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 rebounded yesterday after the recent year low. The July WTI contract closed above the $90 mark at $90.66/bbl, +$0.76 and Brent contract gained+$0.99 at $106.55/bbl. Discussions are ongoing and the Eurobonds proposed by the new French President –which mutualized the Debt- has found a comprehensible firm Nein from Germany. Market is still focus over the developments in Eurozone and particularly Greece and going into new election should add volatility to the Market. In the background the market is looking at developments around the nuclear talks in Iran. This morning, crude is trading up.

Fueloil Specifics

The NWE bunker fuel oil prices remained largely unchanged. Delivered 380cst product was assessed app.$1/mt up while cargo prices gained app.$3.5/mt. Both Rotterdam and Hamburg ports reported tight avails for LSFO and HSFO with some suppliers fully booked until the end of the month. The Singapore fuel oil markets lost more than $10.25 during the morning window yesterday. The delivered bunker premiums edged up app. $7.5 above cargo prices yesterday as stronger crude prices lifted offers. Bunker fuel oil swaps gained up to $3.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was significantly weaker, assessed only a few cent up from previous day close. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q312 Q412 2013 NYMEX WTI Swap (1st month) 0.76 90.66 ↑ 91.27 91.55 91.81 91.79 92.02 92.02 ICE Brent Swap (1st month) 0.99 106.55 ↑ 106.81 106.30 105.79 105.79 104.57 104.57 ICE Gasoil Swap (1st month) 2.25 905.50 ↑ 903.92 901.25 900.58 900.61 899.78 888.22 3.5% Barges FOB Rtdm 3.75 616.00 ↑ 615.75 610.75 607.25 607.25 597.50 581.00 3.5% Cargoes FOB Med 3.25 614.50 ↑ 611.75 605.75 602.75 602.75 593.25 576.75 1.0% Cargoes FOB NWE 1.75 649.75 ↑ 653.25 650.50 647.00 646.75 634.25 616.50 3% no. 6 USGC WB 0.85 95.05 ↑ 95.60 95.10 94.65 93.32 92.19 90.69 380 CST Cargoes FOB S'pore (11.50) 636.00 ↑ 645.00 640.00 635.75 636.50 625.75 607.25 0.1 % GO Barges FOB Rtdm 3.50 908.50 ↑ 903.25 901.25 901.25 901.25 901.25 891.25 Physical Rotterdam 380 CST 1.00 623.00 ↑ 626.00 621.00 617.50 617.50 607.75 591.25 Physical Singapore 380 CST (12.00) 643.25 ↑ 655.25 650.25 646.00 647.25 636.50 618.00

Focus of the day: Piraeus

This was another relatively quiet week in Piraeus. Crude market dropped significantly during the week and CIF MED 3.5% has followed this downward trend. The soft market has decreased buying interest and most bunkering activity in the port came from liner vessels. MOH refinery is currently going through an export, which is scheduled to end tomorrow, thus all bunkering activity has been shifted to Hellenic Petroleum Refinery for the last couple of days. Barge availability was good throughout the week; however some suppliers have reported to be full over the weekend and prompt enquiries, especially for LSFO grades are hard to accommodate.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-May 10:00 AM Apr 4.65M 4.48M 4.62M New Home Sales Medium 23-May 10:00 AM Apr 340K 328K 340K FHFA Housing Price Index Medium 23-May 10:00 AM Mar NA 0.3% 1.8% Initial Claims Medium 24-May 8:30 AM 19-May 365K 370K 370K Durable Orders High 24-May 8:30 AM Apr 0.3% -3.9% 0.2% Michigan Sentiment-Final Medium 25-May 9:55 AM May 77.5 77.8 -

Technical indicators

Daily Charts Resistance Brent WTI GO Near 107.25 91.20 908.80 Next 107.85 91.60 912.75 Strong 109.60 93.20 925.80 Support Brent WTI GO Near 105.60 90.70 899.75 Next 104.95 89.85 888.25 Strong 103.35 88.50 879.90       The support levels we wrote about yesterday held nicely so far. They need to remain on your screens anyway as they might be tested again. Just to remind again, they are as follows: Brent@ 104.95, WTI@ 89.85 and GO@ 899.75. While the contracts hold above them, they don't have any targets lower. Indicators largely remain very low with oscillators turning north as well as completed RSI divergence on all charts. We therefore expect the contracts to find a sufficient support around the current levels and drift higher esp. if they are helped by any external factors. However, an eventual move below the above mentioned levels on any chart would be quite bearish for the whole complex.

Source: OW Risk Management