Market in Brief

Crude prices started the week on a weak tone. The June WTI contract closed at $94.78/bbl, down -$1.35 and Brent closed at $111.57/bbl a drop of -$0.69. Confidence in the market is low with increased worries of a possible exit from Greece from the Euro. The Eur/usd fell to a new 4 month low at 1,2814. Public calls from Germany that Greece has to stay within the bailout criteria, or future bailout package will be withdrawn stepped up the pressure. This morning Germany 1st Quarter GDP came out above consensus at 0,5% vs 0,1% expected. Today, the US will release a series of economic data with the April Retail Sales, Consumer Price Index, Business Inventories, Empire Manufacturing and Housing Builders index. This morning, crude is trading mixed.
 

Fueloil Specifics

The Northwest European fuel oil market again saw very limited demand at the beginning of the week with buyers holding off the market waiting for further price drops. Delivered 380cst product in Rotterdam lost app.$10/mt yesterday while cargo prices were assessed more than $6/mt down. The Singapore fuel oil markets fell more than -$4.5 during the morning Platts window yesterday tracking the weak crude movement. There is a healthy balance of robust demand and also supply. The delivered bunker premiums remained around $6.75 above cargo prices. This morning both markets are trading higher.
 

Settlement & Indications (mid values)

Focus of the day: ARA

Market has settled a little compared to the big changes in oil market from the previous week. As a new balance has been found with Brent between $111 and $113/bbl during the last days we are slowly seeing the normal market premiums against fuel oil 3,5% and 1% barges. Avails situation has improved as well and even for very prompt demand there should be product to find however a decent notice is still recommended in order to reach lower premiums.
 

Economy fundamentals this week