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 Oil two major benchmarks are following two different patterns –translated by a narrowing WTI-Brent spread to $18 –where Brent for a third day in a row closed in the red and WTI in positive territory giving us a mixed market. The April WTI contract edged up marginally by +$0.11 to close at $92.06/bbl and April Brent settled at $110.22/bbl, fell -$0.63. Despite Oil futures moves the Fuel Oil market stays strong through a narrowing crack. The US economic data releases will start to pick up tomorrow with US retail sales figures giving us some information on the US consumer. This morning, crude is trading -0,20% down.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with subdued demand. Prices in the main ports remained largely unchanged from last Friday. The Singapore fuel oil market was assessed to be mixed around parity during the Platts window yesterday. The 180cst cargo price rose app.$1.0 while the 380cst cargo prices fell around $2.0. The market seems to be coming out of a supply overhang to getting tighter moving forward. The fundamentals are shifting from a softer to a firmer market. This is reflected in a stronger buying activities and also higher cargo premiums forward. The delivered bunker premiums were around $5.0 above cargo prices yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,11 92,06 ↓ 92,48 92,80 92,94 92,50 91,87 89,67 ICE Brent Swap (1st month) (0,63) 110,22 ↓ 109,23 108,66 108,09 106,85 105,21 102,03 ICE Gasoil Swap (1st month) 0,50 925,00 ↓ 926,75 925,17 920,50 917,17 910,22 890,02 3.5% Barges FOB Rtdm 2,75 603,25 ↑ 604,00 602,50 601,00 597,75 592,50 581,25 3.5% Cargoes FOB Med 1,75 599,00 ↑ 598,25 600,50 599,50 594,50 587,00 577,25 1.0% Cargoes FOB NWE 1,50 627,25 ↑ 631,75 633,75 633,50 630,75 623,75 609,75 3% no. 6 USGC WB (0,46) 95,41 ↓ 94,75 94,50 94,00 93,50 92,50 88,25 380 CST Cargoes FOB S'pore (2,00) 633,50 ↑ 628,00 625,50 624,25 622,25 618,00 606,75 0.1 % GO Barges FOB Rtdm 0,25 923,50 ↓ 928,25 926,25 924,25 920,25 913,25 892,25 Physical Rotterdam 380 CST 1,00 606,75 ↑ 611,25 609,75 608,25 605,00 599,75 588,50 Physical Singapore 380 CST (2,50) 637,50 ↑ 635,75 633,25 632,00 630,00 625,75 614,50

Focus of the day: ARA

The ARA market seems to be de-linking internally. As for the past few weeks, Rotterdam and Antwerp were more or less in balance pricewise, usually suppliers in Rotterdam showing more aggression on the prices. The tables have turned now. The very slow market demand wise results in sharp spot levels in Antwerp. Even though there is still some backwardation, the threat of idle barges creates a buyer’s market. The low sulphur market seems to be in a less vulnerable state as premiums are rising. This again is a supply issue. Only two market makers need to replenish their terminals in order to put pressure on the premiums again. It is to be expected that this rise is only temporary. The gasoil market has not moved much. Notification periods for the different grades: four days for high sulphur enquiries and four working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Retail Sales High 13-mar 8:30 AM Feb 0.2% 0.1% - Business Inventories Medium 13-mar 10:00 AM Jan 0.6% 0.4% - Initial Claims Medium 14-mar 8:30 AM 09-mar 350K 340K - Continuing Claims Medium 14-mar 8:30 AM 09-mar 3100K 3094K - Core PPI High 14-mar 8:30 AM Feb 0.2% 0.2% - Core CPI High 15-mar 8:30 AM Feb 0.2% 0.3% - Empire Manufacturing Medium 15-mar 8:30 AM Mar 5.0 10.0 - Industrial Production Medium 15-mar 9:15 AM Feb 0.6% -0.1% - Mich Sentiment Medium 15-mar 9:55 AM Mar 79.0 77.6 -

Source: OW Risk Management