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 started active trading in the New Year plunging more than -2.5%. The sharp fall in prices was led primarily by the Libyan hopes to resume produtuction from a large oil field. A decrease in the weekly US jobless claims and also an uptick in the manufacturing ISM data added to the speculation that Fed Reserve might further limit stimulus measures. The Dow Jones Industrial Index also posted big losses which reflected a bearish leaning sentiment in the market. The February WTI futures lost -$2.98 to $95.44/bbl while the February Brent contracts also plummeted -$3.02 to settle $107.78/bbl. The US Energy department will be releasing the inventory report later today (17:00 CET) and the expectations are as follows: Crude -2.98 mbbl, Distillates +1.23 mbbl, Gasoline +1.93 mbbl. This morning, crude is trading higher.

Fueloil Specifics

The NWE bunker fuel oil prices dropped significantly yesterday following the falling Brent. Delivered 380cst product in Antwerp was assessed app.$5/mt down while it lost nearly $10/mt in Rotterdam. The Singapore fuel oil markets lost more than $4.0 during the Asian Platts window on the first trading day of the New Year. Fresh Singapore heavy residual stockpile, reported as of 2nd January, saw a massive draw of -1.63 mbbl to 19.05 mbbl which indicated firmer fundamentals. The delivered bunker premiums inched up app. +$5.5 to +$6.5 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 Q314 NYMEX WTI Swap (1st month) (2,98) 95,44 ↑ 95,55 95,65 95,09 95,57 94,40 92,47 ICE Brent Swap (1st month) (3,02) 107,78 ↑ 108,23 107,99 107,71 110,67 107,03 105,69 ICE Gasoil Swap (1st month) (20,75) 923,50 ↓ 922,50 921,42 919,50 921,14 914,39 910,03 3.5% Barges FOB Rtdm (7,25) 573,00 ↑ 575,25 576,75 577,00 576,25 576,75 575,50 3.5% Cargoes FOB Med 0,00 574,00 ↑ 573,75 575,25 575,50 574,75 574,50 573,75 1.0% Cargoes FOB NWE (7,25) 587,75 ↑ 587,75 591,25 594,25 591,00 597,00 597,25 3% no. 6 USGC WB (2,51) 88,99 ↑ 90,45 90,45 90,70 90,45 90,20 90,20 380 CST Cargoes FOB S'pore (4,25) 611,75 ↑ 602,75 601,25 598,25 600,75 598,00 596,50 0.1 % GO Barges FOB Rtdm (21,00) 921,75 ↓ 924,25 922,25 921,25 922,25 916,25 911,25 Physical Rotterdam 380 CST (10,00) 580,00 ↑ 580,50 582,00 582,25 581,50 582,00 580,75 Physical Singapore 380 CST (3,50) 618,00 ↑ 608,00 606,50 603,50 606,00 603,25 601,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Initial Claims Medium 2-Jan 8:30 AM 28-dec 340K 338K 339K Continuing Claims Medium 2-Jan 8:30 AM 21-dec 2875K 2923K 2833K ISM Index Medium 2-Jan 10:00 AM Dec 56.7 57.3 57.0

Source: OW Risk Management