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 mostly range bound amidst thin trading volume as US markets were closed for holiday yesterday. Prices eased marginally as Egyptian incumbent was ousted by the military which will relieve temporary tensions over the possibility of oil supply disturbances via the Suez Canal. The crude prices shored back initial losses as European equities rallied on announcements that the ECB and Bank of England will be keeping interest rates low for “some time”. The August Brent contract settled at $105.54/bbl, down by -$0.22 while there is no settlement on the WTI futures due to the market closed for US Independence Day. The US market will reopen today and markets will keep an eye on the US labor data; Nonfarm Payroll and Unemployment Rate for June. This morning, crude is trading slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices remained unchanged yesterday. Suppliers reported poor demand while product avails in Antwerp were getting tighter. Lsfo delivered premiums increased to $5/mt over FOB barges. After several days of weakness, Singapore fuel oil market rebounded yesterday more than +$6.5 during the Asian Platts window. Markets saw a renewed wave of buying, narrowing slightly the Asian fuel oil cracks yesterday. The delivered bunker premiums were around +$6.0 above cargo prices. This morning both markets are trading marginally higher.

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) - 101,24 ↑ 100,49 99,48 98,43 97,22 94,36 92,15 ICE Brent Swap (1st month) (0,22) 105,54 ↑ 104,72 104,15 103,64 103,20 101,82 99,75 ICE Gasoil Swap (1st month) (1,00) 902,25 ↑ 899,17 896,33 894,00 892,00 883,67 870,60 3.5% Barges FOB Rtdm 0,50 584,50 ↑ 579,75 576,00 575,25 573,75 571,75 565,75 3.5% Cargoes FOB Med (1,25) 578,75 ↑ 574,25 570,75 569,75 567,25 565,25 562,25 1.0% Cargoes FOB NWE (1,00) 595,50 ↑ 602,00 602,50 601,00 600,00 599,00 590,50 3% no. 6 USGC WB 0,41 89,56 ↑ 90,20 90,20 89,95 89,70 89,70 88,95 380 CST Cargoes FOB S'pore 7,25 592,00 ↑ 594,25 596,00 597,00 595,75 592,75 588,25 0.1 % GO Barges FOB Rtdm (0,75) 902,75 ↑ 900,25 897,25 895,25 892,25 885,25 872,25 Physical Rotterdam 380 CST 0,00 587,00 ↑ 585,00 581,25 579,00 577,50 575,50 569,00 Physical Singapore 380 CST 6,25 597,75 ↑ 599,50 601,25 602,25 601,00 598,00 593,50

Focus of the day: Piraeus

The East Med was very quiet this week as a result of the bullish crude market following geo political tension in the area. Piraeus and Istanbul markets saw almost no activity during the week, apart from the regular liner/cruiser vessels. Average CIF MED 3.5% for this week was higher by almost $ 10.00 compared to the previous one, but while supply premiums remain low in Piraeus compared to other Med ports, premiums in Istanbul are still higher than the previous months. Product availability in both Piraeus and Istanbul is very good with both refineries in Greece supplying HSFO and suppliers in Turkey offering for all enquiries, even prompt ones.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 1-Jul 10:00 AM Jun 50.5 49.0 50.9 Construction Spending Medium 1-Jul 10:00 AM May 0.5% 0.4% 0.5% Factory Orders Medium 2-Jul 10:00 AM May 2.0% 1.0% 2.1% Challenger Job Cuts Medium 3-Jul 7:30 AM Jun NA -41.2% 4.8% ADP Employment Change Medium 3-Jul 8:15 AM Jun 150K 135K 188K Initial Claims Medium 3-Jul 8:30 AM 29-jun 345K 346K 343K Trade Balance Medium 3-Jul 8:30 AM May -$42.0B -$40.3B -$42.0B ISM Services Medium 3-Jul 10:00 AM Jun 53.5 53.7 52.2 Nonfarm Payrolls High 5-Jul 8:30 AM Jun 175K 175K - Unemployment Rate High 5-Jul 8:30 AM Jun 7.6% 7.6% -

Source: OW Risk Management