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 fell yesterday with Brent down -$1.13 at $109.51/bbl and WTI - $0.99 at $101.83/bbl, pressured by forecast of rising U.S. crude oil inventories, upcoming refinery maintenance, and further signs of a slowdown in the Chinese economy. The concern over outages in Libya and other locations also seem limiting the downside. Nevertheless, WTI could be easily test the $100/bbl level in the next days. Traders will be watching today’s US New Home sales, Thursday’s jobless claims and Durable goods orders as well as Friday’s Q4 GDP release. This could prove instrumental in determining how the complex finishes this week. Yesterday API stocks showed the same patterns as the last 6 weeks, i.e. a built in Crude of 0,8 mbbl and a smaller draw than expected in Distillates -0,7 mbbl and Gasoline -0,3mbbl. This morning crude is trading slightly higher.

Fueloil Specifics

The NWE bunker fuel oil markets reported mixed demand yesterday with prices following weakening Brent in the afternoon. Delivered 380cst product was assessed app.$2/mt down vs previous close. LSFO avails improved slightly however, remain tight for prompt deliveries with some suppliers not able offer before Thursday. Asian fuel oil market continued in a softer pace and the 380cst cash premium was lower on ample supply. Demand failed to lift the market, unlike on Feb 20 when prices rose after BP took the market by surprise.  Arbs remain shut for Apr and the expectations are to see a balanced market going forward. March/Apr got sold down to $1.30 this morning only to find a bid. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) (0,99) 101,83 ↑ 101,97 101,15 99,21 100,19 97,06 94,27 ICE Brent Swap (1st month) (1,13) 109,51 ↑ 109,29 108,86 108,45 108,46 106,81 105,39 ICE Gasoil Swap (1st month) (9,00) 925,25 ↓ 922,92 920,42 916,83 917,14 910,46 903,94 3.5% Barges FOB Rtdm (3,75) 584,75 ↓ 583,25 582,00 581,25 581,25 579,00 574,75 3.5% Cargoes FOB Med (3,50) 584,75 ↓ 582,00 579,75 578,75 578,75 576,25 572,00 1.0% Cargoes FOB NWE (3,00) 630,50 ↓ 625,75 616,00 611,50 612,25 606,00 598,25 3% no. 6 USGC WB (1,00) 90,57 ↑ 91,10 90,94 91,04 90,80 90,39 88,15 380 CST Cargoes FOB S'pore 0,25 610,50 ↓ 605,50 602,75 601,50 601,75 599,50 597,50 0.1 % GO Barges FOB Rtdm (9,50) 923,50 ↓ 924,25 921,25 918,25 918,25 911,25 905,25 Physical Rotterdam 380 CST (2,00) 587,25 ↓ 588,50 587,25 586,50 586,50 584,25 580,00 Physical Singapore 380 CST 0,00 616,00 ↓ 610,75 608,00 606,75 607,00 604,75 602,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller Home Price Index Medium 25-Feb 9:00 AM Dec 13.38% 13.7% 13.42% Consumer Confidence High 25-Feb 10:00 AM Feb 80.5 80.7 78.1 New Home Sales Medium 26-Feb 10:00 AM Jan 405K 414K - Initial Jobless Claims Medium 27-Feb 8:30 AM 22-feb 335K 336K - Durable Goods Orders High 27-Feb 8:30 AM Jan -2.5% -4.2% - Chicago PMI Medium 28-Feb 8:30 AM Feb 56.4 59.6 - GDP (Annualized) High 28-Feb 8:30 AM Q4 2.6% 3.2% -

Source: OW Risk Management