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 rebounded yesterday after recent weakness. They were lifted by the pledge from China to stick to 7,5 % growth for 2013, a better ISM manufacturing from the US and sentiment that central banks will continue to support economies with cheap money. On the Equity side, for the anecdote, note that the old Dow Jones Index made a new record high at 14253 yesterday. On the geopolitical front, the learned the death of Venezuela President Chavez; Venezuela OPEC fourth largest producer but no changes are expected in short term. Market is keeping an eye on the ongoing Iranian nuclear  negotiations. The April WTI contract rose +$0.70 to close at $90.82/bbl and  Brent  settled at $111.61/bbl, up +$1.52. The weekly API Oil stocks came out with a big built in Crude oil (+5.6 mbbl) and draws with Gasoline (-0,9 mbbl) and Distillates (-1,7 mbbl). It should give an indication for the more watched DOE Inventory report released later today and  the expectations are as follows: Crude +0,5mbbl, Distillates -0,9 mbbl, Gasoline -0,7 mbbl. This morning, crude prices are trading down around -0,30% .

Fueloil Specifics

The NWE bunker fuel oil prices firmed yesterday with delivered 380sct product in Rotterdam gaining up to $5/mt. Demand in the main ports was average while suppliers in Rotterdam continuously struggle with tight lsfo avails, with some not able to offer before March 11. The Singapore fuel oil market gained more than +$5.25 during the morning Platts window yesterday tracking the rebounding crude strength. Stronger demand in the cargo sector for bunker grade 380cst continued to lift the 380cst premium to +$1.5. The delivered bunker premiums were ranging between $4.75 to $6.0 above cargo prices. Bunker fuel oil swaps gained up to $7.5/mt at the front of the forward curve for both Singapore and Rotterdam papers. Back end was slightly weaker with cal 2014 papers assessed app.$3.5/mt up. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,70 90,82 ↓ 91,16 91,57 91,92 92,06 91,26 89,53 ICE Brent Swap (1st month) 1,52 111,61 ↓ 109,82 109,01 108,32 106,92 105,01 101,57 ICE Gasoil Swap (1st month) 5,75 924,75 ↑ 930,92 927,92 925,25 923,31 915,64 892,14 3.5% Barges FOB Rtdm 8,00 602,25 ↑ 608,00 606,50 605,25 603,50 598,00 584,25 3.5% Cargoes FOB Med 7,50 601,00 ↑ 603,75 602,75 601,75 600,00 593,50 581,25 1.0% Cargoes FOB NWE 4,75 628,25 ↑ 636,00 637,50 637,75 635,75 629,25 612,50 3% no. 6 USGC WB 2,28 97,05 ↑ 95,30 95,05 94,80 94,30 93,30 88,30 380 CST Cargoes FOB S'pore 6,25 631,00 ↑ 631,50 630,00 629,00 628,50 623,50 610,00 0.1 % GO Barges FOB Rtdm 6,75 923,50 ↑ 931,25 928,25 925,25 922,25 913,25 892,25 Physical Rotterdam 380 CST 5,00 605,75 ↑ 615,25 613,75 612,50 610,75 605,25 591,50 Physical Singapore 380 CST 6,00 635,75 ↑ 639,25 637,75 636,75 635,75 630,75 617,25

Focus of the day: Singapore

Singapore's onshore fuel oil stocks have climbed to a 12-week high. Data showed inventories up by 1.209 million barrels to 21.8 million barrels. Imports from the West rose by 16%, running at 724,000mt. Traders expected volumes from the West to stay high, with an estimated 5.5 million mt of fuel oil to arrive in East Asia in March. Imports from Middle East and India were also up, at 217,000 mt and 26,000 mt respectively. Bunker prices across major Asian ports went upward on Tuesday, reversing Monday's downward trend. In Singapore, the price of benchmark 380cst bunker fuel strengthened by $3 from yesterday's level to average $630/mt, data showed. Marine gas oil lost $1.50 to $930/mt. Traders reported mixed demand. None reported any issue with supplies. Earliest deliveries from March 8-12.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Services Medium 05-mar 10:00 AM Feb 56.0 55.2 56.0 ADP Employment Change Medium 06-mar 8:15 AM Feb 150K 192K - Factory Orders Medium 06-mar 10:00 AM Jan -3.0% 1.8% - Initial Claims Medium 07-mar 8:30 AM 02-mar 355K 344K - Trade Balance Medium 07-mar 8:30 AM Jan -$45.0B -$38.5B - Consumer Credit Medium 07-mar 3:00 PM Jan $10.0B $14.6B - Nonfarm Payroll High 08-mar 8:30 AM Feb 170K 157K - Unemployment Rate High 08-mar 8:30 AM Feb 7.9% 7.9% - Wholesale Inventories Medium 08-mar 10:00 AM Jan 0.2% 0.2% -

Source: OW Risk Management