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 oil prices ended higher on Friday as a good US job data and overall Unemployment number at 6.3% helped boost the prospect for a stronger energy demand from the US. On the geopolitical side Russia’s call for an emergency United Nations Security Council meeting renewed concerns over global crude supplies. Brent earned $0.83/bbl to settle at $108.59/bbl, while WTI picked up $0.34/bbl to close at $99.76/bbl. Volatility should continue this week with the last developments in East Ukraine although prices could be capped by plenty of Oil stocks and China slowdown. China’s manufacturing contracted for a fourth month in April at 48,1 vs 48,4 expected raising concern the economy’s slowdown is deepening. On the Brent Crude, structure remains strong and suggestive of a further advance to the $110 area should things heat up in Ukraine during the upcoming weekend. Today the UK is closed and markets will wait for the US opening to see price direction. Brent is up +0,17% while WTI around 0,50%.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported increasing demand and rising prices last Friday. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $5/mt higher vs previous close. Most suppliers were fully booked for prompt HSFO deliveries while LSFO avails remained tight due to delays at loading installations. The discount on 180-centistoke fuel oil in Singapore was steady at $3.00/mt on Friday, according to Reuters' data, with traders expecting supplies to be lower as demand picks up in the approach to summer in North Asia. Heavy distillates are used as feedstock to generate electricity and are also used in gasoline-making units to produce motor fuel. The fuel market seems to be bottoming out; looks like no-one wants to sell at cheap prices in the Singapore cash market. FO paper still fighting to follow stronger Brent and this morning both markets are trading just marginally higher.

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) 0,34 99,76 ↑ 100,07 99,25 97,37 97,39 97,39 94,81 ICE Brent Swap (1st month) 0,83 108,59 ↑ 108,46 107,84 107,20 106,57 105,05 102,89 ICE Gasoil Swap (1st month) 9,75 909,50 ↓ 905,67 903,42 902,42 900,89 895,14 - 3.5% Barges FOB Rtdm 1,00 566,75 ↑ 570,75 571,50 571,25 569,75 565,00 563,75 3.5% Cargoes FOB Med 5,50 570,25 ↑ 569,75 569,25 568,25 563,75 562,00 560,25 1.0% Cargoes FOB NWE 8,00 606,25 ↑ 608,00 606,50 604,00 601,25 591,00 582,00 3% no. 6 USGC WB 0,96 90,68 ↑ 90,08 89,28 89,06 88,86 88,19 87,84 380 CST Cargoes FOB S'pore (2,00) 584,25 ↑ 587,75 590,25 590,25 589,25 587,25 586,25 0.1 % GO Barges FOB Rtdm 9,25 907,75 ↓ 906,25 904,25 903,25 901,25 896,25 - Physical Rotterdam 380 CST 5,00 573,00 ↑ 576,00 576,75 576,50 575,00 570,25 569,00 Physical Singapore 380 CST (1,50) 589,00 ↑ 593,00 595,50 595,50 594,50 592,50 591,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Service Medium 5-May 10:00 AM Apr 54.0 53.1 - Trade Balance Medium 6-May 8:30 AM Mar -$42.5B -$42.3B - Initial Claims Medium 8-May 8:30 AM 3-May 325K 344K - Wholesale Inventories Medium 9-May 10:00 AM Mar 1.1% 0.5% - JOLTS- Job Openings Medium 9-May 10:00 AM Mar NA 4.173M -

Source: OW Risk Management