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 remained firm yesterday. The August WTI futures surged +$1.56 closing at $108.04/bbl - a 16 month high- and September Brent settled at $108.70/bbl, up +$0.09. The market was supported by a rallying US equities and positive US economic data yesterday. The US weekly jobless claims and US Philly Fed survey both reported positive numbers. Wednesday US Weekly Inventory bullish crude draw continues to move the US crude market, the Brent/WTI spread narrowed to $0.71/bbl. This underscores a fundamentally strong US market logistically as the bottleneck at Cushing delivery point appears less pressing. The G20 finance leaders are meeting later today. This morning, crude prices are trading some 0,2% down.

Fueloil Specifics

The NWE bunker fuel oil prices rose slightly yesterday following market trend. Delivered 380cst product both in Rotterdam and Antwerp was assessed some $2/mt higher versus previous days close. The Singapore fuel oil market rose more than $6.0 during the Asian Platts window. The latest Singapore heavy residual inventory reported a similar marginal draw of -0.88 mbbl to 18.92mbbl as previously. The delivered bunker premiums were around +$5.0 above cargo prices yesterday. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) 1,56 108,04 ↓ 107,08 105,58 103,96 102,50 98,61 95,08 ICE Brent Swap (1st month) 0,09 108,70 ↓ 108,14 107,46 106,87 106,27 104,41 101,87 ICE Gasoil Swap (1st month) 5,00 928,75 ↓ 927,00 925,33 922,00 918,17 904,92 887,13 3.5% Barges FOB Rtdm 2,25 605,50 ↓ 598,75 591,00 588,25 585,50 583,50 575,00 3.5% Cargoes FOB Med 1,50 604,25 ↓ 592,50 585,50 583,00 577,50 576,00 570,50 1.0% Cargoes FOB NWE (0,50) 601,00 ↓ 607,25 610,75 613,00 611,50 610,50 600,25 3% no. 6 USGC WB 0,03 92,03 ↑ 92,50 92,50 92,00 92,20 91,50 90,75 380 CST Cargoes FOB S'pore 7,00 606,00 ↓ 608,00 609,75 609,75 610,25 607,50 600,50 0.1 % GO Barges FOB Rtdm 4,75 929,50 ↓ 928,25 926,25 923,25 919,25 907,25 887,25 Physical Rotterdam 380 CST 2,00 607,00 ↓ 604,00 596,25 592,50 590,25 587,75 579,25 Physical Singapore 380 CST 6,50 611,25 ↓ 613,25 615,00 615,00 614,00 610,75 603,75

Focus of the day: Piraeus

This was yet another week of rising prices in the Med. Crude market was bullish and CIF MED 3.5% climbed another $10 since last Friday. Demand in Piraeus and Istanbul was strong in the beginning of the week but quickly waned on the rising prices, as buyers waited to see where the market would go. A public sector strike on the 16th in Greece did not affect loadings or supplies, as suppliers were well aware of it ahead of time and had scheduled their operations accordingly. Product availability was satisfactory in both Piraeus and Istanbul and for the first time in a couple of months, premiums in the Turkish port have dropped significantly, bringing prices close to Piraeus levels once again.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 15-Jul 8:30 AM Jun 0.9% 0.6% 0.4% Empire Manufacturing Medium 15-Jul 8:30 AM Jul 3.0 7.8 9.46 Business Inventories Medium 15-Jul 10:00 AM May -0.2% 0.3% 0.1% Core CPI High 16-Jul 8:30 AM Jun 0.2% 0.2% 0.2% Industrial Production Medium 16-Jul 9:15 AM Jun 0.5% 0.0.% 0.3% NAHB Housing Market Index Medium 16-Jul 10:00 AM Jul 49 52 57 Housing Starts Medium 17-Jul 8:30 AM Jun 925K 914K 863K Initial Claims Medium 18-Jul 8:30 AM 13-jul 345K 360K 334K Philadelphia Fed Medium 18-Jul 10:00 AM Jul 3.0 12.5 19.8 Leading Indicators Medium 18-Jul 10:00 AM Jun 0.2% 0.1% 0.0%

Source: OW Risk Management