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 underperformed and is now looking like it will test the 200 day MA at $106 usd/bbl. The focus during the weekend will be on Crimea referendum where they most likely will vote to join Russia. In this case the West will certainly impose Iran- ike sanctions on Russia although the details are still unknown. If this is the case, the volatility should increase disregarding weak Oil fundamentals lately. The IEA raised its Oil forecast by 80k barrels or 1,5% to 92,7m b/d for 2014. OPEC output jumped 500k b/d to 30,49 m b/d in February, the first time above 30m in four months. Also Iraq production is at 35-year high at 3,6m b/d and Iran Crude shipments are at highest since December 2012 at 1,4m b/d, said IEA. This morning Oil is trading marginally higher.

Fueloil Specifics

Bunker fuel oil prices closed yesterday again without major changes. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$1/mt down vs previous close. Suppliers reported subdued demand and finally slightly weakening lsfo market, with premiums coming off as avails improved. However, prompt deliveries remain hindered by barge delays. Singapore 180cst fuel oil cash premium was assessed up $1.33/mt from the day before reflecting expectation of more ARB high viscosity material, which is at least 700-centistoke and will need to be blended further into less viscous material that is suitable for cash trading in Singapore, such as the 380cst cargoes. Overall, Singapore onshore fuel oil stocks rose 13.5% in the week to March 12 to a three week high of 19.478 million barrels. Paper FO market yesterday we saw firmer VIS reflecting buying on 180FO and front time-spread as well, we saw moving more firm into backwardation. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,21 98,20 ↑ 97,80 97,15 96,44 97,13 95,04 92,93 ICE Brent Swap (1st month) (0,63) 107,39 ↑ 106,88 106,61 106,61 106,23 105,30 103,30 ICE Gasoil Swap (1st month) (18,00) 890,75 ↑ 893,83 893,83 893,08 893,50 890,11 - 3.5% Barges FOB Rtdm (1,00) 572,50 ↑ 575,50 574,75 574,00 572,50 568,00 566,25 3.5% Cargoes FOB Med (1,25) 569,25 ↑ 573,75 573,00 572,25 570,25 565,75 564,75 1.0% Cargoes FOB NWE (2,25) 622,00 ↑ 606,25 602,50 601,50 599,75 592,50 583,00 3% no. 6 USGC WB (0,24) 89,95 ↑ 90,05 89,87 89,99 89,46 88,86 88,56 380 CST Cargoes FOB S'pore 1,75 597,25 ↑ 595,75 594,50 594,00 592,75 590,75 589,25 0.1 % GO Barges FOB Rtdm (5,75) 887,50 ↑ 895,25 895,25 894,25 893,25 890,25 - Physical Rotterdam 380 CST (1,00) 574,00 ↑ 580,75 580,00 579,25 577,75 573,25 571,50 Physical Singapore 380 CST 1,00 603,75 ↑ 601,00 599,75 599,25 598,00 596,00 594,50

Focus of the day: Piraeus

Crude market came off this week and cargo prices in the East Med followed the drop; CIF MED 3.5% average for the week was lower by $ 6.00 compared to last week. Product availability in Piraeus is very good for all HSFO and LFSO grades. Demand was somewhat higher this week following a stretch of very little activity because of the market volatility and subsequent uncertainty as to where prices might be going. Operationally Piraeus is working normally, with no supply disruptions foreseen. Istanbul supplies have been smooth as well, with all physicals reporting good product and barge availability.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Mar 10:00 AM Jan 0.3% 0.3% 0.6% Treasury Budget Medium 12-Mar 2:00 PM Feb NA -$203.5B - Initial Claims Medium 13-Mar 8:30 AM 08-mar 335K 323K 315K Retail Sales High 13-Mar 8:30 AM Feb 0.2% -0.4% 0.3% Business Inventories Medium 13-Mar 10:00 AM Jan 0.3% 0.5% 0.4% Core PPI Medium 14-Mar 8:30 AM Feb 0.1% 0.2% - Mich Sentiment High 14-Mar 9:55 AM Mar 81.6 81.6 -

Source: OW Risk Management