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

Despite some initial weakness crude prices managed to close higher for the second day in a row. The June WTI contract rose $0.86 to settle at $95.16/bbl and June Brent futures expired at $103.78/bbl, edging up 0.12. The next active July Brent contract closed at $103.78, similarly up $0.28 . Interestingly the market remains rather upbeat despite US weekly jobless claims seeing higher claims and also a weaker US April Housing Starts data. It seems that expectations of loose monetary policies by world central banks are supporting the market. Commodities remain weak against Equity market and the de-correlation is at years high. Today, we will see US May Michigan consumer Confidence and leading indicators to close the week. This morning, crude is trading down.

Fueloil Specifics

The NWE bunker fuel oil markets saw healthy demand in the morning hours however it diminished in the afternoon along with higher prices. Delivered 380cst product in Rotterdam was assessed up by $14/mt nad nearly $17/mt higher versus previous day in Antwerp. Rotterdam suppliers continuously report tight prompt product avails and congestions at loading installations. The Singapore fuel oil markets- after falling several days in track- rose more than $7.0 during the morning Platts window yesterday. The latest Singapore heavy residual inventory reported a build of +2.6 mbbl to 22.34 mbbl; a five and half month high. The delivered bunker premiums were seen app. $7.0 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jun Jul Aug Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,86 95,16 ↓ 95,36 95,40 95,20 95,17 94,02 94,02 ICE Brent Swap (1st month) 0,12 103,78 ↓ 103,76 103,51 103,21 103,20 102,15 102,15 ICE Gasoil Swap (1st month) 25,00 871,75 ↓ 875,08 876,50 878,17 877,08 880,36 871,91 3.5% Barges FOB Rtdm 15,25 586,75 ↓ 582,00 579,50 577,75 577,75 573,50 567,25 3.5% Cargoes FOB Med 15,75 576,25 ↓ 575,25 574,00 572,25 572,25 567,50 563,50 1.0% Cargoes FOB NWE 13,50 657,50 ↓ 605,50 607,50 606,25 606,25 602,75 594,50 3% no. 6 USGC WB 0,07 91,43 ↓ 91,48 91,33 91,13 90,88 90,13 89,78 380 CST Cargoes FOB S'pore 6,75 598,50 ↓ 596,00 608,25 600,50 600,75 597,50 591,75 0.1 % GO Barges FOB Rtdm 27,25 873,75 ↓ 873,25 875,25 876,25 877,25 878,25 871,25 Physical Rotterdam 380 CST 14,00 590,00 ↓ 592,25 589,75 588,00 588,00 583,75 577,50 Physical Singapore 380 CST 7,00 605,50 ↓ 606,25 618,50 610,75 611,50 608,25 602,50

Focus of the day: Piraeus

The past week was rather quiet in both Piraeus and Istanbul. Following a few busy days at the end of last week, buying interest subsided along with the dropping crude and soft bunker prices. CIF MED 3.5% was lower this week by $12.98 compared to the last week's average, but as market shot up yesterday, many enquiries were brought into the East Med market. Product avails are good for both ports, however Istanbul is mildly congested and some suppliers have reported their barges to be fully committed over the weekend and until beginning of next week. In Piraeus product avails are very good at the moment; it has been announced that another major cargo export is planned by MOH refinery, meaning no loadings will take place from this refinery during the weekend, but supplies will not be affected. Hellenic Petroleum Refinery is working normally.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 13-May 8:30 AM Apr -0.7% -0.4% 0.1% Business Inventories Medium 13-May 10:00 AM Mar 0.4% 0.1% 0.0% Core PPI Medium 15-May 8:30 AM Apr 0.2% 0.2% 0.1% Empire Manufacturing Medium 15-May 8:30 AM May 1.0 3.1 -1.4 Industrial Production Medium 15-May 9:15 AM Apr -0.5% 0.4% -0.5% Initial Claims Medium 16-May 8:30 AM 11-May 335K 323K 360K Continuing Claims Medium 16-May 8:30 AM 11-May 3015K 3005K 3009K Core CPI High 16-May 8:30 AM Apr 0.2% 0.1% 0.1% Housing Starts Medium 16-May 8:30 AM Apr 915K 1036K 853K Building Permits Medium 16-May 8:30 AM Apr 950K 902K 1017K Philadelphia Fed Medium 16-May 10:00 AM May 2.0 1.3 -5.2 Mich Sentiment Medium 17-May 9:55 AM May 79.0 76.4 - Leading Indicators Medium 17-May 10:00 AM Apr 0.3% -0.1% -

Source: OW Risk Management