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

Friday Crude Oil closed marginally higher- making a new 8 month high after worrying news from Iraq- the second largest OPEC producer. So far Iraq oil production in the south of the country and exports remain intact.  Equities are lower while “safer” assets are on demand due to the uncertainty. The July WTI contract closed at $106.91/bbl, up $0.38 while Brent expired at $113.41/bbl, up $0.39. The next most active August Brent contract settled at $112.46/bbl, up only +$0.04. This morning Gazprom reduced supplies to Ukraine after a payment deadline was not met. Now Ukraine is on a pre-payment deal and risk for gas disruption to Europe is real. Today, in terms of data we will see the US May Industrial and Manufacturing Production numbers. This morning, crude prices are trading slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets continued to rise last Friday following strengthening Brent values. Delivered 380cst product prices in the main ports of Antwerp and Rotterdam were traded in a wide range during the day with buyers holding away and waiting for the market to settle down. The Singapore fuel oil prices surged up nearly $10.0 during the Asian Platts window last Friday lifted by the rallying crude values. The delivered bunker premiums were seen between $3.5 and $4.5 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jul Aug Sep Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,38 106,91 ↑ 106,03 104,87 103,60 101,40 98,14 95,68 ICE Brent Swap (1st month) 0,04 112,46 ↑ 112,42 111,71 110,48 109,32 107,61 106,58 ICE Gasoil Swap (1st month) - 920,75 ↑ 923,08 925,50 926,92 923,19 - - 3.5% Barges FOB Rtdm 1,00 585,75 ↑ 589,25 587,25 584,75 581,00 579,75 575,50 3.5% Cargoes FOB Med 1,75 577,25 ↑ 584,75 584,00 583,00 578,25 576,25 584,00 1.0% Cargoes FOB NWE (2,75) 636,75 ↑ 626,25 623,75 619,50 609,00 599,75 595,75 3% no. 6 USGC WB 0,20 94,03 ↑ 92,15 91,70 91,35 90,79 90,33 89,53 380 CST Cargoes FOB S'pore 10,00 614,75 ↑ 610,50 607,75 605,25 603,50 602,25 598,50 0.1 % GO Barges FOB Rtdm 9,00 917,50 ↑ 924,25 926,25 927,25 925,25 - - Physical Rotterdam 380 CST 0,00 588,25 ↑ 594,50 592,50 590,00 586,25 585,00 580,75 Physical Singapore 380 CST 10,75 619,00 ↑ 616,25 613,00 610,50 608,75 607,50 603,75

Focus of the day: Gibraltar

Week 25 is having a busy start this morning, with some congestion at the Algeciras anchorage and two suppliers facing barge delays in Gibraltar. At the other side of the Strait, Ceuta is running smoothly and supplies are taking place there without any issues. All suppliers show good product availability and the weather forecast for the rest of the week is quite good. Prompt requirements should be possible to accommodate from tomorrow onwards in the largest ports and as from today in Ceuta. CIF Med 3.5% is trading some 2.5 usd/mt above FOB Barges Rotterdam. The HILO spread is currently around 68 usd/mt in the Med and the CIF Med 1% premium to FOB NWE 1% is at 19 usd/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 16-Jun 8:30 AM Jun 14.0 19.0 - Industrial Production Medium 16-Jun 9:15 AM May 0.7% -0.6% - Housing Starts Medium 17-Jun 8:30 AM May 1035K 1072K - Building Permits Medium 17-Jun 8:30 AM May 1060K 1080K - Core CPI High 17-Jun 8:30 AM May 0.1% 0.2% - FOMC Rate Decision High 18-Jun 2:00 PM Jun - 0.25% - Initial Claims Medium 19-Jun 8:30 AM 14-jun 310K 317K - Philadelphia Fed Medium 19-Jun 10:00 AM Jun 13.0 15.4 - Leading Indicators Medium 19-Jun 10:00 AM May 0.5% 0.4% -

Source: OW Risk Management