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.
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Crude prices finished the week as it started- on a lower note. The June WTI contracts closed at $91.48/bbl, down -$1.08 while Brent closed $107.14/bbl, down -$0.35. Market was weak on renewed worries on the Eurozone debt. Recent economic data released from China are also showing signs of slowdown. The scenario of Greece exit from the Eurozone is not only theoretical anymore as Greece did not manage to form a new government. In the meantime the market could struggle to rally until the 17th of June, date for new Greek elections. Last week the third Spanish bank was nationalized and increased market fears of contagion to other countries. The G-8 had a weekend meeting in US but as expected very little came out of it. Today Germans and French leaders are gathering ahead of the European summit on May 23 to discuss ways to contain the debt crisis. This morning, crude is trading higher.
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The Northwest European fuel oil market closed the week on a lower note. Both delivered 380cst product in Rotterdam and cargo prices lost more than $9/mt following weaker crude and low demand. The Singapore fuel oil markets fell more than -$18.0 during the morning Platts window last Friday. Bunker demand was said to be firm as lower outright prices attracted buying interest. The delivered bunker premiums remained around $5.0 to $9.0 above cargo prices. Bunker fuel oil swaps posted double digit losses last Friday with Rotterdam paper assessed app. -$12/mt down while Singapore papers were even weaker, loosing more than $14/mt at the front. Backend of the forward curve for both papers were a couple of dollars stronger. This morning both markets are trading higher.
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Settlement & Indications (mid values)
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Product
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Yesterday's Values
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Forward Indications
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Product
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Change
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Last
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Dir.
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Jun
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Jul
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Aug
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Q312
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Q412
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2013
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NYMEX WTI Swap (1st month)
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(1.08)
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91.48
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↑
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92.44
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92.68
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92.82
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92.81
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93.21
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93.21
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ICE Brent Swap (1st month)
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(0.35)
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107.14
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↑
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107.59
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106.92
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106.32
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106.37
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105.14
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105.14
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ICE Gasoil Swap (1st month)
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(10.75)
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907.75
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↑
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907.42
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906.17
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906.00
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906.44
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906.06
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894.82
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3.5% Barges FOB Rtdm
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(9.00)
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611.50
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↑
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612.00
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609.50
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607.00
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607.00
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599.25
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583.75
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3.5% Cargoes FOB Med
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(16.25)
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610.00
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↑
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607.50
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605.25
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602.75
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603.00
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595.00
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579.50
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1.0% Cargoes FOB NWE
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(9.00)
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649.50
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↑
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650.00
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648.25
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645.50
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645.50
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634.50
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618.50
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3% no. 6 USGC WB
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(0.63)
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94.95
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↑
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95.89
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95.61
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95.36
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94.46
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93.51
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92.06
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380 CST Cargoes FOB S'pore
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(21.00)
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642.50
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↑
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642.00
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639.00
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636.25
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636.25
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627.75
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610.75
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0.1 % GO Barges FOB Rtdm
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(10.75)
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911.25
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↑
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907.25
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906.25
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906.25
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906.25
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907.25
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898.25
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Physical Rotterdam 380 CST
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(10.00)
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619.25
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↑
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622.25
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619.75
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617.25
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617.25
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609.50
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594.00
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Physical Singapore 380 CST
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(19.00)
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650.50
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↑
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652.25
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649.25
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646.50
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647.00
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638.50
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621.50
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Economy fundamentals this week
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Fundamental Indicators
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Statistic
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Importance
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Date
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Time
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Period
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Consensus
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Last
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Actual
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Existing Home Sales
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Medium
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22-May
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10:00 AM
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Apr
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4.65M
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4.48M
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-
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New Home Sales
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Medium
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23-May
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10:00 AM
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Apr
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340K
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328K
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-
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FHFA Housing Price Index
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Medium
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23-May
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10:00 AM
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Mar
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NA
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0.3%
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-
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Initial Claims
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Medium
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24-May
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8:30 AM
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19-May
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365K
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370K
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-
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Durable Orders
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High
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24-May
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8:30 AM
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Apr
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0.3%
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-3.9%
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-
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Michigan Sentiment-Final
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Medium
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25-May
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9:55 AM
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May
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77.5
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77.8
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-
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OW Risk Management
OW Risk Management (OW RMS) is the risk management arm of OW Bunker Group, one of the world’s leading suppliers of marine fuels and lubricants. OW RMS is pricing the derivatives traded by the OW Bunker Group with approximate volume of 40 million metric tonnes per year. OW RMS offers to shipping companies, local suppliers and other counterparts a wide range of risk management products and tools.
We are experts in fuel and gasoil trading both as physically delivered products and derivatives. Based on our long experience in risk management and shipping we together with our clients devise a hedging strategy that is right for them. RMS can offer a tailored solution individually to our clients by using a number of hedging tools. In that way we meet the demand of the customers with various risk profiles.
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Source: OW Risk Management