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 were a roller coaster yesterday to finally close lower. The May Brent contract dropped -$0.90 to settle at $105.82/bbl and WTI -$0.70 to $100.44/bbl. Crude prices were softer on Monday opening on speculation that Libya Oil supply could triple as rebels agreed to retrocede ports to the government. The market is still cautious as protests and supply disruptions have been going on for months. Market is also watching the negotiation as Iranian officials meet up international representatives in Vienna for talks over the nuclear issues until tomorrow. The US February Job openings data will be released today (minor) while market focus will likely be on the US Weekly oil inventory data and also the FOMC minutes to be released tomorrow. This morning, crude prices are trading firmly higher.

Fueloil Specifics

The NWE bunker fuel oil prices started the week on a lower note following weakening Brent. Delivered 380cst product in Antwerp and Rotterdam was assessed nearly $8/mt down versus previous close. Both LSFO and HSFO delivered premiums remained strong supported by continuously tight avails. The Singapore fuel oil prices fell between $4.0-7.0/mt during the Asian Platts window yesterday tracking crude prices. The Singapore fundamentals remain soft on ample supply and fragile bunker demand. The delivered bunker premiums were between $4.25 and $5.25 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. May Jun Jul Q314 Q414 Q115 NYMEX WTI Swap (1st month) (0,70) 100,44 ↑ 100,38 99,53 98,61 100,32 97,72 94,88 ICE Brent Swap (1st month) (0,90) 105,82 ↑ 106,37 106,13 106,13 105,67 103,87 102,69 ICE Gasoil Swap (1st month) (8,00) 885,50 ↑ 893,42 893,33 893,17 892,94 890,08 - 3.5% Barges FOB Rtdm (9,75) 567,50 ↑ 570,00 569,50 568,75 568,00 564,75 563,50 3.5% Cargoes FOB Med (9,00) 561,75 ↑ 566,50 566,50 565,50 565,00 561,75 560,25 1.0% Cargoes FOB NWE (6,00) 616,25 ↑ 601,75 599,00 597,75 597,25 589,50 581,50 3% no. 6 USGC WB 0,19 88,84 ↑ 88,80 88,62 88,77 88,41 87,92 87,67 380 CST Cargoes FOB S'pore (4,25) 580,00 ↑ 587,25 588,00 588,00 588,25 587,00 586,00 0.1 % GO Barges FOB Rtdm (7,50) 884,50 ↑ 894,25 894,25 894,25 893,25 889,25 - Physical Rotterdam 380 CST (8,00) 572,00 ↑ 575,25 574,75 574,00 573,25 570,00 568,75 Physical Singapore 380 CST (4,50) 584,75 ↑ 592,50 593,25 593,25 593,50 592,25 591,25

Focus of the day: ARA

Yet again not a lot of demand, but in balance with tight avails all over the pallet. Just like last week, ex-wharf levels trade way above paper during the day to be crushed during the window. Procure well in advance, a special note regarding the gasoil because that seems to become rather tight. Even more notification needed than low sulphur at the moment. The low sulphur story continues to drag- although we hear less of loading problems, it is not reflected in the premiums. Gasoil discounts continue to dry up, leaving dma at a mere 30 dollars and still Northbound. Be cautious here and buy well in advance. Notification periods for the different grades; five days for high sulphur enquiries and five working days for low sulphur enquiries; five days for gasoil enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Apr 3:00 PM Feb $13.5B $13.7B $16.5B Wholesale Inventories Medium 9-Apr 10:00 AM Feb 0.6% 0.6% - Intial Claims Medium 10-Apr 8:30 AM 05-apr 325K 326K - Continuing Claims Medium 10-Apr 8:30 AM 29-mar 2850K 2836K - Treasury Budget Medium 10-Apr 2:00 PM Mar NA -$106.5B - Core PPI Medium 11-Apr 8:30 AM Mar 0.1% -0.2% - Mich Sentiment High 11-Apr 9:55 AM Apr 81.0 80.0 -

Source: OW Risk Management