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 continued to trade in a volatile fashion last Friday. Crude opened weaker with the market disappointed that US Federal Reserve did not give a hint of a new stimulus package. However, crude prices rebounded strongly before the close after the news that a potential Spanish bank bailout plan received support by the Eurozone finance ministers. The July WTI future fell by -$0.72 to close at $84.10 and Brent closed at $99.47/bbl, down -$0.41. The Chinese industrial Production and Consumer Prices released during the weekend were slightly below estimates after the first rate cut by China since the 2008/09 economic crisis. The latest May commodities import by China reported a surprising growth. The developments in Eurozone remain the primary market driver while the decision by EU to lend Spanish banks up to $125 billion lifted market sentiment. No major economic data today but this week all eyes will be on the 5th OPEC’S International Seminar (13-14 June) and Greek elections (June 17-18). This morning, crude is trading higher.

Fueloil Specifics

The NWE fuel oil market closed the week posting double digit loses. Cargo prices lost app.$10.0/mt while delivered 380cst product in Rotterdam was even weaker loosing app.$15.0/mt. Rotterdam port continuously reports tight avails for prompt low and high sulphur while Hamburg saw some tight LSFO supplies. The Singapore fuel oil markets were down more than -$11.5 during the Platts window last Friday. Despite the lower outright prices, market demand was still slow as many expected prices to come off further. The delivered bunker premiums were lower at around $7.25 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q312 Q412 2013 NYMEX WTI Swap (1st month) (0.72) 84.10 ↑ 85.68 85.96 86.43 86.02 87.20 87.20 ICE Brent Swap (1st month) (0.46) 99.47 ↑ 100.01 99.75 99.49 99.75 99.32 99.32 ICE Gasoil Swap (1st month) (13.25) 845.50 ↑ 857.25 856.50 856.00 856.58 857.19 856.27 3.5% Barges FOB Rtdm (10.50) 563.50 ↑ 574.25 571.50 569.00 571.50 564.50 555.25 3.5% Cargoes FOB Med (10.50) 572.50 ↑ 572.75 568.75 565.25 568.75 560.75 551.25 1.0% Cargoes FOB NWE (9.75) 657.50 ↑ 610.50 607.25 604.00 607.25 598.00 588.25 3% no. 6 USGC WB 0.67 89.73 ↑ 90.03 89.73 89.45 88.92 88.22 87.39 380 CST Cargoes FOB S'pore (12.25) 584.00 ↑ 602.75 599.75 597.00 599.75 592.00 581.25 0.1 % GO Barges FOB Rtdm (13.25) 844.00 ↑ 857.25 857.25 856.25 858.25 856.25 856.25 Physical Rotterdam 380 CST (15.00) 572.00 ↑ 584.50 581.75 579.25 581.75 574.75 565.50 Physical Singapore 380 CST (13.50) 591.25 ↑ 613.00 610.00 607.25 610.50 602.75 592.00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Export Prices Medium 12-Jun 8:30 AM May NA 0.2% - Import Prices Medium 12-Jun 8:30 AM May NA 0.1% - Treasury Budget Medium 12-Jun 2:00 PM May NA -$57.6B - Retail Sales High 13-Jun 8:30 AM May -0.3% 0.1% - PPI Medium 13-Jun 8:30 AM May 0.1% 0.2% - Business Inventories Medium 13-Jun 10:00 AM Apr 0.2% 0.3% - Initial Claims Medium 14-Jun 8:30 AM 09-Jun 375K 377K - CPI High 14-Jun 8:30 AM May 0.1% 0.2% - Empire Manufacturing Medium 15-Jun 8:30 AM Jun 10.0 17.1 - Industrial Production Medium 15-Jun 9:15 AM May 0.1% 1.1% - Capacity Utilization Medium 15-Jun 9:15 AM May 79.2% 79.2% - Michigan Sentiment High 15-Jun 9:55 AM Jun 77.0 79.3 -

Source: OW Risk Management