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 were volatile yesterday. After a strong start it weakened more than a dollar after the US opening to rebound strongly towards the close. The July WTI contract closed at $104.35/bbl, down -$0.06 while Brent settled at $109.52/bbl, down -$0.47. Brent prices softened yesterday as geopolitical tensions between Russia and Ukraine eased and the World Bank warned of slowing economic growth.  Brent to WTI spread narrowed to around $5/bbl. Iraq is back to the geopolitical map after al-Qaeda seized control of Mosul, the second largest city where 500k people have fled. This morning news of clashes close to Baiji refinery (310k B/D) is adding tension into the Oil market. Yesterday the API Weekly report showed a 1,5mbbl built in Crude and small draws in Distillates and Gasoline of respectively -0,3mbbl and -0,44mbbl. The US Energy department will release its Inventory Report later today and expectations are as follows: Crude -1.87mbbl, Gasoline +0.84mbbl, Distillates +1.16mbbl. This morning, crude prices are trading firmly higher.

Fueloil Specifics

The NWE bunker fuel oil markets saw a relatively busy day yesterday after the long weekend holiday. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $3/mt down from previous day. The avails for both hsfo and lsfo improved though some suppliers still were fighting with delays at loading installations. The Singapore fuel oil prices erased previous loss by gaining back more than +$2.0 during the Platts window yesterday tracking the higher crude level. The delivered bunker premiums were softer ranging between $3.0 and $4.0 above cargo prices. Both markets are trading higher today.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jul Aug Sep Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,06) 104,35 ↑ 103,46 102,41 101,36 99,31 96,58 94,33 ICE Brent Swap (1st month) (0,47) 109,52 ↑ 109,01 108,36 107,83 106,90 105,65 104,89 ICE Gasoil Swap (1st month) (7,50) 884,75 ↑ 895,17 897,08 899,25 899,22 - - 3.5% Barges FOB Rtdm (2,50) 575,75 ↑ 578,75 576,50 574,00 570,25 569,00 565,50 3.5% Cargoes FOB Med (4,00) 566,75 ↑ 574,75 573,75 572,75 567,50 565,50 573,50 1.0% Cargoes FOB NWE (3,25) 627,75 ↑ 618,50 615,50 610,00 598,75 589,50 586,25 3% no. 6 USGC WB 0,05 90,48 ↑ 91,30 90,35 90,03 89,23 88,88 88,23 380 CST Cargoes FOB S'pore 4,25 597,25 ↑ 599,50 596,25 594,25 592,75 592,00 588,75 0.1 % GO Barges FOB Rtdm (7,75) 884,75 ↑ 896,25 898,25 899,25 898,25 - - Physical Rotterdam 380 CST (3,00) 577,00 ↑ 584,00 581,75 579,25 575,50 574,25 570,75 Physical Singapore 380 CST 3,00 601,50 ↑ 604,75 601,50 599,50 598,00 597,25 594,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 10-Jun 10:00 AM Apr 0.2% 1.1% 1.1% Intial Claims Medium 12-Jun 8:30 PM 07-jun 320K 312K - Continuing Claims Medium 12-Jun 8:30 AM 07-jun 2625K 2603K - Retail Sales High 12-Jun 8:30 AM May 1.3% 0.7% - Core PPI High 13-Jun 8:30 AM May 0.2% 0.5% - Michigan Sentiment Medium 13-Jun 9:55AM Jun 82.5 82.9 -

Source: OW Risk Management