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 continued to recover yesterday on overall better market sentiment. The May Brent futures settled at $107.83/bbl, up $0.80 and WTI closed up $1.02 at $101.28/bbl. The spread narrowed slightly to $6.55/bbl. The latest US Weekly Inventory Report showed crude supplies draw at Cushing- the delivery point for WTI crude contracts. Crude flows are improving as the Keystone XL pipelines drawing supplies more efficiently to the refineries and ports along the coasts easing the bottlenecks. Brent contracts rose higher on renewed concerns on the Russia-Ukraine crisis which may include sanctions on energy products. The US weekly jobless claims reported slightly lower than expected figures while the 4th quarter US revised GDP at 2.6% was higher than prior of 2.4% but slightly below the expected 2.7%. This morning, crude prices are trading firmly up.

Fueloil Specifics

The NWE bunker fuel oil prices generally followed crude and closed the day higher. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $6/mt higher vs previous close. Suppliers reported increased trading activity and slightly but steadily improving lsfo avails. The Singapore fuel oil prices traded relatively flat during the Asian Platts window yesterday. The delivered bunker premiums were seen app.$4.5 above cargo prices. Bunker fuel oil swaps gained app.$4.5/mt along the curve both for Rotterdam and Singapore papers. Rtdam 3.5% FOB barges were slightly stronger in the front months, up by $6.0-5.0/mt. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 1,08 101,28 ↑ 101,45 100,57 98,55 100,54 97,55 94,68 ICE Brent Swap (1st month) 0,80 107,83 ↑ 108,08 107,88 107,52 106,98 105,18 103,87 ICE Gasoil Swap (1st month) 5,75 899,00 ↑ 903,92 904,00 903,50 902,25 898,31 - 3.5% Barges FOB Rtdm 6,25 580,75 ↑ 578,75 577,25 576,25 574,50 570,25 568,50 3.5% Cargoes FOB Med 8,00 573,50 ↑ 575,00 574,50 573,50 571,75 567,50 566,50 1.0% Cargoes FOB NWE 3,50 625,25 ↑ 617,75 610,75 607,75 605,25 596,50 586,50 3% no. 6 USGC WB 0,65 89,55 ↑ 90,00 89,97 90,17 89,69 89,03 88,68 380 CST Cargoes FOB S'pore 0,25 593,75 ↑ 597,00 596,25 596,00 594,75 592,75 591,25 0.1 % GO Barges FOB Rtdm 6,50 897,25 ↑ 905,25 905,25 905,25 903,25 897,25 - Physical Rotterdam 380 CST 6,00 581,25 ↑ 584,00 582,50 581,50 579,75 575,50 573,75 Physical Singapore 380 CST (0,25) 598,50 ↑ 601,75 601,50 601,25 600,00 598,00 596,50

Focus of the day: Piraeus

This week was very busy in Piraeus, following a stretch of subdued activity. Crude market remained rather stable throughout the week and only shot up yesterday, with cargo prices firming up as well. Tuesday was a national holiday in Greece but there was strong demand for prompt supplies even during the holiday and some suppliers have now reported being fully committed until the end of the month. Bad weather in Malta and suspension of bunkering operations in this port have also pushed some vessels towards Piraeus, where despite the rough weather supplies are being carried out normally.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller 20-city Index Medium 25-Mar 9:00 AM Jan 13.5% 13.4% 13.2% Consumer Confidence Medium 25-Mar 10:00 AM Mar 77.8 78.1 82.3 New Home Sales Medium 25-Mar 10:00 AM Feb 430K 468K 440K Durable Orders High 26-Mar 8:30 AM Feb 1.0% -1.0% 2.2% Initial Claims Medium 27-Mar 8:30 AM 22-mar 330K 320K 311K GDP- 3rd estimate High 27-Mar 8:30 AM Q4 2.6% 2.4% 2.6% Pending Home Sales Medium 27-Mar 10:00 AM Feb -0.2% 0.1% -0.8% Personal Income Medium 28-Mar 8:30 AM Feb 0.0% 0.3% - PCE Prices- Core Medium 28-Mar 8:30 AM Feb 0.1% 0.1% - Michigan Sentiment- Final Medium 28-Mar 9:55 AM Mar 79.5 79.9 -

Source: OW Risk Management