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 closed the week sharply lower, down more than $1.0 after what is called "a dead cat bounce". It was a broad sell off triggered after the US Federal Reserve meeting on Wednesday announcing that they will start to reduce their Bond buying program in the next months and concern about China's recovery. A preliminary indicator showed that China's Manufacturing will shrink at a faster pace this month. The country is also the world's second-largest oil consumer, accounting for 11% of global demand in 2012.The US dollar strengthened and so did bonds yields as investors fled equities and commodities for safer assets. The August WTI futures closed at $93.69/bbl, down -$1.75 while the August Brent similarly fell -$1.24, to $100.91/bbl. This morning, Brent fell for the first time in 3 weeks below 100usd crude is trading around -0,30%.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed last week with double digit losses, following falling crude values. Delivered 380cst product in Rotterdam and Antwerp was assessed $10/mt down versus previous days close. Demand picked up significantly with most inquiries traded for prompt deliveries. Waiting time was still up to three days in Rotterdam. Antwerp reported busy day with improved avails. The Singapore fuel oil markets fell between -$8.0 to -$2.0 during the Asian Platts window las Friday. Bunker demand was said to be healthy as outright prices fell. The delivered bunker premiums inched up around +$6.5 above cargoes prices. This morning both markets are trading marginally higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q413 Q114 2014 NYMEX WTI Swap (1st month) (1,75) 93,69 ↓ 93,36 93,19 92,76 91,36 89,42 87,90 ICE Brent Swap (1st month) (1,24) 100,91 ↓ 100,49 100,08 99,66 99,00 96,99 96,51 ICE Gasoil Swap (1st month) (17,25) 858,50 ↑ 858,67 857,08 856,25 857,36 854,61 843,44 3.5% Barges FOB Rtdm (10,25) 564,50 ↑ 566,25 565,50 563,25 558,25 556,25 550,00 3.5% Cargoes FOB Med (12,00) 565,25 ↑ 563,50 559,75 557,00 552,75 550,75 546,75 1.0% Cargoes FOB NWE (9,00) 594,75 ↑ 595,00 593,50 592,00 588,50 586,75 578,25 3% no. 6 USGC WB (0,32) 87,90 ↑ 88,85 88,50 88,00 87,75 87,50 87,00 380 CST Cargoes FOB S'pore (7,50) 594,75 ↑ 588,00 584,50 584,25 582,50 580,25 574,75 0.1 % GO Barges FOB Rtdm (17,50) 860,25 ↑ 859,25 857,25 857,25 856,25 851,25 842,25 Physical Rotterdam 380 CST (10,00) 571,00 ↑ 571,50 569,25 566,50 563,00 561,00 554,75 Physical Singapore 380 CST (7,00) 602,50 ↑ 593,75 590,75 591,00 589,25 586,75 581,50

Focus of the day: Gibraltar

The Gibraltar Strait is gaining attractiveness lately with favorable weather conditions, good product avails and last but not least, lower bunker premiums due to the increase of competition with new players coming in. Operations wise the three ports are running smoothly this morning and most barges are well within schedule. Despite healthy demand last week, prompt requirements are still possible to accommodate for most suppliers in the hub. CIF Med 3.5% is trading some 12 usd/mt above Rotterdam FOB Barges and the HILO spread is currently around 25 usd/mt in the Med, with the premium of CIF Med 1% over FOB NWE 1% only at 9 usd/mt. The Med market is relatively flat this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 25-Jun 8:30 AM May 4.5% 3.5% - Case-Shiller 20-city Index Medium 25-Jun 9:00 AM Apr 105% 10.9% - Consumer Confidence High 25-Jun 10:00 AM Jun 72.0 76.2 - New Home Sales Medium 25-Jun 10:00 AM May 470K 454K - GDP- Third Estimate Medium 26-Jun 8:30 AM Q1 2.4% 2.4% - Initial Claims Medium 27-Jun 8:30 AM 22-jun 345K 354K - Personal Income Medium 27-Jun 8:30 AM May 0.1% 0.0% - PCE Prices Medium 27-Jun 8:30 AM May 0.2% 0.0% - Pending Home Sales Medium 27-Jun 10:00 AM May 1.5% 0.3% - Chicago PMI Medium 28-Jun 9:45 AM Jun 52.0 58.7 - Michigan Sentiment Medium 28-Jun 9:55 AM Jun 81.0 82.7 -

Source: OW Risk Management