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 remained largely flat yesterday despite some nervousness over emerging markets. The March WTI contract slipped -$0.05 to settle at $97.36/bbl and Brent inched up +$0.44 to $107.85/bbl. The US DOE Weekly Inventory Report saw a large Crude build of +6.42 mbbl, much larger than the expected +2.34 mbbl while Distillates continued to see some strength, drawing -4.58 mbbl against an expected -2.23 mbbl as North America is suffering from extreme cold. Crude market remains resilient in the face of lower equities closing yesterday. Equities pared the outcome of the Federal Reserve meeting yesterday, in line with market expectation as rates are maintained and the bond buying program was reduced by another -$10 billion to 65 billion per month starting February. China factory output slows in January according to manufacturing survey released Thursday with a drop to 49,5 in January from 50,5. Today, we will see the US weekly jobless claims and the 4th Quarter GDP data. This morning, crude prices are trading slightly higher.

Fueloil Specifics

The NWE bunker fuel oil prices firmed further yesterday following rising Brent values. Delivered 380cst product in Rotterdam and Antwerp gained up to $2/mt versus previous close. Suppliers reported a relatively quiet day, mostly small volume inquiries. Demand picked up slightly towards the end of the day in Antwerp. The Singapore fuel oil market continued to stay firm, closing more than $3.5 up during the Asian Platts window yesterday. The latest Singapore heavy residual inventory drew -2.02 mbbl to +16.87 mbbl. The delivered bunker premiums extended its support and rose higher to app.$12.5 above cargo prices. The Singapore market will be closed tomorrow on Lunar New Year holiday and market will reopen next Monday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,05 97,36 ↑ 97,73 97,16 95,40 95,38 92,50 90,34 ICE Brent Swap (1st month) 0,44 107,85 ↑ 107,89 107,35 106,92 106,51 105,11 103,37 ICE Gasoil Swap (1st month) 6,25 923,75 ↑ 922,33 916,42 911,67 908,78 903,03 896,00 3.5% Barges FOB Rtdm 2,25 570,75 ↑ 578,75 578,75 578,00 577,25 574,50 570,25 3.5% Cargoes FOB Med 4,75 578,50 ↑ 577,50 576,75 575,50 574,50 571,75 567,50 1.0% Cargoes FOB NWE 11,25 599,25 ↑ 605,25 604,50 604,00 603,00 599,00 590,75 3% no. 6 USGC WB 1,03 89,48 ↑ 90,20 90,20 90,45 89,95 89,70 89,70 380 CST Cargoes FOB S'pore 3,50 614,75 ↑ 612,50 605,50 602,75 600,75 597,25 594,50 0.1 % GO Barges FOB Rtdm 5,75 921,50 ↑ 923,25 917,25 913,25 909,25 903,25 896,25 Physical Rotterdam 380 CST 1,00 572,75 ↑ 584,00 584,00 583,25 582,50 579,75 575,50 Physical Singapore 380 CST 6,00 626,75 ↑ 617,75 610,75 608,00 606,00 602,50 599,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual New Home Sales Medium 27-Jan 10:00 AM Dec 440K 464K 414K Durable Orders High 28-Jan 8:30 AM Dec 2.8% 3.4% -4.3% Case-Shiller 20-city Index Medium 28-Jan 9:00 AM Nov 13.8% 13.6% 13.7% Consumer Confidence High 28-Jan 10:00 AM Jan 77.0 78.1 80.7 FOMC Rate Decision High 29-Jan 2:00 PM Jan 0.25% 0.25% 0.25% Initial Claims Medium 30-Jan 8:30 AM 25-jan 330K 326K - GDP-Adv. High 30-Jan 8:30 AM Q4 3.5% 4.1% - PCE Prices-Core High 31-Jan 8:30 AM Dec 0.2% 0.1% - Chicago PMI Medium 31-Jan 9:45 AM Jan 57.0 60.8 - Michigan Sentiment- Final Medium 31-Jan 9:55 AM Jan 80.0 80.4 -

Source: OW Risk Management