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

Volatility is the name, with Crude under pressure in the morning session to recover during the US close. July Brent closed at $102,44/bbl down $0,16 while WTI settled at $94,25/bbl down only $0,03. Chinese Manufacturing contracting in May- in the preliminary figure- set a negative tone. On the positive side the US jobless claims were better than expected and so were the March House Price Index (+1,3%) and the Apr New Home sales. The possibility of the Federal Reserve downsizing its Bond programme in the close next months if Unemployment continues to improve lifted the mood. This morning the German IFO Business assessment came better than expected and we are looking for the US Durable goods later on. Note that Singapore is closed today and US and UK on Monday. Volumes should be very subdued. Oil is trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil prices continued to drop following slipping crude oil values. Delivered 380cst product in Rotterdam was assessed app. $8/mt down and a dollar less in Antwerp. Demand in Rotterdam was said to be weak and supplies were available not before the end of May. Premiums for prompt deliveries were heard to be around $8. Prompt avails in Antwerp were said to be from May 28-29. The Singapore fuel oil markets extended losses by nearly $6.0 yesterday. Singapore market is closed due to Vesak Day holiday and will reopen on Monday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) (1,90) 94,25 ↓ 94,24 94,30 94,15 94,07 92,74 90,08 ICE Brent Swap (1st month) (0,89) 102,44 ↓ 102,33 102,05 101,72 101,71 100,67 98,50 ICE Gasoil Swap (1st month) (9,00) 849,50 ↑ 858,17 860,42 863,75 862,75 868,97 861,15 3.5% Barges FOB Rtdm (7,75) 573,75 ↑ 577,25 574,25 572,25 573,25 570,00 562,75 3.5% Cargoes FOB Med (6,00) 563,75 ↑ 571,75 569,00 567,25 568,25 563,25 559,25 1.0% Cargoes FOB NWE (8,75) 591,25 ↑ 600,25 602,75 601,50 601,75 596,75 589,00 3% no. 6 USGC WB 0,24 90,36 ↑ 90,45 90,20 89,95 90,20 89,45 88,70 380 CST Cargoes FOB S'pore (6,25) 592,00 ↑ 598,50 597,25 595,50 594,75 591,00 586,50 0.1 % GO Barges FOB Rtdm (16,75) 850,00 ↑ 858,25 861,25 864,25 863,25 868,25 862,25 Physical Rotterdam 380 CST (8,00) 576,00 ↑ 582,50 580,00 578,00 578,50 573,25 568,50 Physical Singapore 380 CST (5,50) 599,00 ↑ 605,75 604,00 602,25 602,00 598,25 595,25

Focus of the day: Piraeus

The last few days were busy in both Piraeus and Istanbul, although the week had started slowly following last Monday's holiday in Western Europe. CIF MED 3.5% average for the week was higher by $ 2.15 compared to last week, although crude has been trading down since Tuesday. Piraeus is reporting tight avails for HSFO 380 as MOH refinery is dry until at least 2/6. Hellenic Petroleum can cope with the increased demand but the suppliers loading strictly from MOH cannot quote at all this week. Istanbul has been busy during the last few days, with good product avails and ample barge availability, while suppliers can quote for very prompt enquiries as well.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 22-May 7:00 AM 18-May NA -7.3% -9.8% Existing Home Sales Medium 22-May 10:00 AM Apr 5.05M 4.92M 4.97 FOMC Minutes Medium 22-May 2:00 PM 1-May - - - Initial Claims Medium 23-May 8:30 AM 18-May 350K 360K 340K Continuing Claims Medium 23-May 8:30 AM 11-May 3015K 3009K 2912K New Home Sales Medium 23-May 10:00 AM Apr 425K 417K 454K Durable Orders Medium 24-May 8:30 AM Apr -1.5% -6.9% -

Source: OW Risk Management