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 opened the week positive before dropping the most in almost a month on Libya opening the Zuetina Oil terminal. June Brent fell by -$1.46 to settle at $108.12/bbl while WTI managed to stay supported - up +$0.24 to settle at $100.84/bbl. The Brent to WTI spread narrowed to around $7.0. As expected the US turned the sanctions slowly up on Putin inner circle. The US administration said they did not expect any change short term. The calculus is more on long term - with ratching up sanctions they want to show that engaging in Ukraine could have a long term impact on the Russian economy. Today will see the February Case-Schiller home prices data and the US April Consumer Confidence. API weekly Oil stocks figures will be released later and the Federal Reserve is starting its two days meeting. This morning crude prices are trading up around +0.31%.

Fueloil Specifics

The Singapore fuel oil prices centered broadly around parity ranging between -$0.5 to +$0.5 during the Platts window. Delivered bunker premiums traded between $3.5 and $4.5 above cargo prices. Barges fell to $572.50 in the window and delivered prices fell -$6.0 to $574.50.

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) 0,24 100,84 ↑ 100,99 100,17 98,25 98,25 98,25 95,70 ICE Brent Swap (1st month) (1,46) 108,12 ↑ 108,38 107,86 107,27 106,68 105,09 103,07 ICE Gasoil Swap (1st month) (5,75) 914,00 ↑ 913,08 910,00 907,83 907,31 900,75 - 3.5% Barges FOB Rtdm (2,50) 572,50 ↑ 573,25 573,75 573,75 572,75 568,75 567,50 3.5% Cargoes FOB Med (3,75) 568,50 ↑ 571,00 570,25 569,25 567,50 565,75 564,00 1.0% Cargoes FOB NWE (2,75) 610,75 ↑ 606,00 605,00 603,75 602,00 593,25 584,50 3% no. 6 USGC WB (0,68) 91,50 ↑ 90,30 89,70 89,50 89,35 88,75 88,40 380 CST Cargoes FOB S'pore 0,75 591,00 ↓ 588,50 592,00 591,75 592,25 591,00 590,00 0.1 % GO Barges FOB Rtdm (5,25) 910,50 ↑ 914,25 911,25 908,25 907,25 901,25 - Physical Rotterdam 380 CST (6,00) 575,00 ↓ 578,50 579,00 579,00 578,00 574,00 572,75 Physical Singapore 380 CST 1,25 596,00 ↓ 593,75 597,25 597,00 597,50 596,25 595,25

Focus of the day: ARA

The market remains dominated by the Ukrainian crisis steering the flat prices all over the charts. It seems buyers are awaiting the dips in a fundamentally bullish market, giving a rather unsteady demand flow. The high sulphur is basically traded flat. This combined with low demand in general provides relatively low buying. This is also reflected in the cracks being a bit softer than we have seen lately.   On the low sulphur side, the problems are less eminent and the market is pretty well supplied. However the premiums are still high compared to most buyer’s liking.   The gasoil discounts seem to have stabilized at the moment and the most severe loading problems have been solved.   Notification periods for the different grades; four days for high sulphur enquiries and four working days for low sulphur enquiries; three days for gasoil enquiries

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% - Consumer Confidence Medium 29-Apr 10:00 AM Apr 83.5 82.3 - ADP Employment Change Medium 30-Apr 8:15 AM Apr 215K 191K - GDP-Adv. High 30-Apr 8:30 AM Q1 1.3% 2.6% - Chicago PMI Medium 30-Apr 9:45 AM Apr 56.5 55.9 - FOMC Rate Decision High 30-Apr 2:00 PM Apr 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