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

Oil traded higher yesterday with WTI closing at a 4 month high after the Weekly DOE Report  showed a large draw in Cushing stocks via the keystone pipeline; demand also expected to be strong from a growth in OPEC oil demand forecast and a record high China oil imports, although the latter can be distorted by forward buying in January before the Chinese New Year. WTI  closed up by $0.43 at $100.37 a barrel while Brent gained $0.11 to end the day at $108.79 a barrel. Product stock also declined this week; however data shows that Distillate Demand continues to come down from its peak (in January) while the gasoline demand remains at the low of seasonal range. Today on the macro front, the US Retail sales will be closely watched - a good number could push oil up despite showing some weakness by the close. Today’s Monthly IEA report could also carry some weight in oil price direction. Brent is trading softer this at $108.38/bbl.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,43 100,37 ↓ 98,91 98,17 97,40 97,38 95,20 93,05 ICE Brent Swap (1st month) 0,11 108,79 ↓ 107,65 107,35 107,35 107,00 105,68 103,82 ICE Gasoil Swap (1st month) (1,50) 919,50 ↓ 914,83 911,58 909,33 910,11 906,39 900,31 3.5% Barges FOB Rtdm 0,00 574,75 ↓ 576,00 575,50 575,00 575,00 573,50 570,25 3.5% Cargoes FOB Med (0,75) 569,75 ↓ 572,75 572,75 572,50 572,50 570,75 567,25 1.0% Cargoes FOB NWE 2,25 615,00 ↓ 605,75 603,00 601,00 601,25 598,25 591,50 3% no. 6 USGC WB 0,26 89,60 ↓ 90,40 90,24 90,37 90,12 89,76 87,94 380 CST Cargoes FOB S'pore 5,25 609,75 ↓ 601,75 599,25 597,50 597,75 596,00 594,25 0.1 % GO Barges FOB Rtdm 0,00 920,50 ↓ 916,25 913,25 909,25 910,25 905,25 900,25 Physical Rotterdam 380 CST 2,00 579,25 ↓ 581,25 580,75 580,25 580,25 578,75 575,50 Physical Singapore 380 CST 3,75 617,00 ↓ 607,00 604,50 602,75 603,00 601,25 599,50

Focus of the day: Houston

The US Gulf Coast bunker market opened on Wednesdays tight on supply; while physical and futures prices rallied to settle lower at the end of the day. In New Orleans only two majors oil companies were able to offer for both high and low sulfur grades: deals were reported done at $607 MTW and $610 MTW plus delivery charges. Houston market was operating without issues besides the cold weather conditions; 380 HSFO deals were done at $595 MTW a $12 dollars depreciation in comparison to Nola. The U.S. crude supplies rose more than expected according to the US Energy Information Administration report. The market immediately reacted as WTI reduced its gains.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Feb 10:00 AM Dec 0.6% 0.5% 0.3% Treasury Budget Medium 12-Feb 2:00 PM Jan -10.4B $2.9B -10.4B Initial Claims Medium 13-Feb 8:30 AM 08-feb 335K 331K - Retail Sales High 13-Feb 8:30 AM Jan -0.2% 0.2% - Business Inventories Medium 13-Feb 10:00 AM Dec 0.6% 0.4% - Industrial Production Medium 14-Feb 9:15 AM Jan 0.6% 0.3% - Mich Sentiment High 14-Feb 9:55 AM Jan 79.8% 79.2% -

Source: OW Risk Management