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 prices settled higher. The Weekly US DOE inventory report showed a Cushing stockpile draw by -1.4 mbbl and also a surprising Oil draw of -1.78 mbbl vs a +1.15 mbbl build exp. This contributed to the WTI price strength. The US Federal Reserve chair Yellen reiterated her dovish tone and showed some concern about the housing market weakness the last months. Market rallied during her speech to close strongly. Brent prices were supported on Libya as the government and rebels still disagree despite some ports reopening. The market still remains skeptical after Putin said Russian troops were withdrawing from the East Ukraine border and that he was opened for discussion. The June WTI futures crossed the $100 mark, up by +$1.27 to settle at $100.77/bbl while Brent rebounded by +$1.07 to close at $108.13/bbl. Today are programmed the monthly Bank of England and ECB Rate announcement. The US weekly jobless claims data will be released later in the afternoon. This morning, crude prices are trading down app. $0.30 down.

Fueloil Specifics

The Northwest European bunker fuel oil prices were largely unchanged yesterday with delivered 380cst product in the ports of Rotterdam and Antwerp gaining app. $1/mt. Suppliers reported sluggish demand levels. The premiums for LSFO remained supported by tight avails with most suppliers fully booked for prompt deliveries. The Singapore fuel oil prices were trading $1.5-3.0 higher during the Platts window yesterday. The strong buying interest narrowed the Asian fuel oil crack. The delivered bunker premiums were seen some $4.0 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) 1,27 100,77 ↓ 99,36 98,44 97,47 94,99 92,70 90,80 ICE Brent Swap (1st month) 1,07 108,13 ↓ 107,00 106,41 105,78 104,35 102,37 101,99 ICE Gasoil Swap (1st month) 1,75 902,00 ↑ 899,42 898,08 897,08 892,56 - - 3.5% Barges FOB Rtdm 3,00 568,75 ↑ 571,50 570,00 568,25 562,50 561,00 557,25 3.5% Cargoes FOB Med 1,75 571,50 ↑ 568,75 567,75 566,75 559,50 557,50 565,25 1.0% Cargoes FOB NWE 5,25 608,75 ↑ 608,00 604,25 600,25 589,00 579,50 576,50 3% no. 6 USGC WB 1,15 92,75 ↓ 89,40 88,97 88,62 87,70 87,35 86,65 380 CST Cargoes FOB S'pore 1,75 586,00 ↑ 590,00 589,50 587,50 584,50 583,25 579,75 0.1 % GO Barges FOB Rtdm 2,25 900,00 ↑ 900,25 899,25 898,25 893,25 - - Physical Rotterdam 380 CST 1,00 570,00 ↑ 576,75 575,25 573,50 567,75 566,25 562,50 Physical Singapore 380 CST 0,75 591,75 ↑ 595,25 594,25 592,75 589,75 588,50 585,00

Focus of the day: Houston

This week, market participants have been seeing the West Texas Intermediate rising relative to Brent supported by the drop in U.S. crude inventory supplies. The Energy Information Administration report showed that the decrease left U.S. stockpiles at 397.6mbbl. The U.S. crude production declined 2,000bbl a day to 8.35 million. In Houston, bunker fuel prices rose as a result of supply tightness and higher resupply costs. High and low sulfur bunker prices in Houston were offered at $599-$600 MTW and at $700-702 MTW, respectively. In Panama, higher offer prices were heard in the port of Balboa because of tight supplies. Selling ideas for HSFO grades were offered at around $607-$610, but couple deals were done below those levels.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Service Medium 5-May 10:00 AM Apr 54.0 53.1 55.2 Trade Balance Medium 6-May 8:30 AM Mar -$42.5B -$42.3B -$40.4B Initial Claims Medium 8-May 8:30 AM 3-May 325K 344K - Wholesale Inventories Medium 9-May 10:00 AM Mar 1.1% 0.5% - JOLTS- Job Openings Medium 9-May 10:00 AM Mar NA 4.173M -

Source: OW Risk Management