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 rose yesterday: the June WTI contract closed at $101.70/bbl up +$1.11 and  Brent up  +$0.83 at $109.24/bbl. The US WTI futures rose for the third consecutive day on the back of a crude inventory draw in Cushing of -0.59 mbbl despite an overall build of 0,9 mbbl as compiled by the API. The more widely watched report by the US Energy department will be released later today and the expectations are as follows: Crude -0,1 mbbl, Gasoline +0.1 mbbl, Distillates +0.53 mbbl. News that from 2nd of June Russia will ask  pre-payment for Gas from Ukraine, probably helped the Oil rally. The North Sea oil field output is excepted to decline 8% by June due to maintenance which has probably compounded the front Brent futures backwardation. Later today the April US Producer Price Index will be released. This morning, crude prices are trading higher.

Fueloil Specifics

The NWE bunker fuel oil markets saw relatively low demand levels and slightly higher prices. Delivered 380cst product both in Antwerp and Rotterdam was assessed another $1/mt higher from previous day. Suppliers continuously reported tight lsfo avails mainly due to loading issues that kept premiums for prompt deliveries high. The Singapore markets were closed yesterday for public holiday and reopened today. The market remains largely well supplied at the moment with a possible tightening coming next month as incoming cargoes were estimated to be lower than the average at 3.12 million mt. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) 1,11 101,70 ↑ 101,19 100,25 99,25 96,39 93,88 92,00 ICE Brent Swap (1st month) 0,83 109,24 ↑ 108,62 107,90 107,23 105,70 103,70 103,31 ICE Gasoil Swap (1st month) (0,50) 906,00 ↑ 910,83 908,25 906,83 903,11 - - 3.5% Barges FOB Rtdm 1,25 570,50 ↑ 575,50 574,25 572,25 566,25 565,00 561,00 3.5% Cargoes FOB Med 2,75 573,75 ↑ 572,25 571,75 570,75 563,25 561,25 569,25 1.0% Cargoes FOB NWE 7,50 621,00 ↑ 620,00 614,75 610,25 596,25 585,50 581,75 3% no. 6 USGC WB 0,54 92,39 ↑ 90,40 89,70 89,33 88,38 87,98 87,28 380 CST Cargoes FOB S'pore (1,75) 588,50 ↑ 593,50 592,25 591,00 588,25 587,25 583,75 0.1 % GO Barges FOB Rtdm 2,00 908,25 ↑ 911,25 909,25 907,25 903,25 - - Physical Rotterdam 380 CST 1,00 573,75 ↑ 580,75 579,50 577,50 571,50 570,25 566,25 Physical Singapore 380 CST (2,00) 592,75 ↑ 598,75 597,50 596,25 593,50 592,50 589,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 12-May 2:00 PM Apr $114.0B $112.9B $106.9B Retail Sales Medium 13-May 8:30 AM Apr 0.0% 1.2% 0.1% Business Inventories Medium 13-May 10:00 AM Mar 0.4% 0.4% 0.4% Core PPI Medium 14-May 8:30 AM Apr 0.2% 0.6% - Initial Claims Medium 15-May 8:30 AM Apr 325K 319K - Core CPI High 15-May 8:30 AM Apr 0.2% 0.2% - Empire Manufacturing Medium 15-May 8:30 AM May 5.0 1.3 - Philadelphia Fed Medium 15-May 10:00 AM May 10.0 16.6 - Housing Starts Medium 16-May 8:30 AM Apr 950K 946K - Building Permits Medium 16-May 8:30 AM Apr 1000K 990K - Mich Sentiment Medium 16-May 9:55 AM May 83.5 84.1 -

Source: OW Risk Management