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 fell Tuesday as data showing slowdown in Chinese Manufacturing and easing tension on the Russia-Ukraine border put pressure in prices. Also news that rebels in Libya have agreed to end their blockage at three vital oil ports and expectations of another build in U.S. domestic crude inventories weighted on the market. Brent fell sharply by $2.14/bbl to settle at $105.62/bbl, while WTI dropped $1.84/bbl to close at $99.74/bbl. Brent looks to test the $105 area where there is some support. Libya Oil supply is the short term wild card as negotiations appear to be evolving in an attempt to revive export activity although still very uncertain a this stage. Further progress in this direction could place additional downside pressure on front month Brent where we still anticipate an erasure of the backwardation in the front May-June switch that saw inversion as narrow as 6 cents in today’s trade. On the macro front market will as usual wait for Friday’s US Non-Farm Payrolls report as the main event. Today we will look at the US ADP Unemployment change and Factory orders. This morning Crude prices are trading around flat.

Fueloil Specifics

The NWE bunker fuel oil prices traded mixed yesterday and managed to close on the higher side. Suppliers in the area reported mixed demand and relatively good supply supported by improving loadings and product avails. LSFO prices were reported to rise in line with higher crude values and strong buying interest. On the other hand, demand picture continues to be weak for marine fuel in Singapore and ex-wharf 380cst fuel oil was heard to be traded at $590/MT, the lowest level in nearly nine month. The 380cst market is poor so despite reasonable demand for 180cst in the region it was dragged down by less demand for 380cst. This was reflected in the FO paper market were we now witness flat time-spread in the front on 180cst and contango in the front on 380cst a/m -1.00 and m/j -0.25. In general the paper FO forward curve really came under pressure and as long we face present lackluster demand picture we could see contango develop even further going into April. Amid crude fell significantly FO managed to hold values well due to firming FO cracks. This morning both markets are trading lower.

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) (1,84) 99,74 ↓ 99,45 98,66 96,82 98,62 95,95 93,48 ICE Brent Swap (1st month) (2,14) 105,62 ↑ 105,60 105,47 105,25 104,77 103,04 101,95 ICE Gasoil Swap (1st month) (1,00) 893,00 ↓ 886,75 886,92 887,00 887,00 882,72 - 3.5% Barges FOB Rtdm 4,75 580,00 ↓ 571,25 569,25 568,25 567,00 563,00 561,25 3.5% Cargoes FOB Med 6,00 571,50 ↓ 567,00 566,25 565,50 564,00 560,00 558,50 1.0% Cargoes FOB NWE 12,00 647,50 ↓ 629,75 613,75 608,00 603,50 592,00 581,50 3% no. 6 USGC WB (0,95) 87,58 ↑ 88,55 88,58 88,78 88,36 87,80 87,40 380 CST Cargoes FOB S'pore (5,50) 587,00 ↓ 587,25 588,00 588,25 587,75 586,25 584,50 0.1 % GO Barges FOB Rtdm (1,00) 891,25 ↓ 888,25 888,25 888,25 887,25 883,25 - Physical Rotterdam 380 CST 2,00 581,00 ↓ 576,50 574,50 573,50 572,25 568,25 566,50 Physical Singapore 380 CST (4,00) 594,00 ↓ 592,50 593,25 593,50 593,00 591,50 589,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Chicago PMI Medium 31-Mar 9:45 AM Mar 60.0 59.8 55.9 ISM Index High 1-Apr 10:00 AM Mar 54.2 53.2 53.7 ADP Employment Change Medium 2-Apr 8:15 AM Mar 215K 139K - Factory Orders Medium 2-Apr 10:00 AM Feb 1.1% -0.7% - Initial Claims Medium 3-Apr 8:30 AM 29-mar 320K 311K - Trade Balance Medium 3-Apr 8:30 AM Feb -$40.5B -$39.1B - ISM Services High 3-Apr 10:00 AM Mar 53.0 51.6 - Nonfarm Payrolls High 4-Apr 8:30 AM Mar 185K 175K - Unemployment Rate High 4-Apr 8:30 AM Mar 6.6% 6.7% -

Source: OW Risk Management