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 started the week rising on close yesterday amidst thin trading volume as UK market was closed on Bank Holiday. The June WTI futures settled at $96.16/bbl, up +$0.55 while Brent gained +$1.27 to close at $105.46/bbl. Crude prices started strong supported after last Friday's positive US labor data, however lost steam after Monday's Eurozone PMI data that suggested a steeper downturn. A survey covering Chinese business revealed April growth slowing down also dampened sentiment yesterday. Market rebounded on latter session lifted by Middle East geopolitical tension between Israel and Syria, outweighing economic concerns. Another notable driver is the upcoming North Sea oil field maintenance which will potentially tighten supply. Today, it's a quiet day in regards of economic data releases, with only news on factory orders from Germany. This morning, crude is trading down.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with good demand and firming prices. There was no official Platts closing in Europe yesterday due to Bank Holiday in UK. The Singapore fuel oil markets extended gains, moving up more than +$7.0 during the morning Platts window yesterday. Market is experiencing a shortage of on specifications bunker grade products despite seeing a build of +2.0 mbbl in the latest Singapore heavy residual fuel oil inventory. Most of the incoming products were said to be heavy fuel oil which requires blending. The delivered bunker premiums were seen at $5.0-10.0 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. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,55 96,16 ↓ 95,66 95,57 95,29 95,23 93,81 91,18 ICE Brent Swap (1st month) 1,27 105,46 ↓ 104,08 103,71 103,36 103,36 102,38 99,75 ICE Gasoil Swap (1st month) 0,75 858,75 ↑ 867,58 871,25 875,33 874,89 881,78 873,88 3.5% Barges FOB Rtdm - 588,75 ↑ 591,50 589,00 587,00 588,00 582,75 573,00 3.5% Cargoes FOB Med - 581,75 ↑ 586,00 584,25 582,50 581,50 574,25 568,25 1.0% Cargoes FOB NWE - 602,50 ↑ 613,00 617,00 616,00 616,25 612,25 600,50 3% no. 6 USGC WB 0,84 93,95 ↓ 92,95 92,45 92,20 92,45 91,45 90,20 380 CST Cargoes FOB S'pore 7,25 617,75 ↑ 615,00 612,00 610,50 611,75 607,25 598,25 0.1 % GO Barges FOB Rtdm - 857,25 ↑ 868,25 872,25 876,25 875,25 881,25 874,25 Physical Rotterdam 380 CST - 596,00 ↑ 598,75 596,75 594,75 595,25 590,00 580,25 Physical Singapore 380 CST 9,00 626,50 ↑ 622,25 618,75 617,25 618,00 613,50 605,50

Focus of the day: ARA

May has started pretty slow demand wise. This came out not too inconvenient since both Holland and Belgium were celebrating their national holidays, making it more difficult for suppliers to schedule their lifting, as nomination needed to be done earlier. The real action came from the price surge end of last week. As this week kicked off with a bank holiday and Ascension Day coming up, this promises to be a shaky week again. Only two more weeks and business will run as usual again. Low demand, long notification periods and illiquid paper- in short. The low sulphur premium finally starts to rise as was expected, since this could still go up further, we stand by our advice to procure low sulphur well in advance. No notable change on the gasoil market. Notification periods for the different grades; six days for high sulphur enquiries and five working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 07-maj 3:00 PM Mar $16.0B $16.3B - Initial Claims Medium 09-maj 8:30 AM 4-May 340K 324K - Continuing Claims Medium 09-maj 8:30 AM 4-May 3050K 3019K - Wholesale Inventories Medium 09-maj 10:00 AM Mar 0.3% -0.3% - Treasury Budget Medium 10-maj 2:00 PM Apr NA $59.1B -

Source: OW Risk Management