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 repeated the previous days trading pattern - weakening but then recovering quickly. The June WTI closed at $101.44/bbl, down -$0.31 while Brent dropped marginally by -$0.16 to settle at $109.11/bbl. The US Energy Department released its inventory data which showed a larger than expected build for Crude of +3.52 mbbl vs +2.68 mbbl exp. while Gasoline showed a lower than expected draw at -0,3mbbl. Distillates build 0.6 mbbl. However, the somehow bearish report was smoothed by the Cushing crude draw with a fall of -0.79 mbbl. Rhetoric is still high between Russia and the US keeping Oil with a risk premium. Today the market will be looking at the release of the US weekly jobless claims and March Durable Good Orders data. This morning we are trading flat

Fueloil Specifics

Singapore fuel oil prices rose between +$3.5 to +$6.5 during the Platts window following the crude prices. The delivered bunker premiums fell to between flat and $2.5 above cargo prices. Trading activities were slowly picking up after the long Easter break which saw European markets reopen. In both Rotterdam and Antwerp the market saw an easing of the pressure on Low sulfur. Barges closed unchanged in the window at $575.50 while delivered prices fell $1.0 to $579.50

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. jun jul aug Q314 Q414 Q115 NYMEX WTI Swap (1st month) (0,31) 101,44 ↑ 100,81 100,02 99,14 99,14 96,62 94,22 ICE Brent Swap (1st month) (0,16) 109,11 ↑ 108,86 108,33 108,33 107,73 106,19 104,17 ICE Gasoil Swap (1st month) (2,75) 918,00 ↑ 915,67 914,33 913,17 913,14 907,08 - 3.5% Barges FOB Rtdm 0,00 575,25 ↑ 578,00 578,00 577,00 573,25 572,25 568,25 3.5% Cargoes FOB Med 2,50 571,75 ↑ 575,00 575,00 575,00 572,25 572,75 571,25 1.0% Cargoes FOB NWE 0,50 614,00 ↑ 608,50 607,75 606,50 598,25 590,75 587,75 3% no. 6 USGC WB 0,68 91,88 ↑ 90,28 90,11 89,99 89,45 89,15 88,50 380 CST Cargoes FOB S'pore (1,00) 590,00 ↑ 594,25 594,00 593,50 594,00 593,50 590,00 0.1 % GO Barges FOB Rtdm (3,25) 915,75 ↑ 916,25 915,25 914,25 914,25 908,25 - Physical Rotterdam 380 CST (2,00) 577,00 ↑ 581,75 582,25 582,25 578,50 577,50 573,50 Physical Singapore 380 CST (1,25) 591,75 ↑ 598,00 598,25 598,75 599,25 598,75 595,25

Focus of the day: Houston

Bearish market has set the tone in the US bunker market this current week. Simply because fundamentals are bearish and the market is in a downward turn as the build in crude is higher than expected. Market participants have been talking about how difficult is to get excited about WTI when you have so much oil in storage.The trading activity was languish in The US Gulf Coast market amid ample supplies and few inquiries on the following week after Easter. High and low sulfur bunker fuel prices in Houston traded $50 cents lower than on Tuesday at $595.50/ MTW and $699.50/MTW respectively, as a result of the crude weakness. In New Orleans it was a more mixed. LSFO grades were offered $7/MT lower than on Tuesday at $710/MTW. The low fixing ratio in Nola has put pressure on suppliers and price has dropped significantly. It is a good moment to explore the business river.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Leading Indicators Medium 21-Apr 10:00 AM Mar 0.7% 0.5% 0.8% Existing Home Sales Medium 22-Apr 10:00 AM Mar 4.55M 4.60M 4.59M New Home Sales Medium 23-Apr 10:30 AM Mar 455K 440K 384K Crude Inventoreis Medium 23-Apr 8:30 AM 19-apr - 10.0163M 3.542M Initial Claims Medium 24-Apr 8:30 AM 19-apr 315K 304K - Continuing Claims Medium 24-Apr 8:30 AM 12-apr 2.750K 2.750K - Durable Ordes Medium 24-Apr 8:30 AM Mar 2.0% 2.2% - Michigan Sentiment Medium 25-Apr 9:55 AM Apr 81.5 82.6 -

Source: OW Risk Management