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

There is only one way for Crude Oil and it is up, it now closed for a 12th day in a row in positive territory. The March WTI contract ended at $97.77/bbl, up +$0.28 and Brent fared better, surging +$1.21 to close at $116.76/bbl. Despite a slightly weaker than expected January Non Farm Payroll at 155k vs 165k expected and overall Unemployment at 7,9% vs 7,8 %  Crude Oil closed higher. The Euro/usd made a new 14 months high at 1,37  and US  equities reached 2008 high. This morning Chinese January services industries grew at 56,2 vs 56,1 in December, the fastest pace since August 2012. Today the December US December Factory Orders are forecasted at +2.3%. This morning, crude prices are trading lower.

Fueloil Specifics

The Northwest European fuel oil markets closed last week with double digit gains supported by stronger crude. Delivered 380cst product in Rotterdam was assessed app.$10/mt up versus Thursday’s close, damping demand levels in the main ARA ports. The Singapore fuel oil market kept its 5th day rally up by around $4.5 during the morning Platts window last Friday tracking the general strength in crude values. The delivered bunker premiums were $5.0 to $10.0 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) 0,28 97,77 ↓ 97,89 98,31 98,65 98,60 98,74 97,70 ICE Brent Swap (1st month) 1,21 116,76 ↓ 115,05 114,28 113,55 113,56 111,45 111,45 ICE Gasoil Swap (1st month) 12,75 1005,75 ↓ 987,83 979,17 971,58 972,06 961,48 951,74 3.5% Barges FOB Rtdm 7,50 637,00 ↓ 631,25 629,75 628,50 628,50 624,75 619,50 3.5% Cargoes FOB Med 6,75 626,75 ↓ 624,25 623,75 622,75 623,25 620,00 615,00 1.0% Cargoes FOB NWE 5,75 668,75 ↓ 668,00 667,50 666,50 666,25 660,75 651,25 3% no. 6 USGC WB 0,82 100,19 ↓ 99,35 99,10 98,85 98,85 98,10 97,10 380 CST Cargoes FOB S'pore 4,75 648,75 ↓ 653,00 652,50 652,00 651,75 648,50 644,00 0.1 % GO Barges FOB Rtdm 10,50 1002,50 ↓ 988,25 980,25 972,25 973,25 957,25 949,25 Physical Rotterdam 380 CST 10,00 639,25 ↓ 638,50 637,00 635,75 635,75 632,00 626,75 Physical Singapore 380 CST 5,50 654,50 ↓ 660,75 660,25 659,25 659,00 655,75 651,25

Focus of the day: Gibraltar

The week starts with good weather conditions and good avails in the Gibraltar Strait after certain tightness last weekend. Demand in the area picked up significantly last week, and prompt deliveries can still be accommodated even with limited number of suppliers as some reached their capabilities until the next couple of days with the peak of demand seen last week. CIF Med 3.5% is trading some $4 above FOB Barges Rotterdam and the HILO spread in the Med is currently at $41. The Med market is relatively quiet and trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 04-feb 10:00 AM Dec 3.0% 0.0% - ISM Services Medium 05-feb 10:00 AM Jan 55.5 56.1 - MBA Mortgage Index Medium 06-feb 7:00 AM 02-feb NA -8.1% - Initial Claims Medium 07-feb 8:30 AM 02-feb 365K 368K - Continuing Claims Medium 07-feb 8:30 AM 26-jan 3200K 3198K - Consumer Credit Medium 07-feb 3:00 PM Dec $10.0B $16.0B - Trade Balance Medium 08-feb 8:30 AM Dec -$42.5B -$48.7B - Wholesale Inventories Medium 08-feb 10:00 AM Dec 0.7% 0.6% -

Source: OW Risk Management