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 continue to trade in a range, closing around parity. The September WTI contract closed at $104.55/bbl, down -$0.15 and Brent at $107.45/bbl, gaining +$0.28. The market remains directionless as investors wait for central banks meetings, starting tonight with the Federal Reserve. The US Central Bank will announce the outcome of the FOMC meeting and investors are looking for insights for their future monetary policy. Crude Oil prices stay supported as most believe that the API inventory data today will see another round of draws in the crude and products stockpiles, due to high refineries run and low imports. We will also get the US July consumer confidence index and the Case-Shiller home price index for May to provide further economic guidance. This morning, crude is trading flat.

Fueloil Specifics

The Singapore fuel oil markets were mostly flat with minimal changes around parity, ranging between -$0.5 to +$0.50 on the Platts window yesterday. There are no significant changes to the fundamentals in Singapore. The delivered bunker premiums were also hovering around $6.0 above cargo prices.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Yesterday's Values Forward Indications               Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,10 104,55 ↓ 103,72 102,90 101,66 100,42 97,22 100,42 ICE Brent Swap (1st month) (0,48) 107,45 ↓ 106,84 106,09 105,48 104,91 103,38 101,35 ICE Gasoil Swap (1st month) (3,25) 913,75 ↓ 912,33 912,83 910,92 907,81 896,50 881,24 3.5% Barges FOB Rtdm (1,50) 598,25 ↓ 595,50 585,75 582,00 581,50 581,50 575,25 3.5% Cargoes FOB Med (2,00) 594,75 ↓ 589,00 579,75 569,75 575,25 576,25 571,50 1.0% Cargoes FOB NWE (1,25) 657,50 ↓ 604,00 606,75 608,50 608,50 609,50 602,25 3% no. 6 USGC WB (0,18) 91,25 ↓ 91,72 91,30 91,03 90,84 90,65 89,66 380 CST Cargoes FOB S'pore (3,00) 593,75 ↑ 598,25 600,50 601,50 601,75 600,75 595,50 0.1 % GO Barges FOB Rtdm (5,00) 908,50 ↓ 912,25 913,25 911,25 909,25 896,25 881,25 Physical Rotterdam 380 CST (2,00) 601,00 ↓ 605,75 596,00 592,25 590,75 590,75 585,50 Physical Singapore 380 CST (3,50) 600,25 ↑ 608,50 610,75 611,75 612,50 612,50 608,25

Focus of the day: ARA

This week seemed to be a copy of the previous one. In the runner up to the new month, there are still some ‘discounts’ available for prompt deliveries. At first, the 12 dollar premium of last week for the low sulphur appeared to be a mere convulsion. Basically the premium is still intact for next month, but backwardation on the high sulphur and contango on the hilo give a misleading picture of very low premiums. It is still expected to rise on a short notice. The gasoil market seems to be her old and flexible self again. No signs of early commitment and healthy discounts are to be found. Notification periods for the different grades; four days for high sulphur enquiries and three days for low sulphur enquiries

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual Pending Home Sales 29-jul 10:00 AM Jun -1.0% 6.7% -0.4%   Case-Shiller 20-city Index 30-jul 9:00 AM May 10.0% 12.1%     Consumer Confidence 30-jul 10:00 AM Jul 83.5 81.4     ADP Employment Change 31-jul 8:15 AM Jul 175K 188K     GDP-Adv. 31-jul 8:30 AM Q2 -0.7% 1.8%     Chicago PMI 31-jul 9:45 AM Jul 51.5 51.6     FOMC Rate Decision 31-jul 2:00 PM Jul 0.25% 0.25%     Initial Claims 01-aug 8:30 AM jul-27 345K 343K     ISM Index 01-aug 10:00 AM Jul 51.5 50.9     Construction Spending 01-aug 10:00 AM Jun -0.3% 0.5%     Nonfarm Payrolls 01-aug 8:30 AM Jul 175K 195K     Unemployment Rate 01-aug 8:30 AM Jul 7.6% 7.6%     PCE Prices - Core 01-aug 8:30 AM Jun 0.2% 0.1%     Factory Orders 01-aug 10:00 AM Jun 2.3% 2.1%

Source: OW Risk Management