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 closed lower last Friday. The June oil WTI contract fell -$1.34 to $100.60/bbl while Brent settled at $109.58/bbl, down -$0.75. Brent came under pressure Friday after hitting a month high the previous day. However the west countries’ discussions to impose new sanctions on Russia over the weekend support Oil prices this morning. Sanctions will impact Russian companies and also individuals close to the inner Russian President circle. Since March the impact on the Russian economy has been on the currency (ruble) and capital flying out of the country. Though the allies so far do not dare to touch the so called P3 sector Energy, Finance and Military fearing the consequences on their own economies. This coming week, will be timed by a series of crucial US macroeconomic events with notably the FOMC meeting and the US Q1 GDP on Wednesday and Unemployment on Friday. This morning, crude prices are trading higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed last week on a slightly lower note following weakening Brent values. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$3-4/mt lower vs previous close. LSFO prices on the other hand remained supported by tight prompt avails and delays at loadings. The Singapore fuel oil prices rose after several sessions of loss and were assessed app. $2.5/mt up during the Platts window last Friday. Market fundaments remain unchanged with soft demand amidst ample supply. The delivered bunker premiums were seen between $3.0 and $5.5 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. May Jun Jul Q314 Q414 Q115 NYMEX WTI Swap (1st month) (1,34) 100,60 ↑ 101,14 100,41 98,68 98,70 98,70 96,20 ICE Brent Swap (1st month) (0,75) 109,58 ↑ 109,73 109,18 108,54 107,91 106,28 104,07 ICE Gasoil Swap (1st month) (6,75) 919,75 ↑ 922,00 919,00 916,67 916,28 910,06 - 3.5% Barges FOB Rtdm (4,75) 575,75 ↑ 578,75 579,25 579,50 578,75 574,75 573,50 3.5% Cargoes FOB Med (2,25) 572,25 ↑ 576,50 575,75 574,75 573,25 571,75 570,00 1.0% Cargoes FOB NWE (2,50) 614,25 ↑ 611,50 610,25 609,00 607,50 599,00 590,50 3% no. 6 USGC WB (0,80) 92,43 ↑ 91,25 90,70 90,50 90,38 89,79 89,49 380 CST Cargoes FOB S'pore 2,00 591,00 ↑ 594,25 597,25 598,00 598,00 597,00 596,00 0.1 % GO Barges FOB Rtdm (7,25) 916,75 ↑ 923,25 920,25 917,25 916,25 910,25 - Physical Rotterdam 380 CST (3,00) 581,00 ↑ 584,00 584,50 584,75 584,00 580,00 578,75 Physical Singapore 380 CST 2,25 594,75 ↑ 599,50 602,50 603,25 603,25 602,25 601,25

Focus of the day: Gibraltar

It is a mixed picture operations-wise at the Gibraltar Strait this morning. Most suppliers except for two are delivering within schedule in both Gibraltar and Algeciras, but there are indeed some minor delays in Ceuta for barge deliveries, while ex-pipe deliveries are taking place as scheduled. Product availability is good and the weather forecast for the rest of the week is quite good so no major issues are expected. Most suppliers still have room for accommodating potential prompt requirements if necessary. CIF Med 3.5% is trading some 9 usd/mt above FOB Barges Rotterdam. The HILO spread is currently around 48 usd/mt in the Med and the CIF Med 1% premium over FOB NWE 1% is at 18 usd/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Pending Home Sales Medium 28-Apr 10:00 AM Mar 0.0% -0.8% - Case-Shiller 20-city Index Medium 29-Apr 9:00 AM Feb 13.0% 13.2% - Consumer Confidence Medium 29-Apr 10:00 AM Apr 83.5 82.3 - ADP Employment Change Medium 30-Apr 8:15 AM Apr 215K 191K - GDP-Adv. High 30-Apr 8:30 AM Q1 1.3% 2.6% - Chicago PMI Medium 30-Apr 9:45 AM Apr 56.5 55.9 - FOMC Rate Decision High 30-Apr 2:00 PM Apr 0.25% 0.25% - Initial Claims Medium 1-May 8:30 AM 26-apr 325K 329K - PCE Prices- Core Medium 1-May 8:30 AM Mar 0.2% 0.1% - ISM Index High 1-May 10:00 AM Apr 54.2 53.7 - Nonfarm Payrolls High 2-May 8:30 AM Apr 200K 192K - Unemployment Rate High 2-May 8:30 AM Apr 6.6% 6.7% - Factory Orders Medium 2-May 10:00 AM Mar 1.5% 1.6% -

Source: OW Risk Management