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 oil prices rebounded yesterday led by upward revised Oil demand forecast by the US Energy Department. World Oil consumption will rise by 1,3 mbbl/day to 92,5 mbbl/year. The gain of 90k bbl per day from December’s predictions is the first demand expansion in developed countries since 2010. The Weekly API numbers will be published later today and a crude build is expected, the first in eight weeks. The February WTI futures expired yesterday at $94.99/bbl, up +$0.62 while the next most active contract, March settled at $94.97/bbl, up +$0.38.  March Brent also rose +$0.38 to $106.73/bbl. This morning, crude prices are trading half a dollar higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices rebounded yesterday following higher crude values. Delivered 380cst product both in Rotterdam and Antwerp was assessed nearly $4/mt higher versus previous close. Suppliers in the area reported healthy demand and good product avails that held spot prices well under pressure. Premiums for lsfo products remained on the higher side supported by tight barge avails. The Singapore fuel oil markets were up more than $1.0 during the Asian Platts window yesterday. Market was said to be firm going forward especially next month where supplies are tighter. The delivered bunker premiums were ranging between $7.0 and $8.0 above cargo prices yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,62 94,99 ↑ 95,35 95,09 93,96 93,90 91,30 89,29 ICE Brent Swap (1st month) 0,38 106,73 ↑ 106,86 106,31 105,92 105,51 104,22 102,82 ICE Gasoil Swap (1st month) 11,25 919,00 ↓ 912,75 907,83 903,92 900,86 893,36 887,06 3.5% Barges FOB Rtdm 3,50 560,50 ↑ 567,25 569,00 569,25 569,00 567,50 564,00 3.5% Cargoes FOB Med 2,75 565,25 ↑ 563,50 565,50 566,25 566,00 564,75 561,25 1.0% Cargoes FOB NWE 4,00 577,75 ↑ 582,75 586,25 589,25 590,75 589,75 582,75 3% no. 6 USGC WB (0,09) 88,10 ↑ 89,45 89,45 89,70 89,20 89,20 88,95 380 CST Cargoes FOB S'pore 1,75 604,75 ↑ 603,50 597,75 594,75 593,00 591,00 589,00 0.1 % GO Barges FOB Rtdm 13,00 916,75 ↓ 914,25 909,25 905,25 902,25 897,25 890,25 Physical Rotterdam 380 CST 4,00 563,25 ↑ 572,50 574,25 574,50 574,25 572,75 569,25 Physical Singapore 380 CST 2,75 611,50 ↑ 608,75 603,00 600,00 598,25 596,25 594,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 22-Jan 7:00 AM 18-jan NA 11.9% - Initial Claims Medium 23-Jan 8:30 AM 18-jan 330K 326K - Existing Home Sales Medium 23-Jan 10:00 AM Dec 4.87M 4.90M - Leading Indicators Medium 23-Jan 10:00 AM Dec 0.1% 0.8% -

Source: OW Risk Management