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 prices had a slow start but accelerated sharply into the end of the session. The May WTI futures closed at $96.34/bbl, up +$1.53 and Brent at $109.36/bbl, by +$1.19. Market seems to be more optimistic about the US economy lately and to look only into the good news: The US February Durable Goods Orders rose +5.7%, way above market expectation of +4.6% but is down -0,5% without Transportation. A disappointing US March consumer confidence index at 59,7 vs. 67,5 expected and also US February Home Sales figures failed to dampen the enthusiasm after the biggest monthly Home price increase in the major 20 cities since 2006. Despite an agreement on a Cyprus bail out, market is pretty downbeat about the Eurozone . The Euro is trading at a 4 month low against the US dollar reflecting this lack of confidence. The US Energy department will be releasing the inventory report later today and the expectations are as follows: Crude +0.7mbbl, Distillates -0.8 mbbl, Gasoline -1.0 mbbl. This morning, crude is trading -0,28$ lower. Note that due to Easter Holidays the next Market update will be Tuesday 02nd of April.

Fueloil Specifics

The Singapore Fuel Oil Market dipped around -$1.0 during the Platts window yesterday. The Asian Fuel Oil cracks extended its weakness yesterday. Bunker demand were said to be mixed yesterday. The delivered bunker premiums were also higher yesterday around $8.25 above cargo prices yesterday.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,53 96,34 ↑ 95,97 96,19 96,31 95,83 94,61 91,90 ICE Brent Swap (1st month) 1,19 109,36 ↑ 109,37 108,96 108,47 107,29 105,66 102,70 ICE Gasoil Swap (1st month) 1,25 902,00 ↑ 914,67 917,42 919,42 919,97 919,72 900,61 3.5% Barges FOB Rtdm 3,00 601,50 ↑ 606,75 604,50 602,75 600,00 597,00 584,75 3.5% Cargoes FOB Med 4,75 596,50 ↑ 600,00 598,75 597,75 596,50 590,00 580,50 1.0% Cargoes FOB NWE 0,50 615,25 ↑ 624,50 629,00 631,25 630,25 624,75 612,75 3% no. 6 USGC WB 1,17 96,35 ↑ 94,55 94,30 94,05 93,80 93,05 89,05 380 CST Cargoes FOB S'pore (1,50) 623,25 ↑ 629,00 627,25 625,75 623,50 620,00 610,75 0.1 % GO Barges FOB Rtdm 1,25 900,00 ↑ 913,25 916,25 918,25 919,25 916,25 901,25 Physical Rotterdam 380 CST (4,00) 599,00 ↑ 614,00 611,75 610,00 607,25 602,25 592,00 Physical Singapore 380 CST (1,00) 632,25 ↑ 636,75 635,00 633,50 631,25 627,75 618,50

Focus of the day: Singapore

Singapore bunker market remains moving slow to average according to traders. The price of HSFO 380cSt bunker fuel slipped by -$1.00 to $632.00/mt. while the Marine gas oil (MGO) was up +$1.0 to $911.50/mt. yesterday. The Singapore delivered bunker premiums were around +$8.25 above cargo prices. There were no major issues reported with supplies. The earliest general deliveries were estimated to be around March 28 onwards. There appears to be notification of haze that could reduce visibility in the surrounding waters around Singapore which could potentially disrupt both cargo and general operations.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 26-mar 8:30 AM Feb -4.9% 5.0% 5.7% Case Shiller 20-city Index Medium 26-mar 9:00 AM Jan 6.8% 7.5% 8.1% Consumer Confidence High 26-mar 10:00 AM Mar 69 65 59.7 New Home Sales Medium 28-mar 10:00 AM Feb 437K 400K 411K Initial Claims Medium 28-mar 8:30 AM 23-mar 336K 335K   GDP- Third Estimate High 28-mar 8:30 AM Q4 0.1% 0.3%   Chicago PMI Medium 28-mar 9:45 AM Mar 56.8 55   PCE Prices- Core High 29-mar 8:30 AM Feb 0.1% 0.2%   Michigan Sentiment- Final High 29-mar 9:55 AM Mar 71.8 72,0000

Source: OW Risk Management