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

Yesterday Crude Oil closed below important support. WTI lost $-1,54 to close at $99,74 and Brent down $-0,91 at $108,07. Despite an encouraging US ADP number at +220k the US Q1 GDP printed a dismal 0,1% far from the 1,2% expected. This news destabilized the market. On top of it the US Weekly stocks showed another 3mbbl built sending Crude Inventories at the highest since the agency started reporting in 1982. The FOMC meeting did not bring anything new and in its comments looked forward disregarding totally the weak last US GDP. They are confident that the US economy is on the right pace and will pick up again in Q2, therefore they reduced as expected the monthly Bond buying programme from $55bln to $45bln. Today should be a quite day in Europe due to Labour Day although we could see some volatility in low volume. In terms of data we will look at the US ISM Manufacturing and Construction spending before the Unemployment number tomorrow. This morning Crude Oil is down around -0,50%.

Fueloil Specifics

The Northwest European bunker fuel oil markets draw the same picture as previous days. Delivered 380cst product in the main ports of Rotterdam and Antwerp was assessed nearly $6/mt down following weakening Brent while LSFO prices remained supported by tight product avails. It is a public holiday in many European countries today thus the activity is expected to be muted. Singapore fuel oil prices weakened slightly yesterday ahead of a public holiday today. Suppliers in the area reported good demand levels and stable avails. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. May Jun Jul Q314 Q414 Q115 NYMEX WTI Swap (1st month) (1,54) 99,74 ↓ 99,02 98,31 96,72 96,73 96,73 94,43 ICE Brent Swap (1st month) (0,91) 108,07 ↓ 107,03 106,50 105,90 105,32 103,86 101,74 ICE Gasoil Swap (1st month) (17,00) 903,25 ↓ 897,00 895,08 894,17 893,61 887,64 - 3.5% Barges FOB Rtdm (5,75) 568,25 ↓ 567,75 568,00 567,50 566,25 561,50 560,00 3.5% Cargoes FOB Med (7,00) 564,50 ↓ 565,75 565,25 564,25 560,25 558,50 556,50 1.0% Cargoes FOB NWE (2,75) 610,25 ↓ 604,25 601,50 599,75 597,50 587,25 577,75 3% no. 6 USGC WB (0,54) 91,26 ↓ 89,33 88,70 88,50 88,30 87,63 87,28 380 CST Cargoes FOB S'pore (0,25) 585,75 ↓ 584,00 586,25 586,00 586,00 583,50 582,25 0.1 % GO Barges FOB Rtdm (16,50) 901,50 ↓ 898,25 896,25 895,25 895,25 889,25 - Physical Rotterdam 380 CST (6,00) 569,25 ↓ 573,00 573,25 572,75 571,50 566,75 565,25 Physical Singapore 380 CST 0,50 590,50 ↓ 589,25 591,50 591,25 591,25 588,75 587,50

Focus of the day: Houston

The US bunker prices dropped for the first time this week following crude’s downward movement after government data showed U.S. inventories extended a record high. WTI also slid as U.S. economic growth stalled in the first quarter consequently the U.S. grade widened its discount to Brent. The Gulf Coast physical suppliers responded to the lower crude levels immediately by offering HSFO380 at $598/MTW in Houston and at $605/MTW in New Orleans. Panama fixing levels were around $607-$610 depending on vessels' ETA and quantity requested, way lower than Platts’ indication at $613 MTW. As expected, the market correction is slowly taking place since prices were too high for the bearish fundamentals scenario presented these days.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Pending Home Sales Medium 28-Apr 10:00 AM Mar 0.0% -0.8% 3.4% Case-Shiller 20-city Index Medium 29-Apr 9:00 AM Feb 13.0% 13.2% 12.9% Consumer Confidence Medium 29-Apr 10:00 AM Apr 83.5 82.3 82.3 ADP Employment Change Medium 30-Apr 8:15 AM Apr 215K 191K 220K GDP-Adv. High 30-Apr 8:30 AM Q1 1.3% 2.6% 0.1% Chicago PMI Medium 30-Apr 9:45 AM Apr 56.5 55.9 63.0 FOMC Rate Decision High 30-Apr 2:00 PM Apr 0.25% 0.25% 0.25% Initial Claims Medium 1-May 8:30 AM 26-apr 325K 329K - PCE Prices- Core Medium 1-May 8:30 AM Mar 0.2% 0.1% - ISM Index High 1-May 10:00 AM Apr 54.2 53.7 - Nonfarm Payrolls High 2-May 8:30 AM Apr 200K 192K - Unemployment Rate High 2-May 8:30 AM Apr 6.6% 6.7% - Factory Orders Medium 2-May 10:00 AM Mar 1.5% 1.6% -

Source: OW Risk Management