with the premium of CIF Med 1% over FOB NEW 1% currently on $16/mt. The Gibraltar Strait is seeing quite healthy demand this morning and the Mediterranean market is trading slightly up.

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-apr 10:00 AM Mar 5.01M 4.98M   New Home Sales Medium 23-apr 10:00 AM Mar 415K 411K   Durable Orders High 24-apr 8:30 AM Mar -3.1% 5.6%   Crude Inventories Medium 24-apr 10:30 AM 20-apr NA -1.233M   Initial Claims Medium 25-apr 8:30 AM 20-apr 351K 352K   GDP-Adv. High 26-apr 8:30 AM Q1 2.8% 0.4%   Michigan Sentiment - Final High 26-apr 9:55 AM Apr 72.4 72.3

Source: OW Risk Management