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

WTI rose on Wednesday after EIA stats showed a surprisingly small build in crude inventories and another large drawdown at Cushing. WTI settled 76 cents higher at $102.59 and Brent up a cent at $109.52. The EIA report showed crude stock rising overall by just 68,000 bbl last week, far less than average build of 1.2 mbbl forecast, while stock at Cushing fell 1.1 mbbl as TransCanada Corp’s southern pipeline continued to drain oil to the Golf Coast. Brent market remains under pressure but largely within the $109-111 level so far. The cold weather forecasted for the next 10 days is supporting prices but fears of additional supply in the next months from Iranian notably is hanging over the market. On the support side Libyan supply is very erratic and the market is discounting   less than 0,5 mb/d for the rest of this quarter. Today Crude Oil is trading -0,6% for Brent and down -0,24% for WTI.

Fueloil Specifics

The NWE bunker fuel oil markets reported relatively quiet day yesterday. Delivered 380cst product both in Antwerp and Rotterdam lost app.$1/mt vs previous days close. Suppliers reported low demand levels. LSFO avails remain tight in ARA region mainly due to refinery maintenance and lower inflows. Singapore bunker fuel oil prices weakened yesterday assessed $4.5-5.0 down from previous days close. Suppliers reported average demand and good product avails. Bunker fuel oil swaps lost app.$5/mt along the curve for Rtdam 3.5%FOB and a dollar more for Singapore papers. Visco spreads remain stable with spot closing at $5.38 yesterday. March is trading at app. $5.50 while forward prices remain in the range of $6.50-7.50 for the rest of the year. This morning both markets are trading slightly lower.

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) 0,76 102,59 ↓ 102,07 101,16 99,23 100,19 97,17 94,49 ICE Brent Swap (1st month) 0,01 109,52 ↓ 108,66 108,24 107,81 107,81 106,23 104,83 ICE Gasoil Swap (1st month) 1,25 926,50 ↓ 918,92 915,67 912,00 912,81 906,96 900,39 3.5% Barges FOB Rtdm 0,00 584,00 ↓ 580,50 579,75 579,00 579,00 576,75 572,50 3.5% Cargoes FOB Med 0,25 584,25 ↓ 579,25 577,50 576,50 576,50 574,00 569,75 1.0% Cargoes FOB NWE 4,25 634,75 ↓ 627,50 616,50 612,25 612,75 605,75 597,25 3% no. 6 USGC WB (0,10) 90,47 ↓ 90,70 90,53 90,61 90,37 89,93 87,68 380 CST Cargoes FOB S'pore (4,75) 605,50 ↓ 600,75 599,50 599,00 599,25 597,50 595,50 0.1 % GO Barges FOB Rtdm 0,50 924,25 ↓ 920,25 917,25 913,25 914,25 907,25 901,25 Physical Rotterdam 380 CST (1,00) 586,25 ↓ 585,75 585,00 584,25 584,25 582,00 577,75 Physical Singapore 380 CST (5,00) 612,00 ↓ 607,25 605,75 604,25 604,50 602,75 600,75

Focus of the day: Houston

The US stock market opened the week trending upward and kept its pace; which has been reflected as some gains in the bunker commodities pricing. Amid the tightness and difficulties from weather conditions, the US Gulf Coast prices for both grades of 380 were $10/$15 per metric tons higher Wednesday than it was on Monday. However, instead of cold the Gulf Coast’s mild weather brought the fog to the New Orleans and Houston ports delaying some bunkering activities and vessel schedules. In addition, the Mississippi river was shut down last Sunday after 4000bbls of crude oil spilled from a tugboat happened around mile 40. The situation aggravated the New Orleans market and a three day delay was the best prediction for any vessel working cargo or bunker in the area this week, some sources said.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller Home Price Index Medium 25-Feb 9:00 AM Dec 13.38% 13.7% 13.42% Consumer Confidence High 25-Feb 10:00 AM Feb 80.5 80.7 78.1 New Home Sales Medium 26-Feb 10:00 AM Jan 405K 414K 468K Initial Jobless Claims Medium 27-Feb 8:30 AM 22-feb 335K 336K - Durable Goods Orders High 27-Feb 8:30 AM Jan -2.5% -4.2% - Chicago PMI Medium 28-Feb 8:30 AM Feb 56.4 59.6 - GDP (Annualized) High 28-Feb 8:30 AM Q4 2.6% 3.2% -

Source: OW Risk Management