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 closed marginally higher last Friday. The May Brent futures settled at $108.07/bbl, up by +$0.24 and WTI gained $0.39 to close at $101.67/bbl. There are no major new drivers for Oil which remains stuck in a $2 band. There is still a risk premium on Oil on the Russia-Ukraine crisis and Western leaders’ threats of sanctions. No much improvement on the diplomatic side this week-end with the meeting between John Kerry and its Russian counterpart Sergei Lavrov as the US refused to endorse the Russian federal solution for Ukraine. Still some worries on China financial system as Bad loans write downs soar at China banks to $9,5bn in 2013 that was up 127% from 2012. The last week the market was supported with better overall economic numbers including an encouraging US consumer spending on Friday. This morning, crude prices are trading slightly down.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week with mixed demand and largely unchanged prices. Rotterdam reported increased demand while Antwerp suppliers saw limited buying interest. Hsfo avails in Rotterdam were hindered due to restrained availability from loading installations while lsfo was balanced. The Singapore fuel oil prices rose app. $1.25 during the Asian Platts window last Friday. The latest Singapore heavy residual inventory showed a slight dip of -0.21 mbbl to 18.48 mbbl. The delivered bunker premiums were seen app. $4.0 above cargo prices. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,39 101,67 ↓ 101,25 100,37 98,47 100,34 97,53 94,83 ICE Brent Swap (1st month) 0,24 108,07 ↓ 107,69 107,49 107,13 106,59 104,81 103,40 ICE Gasoil Swap (1st month) 3,75 902,75 ↓ 899,42 899,67 899,08 897,14 892,36 - 3.5% Barges FOB Rtdm (0,75) 580,25 ↓ 578,25 576,50 575,50 573,50 569,25 567,50 3.5% Cargoes FOB Med (0,75) 572,50 ↓ 574,00 573,75 572,75 570,75 566,50 565,50 1.0% Cargoes FOB NWE 7,75 633,00 ↓ 623,75 614,00 610,00 606,50 597,00 585,25 3% no. 6 USGC WB 0,10 89,15 ↓ 90,00 89,93 90,10 89,62 89,01 88,61 380 CST Cargoes FOB S'pore 1,00 594,50 ↓ 593,75 594,00 593,75 592,50 590,50 589,00 0.1 % GO Barges FOB Rtdm 3,25 901,50 ↓ 900,25 901,25 900,25 899,25 894,25 - Physical Rotterdam 380 CST 0,00 581,75 ↓ 583,50 581,75 580,75 578,75 574,50 572,75 Physical Singapore 380 CST 0,75 598,75 ↓ 599,00 599,25 599,00 597,75 595,75 594,25

Focus of the day: Gibraltar

Bunker deliveries this morning at the Gibraltar Strait are taking place without delays, as all barges are running smoothly except for two suppliers who are behind schedule in both Gibraltar and Algeciras. Weather conditions are good so winds are not expected to affect operations in the hub. Some suppliers are facing trouble at accommodating prompt requirements. CIF Med 3.5% is trading some 8 usd/mt above FOB Barges Rotterdam. The HILO keeps widening and is currently app. 77usd/mt in the Med and the CIF Med 1% premium over FOB NWE 1% is at 32 usd/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Chicago PMI Medium 31-Mar 9:45 AM Mar 60.0 59.8 - ISM Index High 1-Apr 10:00 AM Mar 54.2 53.2 - ADP Employment Change Medium 2-Apr 8:15 AM Mar 215K 139K - Factory Orders Medium 2-Apr 10:00 AM Feb 1.1% -0.7% - Initial Claims Medium 3-Apr 8:30 AM 29-mar 320K 311K - Trade Balance Medium 3-Apr 8:30 AM Feb -$40.5B -$39.1B - ISM Services High 3-Apr 10:00 AM Mar 53.0 51.6 - Nonfarm Payrolls High 4-Apr 8:30 AM Mar 185K 175K - Unemployment Rate High 4-Apr 8:30 AM Mar 6.6% 6.7% -

Source: OW Risk Management