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 higher on Friday lifted by a stronger than expected US job data. The US February Nonfarm Payroll showed +175k against +140k expected. This is encouraging after the last months weaker numbers despite a higher Unemployment figure at 6.7% from 6.6%. The April Brent futures closed at $109.00/bbl, up +$0.90 and WTI closed at $102.58/bbl, up +$1.02. While a lot of talking is going on among the West Europeans about Ukraine, Russian troops continue to tighten their grip on Crimea sizing about 30  border posts during the week end. The Chinese February exports number fell unexpectedly- 18% year-on-year. To compound the weak news, Japan Q4 GDP was revised down to 0,7% from an originally disappointing 1%,  the weakest growth since December 2012. This morning, crude is trading lower with Brent around -0,80% and WTI -1,19%.

Fueloil Specifics

The Northwest European bunker fuel oil prices rose slightly following higher Brent. Delivered 380cst product in Rotterdam and Antwerp was assessed some $3/mt up vs previous close. Both ports reported continuously tight LSFO avails with some suppliers not offering before March 12-13. The Singapore fuel oil market rose app.$2.0 during the Asian Platts window last Friday. Suppliers reported mixed demand and sufficient product avails. The delivered bunker premiums were ranging between +$3.5 to $4.5 above cargo prices. This morning both markets are trading slightly lower.

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) 1,02 102,58 ↓ 100,56 99,71 98,85 99,71 96,91 94,50 ICE Brent Swap (1st month) 0,90 109,00 ↓ 107,50 107,11 107,11 106,66 105,61 103,31 ICE Gasoil Swap (1st month) 9,75 914,50 ↓ 906,33 903,25 901,75 899,92 893,33 - 3.5% Barges FOB Rtdm 2,25 575,00 ↓ 576,25 576,25 576,00 574,75 570,50 568,75 3.5% Cargoes FOB Med 4,75 573,25 ↓ 573,75 574,00 573,75 572,25 568,00 567,00 1.0% Cargoes FOB NWE 9,00 635,25 ↓ 611,50 607,75 606,50 604,25 596,00 586,25 3% no. 6 USGC WB 0,10 89,45 ↓ 90,20 90,10 90,27 89,82 89,22 88,87 380 CST Cargoes FOB S'pore 2,25 595,75 ↓ 596,50 596,75 596,50 596,00 593,75 591,75 0.1 % GO Barges FOB Rtdm 9,00 913,25 ↓ 907,25 904,25 903,25 899,25 895,25 - Physical Rotterdam 380 CST 3,00 577,00 ↓ 581,50 581,50 581,25 580,00 575,75 574,00 Physical Singapore 380 CST 2,00 603,00 ↓ 602,75 602,00 601,75 601,25 599,00 597,00

Focus of the day: Gibraltar

Bad weather has been affecting the Gibraltar Strait over the weekend. It is still causing barge delays at the three ports and some of the bunkering areas closed for operations. Deliveries at berth are taking place as normal and weather conditions are expected to improve by tomorrow. There is good products availability in the hub, therefore prompt requirements could be again considered as from tomorrow onwards. CIF Med 3.5% is trading some 12 usd/mt above FOB Barges Rotterdam. The HILO keeps widening and is currently app. 77 usd/mt in the Med while the CIF Med 1% premium over FOB NWE 1% is at 29 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Mar 10:00 AM Jan 0.3% 0.3% - Treasury Budget Medium 12-Mar 2:00 PM Feb NA -$203.5B - Initial Claims Medium 13-Mar 8:30 AM 08-mar 335K 323K - Retail Sales High 13-Mar 8:30 AM Feb 0.2% -0.4% - Business Inventories Medium 13-Mar 10:00 AM Jan 0.3% 0.5% - Core PPI Medium 14-Mar 8:30 AM Feb 0.1% 0.2% - Mich Sentiment High 14-Mar 9:55 AM Mar 81.6 81.6 -

Source: OW Risk Management