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 closed marginally higher yesterday. The August WTI contract inched up +$0.14 to $95.32/bbl, and Brent settled at $101.26/bbl, up marginally by +$0.10. Equities rallied which supported the crude complex. The US dollar continued to firm after yesterday’s US economic data raising expectations that the US Federal Reserve will start to downsize its bond purchasing program maybe sooner than expected if the good news flow continues. The inventory report by the US Energy Department will be released later today and the expectations are as follows: Crude +0,3 mbbl, Distillates +0.60 mbbl, Gasoline +0.86 mbbl. The Chinese Central Bank reassures the market that liquidity will still be available after recent fears of credit tightening. This morning, crude prices are trading slightly up.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported higher prices yesterday supported by increasing crude values. Delivered 380cst product in Rotterdam and Antwerp was assessed some $8-9/mt higher versus previous close. Demand improved in Rotterdam however suppliers continuously reported congestions and delays at loading installations. Premiums for spot deliveries were heard to be around $8/mt above Rtdam 3,5 FOB barges. The Singapore fuel oil markets rose $6.0 to $9.5 during the Asian Platts window yesterday. Market continues to see strong buying of the 180cst cargo by several players in the market. The delivered bunker premiums were stronger yesterday, up to +$8.5 above cargoes prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,14 95,32 ↓ 94,97 94,77 94,25 92,98 90,71 89,15 ICE Brent Swap (1st month) 0,10 101,26 ↑ 101,23 100,87 100,50 99,84 98,84 97,35 ICE Gasoil Swap (1st month) 14,75 871,50 ↓ 866,08 863,58 863,00 861,56 857,39 848,99 3.5% Barges FOB Rtdm 7,75 571,00 ↓ 568,75 565,50 563,00 559,50 557,50 551,75 3.5% Cargoes FOB Med 8,00 569,75 ↓ 565,25 562,00 559,25 554,00 552,00 548,50 1.0% Cargoes FOB NWE 5,00 597,00 ↓ 594,00 593,00 592,00 588,50 587,25 579,75 3% no. 6 USGC WB 0,17 88,05 ↑ 88,25 88,50 87,75 87,50 87,00 86,50 380 CST Cargoes FOB S'pore 6,00 589,75 ↓ 586,00 587,25 585,25 583,50 581,00 576,50 0.1 % GO Barges FOB Rtdm 13,50 872,75 ↓ 866,25 864,25 863,25 862,25 858,25 848,25 Physical Rotterdam 380 CST 8,00 575,25 ↓ 574,00 570,75 568,25 564,75 562,75 557,00 Physical Singapore 380 CST 7,00 598,50 ↓ 593,25 594,50 592,50 590,75 588,25 583,75

Focus of the day: Singapore

Singapore fuel oil stocks rose to a 39-month high last week mainly due to significantly decreased exports of the heavy distillates into China and Hong Kong. Also Malaysia- which stood for nearly 52% of total exports previous week- imported only app. 31% of total last week. Imports into Singapore fell 8.9% to 1.42 million mt mostly due to lack of shipments from Saudi Arabia and Russia, showed data from IE Singapore.  The haze in Singapore has stalled some prompt supplies earlier this week, however the situation is getting better. Delivered bunkers have resumed to normal though terminals are still facing a slight congestion. The earliest avails are from June 29 and onwards.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 25-Jun 8:30 AM May 4.5% 3.5% 3.6% Case-Shiller 20-city Index Medium 25-Jun 9:00 AM Apr 105% 10.9% 12.1% Consumer Confidence High 25-Jun 10:00 AM Jun 72.0 76.2 81.4 New Home Sales Medium 25-Jun 10:00 AM May 470K 454K 476K GDP- Third Estimate Medium 26-Jun 8:30 AM Q1 2.4% 2.4% - Initial Claims Medium 27-Jun 8:30 AM 22-jun 345K 354K - Personal Income Medium 27-Jun 8:30 AM May 0.1% 0.0% - PCE Prices Medium 27-Jun 8:30 AM May 0.2% 0.0% - Pending Home Sales Medium 27-Jun 10:00 AM May 1.5% 0.3% - Chicago PMI Medium 28-Jun 9:45 AM Jun 52.0 58.7 - Michigan Sentiment Medium 28-Jun 9:55 AM Jun 81.0 82.7 -

Source: OW Risk Management