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 recent sessions of gains, Crude prices lost some grounds and closed lower yesterday. The August WTI futures settled at $104.91/bbl, down -$1.61 and Brent lost -$0.78 to $107.73/bbl. Crude prices were lifted previously by geopolitical tensions in Egypt and aided by a falling US inventories situation as well as the weaker US dollar. However, the market corrected on general profit taking after the series of rallies and news of renewed concerns regarding the Chinese demand growth. The news that Non-OPEC suppliers could be having higher production dampened sentiment yesterday. Today, we will see the US June Producer Price Index (PPI) and Consumer Index data to provide further guidance. This morning, crude prices are trading slightly down.

Fueloil Specifics

The NWE bunker fuel oil prices remained on the higher side yesterday. Delivered 380cst product in Rotterdam and Antwerp ports was assessed $3/mt up versus previous days close. Suppliers reported low demand and continuously tight product avails, expecting the situation to improve over the weekend. The Singapore fuel oil market gained between +$7.0 to +$7.5 during the Asian Platts window yesterday. The latest Singapore heavy residual inventory reported a marginal draw of -0.14mmbl to 19.80mbbl. The delivered bunker premiums were estimated around +$6.0 above cargo prices. This morning both markets are trading a few dollars down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) -1,61 104,91 ↓ 103,75 102,45 101,10 99,68 96,48 99,68 ICE Brent Swap (1st month) (0,78) 107,73 ↓ 106,79 106,20 105,68 105,12 103,49 105,12 ICE Gasoil Swap (1st month) (2,25) 909,50 ↓ 909,42 909,75 908,42 905,00 896,22 881,44 3.5% Barges FOB Rtdm 0,75 599,50 ↓ 588,75 584,50 582,00 581,25 580,00 571,25 3.5% Cargoes FOB Med 9,00 595,25 ↓ 581,75 578,75 576,25 574,75 574,75 567,75 1.0% Cargoes FOB NWE 3,50 657,50 ↓ 605,75 608,75 609,75 608,25 607,75 598,25 3% no. 6 USGC WB 0,04 91,82 ↓ 91,60 91,58 91,50 90,94 90,69 89,90 380 CST Cargoes FOB S'pore 7,00 599,75 ↓ 601,00 602,50 603,00 604,25 603,75 595,50 0.1 % GO Barges FOB Rtdm (2,00) 911,25 ↓ 908,25 909,25 907,25 906,25 896,25 881,25 Physical Rotterdam 380 CST 3,00 602,00 ↓ 599,00 594,75 592,25 590,50 589,25 581,50 Physical Singapore 380 CST 8,25 605,75 ↓ 611,25 612,75 613,25 614,00 613,50 606,25

Focus of the day: Piraeus

This week was relatively quiet in both Piraeus and Istanbul. Crude market was bullish and CIF MED 3.5% average was higher by $ 10.4 compared to the previous week. Product and barge availability was very good in Piraeus; both refineries are working smoothly and while MOH refinery will undertake a cargo export during the weekend; scheduled loadings will not be affected. Product availability is satisfactory in Istanbul as well, but the number of enquiries in the market is very low for this time of the year and volumes enquired are much lower compared to Piraeus. We expect the market to drop during the next few days and activity to pick up in both ports.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 08-jul 3:00 PM May $10.5B $11.1B $19.6B Wholesale Intentories Medium 10-jul 10:00 AM May 0.4% 0.2% -0.5% FOMC Minutes High 10-jul 2:00 PM jun-13 - - - Initial Claims Medium 11-jul 8:30 AM 06-jul 345K 343K 360K Continuing Claims Medium 11-jul 8:30 AM jun-13 2950K 2933K 2977K Treasury Budget Medium 11-jul 2:00 PM Jun $115B -$59.7B $116.5B Core PPI Medium 12-jul 8:30 AM Jun 0.1% 0.1% - Mich Sentiment High 12-jul 9:55 AM Jul 85.5 84.1 -

Source: OW Risk Management