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

Oil prices rose on Tuesday after the U.S. Energy Information Administration (EIA) said world oil demand would increase faster than previously expected in 2013 and OPEC raised its outlook for the amount of crude it will need to pump this year (by 800,000bbl/day to 89.7million/day). Everything continues to be bought on dips. The floor under the market is tremendously strong, and the momentum has proven difficult to reverse. The US Weekly Inventory Report will be published later today by the Energy Department and the expectations are as follows: Crude +2.35, Distillates -1.61, Gasoline +0.27. We will see further guidance when a slew of US economic releases will be kicked off with Retail sales and Business inventories attracting particular attention. We still expect that most of the reports during the next 3 days will be falling toward the bullish side in the process of keeping crude values supported. This morning crude is trading higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw improving demand yesterday. Delivered 380cst product in Rotterdam was assessed app.$1/mt down from previous day’s close however there are still higher premiums added for prompt deliveries. Asia fuel oil's prompt viscosity spread was at its narrowest in nearly 3-1/2 years, as healthier demand for 380cst fuel oil lifted prices for the higher viscosity grade. The trades were done at higher premiums, lifting the cash differential for the higher viscosity grade to its highest in more than three months at 70 cents/mt above Singapore spot quotes. Lower viscosity grade fuel oil will also make up higher proportions of the 4 million tonnes of Western arbitrage arrivals expected in March. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) 0,48 97,51 ↑ 98,36 98,83 99,20 99,14 99,19 98,21 ICE Brent Swap (1st month) 0,53 118,66 ↑ 117,42 116,63 115,85 115,85 113,51 111,49 ICE Gasoil Swap (1st month) - 1026,25 ↑ 1007,83 999,58 991,75 992,47 977,94 966,53 3.5% Barges FOB Rtdm (2,00) 639,25 ↑ 642,00 640,25 638,75 638,75 634,00 629,00 3.5% Cargoes FOB Med (1,25) 632,50 ↑ 635,25 635,25 634,25 634,25 629,25 623,75 1.0% Cargoes FOB NWE (3,50) 680,25 ↑ 681,50 680,25 678,75 678,75 671,50 662,00 3% no. 6 USGC WB 0,22 101,22 ↑ 101,15 100,65 100,40 100,40 99,65 98,90 380 CST Cargoes FOB S'pore 3,75 661,75 ↑ 664,50 663,00 661,75 661,75 657,50 653,00 0.1 % GO Barges FOB Rtdm (11,00) 1012,25 ↑ 1008,25 1000,25 992,25 993,25 977,25 966,25 Physical Rotterdam 380 CST (1,00) 645,25 ↑ 649,25 647,50 646,00 646,00 641,25 636,25 Physical Singapore 380 CST 4,00 665,75 ↑ 672,25 670,75 669,50 669,50 665,25 660,75

Focus of the day: Singapore

Singapore's onshore residual fuel oil stocks fell to a two-week low. They were down nearly 6%, a fall of 1.218 million barrels, to 19.427 million barrels. Increased outflows to China, which jumped to around 221,000mt, contributed to the drawdown. Observers said more shipments also headed to South Korea, where utilities have been purchasing product to cope with power requirements during the winter. Imports from Western countries, however, remained high at around 584,000mt. Bunker prices were climbing in Asian ports on Friday before the Chinese New Year. Supplies were good and earliest deliveries were from February 14-15.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 13-feb 8:30 AM Jan -0.4% 0.5% - Business Inventories Medium 13-feb 10:00 AM Dec 0.1% 0.3% - Initial Claims Medium 14-feb 8:30 AM 09-feb 365K 366K - Continuing Claims Medium 14-feb 8:30 AM 02-feb 3200K 3224K - Empire Manufacturing Medium 14-feb 8:30 AM Feb -2.0 -7.8 - Industrial Production Medium 15-feb 9:15 AM Jan 0.4% 0.3% - Michigan Sentiment High 15-feb 9:55 AM Feb 73.0 73.8 -

Source: OW Risk Management