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 retreated Friday, after six consecutives weekly gain, on speculations that price has climbed more than justified as the heating season nears its end. The losses, however, were capped by news on supply disruption in South Sudan, Libya and Venezuela. Brent fell $0.45 to close at $109.85/bbl while WTI lost $0.55 to end the day at $102.20/bbl. This week, after a short break, the cold weather will reappear in the US as frigid artic air will return to the Northeast and Midwest supporting Crude. Technically, despite this correction, Crude Oil is still holding some key support but beware as targets higher have been hit and the contracts have completed a price cycle. Brent and WTI this morning are trading some 0,2% higher.

Fueloil Specifics

The NWE bunker fuel oil markets closed last week with tightening supply and mixed demand levels. Delivered 380cst product in Antwerp remained unchanged from previous close while it lost app.$1/mt in Rotterdam. LSFO avails remain tight in the area and higher premiums are charged for prompt deliveries. The absence of demand from BP last Friday surprised traders in Asia as they had expected the oil major to continue its spree to cover commitments; they may have been affected by delays in cargo arrivals from the west. Still, the oil major was heard to have placed at least four Aframaxes and a VLCC on short term T/C to be used as temporary storage for fuel oil. Singapore fuel oil market closed app. $1.0/mt lower last Friday and was assessed at 618.00/mt. Delivered 380cst was seen from 605/mt to 615/mt. 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) (0,55) 102,20 ↑ 102,12 101,29 99,51 100,41 97,48 94,74 ICE Brent Swap (1st month) (0,45) 109,85 ↑ 109,80 109,39 108,92 108,89 107,29 106,26 ICE Gasoil Swap (1st month) (7,75) 929,75 ↑ 929,92 926,33 922,33 923,17 917,33 910,50 3.5% Barges FOB Rtdm (1,00) 586,25 ↑ 587,00 585,25 584,50 584,50 581,75 577,50 3.5% Cargoes FOB Med (1,25) 584,50 ↑ 585,00 583,00 582,00 582,00 579,00 574,75 1.0% Cargoes FOB NWE (3,00) 634,00 ↑ 629,50 621,25 616,00 616,75 609,75 601,50 3% no. 6 USGC WB (0,10) 90,87 ↑ 91,80 91,60 91,67 91,43 90,97 88,69 380 CST Cargoes FOB S'pore 0,75 614,75 ↑ 609,25 607,00 605,25 605,50 603,00 600,75 0.1 % GO Barges FOB Rtdm (7,50) 929,75 ↑ 931,25 927,25 923,25 924,25 917,25 911,25 Physical Rotterdam 380 CST (1,00) 587,75 ↑ 592,25 590,50 589,75 589,75 587,00 582,75 Physical Singapore 380 CST (0,50) 620,25 ↑ 614,50 612,25 610,50 610,75 608,25 606,00

Focus of the day: Gibraltar

The Gibraltar Strait is waking up this morning with good product avails and all three ports running smoothly as only two suppliers are behind schedule on barges. The level of demand this morning is rather slow yet. There is good expectations for the rest of the week as weather conditions are expected to remain favorable and prompt requirements are possible to accommodate by most suppliers in the hub. CIF Med 3.5% is trading some $14.0/mt above FOB Barges Rotterdam. The HILO is currently around $60.0/mt in the Med and the CIF Med 1% premium over FOB NWE 1% at $25.0/mt. The Med market is trading up this morning.

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% - Consumer Confidence High 25-Feb 10:00 AM Feb 80.5 80.7 - New Home Sales Medium 26-Feb 10:00 AM Jan 405K 414K - 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