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 managed to stay resilient despite strong downward pressure from equities and also a bearish US Oil inventory report yesterday. Crude stockpile build more than expected up +2.5 mbbl against -0.7 mbbl. The July WTI contract closed at $95.88/bbl, up +$0.50 and  Brent  similarly was up by +$0.53 to settle at $103.49/bbl. Crude prices were again disconnected from equities while supported by a weaker US dollar. The General market sentiment is weak. The World Bank revised downward its global growth forecast from 2,4% to 2,2% as China slows. The lack of the Federal Reserve clarity on their monetary policy is heavily weighting on the market as well. Today, are scheduled a series of US economic data like May Retail sales figures and the weekly jobless claims, to provide further guidance. This morning, crude price is trading down (-0,70%).

Fueloil Specifics

The NWE bunker fuel oil markets saw subdued demand, limited product avails and barge congestions at the terminals. Prices in the main ports posted up to double digit gains with 380cst delivered product in Rotterdam assessed nearly $10/mt higher versus previous days close. Premiums reached $9/mt over 3,5% Rtdam FOB barges for prompt deliveries. The Singapore fuel oil markets traded mixed ranging from -$3.0 to +$3.0 during the Asian Platts window yesterday. There is a strong interest in the 180 cst cargo market pushed up by several big trading houses which continued to rise compared to the 380 cst market. The delivered bunker premiums were around +$8.0 above cargoes prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,50 95,88 ↓ 95,34 95,28 94,95 95,19 94,27 91,27 ICE Brent Swap (1st month) 0,53 103,49 ↓ 102,76 102,45 102,10 102,43 101,46 99,05 ICE Gasoil Swap (1st month) 0,00 873,00 ↓ 866,08 868,00 870,75 868,94 873,75 863,14 3.5% Barges FOB Rtdm 11,00 588,25 ↓ 578,75 576,25 574,00 576,75 571,50 563,75 3.5% Cargoes FOB Med 12,25 588,00 ↓ 575,50 572,75 570,00 573,25 565,25 561,00 1.0% Cargoes FOB NWE 9,00 613,25 ↓ 607,75 607,00 605,50 606,75 602,50 593,25 3% no. 6 USGC WB 0,80 90,85 ↓ 90,70 90,45 90,20 90,20 89,55 88,65 380 CST Cargoes FOB S'pore (2,50) 598,50 ↓ 601,75 598,75 596,00 598,25 594,75 588,50 0.1 % GO Barges FOB Rtdm 16,75 874,75 ↓ 866,25 868,25 870,25 868,25 872,25 862,25 Physical Rotterdam 380 CST 10,00 590,00 ↓ 584,00 582,00 579,25 581,50 575,75 568,50 Physical Singapore 380 CST (0,50) 605,75 ↓ 607,50 605,25 602,75 605,00 601,25 594,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Jun 10:00 AM Apr 0.2% 0.4% 0.2% Treasury Budget Medium 12-Jun 2:00 PM May -$139.0B -$124.6B -$138.7B Initial Claims Medium 13-Jun 8:30 AM 8-June 350K 346K - Continuing Claims Medium 13-Jun 8:30 AM 1-June 2975K 2952K - Retail Sales High 13-Jun 8:30 AM May 0.1% 0.1% - Business Inventories Medium 13-Jun 10:00 AM Apr 0.2% 0.0% - Core PPI Medium 14-Jun 8:30 AM May 0.2% 0.1% - Industrial Production Medium 14-Jun 9:15 AM May 0.1% -0.5% - Capacity Utilization Medium 14-Jun 9:15 AM May 77.9% 77.8% - Mich Sentiment High 14-Jun 9:55 AM Jun 81.5 84.5 -

Source: OW Risk Management