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

Market was quite yesterday with the US closed for Presidents Day holiday and IP week in London. Brent for April settlement rose 10 cents to $109.18, supported by a weak dollar, supply disruptions in Libya and a severe winter across North America that has boosted heating demand. Right now crude seams to get general support from the cold weather (although the weather should start to improve in the second part of the week). China’s central bank has surprisingly drained Rmb 48 bn ($7,9bn) from money markets, the first time in eight months, on concern at the start of the year lending boom.  In terms of economic data the rest of the week market will be looking at the minutes of FED’s last policy meeting tomorrow and Chinas manufacturing data on Thursday. Brent trading -12 cents  at 108.96.and WTI down -24 cents.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with slightly higher prices and continuously tight LSFO avails. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$2/mt higher compared to previous day close. Paper market where seen weaker during and after window hours in Singapore, reflected by softer FO cracks Feb Dubai/180 moved from 9.40/mt to 9.46/mt on closing assessments. Time spreads where seen offered during Asian close. Physical market saw 380 cash differentials fall to a four session low of $3.25/mt. The increase in cargoes arriving to Asia in March are expected to rebound from a five-month low to nearly 3.9 million tonnes, 15 percent more than in February. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,07 100,30 ↓ 100,16 99,44 98,66 98,64 96,11 93,84 ICE Brent Swap (1st month) 0,10 109,18 ↓ 108,92 108,61 108,25 107,81 106,79 104,57 ICE Gasoil Swap (1st month) 3,75 924,00 ↑ 924,67 920,42 917,33 917,31 910,94 905,39 3.5% Barges FOB Rtdm 3,00 579,75 ↑ 580,75 580,00 579,50 579,50 577,75 574,25 3.5% Cargoes FOB Med 8,00 575,25 ↑ 578,50 577,25 576,75 576,75 575,00 571,25 1.0% Cargoes FOB NWE 1,50 621,50 ↑ 617,75 611,50 608,75 609,00 604,25 597,00 3% no. 6 USGC WB 0,24 90,86 ↑ 91,10 90,90 90,97 90,74 90,33 88,40 380 CST Cargoes FOB S'pore 0,50 607,75 ↑ 603,50 602,25 601,50 601,50 599,00 597,50 0.1 % GO Barges FOB Rtdm 4,50 924,00 ↑ 926,25 921,25 917,25 918,25 911,25 906,25 Physical Rotterdam 380 CST 2,00 581,00 ↑ 586,00 585,25 584,75 584,75 583,00 579,50 Physical Singapore 380 CST 0,00 617,25 ↑ 609,75 607,50 606,75 606,75 604,25 602,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire State Index Medium 18-Feb 8:30 AM Feb 9.0 12.5 - Producer Price Index Medium 19-Feb 8:30 AM Jan 0.1% 0.4% - Core PPI High 19-Feb 8:30 AM Jan 0.2% 0.3% - Weekly Jobless Claims Medium 20-Feb 8:30 AM 15-feb 325K 339K - Core CPI High 13-Feb 8:30 AM Jan 0.2% 0.1% - Leading Indicators Medium 20-Feb 10:00 AM Jan - 0.1% - Existing Home Sales Medium 21-Feb 10:00 AM Jan 4.7M 4.87M -

Source: OW Risk Management