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 fell for the fourth day in a row. The April WTI futures closed at $92.05/bbl down-$0.71 and Brent came off -$0.49 to settle at $111.38/bbl. The US weekly jobless claims were better than expected and the US GDP 4th Quarter revision came up only +0.1% lesser than the expected +0.5% which disappointed the market. The major news was that Democrats and Republicans did not agree and that automatic spending cuts of 85 Bln usd are kicking in. The Congressional Budget Office estimates it will reduce growth by 0,6% and cost 750 000 jobs. We had more signs that the Chinese Manufacturing growth is slowing, the Index for February dipped to 50,1 from 50,4 in January. Today, the market is expecting a series of US economic data; US January Personal Income data, Consumer spending and the February ISM manufacturing data to provide further guidance. This morning, crude is trading sharply lower, around 1% down.

Fueloil Specifics

The NWE bunker fuel oil prices weakened yesterday following lower crude values. Delivered 380cst product in Rotterdam lost app.$4/mt. there was reported sluggish demand in the main ports as buyers were holding off the market waiting for further price movements. MGO was seen down by $13 in Rotterdam and nearly -$9 in Antwerp. Lsfo avails remain tight. The Singapore fuel oil market dropped more than -$2.0 during the morning window yesterday tracking the lower crude. The Asian Fuel Oil crack weakened further on weaker fundamentals. The latest Singapore heavy residual inventory reported a build of +1.21 mbbl to 21.84 mbbl. The delivered bunker premiums were kept around $4.0 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) (0,71) 92,05 ↓ 91,14 91,56 91,94 91,90 92,17 91,95 ICE Brent Swap (1st month) (0,49) 111,38 ↓ 109,83 108,92 108,12 108,15 106,03 104,23 ICE Gasoil Swap (1st month) (6,00) 938,25 ↓ 922,00 921,50 919,17 919,25 912,53 905,08 3.5% Barges FOB Rtdm (2,50) 606,50 ↓ 600,75 600,00 598,75 598,75 595,00 589,75 3.5% Cargoes FOB Med (1,25) 607,00 ↓ 595,25 596,25 595,25 595,00 591,25 585,50 1.0% Cargoes FOB NWE (1,50) 632,75 ↓ 627,25 630,50 630,25 630,25 627,25 620,50 3% no. 6 USGC WB (1,08) 94,53 ↓ 94,85 94,35 94,10 94,10 93,60 92,60 380 CST Cargoes FOB S'pore (2,00) 633,00 ↓ 624,50 623,25 623,00 622,50 618,75 614,50 0.1 % GO Barges FOB Rtdm (6,50) 935,75 ↓ 922,25 922,25 919,25 920,25 912,25 905,25 Physical Rotterdam 380 CST (4,00) 610,00 ↓ 608,00 607,25 606,00 606,00 602,25 597,00 Physical Singapore 380 CST (2,25) 636,75 ↓ 632,25 631,00 630,75 630,25 626,50 622,25

Source: OW Risk Management