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

Yesterday Crude prices started the day on a low key to rally a dollar in a couple of hours, but finished mixed. The July WTI futures closed marginally lower -$0.17 to settle at $102.33/bbl and  Brent rose +$0.32 to close at $109.69/bbl. Price action is mainly on the  Brent/WTI spread which widened to $7.36/bbl. China and Russia failed to sign a $400 billion/30yrs gas supply agreement yesterday. Russia faces increasing urgency to find alternative exports for its gas/oil should it face economic sanctions from the West. The API weekly stocks came out with a surprise huge draw of -10,3mbbl in Crude and a built in Distillates of 1,4 mbbl. Today the market will be looking forward to the US Energy Department weekly report later and the expectations are as follows: Crude +0.75 mbbl, Gasoline +0.08 mbbl, Distillates -0.30 mbbl. The FOMC minutes will be released later today. This morning, crude prices are trading firmly higher.

Fueloil Specifics

The NWE bunker fuel oil prices traded mixed yesterday. Delivered 380cst product was assessed nearly $3/mt down both in Antwerp and Rotterdam while lsfo for prompt deliveries remained on the higher side. The Singapore fuel oil prices fell app.$2.5 during the Asian Platts window tracking the softer crude prices. Market fundamentals appear to be improving as cargo premiums move to around parity. The delivered bunker premiums were seen at app. $3.5 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,17) 102,33 ↑ 102,80 101,85 99,77 97,79 94,94 93,00 ICE Brent Swap (1st month) 0,32 109,69 ↑ 109,62 108,79 107,49 106,46 103,96 103,96 ICE Gasoil Swap (1st month) (3,00) 909,25 ↑ 913,33 911,92 910,83 906,69 - - 3.5% Barges FOB Rtdm (3,25) 577,75 ↑ 580,50 579,75 577,25 570,75 569,50 565,50 3.5% Cargoes FOB Med (0,75) 578,75 ↑ 577,25 576,75 575,75 568,25 566,00 574,25 1.0% Cargoes FOB NWE 2,00 637,25 ↑ 635,75 626,50 621,00 604,50 592,00 587,75 3% no. 6 USGC WB 0,30 91,30 ↑ 90,70 90,33 90,00 89,10 88,70 88,00 380 CST Cargoes FOB S'pore (2,75) 595,25 ↑ 598,75 597,00 595,50 592,25 591,50 588,00 0.1 % GO Barges FOB Rtdm (2,75) 909,50 ↑ 914,25 912,25 911,25 906,25 - - Physical Rotterdam 380 CST (3,00) 578,00 ↑ 585,75 585,00 582,50 576,00 574,75 570,75 Physical Singapore 380 CST (3,00) 599,50 ↑ 604,00 602,25 600,75 597,50 596,75 593,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-May 7:00 AM 17-May NA 3.6% - Initial Claims Medium 22-May 8:30 AM 17-May 320K 279K - Continuing Claims Medium 22-May 8:30 AM 12-May 2700K 2667K - Existing Home Sales Medium 22-May 10:00 AM Apr 4.62M 4.59M - New Home Sales Medium 23-May 10:00 AM Apr 400K 384K -

Source: OW Risk Management