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 despite a good start Crude prices softened towards the close. The February WTI futures slipped -$0.21 to close at $93.96/bbl and Feb Brent expired at $107.09/bbl, losing -$0.04. The new front-month contract, March Brent, closed at $105.75/bbl. The weekly US jobless claims came slightly better than expected while no inflation signs after the US Consumer Prices. Lately the market is directionless torn between solid US economic figures and speculations on rising supply for 2014 coming from Oil production increase in Iran, Libya and US Shale.  However, losses were capped by an OPEC report showing a decline in Oil production. Today, we have a heavy day in terms of US economic data releases; mostly notably the US December Industrial Production data, Housing Starts, Manufacturing Production and Michigan Confidence. This morning, crude prices are trading slightly up.

Fueloil Specifics

The NWE bunker fuel oil prices fell slightly yesterday, erasing previous day’s gains. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$3/mt down following weakening Brent. Premiums for LSFO prompt product remain on the higher side due to tight avails and operational delays. The Singapore fuel oil markets rose by up to $4.5 during the Asian Platts window yesterday. The latest Singapore heavy residual inventory showed a slight draw of -0.68 mbbl to 19.97 mbbl. The delivered bunker premiums ranged between $5.0 and $7.5 above cargo prices yesterday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) (0,21) 93,96 ↑ 94,45 94,11 93,58 92,90 90,32 88,34 ICE Brent Swap (1st month) - 105,75 ↑ 105,71 105,30 104,95 104,62 103,46 102,00 ICE Gasoil Swap (1st month) (6,25) 907,50 ↑ 905,67 900,25 896,00 894,64 891,19 885,28 3.5% Barges FOB Rtdm (7,00) 554,50 ↑ 565,50 567,00 567,25 567,00 565,50 562,00 3.5% Cargoes FOB Med (4,25) 563,50 ↑ 562,00 563,50 564,25 564,25 559,25 562,00 1.0% Cargoes FOB NWE (3,50) 579,50 ↑ 581,50 585,00 587,75 588,75 588,00 581,50 3% no. 6 USGC WB (0,27) 88,23 ↑ 89,20 89,20 89,20 89,20 88,95 88,70 380 CST Cargoes FOB S'pore 1,25 602,00 ↑ 600,00 594,50 592,25 592,00 590,50 589,00 0.1 % GO Barges FOB Rtdm (6,75) 906,75 ↑ 907,25 901,25 897,25 895,25 891,25 884,25 Physical Rotterdam 380 CST (3,00) 561,25 ↑ 570,75 572,25 572,50 572,25 570,75 567,25 Physical Singapore 380 CST 2,50 608,75 ↑ 605,25 599,75 597,50 597,25 595,75 594,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 14-Jan 8:30 AM Dec -0.3% 0.7% 0.2% Business Inventories Medium 14-Jan 10:00 AM Nov 0.2% 0.7% 0.4% Core PPI Medium 15-Jan 8:30 AM Dec 0.1% 0.1% 0.3% Empire Manufacturing Medium 15-Jan 8:30 AM Jan 4.0 1.0 12.5 Initial Claims Medium 16-Jan 8:30 AM 11-jan 335K 330K 326K Core CPI High 16-Jan 8:30 AM Dec 0.2% 0.2% 0.1% Philadelphia Fed Medium 16-Jan 10:00 AM Jan 8.0 6.4 9.4 Housing Start Medium 17-Jan 8:30 AM Dec 945K 1091K - Building Permits Medium 17-Jan 8:30 AM Dec 1000K 1007K - Industrial Production Medium 17-Jan 9:15 AM Dec 0.3% 1.1% - Mich Sentiment High 17-Jan 9:55 AM Jan 81.5 82.5 -

Source: OW Risk Management