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

Brent futures reached a new year to date high at $115.71/bbl yesterday. The August Brent future closed at $115.06/bbl, up another +$0.80 while the July WTI contract which expire today rose +$0.46 to settle at $106.43/bbl. The August WTI future closed at $106.05/bbl, up +$0.46. Crude prices reached new highs this week after the market understood that the violence in Iraq will have long term implications. US will send 300 “military advisers” to Iraq to help the current government fight back again the Sunni insurgents. President Obama said the fighting erupting now in Iraq is due to the sectarian politic done by the current government since the fall of Saddam Hussein. A full US ground invasion will likely not happen as the American opinion is against it. Even air strike didn't get the green light, as the US fear to be perceived as supporting the Shiite government. The US weekly jobless claims came out 2k below expectations at 312k and lower than the previous week at 318k. The May US leading indicators came higher than expected at +0.5%. No data from the US today. This morning crude is trading slightly lower.

Fueloil Specifics

The Singapore fuel oil prices extended gains by another +$2.0 during the window tracking the recent strength in crude values. Delivered bunker premiums further weakened slightly to around +$2.5 above cargo prices yesterday in view of higher outright prices. In Rotterdam prices gained +$6 while delivered premium remained unchanged.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jul Aug Sep Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,46 106,43 ↓ 105,69 104,89 103,88 102,02 99,43 97,06 ICE Brent Swap (1st month) 0,80 115,06 ↓ 114,48 113,85 112,66 111,54 109,81 108,76 ICE Gasoil Swap (1st month) 3,75 938,75 ↓ 936,83 940,00 942,33 940,14 - - 3.5% Barges FOB Rtdm 6,00 603,00 ↓ 601,50 599,25 596,50 592,50 591,50 588,00 3.5% Cargoes FOB Med 5,50 595,50 ↓ 596,75 595,50 594,50 589,50 587,75 596,00 1.0% Cargoes FOB NWE 2,75 643,25 ↓ 632,50 630,75 627,75 618,75 610,50 607,25 3% no. 6 USGC WB 0,34 93,85 ↓ 94,00 93,62 93,29 92,74 92,33 91,63 380 CST Cargoes FOB S'pore 2,00 618,25 ↓ 621,00 618,00 615,75 613,75 612,50 609,50 0.1 % GO Barges FOB Rtdm 4,75 934,75 ↓ 937,25 941,25 943,25 941,25 - - Physical Rotterdam 380 CST 6,00 603,25 ↓ 606,75 604,50 601,75 597,75 596,75 593,25 Physical Singapore 380 CST 1,50 621,25 ↓ 626,25 622,25 619,50 617,50 616,25 613,25

Focus of the day: Piraeus

The market increased dramatically the last few days and cargo prices in the Mediterranean rose sharply. CIF MED 3.5% average for the week was higher by $ 17.4 compared to last week reaching a 9 month high. Cargo prices have literally shot upwards leaving buyers with quite expensive options compared to their expectations from the previous weeks, while supply conditions and product availability in Piraeus is very good, demand has slowed down following the sharp increase in bunker costs. Competition is intense as all physical suppliers try to compete for the few spot enquiries that come up. We expect spot demand to pick up in the following days and still see sufficient volumes from the container/cruiser vessels.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 16-Jun 8:30 AM Jun 14.0 19.0 19.3 Industrial Production Medium 16-Jun 9:15 AM May 0.7% -0.6% 0.6% Housing Starts Medium 17-Jun 8:30 AM May 1035K 1072K 1001K Building Permits Medium 17-Jun 8:30 AM May 1060K 1080K 1060K Core CPI High 17-Jun 8:30 AM May 0.1% 0.2% 0.3% FOMC Rate Decision High 18-Jun 2:00 PM Jun - 0.25% 0.25% Initial Claims Medium 19-Jun 8:30 AM 14-jun 310K 317K 312K Philadelphia Fed Medium 19-Jun 10:00 AM Jun 13.0 15.4 17.8 Leading Indicators Medium 19-Jun 10:00 AM May 0.5% 0.4% 0.5%

Source: OW Risk Management