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 ended the week higher. The July WTI futures closed at $97.85/bbl, up +$1.16 while the August Brent futures ended at $105.93/bbl, up by +$0.98. The crude market was supported by a weak US dollar and geopolitical tensions in the Middle East. Syria came into the markets’ radar with the US decision to supply weapons to the opposition -and with  Russia supplying Hassad´s troops- it could grow into a wider conflict. Iran had just elected Hassan Rohani as their new President pleasing the moderates, although the impact could be unclear for some time. The US economic data were not market mover. The May Core PPI came out at 0.1%, within expectation while the May industrial production was flat against the expected +0.1% and June consumer confidence dipped to 82.7. Market will likely focus on the upcoming US Federal Reserve meeting this Wednesday and try to get a better timing view on the end of the Bond buying program. This morning, crude prices are trading +0,2% higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed the week with up to double digit gains following strengthening crude. Prices were also pushed higher by tight supplies for prompt deliveries and increasing buying interest. Most of suppliers in the area reported to be fully booked until Tuesday. The Singapore fuel oil markets were up again around +$3.0 to +$4.0 during the Asian Platts window last Friday. The Singapore heavy residual inventory report showed a slight build of +0.07 mbbl to 22.36 mbbl. Market remained well supplied and demand was said to be soft. The delivered bunker premiums were seen app.$5.75 above cargoes prices. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q313 Q413 2014 NYMEX WTI Swap (1st month) 1,16 97,85 ↑ 98,18 98,12 97,81 98,04 96,54 92,77 ICE Brent Swap (1st month) 0,98 105,93 ↑ 105,89 105,50 105,10 105,49 104,40 101,52 ICE Gasoil Swap (1st month) 18,25 897,25 ↓ 894,83 896,00 898,17 897,00 896,17 880,63 3.5% Barges FOB Rtdm 5,75 593,00 ↓ 588,75 586,25 584,25 587,00 582,00 574,00 3.5% Cargoes FOB Med 10,75 598,25 ↓ 584,75 582,25 580,25 583,00 575,75 571,25 1.0% Cargoes FOB NWE 13,25 623,00 ↓ 621,50 619,75 618,00 619,75 613,75 603,50 3% no. 6 USGC WB 0,45 91,60 ↑ 92,50 92,55 92,60 92,50 91,55 90,80 380 CST Cargoes FOB S'pore 4,50 608,00 ↓ 612,75 608,50 606,50 608,25 605,25 598,25 0.1 % GO Barges FOB Rtdm 17,75 898,75 ↓ 895,25 896,25 897,25 896,25 898,25 881,25 Physical Rotterdam 380 CST 9,00 598,00 ↓ 594,00 592,00 589,50 591,75 586,25 578,75 Physical Singapore 380 CST 6,50 613,50 ↓ 618,50 615,00 613,25 615,50 611,75 604,50

Focus of the day: Gibraltar

Excellent weather conditions and good avails for all products are making a favorable start of the week at the Gibraltar Strait. The three ports are running smoothly this morning and all suppliers are well within schedule. Prompt requirements are still possible to accommodate for most suppliers in the hub, due to relatively low demand during the second half of last week. Bunker premiums picked up last Friday after very competitive levels at the end of the month. CIF Med 3.5% is trading 16 usd/mt above Rotterdam FOB Barges and the HILO spread is currently around 30 usd/mt in the Med, with the premium of CIF Med 1% over FOB NWE 1% currently at 16 usd/mt. The Med market is relatively flat this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Jun 8:30 AM Jun 1.0 -1.4 - NAHB Housing Market Index High 17-Jun 10:00 AM Jun 45 44 - Core CPI High 18-Jun 8:30 AM May 0.1% 0.1% - Housing Starts Medium 18-Jun 8:30 AM May 925K 853K - Building Permits Medium 18-Jun 8:30 AM May 975K 1017K - FOMC Rate Decision High 19-Jun 2:00 PM Jun 0.25% 0.25% - Initial Claims Medium 20-Jun 8:30 AM 15-jun 345K 334K - Existing Home Sales Medium 20-Jun 10:00 AM May 4.95M 4.97M - Philadelphia Fed Medium 20-Jun 10:00 AM Jun 2.0 -5.2 - Leading Indicators Medium 20-Jun 10:30 AM 15-jun 0.2% 0.6% -

Source: OW Risk Management