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

Yesterday Brent Crude prices broke a three day losing streak but still remain without strong direction. The April WTI contract closed at $93.03/bbl, up +$0.51 and April Brent expired at $109.42/bbl, up +$0.90. The May Brent futures closed at $108.96/bbl gaining +$0.72. Crude prices were helped by a Eur/Usd rebound from 1,2900 level. The US equities continue their rally boosted by another positive data: The US weekly jobless claims fell sharply to 332k vs 350k expected. Today is busy in terms of data with the US February CPI, February industrial production, Manufacturing production and to close the week the March University of Michigan Consumer sentiment index. This morning, crude is trading slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices slipped yesterday. Regardless stronger crude values, delivered 380cst product both in Rotterdam and Antwerp was assessed app.$1/mt down. Suppliers reported tight lsfo avails and thus high premiums for prompt deliveries depending on delivery dates, barge avails and suppliers. The Singapore fuel oil market fell following weaker crude in the morning hours; down between -$4.0 to -$2.5. The latest Singapore heavy residual inventory saw a draw of -1.4 mbbl to 18.6mbbl which is recent low. The delivered bunker premiums were seen between $6.5 to $8.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,51 93,03 ↑ 93,58 93,83 93,93 93,43 92,32 90,06 ICE Brent Swap (1st month) 0,90 109,42 ↑ 108,98 108,38 107,77 106,54 104,89 101,81 ICE Gasoil Swap (1st month) (12,50) 909,75 ↑ 915,92 916,50 916,50 917,78 910,69 894,24 3.5% Barges FOB Rtdm 3,75 601,50 ↑ 606,00 604,25 602,50 599,25 596,25 583,25 3.5% Cargoes FOB Med 3,50 596,50 ↑ 600,50 600,75 599,75 596,00 589,25 579,25 1.0% Cargoes FOB NWE (2,25) 616,00 ↑ 625,00 629,50 630,25 628,25 622,75 609,25 3% no. 6 USGC WB 0,96 96,55 ↑ 95,25 95,00 94,75 94,00 93,25 88,75 380 CST Cargoes FOB S'pore (2,75) 629,25 ↑ 630,00 627,50 626,25 623,75 619,75 609,00 0.1 % GO Barges FOB Rtdm (1,50) 907,25 ↑ 917,25 917,25 917,25 916,25 911,25 896,25 Physical Rotterdam 380 CST (1,00) 603,75 ↑ 613,25 611,50 609,75 606,50 601,50 590,50 Physical Singapore 380 CST (2,50) 636,00 ↑ 637,75 635,25 634,00 631,50 627,50 616,75

Focus of the day: Piraeus

This week was busy in Piraeus and the rest of the Greek ports. CIF MED 3.5% was higher by $ 3.95 on average this week and crude market was volatile throughout the week. Product availability was very good and LSFO 380 is once again available for the majority of physical suppliers in the port. Both refineries are operating smoothly and loadings and supplies are effected efficiently and with no delays. Monday is a holiday in Greece and no bunker permits will be issued on that day; Customs Offices will close today noontime and reopen on Tuesday.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 13-mar 8:30 AM Feb 0.2% 0.1% 1.1% Business Inventories Medium 13-mar 10:00 AM Jan 0.6% 0.4% 1.0% Initial Claims Medium 14-mar 8:30 AM 09-mar 350K 340K 332K Continuing Claims Medium 14-mar 8:30 AM 09-mar 3100K 3094K 3024K Core PPI High 14-mar 8:30 AM Feb 0.2% 0.2% 0.2% Core CPI High 15-mar 8:30 AM Feb 0.2% 0.3% - Empire Manufacturing Medium 15-mar 8:30 AM Mar 5.0 10.0 - Industrial Production Medium 15-mar 9:15 AM Feb 0.6% -0.1% - Mich Sentiment Medium 15-mar 9:55 AM Mar 79.0 77.6 -

Source: OW Risk Management