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 oil prices close mixed on Monday. After having traded from $117.54 to $119.07 Brent March futures fell 77 cents to settle at $118.13/bbl on concerns about the euro zone economy while WTI rose $1.31 to $97.03/bbl. Markets came under pressure, especially gasoline, as last weekend’s snowstorm in the US is now expected to have had little impact on regional fuel supplies. WTI found some support after Euro strengthened against Usd following ECB council member’s comments that the euro is not overvalued and warned governments against weakening it. This morning, after the news about North Korea nuclear test, Brent crude futures showed little reaction and held above $118. Today, in a one more quiet day for data, investors await UK producer and consumer inflation data. Crude is trading a few cents down at the moment.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week with slow trading despite softer fuel oil levels. Delivered 380cst product in Rotterdam was assessed app.$4/mt down while cargo prices lost app.$3/mt. Suppliers in Rotterdam reported tight avails for prompt deliveries due to delays at loading while operations in Antwerp were running smoothly. Singapore markets were closed yesterday and will reopen tomorrow after Chinese New Year holiday. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) 1,31 97,03 ↓ 97,49 97,94 98,35 98,32 98,70 97,82 ICE Brent Swap (1st month) (0,77) 118,13 ↓ 116,82 116,02 115,28 115,26 112,85 110,90 ICE Gasoil Swap (1st month) (3,25) 1026,25 ↓ 1007,42 998,25 989,58 990,31 974,44 961,94 3.5% Barges FOB Rtdm (2,75) 641,25 ↓ 638,50 636,50 634,75 634,75 629,75 624,50 3.5% Cargoes FOB Med (5,00) 633,75 ↓ 631,75 631,50 630,50 630,25 625,25 619,75 1.0% Cargoes FOB NWE (3,25) 683,75 ↓ 680,25 678,00 676,25 676,25 669,00 659,00 3% no. 6 USGC WB (0,33) 101,00 ↓ 100,15 99,90 99,65 99,65 98,65 97,90 380 CST Cargoes FOB S'pore 3,75 661,00 ↓ 660,75 659,25 657,75 658,00 653,25 648,50 0.1 % GO Barges FOB Rtdm (5,50) 1022,50 ↓ 1007,25 999,25 990,25 991,25 973,25 961,25 Physical Rotterdam 380 CST (4,00) 646,75 ↓ 645,75 643,75 642,00 642,00 637,00 631,75 Physical Singapore 380 CST 4,00 666,00 ↓ 668,50 667,00 665,50 665,75 661,00 656,25

Focus of the day: ARA

The market has been trading mainly in one direction over the last week, which was Northbound. Some suppliers acquired length during this period which proved to be helpful in pushing down spot prices. On the low sulphur, the premiums have risen sharply due to continuous lack of blending product. The gasoil market has not moved much. Notification periods for the different grades remain unchanged; four days for high sulphur enquiries and three working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 13-feb 8:30 AM Jan -0.4% 0.5% - Business Inventories Medium 13-feb 10:00 AM Dec 0.1% 0.3% - Initial Claims Medium 14-feb 8:30 AM 09-feb 365K 366K - Continuing Claims Medium 14-feb 8:30 AM 02-feb 3200K 3224K - Empire Manufacturing Medium 14-feb 8:30 AM Feb -2.0 -7.8 - Industrial Production Medium 15-feb 9:15 AM Jan 0.4% 0.3% - Michigan Sentiment High 15-feb 9:55 AM Feb 73.0 73.8 -

Source: OW Risk Management