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

With the US closed, Crude prices consolidated yesterday in a low volume session. August Brent fell -$0.91 to settle at $99.77/bbl and no WTI crude settlement due to the US holiday. Market took its direction from the European markets where disappointing May EU factory orders fell 6% from last year dampened sentiment. Market is cautious before Central bank decision; first the Bank of England and the ECB meeting later today where a 0,25% Rate cut is expected. Fundamentally, crude is supported by Iran embargo and the oil workers’ strike in Norway. The US Energy department will be releasing the inventory report only later today due to a public holiday yesterday and the expectations are as follows: Crude -1.9 mbbl, Distillates +0.6 mbbl, Gasoline +0.6 mbbl. Crude stockpiles are expected to fall due to supply disruption of production and tankers discharging by Tropical storm Debby. This morning, crude is trading +0,60% up.

Fueloil Specifics

The NWE bunker fuel oil prices weakened slightly yesterday. Both cargo and delivered 380cst product posted app.$2/mt losses compared to previous day close. Lower prices improved demand levels seen in the area. However Rotterdam port reported firm price levels supported by tight product avails, especially for prompt deliveries. The Singapore fuel oil market prices surged more than $10.5 during the morning window yesterday. The bunker premiums strengthened to $9.5 above cargo prices as crude was stronger and demand was dampened by the higher prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q412 Q113 2013 NYMEX WTI Swap (1st month) - - ↑ 88.08 88.46 88.87 89.25 89.86 89.25 ICE Brent Swap (1st month) (0.91) 99.77 ↑ 100.07 99.81 99.64 99.43 99.01 99.43 ICE Gasoil Swap (1st month) (4.00) 876.75 ↑ 873.83 870.50 869.92 868.58 864.72 861.25 3.5% Barges FOB Rtdm (2.00) 576.75 ↑ 578.75 575.50 573.00 571.25 567.25 562.75 3.5% Cargoes FOB Med (3.75) 575.50 ↑ 575.25 571.50 569.00 567.25 563.00 558.50 1.0% Cargoes FOB NWE (2.75) 620.50 ↑ 618.25 613.50 610.00 607.25 602.00 597.50 3% no. 6 USGC WB 3.00 89.50 ↑ 90.00 89.65 89.40 88.65 88.15 87.92 380 CST Cargoes FOB S'pore 11.00 601.75 ↑ 603.75 600.50 598.25 596.25 591.25 586.25 0.1 % GO Barges FOB Rtdm (6.00) 873.75 ↑ 874.25 871.25 868.25 868.25 862.25 860.25 Physical Rotterdam 380 CST (2.00) 587.25 ↑ 589.00 585.75 583.25 581.50 577.50 573.00 Physical Singapore 380 CST 12.50 612.00 ↑ 614.00 610.75 608.50 607.00 602.00 597.00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index Medium 02-Jul 10:00 AM Jun 51.5 53.5 49.7 Construction Spending Medium 02-Jul 10:00 AM May 0.2% 0.3% 0.9% Factory Orders Medium 03-Jul 10:00 AM May 0.5% -0.6% 0.7% Challanger Job Cuts Medium 05-Jul 7:00 AM Jun NA 66.7% - ADP Employment Change Medium 05-Jul 8:15 AM Jun 110K 133K - Initial Claims Medium 05-Jul 8:30 AM 30-Jun 385K 386K - ISM Services Medium 05-Jul 10:00 AM Jun 53.0 53.7 - Nonfarm Payrolls Medium 06-Jul 8:30 AM Jun 100K 69K - Unemployment Rate Medium 06-Jul 8:30 AM Jun 8.1% 8.2% -

Source: OW Risk Management