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

After falling to near three-week lows, US oil rose on Thursday close. Investors are reconsidering the geopolitical risk posed by worsening diplomatic relations over Russia's intervention in Crimea. The US and its allies moved on Thursday to punish the Russians-although chancellor Merkel, was in favor to continue to work diplomatically, for their intervention in Ukraine through sanctions. Crude was also supported by EUR/USD strength to a two-month high. Brent settled at $108.10 (+0.34), but was not able to push higher than its 200-day moving average (108.41). February US Nonfarm payrolls are due to be released today at 8:30 a.m. EST (1330 GMT) and the market is expecting around 149k new jobs in February, stronger than the weather-depressed gains of 113,000 in January and 75,000 in December. This morning WTI is trading up around +0,18% and Brent- 0,2% down.

Fueloil Specifics

The NWE bunker fuel oil prices lost their strength and closed the day in Rotterdam and Antwerp ports nearly $6/mt down. Both ports reported increased demand levels and improving LSFO avails reflected in lower premiums for prompt deliveries. The outright price of benchmark 380-cst fuel oil tanked to a 4-month low on Thursday, reflecting the slump in crude prices, coupled with a lower cash premium. This resulted in increased demand for marine fuel oil, which was assessed at below the $600/mt mark for the second straight session. Singapore's onshore fuel oil stocks declined 10% on week to a more-than-one-month low of 17.23mbbl (2.71 million tonnes), latest data from trade agency IE Singapore showed on Thursday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,11 101,56 ↑ 100,80 99,99 99,12 99,97 97,09 94,21 ICE Brent Swap (1st month) 0,34 108,10 ↓ 107,18 106,81 106,81 106,37 105,38 103,15 ICE Gasoil Swap (1st month) (7,00) 904,75 ↑ 901,67 899,50 898,25 896,67 890,69 - 3.5% Barges FOB Rtdm (1,25) 572,50 ↑ 575,50 575,25 575,00 574,00 569,75 568,25 3.5% Cargoes FOB Med (1,25) 569,00 ↑ 573,25 573,00 572,75 571,50 567,25 566,25 1.0% Cargoes FOB NWE 1,25 627,00 ↑ 610,50 606,50 605,00 603,00 594,75 585,75 3% no. 6 USGC WB 0,29 89,35 ↑ 90,05 89,92 90,05 89,60 89,00 88,65 380 CST Cargoes FOB S'pore (3,50) 593,25 ↑ 597,50 597,00 596,25 595,25 593,00 591,50 0.1 % GO Barges FOB Rtdm (7,25) 903,50 ↑ 903,25 901,25 899,25 899,25 892,25 - Physical Rotterdam 380 CST (5,00) 573,75 ↑ 580,75 580,50 580,25 579,25 575,00 573,50 Physical Singapore 380 CST (2,00) 600,00 ↑ 602,00 601,50 601,00 600,50 598,25 596,75

Focus of the day: Piraeus

This week started slow for Piraeus as Monday was a holiday in Greece. However as crude rose sharply, demand in the East Med increased rapidly. The market turned soft again towards the end of the week and CIF MED 3.5% average for this week was lower by $ 9.25 compared to the last week. Istanbul was faced with high demand but no congestion has been reported; product availability is very good and RMK 500 is now available in the local market, making the port a very appealing option for liner vessels wanting to lift higher viscosity fuel. Piraeus availability was very good as well and although some barge congestion was noticed, there is still available barge space for prompt enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Personal Income Medium 3-Mar 8:30 AM Jan 0.2% 0.0% 0.3% PCE Prices- Core Medium 3-Mar 8:30 AM Jan 0.1% 0.1% 0.1% ISM Index High 3-Mar 10:00 AM Feb 51.0 51.3 53.2 ADP Employment Change Medium 5-Mar 8:15 AM Feb 150K 175K 139K ISM Services High 5-Mar 10:00 AM Feb 53.5 54.0 51.6 Initial Claims Medium 6-Mar 8:30 AM 01-mar 335K 348K 323K Productivity- Rev. Medium 6-Mar 8:30 AM Q4 2.5% 3.2% 1.8% Factory Orders Medium 6-Mar 10:00 AM Jan -0.3% -1.5% -0.7% Nonfarm Payrolls High 7-Mar 8:30 AM Feb 165K 113K - Unemployment Rate High 7-Mar 8:30 AM Feb 6.5% 6.6% - Trade Balance Medium 7-Mar 8:30 AM Jan -$37.0B -$38.7B -

Source: OW Risk Management