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

Yesterday crude prices finally broke higher after two days of sideway trading. The US Case Schiller Index - 20 biggest city House prices in the US- came out strongly, up +5,55% y/y. The January Consumer Confidence plunged to 58,6 from 65.1 showing the US consumer concern about possible higher taxes and Debt ceiling discusions. Market was also supported by a weaker Eur/Usd. The March WTI contract settled at $97.57/bbl, up +$1.13 and  Brent  at $114.36/bbl, up +$0.88. The US Weekly Inventory Report will be  published later today by the Energy Department and the expectations are as follows: Crude +2.6, Distillates -1.1, Gasoline -0.1. There will also be US FOMC announcement later with no change in Rate expected but the wording will be closely scrutinized for any hint of the Fed policy in the next months. This morning, crude prices are trading slightly up.

Fueloil Specifics

The Northwest European bunker fuel oil prices moved slightly higher yesterday on the back of stronger market sentiment. Delivered 380cst product in Rotterdam was assessed app.$2/mt higher versus previous day’s close. Demand in the area picked up, while Rotterdam continuously reported loading delays and limited prompt lsfo and hsfo avails. The Singapore fuel oil market rebounded $4.0-1.5 during the morning Platts window yesterday. The 380cst cargo premiums were seen at around +$2.0/mt from -$2.25 -$0.27. The delivered bunker premiums were between $3.0 to $7.0 above cargo prices. Bunker fuel oil swaps gained app.$4.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was a few dollars higher. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q213 Q313 Q413 NYMEX WTI Swap (1st month) 1,13 97,57 ↑ 97,86 98,25 98,56 98,67 98,18 96,92 ICE Brent Swap (1st month) 0,88 114,36 ↑ 114,05 113,07 112,23 111,50 109,36 109,36 ICE Gasoil Swap (1st month) 15,50 986,25 ↑ 984,17 973,67 963,92 958,98 948,26 938,64 3.5% Barges FOB Rtdm 4,50 618,00 ↑ 620,00 619,00 618,00 617,00 613,00 608,25 3.5% Cargoes FOB Med 2,75 610,25 ↑ 613,50 613,50 612,50 612,50 608,50 603,75 1.0% Cargoes FOB NWE 0,00 645,50 ↑ 650,50 651,75 651,75 651,25 646,50 638,50 3% no. 6 USGC WB 0,48 97,28 ↑ 97,85 97,35 97,10 96,85 96,10 95,35 380 CST Cargoes FOB S'pore 4,00 635,25 ↑ 641,25 642,25 641,25 640,25 636,50 632,50 0.1 % GO Barges FOB Rtdm 14,50 984,25 ↑ 984,25 974,25 964,25 958,25 942,25 933,25 Physical Rotterdam 380 CST 2,00 622,75 ↑ 627,25 626,25 625,25 624,25 620,25 615,50 Physical Singapore 380 CST 2,50 637,75 ↑ 648,50 649,50 648,50 647,50 643,75 639,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 28-jan 8:30 AM Dec 2.5% 0.8% 4.6% Pending Home Sales Medium 28-jan 8:30 AM Dec 0.0% 1.7% -4.3% Case-Shiller 20-city Index Medium 29-jan 9:00 AM Nov 5.0% 4.3% 5.5% Consumer Confidence High 29-jan 10:00 AM Jan 61.0 65.1 58.6 ADP Employment Change Medium 30-jan 8:15 AM Jan 175K 215K - GDP- Adv. High 30-jan 8:30 AM Q4 0.2% 3.1% - FOMC Rate Decision High 30-jan 2:15 PM Jan 0.25% 0.25% - Initial Claims Medium 31-jan 8:30 AM 26-jan 365K 330K - PCE Prices- Core Medium 31-jan 8:30 AM Dec 0.1% 0.0% - Chicago PMI Medium 31-jan 9:45 AM Jan 50.0 48.9 - Nonfarm Payrolls High 01-feb 8:30 AM Jan 195K 155K - Unemployment Rate High 01-feb 8:30 AM Jan 7.7% 7.8% - Michigan Sentiment- Final Medium 01-feb 9:55 AM Jan 70.5 71.3 - ISM Index High 01-feb 10:00 AM Jan 49.5 50.7 -

Source: OW Risk Management