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 started the week on a firmer tone. The June WTI contract expired at $92.57/bbl, up +$1.09. The next most active contract; July WTI closed at $92.86/bbl while Brent at $108.81/bbl, up +$1.67. The strong corrections over last weeks have prompted bargain buying interest by end users. The market was also lifted by a rebound seen in equities and a stronger Euro against the US dollar. Iran accepted again some IEA inspectors although it still looks like “déjà vu”. This morning the OECD revised the European growth donw from +0,2% to -0,1% in 2012 and says the Spanish economy will shrink -1,3% and -0,8% respectively in 2012 and 2013. The market is still in a very cautious mood with weak macroeconomic data. The uncertainty surrounding the Eurozone debts issues and particularly Greece are weighing heavily on the current sentiment. This morning, crude is trading down.

Fueloil Specifics

The NWE fuel oil prices rebounded yesterday following stronger crude and increasing demand in the area. Delivered 380cst product in Rotterdam was assessed nearly $5/mt up while cargo prices were even stronger gaining more then $6.50/mt. Rotterdam port reports tight avails both for hsfo and lsfo especially for prompt deliveries. The Singapore fuel oil markets rose more than $4.5 during the morning Platts window yesterday. The delivered bunker premiums slipped to around $4.5 to $7.0 above cargo prices on higher outright prices. Bunker fuel oil swaps gained up to $5.50/mt at the front of the forward curve yesterday both for Rotterdam and Singapore papers. Backend was slightly weaker, with calendar 2013 papers gaining only $1.25. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q312 Q412 2013 NYMEX WTI Swap (1st month) 1.09 92.57 ↓ 92.53 92.81 93.06 93.06 93.68 93.68 ICE Brent Swap (1st month) 1.67 108.81 ↓ 108.02 107.43 106.83 106.86 105.72 105.72 ICE Gasoil Swap (1st month) 3.75 911.50 ↑ 912.75 910.83 910.83 911.61 910.83 898.31 3.5% Barges FOB Rtdm 6.75 618.25 ↑ 617.00 614.00 611.25 611.25 602.75 585.50 3.5% Cargoes FOB Med 3.50 613.00 ↑ 612.25 609.50 607.00 607.00 598.50 581.25 1.0% Cargoes FOB NWE 6.25 655.75 ↑ 658.25 656.00 653.00 653.00 640.75 622.25 3% no. 6 USGC WB 1.25 95.95 ↑ 96.70 96.35 96.05 94.95 93.90 92.40 380 CST Cargoes FOB S'pore 4.50 647.00 ↑ 645.75 643.00 639.75 639.25 630.25 611.25 0.1 % GO Barges FOB Rtdm 4.50 915.75 ↑ 912.25 910.25 911.25 911.25 911.25 901.25 Physical Rotterdam 380 CST 5.00 624.00 ↑ 627.25 624.25 621.50 621.50 613.00 595.75 Physical Singapore 380 CST 2.50 653.00 ↑ 656.00 653.25 650.00 650.00 641.00 622.00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-May 10:00 AM Apr 4.65M 4.48M - New Home Sales Medium 23-May 10:00 AM Apr 340K 328K - FHFA Housing Price Index Medium 23-May 10:00 AM Mar NA 0.3% - Initial Claims Medium 24-May 8:30 AM 19-May 365K 370K - Durable Orders High 24-May 8:30 AM Apr 0.3% -3.9% - Michigan Sentiment-Final Medium 25-May 9:55 AM May 77.5 77.8 -

OW Risk Management   OW Risk Management (OW RMS) is the risk management arm of OW Bunker Group, one of the world’s leading suppliers of marine fuels and lubricants. OW RMS is pricing the derivatives traded by the OW Bunker Group with approximate volume of 40 million metric tonnes per year. OW RMS offers to shipping companies, local suppliers and other counterparts a wide range of risk management products and tools.   We are experts in fuel and gasoil trading both as physically delivered products and derivatives. Based on our long experience in risk management and shipping we together with our clients devise a hedging strategy that is right for them. RMS can offer a tailored solution individually to our clients by using a number of hedging tools. In that way we meet the demand of the customers with various risk profiles.

Source: OW Risk Management