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 were trading sideway until the US DOE Inventory where Brent lost suddenly more than $1.0. The April WTI contract closed at $92.76/bbl, inching up +$0.13 and  Brent  came off by -$0.84 to settle at $111.87/bbl. The WTI-Brent spread narrowed to $19/bbl from $ 21/bbl.  US equities rallied on comments by the US Federal Reserve Chairman that they commit to continue to stimulate the economy. The US Pending home sales reported its largest jump over a year. The Italian bond auctions were surprisingly well received by domestic demand which eased some market fears. The US Weekly Inventory Report released yesterday was overall looking supportive but the market reaction was to turn south. The crude stockpile build grew +1.13 mbbl as imports increased but was less than expected while gasoline saw a bigger than expected draw boosted by stronger demand. Today, we will see the US 4th Quarter GDP revised figures and the weekly US jobless claims data. This morning, crude is up on Brent (+0,21%) but down on WTI the same number as the spread is doing a bit of catch up from yesterday’s losses.

Fueloil Specifics

The Northwest European bunker fuel oil prices remained largely unchanged yesterday. Delivered 380cst product in Rotterdam was assessed app.$1/mt down. Lsfo avails in the port remain tight, with majority of suppliers fully booked until next week. The Singapore fuel oil market reported mixed closing yesterday. The 180cst cargo price was down -$1.42 while the 380cst cargo price rose by +$0.76 during the morning Platts window. The Asian Fuel Oil crack weakened after previous strength. The delivered bunker premiums were around $4.0 to $6.0 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) 0,13 92,76 ↓ 92,70 93,11 93,47 93,45 93,65 92,87 ICE Brent Swap (1st month) (0,84) 111,87 ↑ 111,58 110,69 109,94 109,97 107,85 106,11 ICE Gasoil Swap (1st month) (12,50) 944,25 ↓ 941,17 940,08 936,50 936,81 929,33 920,69 3.5% Barges FOB Rtdm (1,75) 608,50 ↑ 610,50 609,50 608,50 608,50 605,00 600,50 3.5% Cargoes FOB Med (1,00) 607,50 ↑ 605,00 605,50 604,50 604,75 601,25 596,25 1.0% Cargoes FOB NWE (6,25) 634,25 ↑ 636,50 640,00 640,50 640,25 637,25 631,25 3% no. 6 USGC WB (0,28) 96,61 ↑ 96,15 95,90 95,65 95,65 94,90 94,15 380 CST Cargoes FOB S'pore 0,75 634,25 ↑ 633,25 632,00 632,00 631,75 628,50 624,75 0.1 % GO Barges FOB Rtdm (12,50) 942,50 ↓ 941,25 941,25 937,25 938,25 928,25 920,25 Physical Rotterdam 380 CST (1,00) 614,00 ↑ 617,75 616,75 615,75 615,75 612,25 607,75 Physical Singapore 380 CST (0,25) 638,50 ↑ 641,00 639,75 639,75 639,50 636,25 632,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case Shiller 20-city Index Medium 26-feb 9:00 AM Dec 6.0% 5.5% 6.8% New Home Sales Medium 26-feb 10:00 AM Jan 375K 369K 437K Consumer Confidence High 26-feb 10:00 AM Feb 62.5 58.6 69.0 Durable Orders High 27-feb 8:30 AM Jan -5.0% 4.3% -5.2% Initial Claims Medium 28-feb 8:30 AM 23-feb 365K 362K - GDP- Second Estimate High 28-feb 8:30 AM Q4 0.1% -0.1% - Chicago PMI Medium 28-feb 9:45 AM Feb 54.0 55.6 - Personal Income Medium 01-mar 8:30 AM Jan -2.4% 2.6% - Personal Spending Medium 01-mar 8:30 AM Jan 0.1% 0.2% - PCE Price- Core Medium 01-mar 8:30 AM Jan 0.2% 0.0% - Michigan Sentiment-Final Medium 01-mar 9:55 AM Feb 75.0 76.3 - ISM Index High 01-mar 10:00 AM Feb 52.0 53.1 -

Source: OW Risk Management