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 traded higher on stronger US inventory release by the Energy Department and worries about the last Ukraine developments. US crude inventory drew for the fourth time in a row at -3.97 mbbl as well as Cushing stockpiles at -1.45 mbbl. Most of the crude was refined into products and showed higher than expected builds. The September WTI futures closed at $103.12/bbl, up +$0.73 as Brent similarly gained +$0.70 to settle at $108.03/bbl. The latest Chinese PMI compiled by HSBC rose to a 18 months high at 52.0 vs 50.7 in June. A reading above 50 suggests growth in manufacturing activities. The recent positive reading increases the Chinese government ability to hit their annual economic target of 7.5%. This morning, crude prices are trading marginally lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported a mixed day yesterday. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $4/mt higher. On the other hand, LSFO market remained weak pressured by low demand and plenty of product. The Singapore fuel oil prices erased previous gains and lost more than $2.5 during the Asian Platts window yesterday. The delivered bunker premiums remained firm at app. $11.0-8.50 above cargo. The fuel oil ex-wharf market supply remains tighter than usual especially for higher viscosity products. Visco spreads weakened even more and closed significantly low at $0.78/mt yesterday. August is trading at app.$5.50/mt while forward prices are assessed in a range of $7.25-8.0/mt for the rest of the year. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Aug Sep Oct Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,73 103,12 ↓ 102,31 101,01 99,43 99,45 97,49 96,02 ICE Brent Swap (1st month) 0,70 108,03 ↓ 107,97 108,13 107,95 107,42 106,47 105,78 ICE Gasoil Swap (1st month) 4,75 887,25 ↑ 890,25 893,42 896,00 897,62 - - 3.5% Barges FOB Rtdm 2,50 574,25 ↑ 572,75 570,50 569,50 568,75 571,00 569,00 3.5% Cargoes FOB Med 3,25 574,75 ↑ 571,25 568,75 566,75 565,75 568,00 566,00 1.0% Cargoes FOB NWE (0,25) 589,00 ↑ 589,75 591,00 590,25 589,00 589,00 588,00 3% no. 6 USGC WB 0,20 89,57 ↑ 89,45 89,22 89,04 88,90 88,91 88,66 380 CST Cargoes FOB S'pore (2,25) 593,50 ↑ 596,50 594,00 592,25 591,75 592,25 590,25 0.1 % GO Barges FOB Rtdm 5,00 885,50 ↑ 889,25 892,25 895,25 896,25 - - Physical Rotterdam 380 CST 4,00 575,00 ↑ 578,00 575,75 574,75 574,00 576,25 574,25 Physical Singapore 380 CST (2,00) 601,50 ↑ 601,75 599,25 597,50 597,00 597,50 595,50

Focus of the day: Houston

This week ample supplies and low demand prevailed in the US Gulf Coast. Both suppliers and traders agree that this summer has been brutally slow in the overall US bunker market. Following Brent crude, Houston’s price for high and low sulfur bunker fuel grades were fixed at $590/mt ex-wharf and $635/mt, respectively. In New Orleans, suppliers report decent demand and good product avails. Offers for IFO 380 CST grades were seen at $595-600/mt. In the low sulfur segments offers were at around $660-$665/mt.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Core CPI High 22-Jul 8:30 AM Jun 0.2% 0.3% 0.1% Existing Home Sales Medium 22-Jul 10:00 AM Jun 4.95M 4.89M 5.04M Initial Claims Medium 24-Jul 8:30 AM 19-jul 315K 302K - Continuing Claims Medium 24-Jul 8:30 AM 12-jul 2550K 2507K - New Home Sales Medium 24-Jul 10:00 AM Jun 430K 504K - Durable Orders High 25-Jul 8:30 AM Jun 0.3% -0.9% -

Source: OW Risk Management