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

A break either way was expected on Crude after trading sideways; it turned heavily down on the US opening. Traders were nervous before the FOMC minutes and announcement that the Federal Reserve is now looking to stop its bond buying program. Some funds preferred to liquidate their length in crude going into the meeting. The March WTI contract expired at $94.46/bbl, down -$2.20 while April WTI settled at $95.22/bbl down -$1.88. The April Brent futures settled at $115.60/bbl, down -$1.92 yesterday. Saudi Arabia- OPEC largest producer- said they would increase production in the second part of the year if needed. The API inventory report yesterday saw a bigger than expected build in the crude stockpile. Later today market will look to the more widely watched inventory report from the US Energy department and the expectations are as follows: Crude +1.8 mbbl, Distillates -1.6 mbbl, Gasoline -0.7 mbbl. Also the US CPI, initial jobless claims and exiting home sales data will be released in the afternoon. This morning, crude is trading more than 1% down.

Fueloil Specifics

The NWE bunker fuel oil prices moved lower yesterday following weakening crude values. Delivered 380cst in Rotterdam lost app.$2/mt while the Antwerp 380cst product was assessed $1/mt down versus previous days close. Both ports reported low trading activity with market players still away for the IP week. The Singapore fuel oil markets rose by around $1.0 during the morning Platts window yesterday tracking crude movement. The Asian crack strengthened yesterday as strong buying interest supported the fuel oil swaps especially after the window. The delivered bunker premiums were seen app. $4.0 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) (1,88) 95,22 ↓ 93,85 94,30 94,71 94,67 95,15 95,04 ICE Brent Swap (1st month) (1,92) 115,60 ↓ 114,03 113,22 112,52 112,52 110,42 108,60 ICE Gasoil Swap (1st month) (3,75) 996,00 ↓ 982,92 976,33 969,67 970,22 957,78 948,31 3.5% Barges FOB Rtdm (1,50) 628,00 ↓ 618,50 618,00 617,50 617,50 614,50 610,00 3.5% Cargoes FOB Med (2,00) 622,75 ↓ 613,00 613,50 612,50 613,25 610,00 605,25 1.0% Cargoes FOB NWE (5,00) 665,75 ↓ 656,50 656,50 656,00 656,00 651,00 642,50 3% no. 6 USGC WB (1,49) 98,18 ↓ 97,45 97,20 96,95 96,95 96,45 95,70 380 CST Cargoes FOB S'pore 1,25 653,00 ↓ 640,00 639,50 639,75 639,25 636,25 632,00 0.1 % GO Barges FOB Rtdm (5,25) 993,50 ↓ 983,25 977,25 970,25 971,25 957,25 948,25 Physical Rotterdam 380 CST (2,00) 632,25 ↓ 625,75 625,25 624,75 624,75 621,75 617,25 Physical Singapore 380 CST 2,00 657,00 ↓ 647,75 647,25 647,50 647,00 644,00 639,75

Focus of the day: Houston

USG Coast Bunker price has no support on Wednesday due to weak demand. A confirm deal in Houston on Wednesday showed $639/mt which is $8/mt decrease. Platts assessed IFO 380 at $97.93/bbl, down by $1.49/bbl which is equivalent to a decrease of $9.5/mt at $637.5/mt for Houston. Bunker fuel prices in New Orleans were indicated to have dropped back to a discount to Houston. Platts assessed it at $636.4/mt on Wednesday, $11.5/mt lower than the day before. MGO prices dropped as well alongside heating oil futures. Platts assessed MGO in Houston and New Orleans $9/mt lower at $1,042.50/mt and $1,043/mt, respectively.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Housing Starts Medium 20-feb 8:30 AM Jan 900K 954K 890K Building Permits Medium 20-feb 8:30 AM Jan 915K 903K 925K Core PPI Medium 20-feb 8:30 AM Jan 0.1% 0.1% 0.2% Initial Claims Medium 21-feb 8:30 AM 16-feb 365K 341K - Continuing Claims Medium 21-feb 8:30 AM 09-feb 3200K 3114K - Core CPI High 21-feb 8:30 AM Jan 0.1% 0.1% - Existing Home Sales Medium 21-feb 10:00 AM Jan 4.95M 4.94M - Philadelphia Fed Medium 21-feb 10:00 AM Feb 2.0 -5.8 - Leading Indicators Medium 21-feb 10:00 AM Jan 0.3% 0.5% -

Souce: OW Risk Management