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

Yesterday Crude Oil prices opened weak and sold off sharply on the no vote from Cyprus parliament to the European bailout proposition. The April WTI contract expiring later today settled at $92.16/bbl, losing -$1.58 and May WTI closed at $92.52/bbl. The Brent futures plunged by -$2.06 to close at $107.45/bbl. The Cyprus uncertainty drove the Euro below the 1,29 level. The US Housing starts figure was better than expected which shows the US economy continues to improve. The US Energy department Weekly Inventory Report will be released later today and the expectations are as follows: Crude +2.0 mbbl, Distillates -0.8 mbbl, Gasoline -2.1 mbbl. The FOMC will announce the outcome of their two-days meeting later today.  Note that stocks market opened positive in Europe  after a jump of more 2% in Tokyo and Shanghai . This morning, crude is 0,30% up.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed yesterday a few dollars lower. Rotterdam port reported poor demand while Antwerp saw healthy volumes mainly in the morning hours. Prompt deliveries remain hindered by limited barge avails. Spreads between 380hsfo and lsfo in Rotterdam slipped to $14/mt mainly due to lsfo oversupply in the market. The Singapore fuel oil market was slightly higher yesterday, up by +$0.5 to +$2.5 during the Platts window. Strong demand for bunker grade 380cst lifted the 380cst cargo premium to about $3.5/mt. The delivered bunker premiums were ranging between $4.75 to $7.0 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) (1,58) 92,16 ↑ 93,04 93,24 93,27 92,88 91,78 89,56 ICE Brent Swap (1st month) (2,06) 107,45 ↑ 107,65 107,15 106,61 105,50 103,93 101,25 ICE Gasoil Swap (1st month) (13,00) 900,00 ↑ 902,75 904,75 906,25 910,28 907,58 890,28 3.5% Barges FOB Rtdm (3,50) 601,00 ↓ 598,25 596,50 595,00 592,00 588,50 575,75 3.5% Cargoes FOB Med (4,75) 594,00 ↓ 592,25 592,75 591,75 589,50 582,00 571,75 1.0% Cargoes FOB NWE (2,00) 615,75 ↓ 615,75 619,50 621,50 621,00 615,50 602,75 3% no. 6 USGC WB (2,02) 94,67 ↑ 94,30 94,05 93,80 93,05 92,30 88,30 380 CST Cargoes FOB S'pore 2,50 632,25 ↓ 621,75 619,75 618,75 616,25 611,50 601,75 0.1 % GO Barges FOB Rtdm (13,00) 898,50 ↑ 904,25 906,25 907,25 907,25 904,25 891,25 Physical Rotterdam 380 CST (1,00) 607,75 ↓ 605,50 603,75 602,25 599,25 593,75 583,00 Physical Singapore 380 CST 0,00 637,25 ↓ 629,50 627,50 626,50 624,00 619,25 609,50

Focus of the day: Singapore

Singapore's onshore fuel oil stocks fell to a seven-week low. Inventories stood at 18.6 million barrels, a week-on-week decline of 7%, or 1.4 million barrels. Observers said refinery maintenance programmes had cut imports from the Middle East by 60% to about 112,000mt. Inflows from Indonesia were also lower, falling 41% to about 61,000mt. Arrivals from the West, however, continued to be relatively high. Traders said they were expecting March's arbitrage inflows to be about 4.6 million mt, 5% higher than February. Asian bunker prices traded mixed on Monday. In Singapore, the price of benchmark 380cst bunker fuel gained a dollar to average $633/mt. Marine gas oil (MGO) was up $2.50 to $917/mt. Demand varied between average to “slightly above average”, according to traders. There were no issues with supplies. Earliest deliveries were from March 21-23.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-mar 10:00 AM Mar 48 46 44 Housing Starts Medium 19-mar 8:30 AM Feb 905K 890K 917K Biulding Permits Medium 19-mar 8:30 AM Feb 915K 904K 946K FOMC Rate Decision Medium 20-mar 2:00 PM Mar 0.25% 0.25% - Initial Claims Medium 21-mar 8:30 AM 16-mar 345K 332K - Existing Home Sales Medium 21-mar 10:00 AM Feb 5.00M 4.92M - Philadelphia Fed Medium 21-mar 10:00 AM Mar 2.0 -12.5 - Leading Indicators Medium 21-mar 10:00 AM Feb 0.5% 0.2% -

Source: OW Risk Management