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 Oil prices plunged after the EIA data showed that U.S. crude inventories are at record highs but managed to recover some losses by the close. WTI lost $0.32/bbl to settle at $99.42/bbl. Traders are cautious ahead of today’s U.S. Non-Farm Payroll release and a long week-end with UK closed on Monday. Brent settled $0.31/bbl lower at $107.76/bbl, pressured by downbeat Chinese economic data and news of the resumption of some Libyan oil exports. So far the sanctions against Russia have been limited only targeting individuals and some companies close to V. Putin. Despite an Oil premium due to the Ukrainian crisis so far the market does not price in a real risk of supply disruption. This morning the market is a bit more nervous after the Ukrainian army has sent some troops in the East part of the country to dislodge some pro-Russian barrages and buildings occupations. With China closed today, volumes are very low and prices stuck in a tight range though price volatility should pick up towards the opening of the US session and the NFP data. This morning Crude Oil is trading 0,65% higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw a relatively quiet day yesterday with many countries celebrating Labour Day. Delivered 380cstproduct both in Antwerp and Rotterdam was assessed some $2/mt down from previous close. In Singapore the discount on benchmark 380-centistoke fuel oil was assessed wider at $4/mt on Wednesday versus minus $2.95/mt from the previous session, reflecting high stocks. The Singapore onshore fuel oil stocks jumped 10% to reach a near 7-1/2 month high of 22.381mbbl in the week to April 30, official data showed. Bunker fuel oil swaps lost app.$3.5/mt in the front of the forward curve both for Rotterdam and Singapore papers. The backend was slightly stronger, posting app.$2/mt losses for cal15 papers. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. May Jun Jul Q314 Q414 Q115 NYMEX WTI Swap (1st month) (0,32) 99,42 ↑ 99,73 99,01 97,20 97,23 97,23 94,64 ICE Brent Swap (1st month) (0,31) 107,76 ↑ 108,26 107,67 107,05 106,45 104,87 102,93 ICE Gasoil Swap (1st month) (3,50) 899,75 ↑ 907,17 905,00 903,42 902,39 897,31 - 3.5% Barges FOB Rtdm (3,00) 566,00 ↑ 569,75 570,25 570,00 568,75 564,25 563,25 3.5% Cargoes FOB Med 0,75 565,50 ↑ 567,50 567,50 566,50 562,75 561,25 559,50 1.0% Cargoes FOB NWE (13,00) 598,25 ↑ 605,25 603,25 601,50 599,25 590,00 581,25 3% no. 6 USGC WB (0,54) 90,47 ↑ 89,73 89,10 88,90 88,72 88,07 87,76 380 CST Cargoes FOB S'pore (0,25) 586,50 ↑ 586,75 589,00 589,00 588,25 586,00 585,25 0.1 % GO Barges FOB Rtdm (3,00) 897,75 ↑ 908,25 906,25 904,25 903,25 897,25 - Physical Rotterdam 380 CST (1,00) 568,00 ↑ 575,00 575,50 575,25 574,00 569,50 568,50 Physical Singapore 380 CST 0,50 591,50 ↑ 592,00 594,25 594,25 593,50 591,25 590,50

Focus of the day: Piraeus

The last couple of weeks have been very busy in the East Med. Crude market was dropping during this week and CIF MED 3.5% average was lower by $2.5, compared to last week. Product availability in Piraeus is very good, both refineries are working normally and suppliers are ready to accommodate the increased demand expected during the summer months. In Istanbul demand is also higher because of the cruisers calling the port, while product availability is very good and all physical suppliers are able to quote for prompt enquiries. The spread on HSFO between the two major ports is once again a bit wider, with Piraeus being around $15 cheaper than Istanbul these days.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Pending Home Sales Medium 28-Apr 10:00 AM Mar 0.0% -0.8% 3.4% Case-Shiller 20-city Index Medium 29-Apr 9:00 AM Feb 13.0% 13.2% 12.9% Consumer Confidence Medium 29-Apr 10:00 AM Apr 83.5 82.3 82.3 ADP Employment Change Medium 30-Apr 8:15 AM Apr 215K 191K 220K GDP-Adv. High 30-Apr 8:30 AM Q1 1.3% 2.6% 0.1% Chicago PMI Medium 30-Apr 9:45 AM Apr 56.5 55.9 63.0 FOMC Rate Decision High 30-Apr 2:00 PM Apr 0.25% 0.25% 0.25% Initial Claims Medium 1-May 8:30 AM 26-apr 325K 329K 344K PCE Prices- Core Medium 1-May 8:30 AM Mar 0.2% 0.1% 0.2% ISM Index High 1-May 10:00 AM Apr 54.2 53.7 54.9 Nonfarm Payrolls High 2-May 8:30 AM Apr 200K 192K - Unemployment Rate High 2-May 8:30 AM Apr 6.6% 6.7% - Factory Orders Medium 2-May 10:00 AM Mar 1.5% 1.6% -

Source: OW Risk Management