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 lower on Friday. The March WTI contract closed at $95.86/bbl down by -$1.45 while the April Brent futures settled at $117.66/bbl down, -$0.34. The G-20 Euro summit did not bring anything new on the table, as no decision has been taken on Japan and a sliding yen. The market also suffered from disapointing January US industrial production number at -0,1% vs. +0,2% expected. Market still remains optimistic of a stronger global economic growth but we start to see some signs that the market is wondering if the last two months Oil price rally was not a bit “too fast too high” and that current level starts to hurt still a fragile world economy. Today is president day in the US and the start of IP week in London so probably low volume and maybe some volatility as markets are easier to “move”. China -after a post Chinese New Year period- is progressively returning back to the market.This morning, crude is trading mixed, with April Brent up by 0,14.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw increased demand last Friday as prices dropped following sharp decline in crude. Delivered 380cst product both in Rotterdam and Anwerp was assessed app.$6/mt down from previous day's close. Deliveries in Rotterdam port were continuously hindered by operational delays and some suppliers could not offer prompt product. The Singapore fuel oil market closed the week dropping more than -$2.75 during the morning Platts window. The latest inventory figures saw a slight draw of -0.6 mbbl to 18.84 mbbl. The delivered bunker premiums were around $3.25 above cargo prices. Bunker fuel oil swaps lost close to $9/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was a few dollars stronger; with cal 2014 papers assessed app.$5.50/mt down. 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) (1,45) 95,86 ↓ 96,28 96,74 97,11 97,08 97,46 96,76 ICE Brent Swap (1st month) (0,34) 117,66 ↑ 117,35 116,53 115,79 115,79 113,52 111,43 ICE Gasoil Swap (1st month) (8,25) 1003,00 ↑ 1006,67 999,17 991,83 993,25 979,52 967,96 3.5% Barges FOB Rtdm (8,50) 631,25 ↑ 635,50 634,75 633,75 633,75 630,50 625,75 3.5% Cargoes FOB Med (8,50) 626,00 ↑ 629,75 630,25 629,25 629,50 626,00 620,75 1.0% Cargoes FOB NWE (6,00) 680,50 ↑ 681,25 679,00 677,50 677,50 670,50 661,00 3% no. 6 USGC WB (0,45) 100,08 ↑ 100,25 100,00 99,75 99,75 99,25 98,50 380 CST Cargoes FOB S'pore (4,25) 659,00 ↑ 657,25 657,00 656,50 656,00 653,00 648,75 0.1 % GO Barges FOB Rtdm (8,50) 1006,25 ↑ 1007,25 1000,25 992,25 994,25 978,25 966,25 Physical Rotterdam 380 CST (6,00) 640,00 ↑ 642,75 642,00 641,00 641,00 637,75 633,00 Physical Singapore 380 CST (5,50) 663,00 ↑ 665,00 664,75 664,25 663,75 660,75 656,50

Focus of the day: Gibraltar

Gibraltar starts the week still struggling with some congestion after a rather tight weekend. There are some 10 vessels still queuing outside the bay waiting to enter for bunkering. At the other side of the bay, Ceuta is running smoothly and has good avails of products, while in Algeciras there are some minor delays this morning which should be sorted out during the day. The weather forecast for the week is good so the current backlog should be sorted out shortly. CIF Med 3.5% is trading some $8 above FOB Barges Rotterdam and the HILO spread is widening in the Med to a $60/mt. Despite IP week, demand is good this morning and the Med market trading up, helped by lower bunker premiums than those seen by the end of last week

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Housing Starts Medium 20-feb 8:30 AM Jan 900K 954K - Building Permits Medium 20-feb 8:30 AM Jan 915K 903K - Core PPI Medium 20-feb 8:30 AM Jan 0.1% 0.1% - Initial Claims Medium 21-feb 8:30 AM 16-feb 365K 341K - Continuing Claims Medium 21-feb 8:30 AM 09-feb 3200K 3114K - Core CPI High 21-feb 8:30 AM Jan 0.1% 0.1% - Existing Home Sales Medium 21-feb 10:00 AM Jan 4.95M 4.94M - Philadelphia Fed Medium 21-feb 10:00 AM Feb 2.0 -5.8 - Leading Indicators Medium 21-feb 10:00 AM Jan 0.3% 0.5% -

Source: OW Risk Management