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 prices extended a second day slide, losing more than $2.0/bbl. Crude prices strengthened the last month on stronger economic growth expectations especially from China and that the worse of the European crisis was behind. Long open energy future positions have been increased as reported by the CFTC. The April WTI contract settled at $92.84/bbl, falling -$2.38 and erasing nearly all gains since the beginning of 2013. Brent settled at $113.53/bbl, stumbling -$2.07 yesterday. The Weekly Inventory Report from the US Energy Department came out with a big Crude build as imports rose  (+4,1 Mios bbl) but significant draws in Gasoline(-2,8 Mios bbl) and Distillates(-2,3 Mios bbl) as US refinery utilization fell by -0.9%. The US economic data were pretty mixed with US weekly jobless claims rising more than expected while the January existing home sales reported higher than expected figures. This morning, crude prices are trading higher boosted by a better than expected German IFO Business data.

Fueloil Specifics

The Northwest European bunker fuel oil markets started Thursday with subdued demand but picked up in the afternoon following dropping prices. Delivered 380cst product in both Rotterdam and Antwerp was assessed down by app.$11/mt versus previous days close. Rotterdam port continues to struggle with operational delays at loading installations. The Singapore fuel oil market fell more than -$11.0 during the morning Platts window yesterday tracking the previous weaker crude movement. The latest Singapore heavy residual inventory reported a build of +1.79 mbbl to 20.63 mbbl.  The delivered bunker premiums were seen at $3.5-4.5 above cargo prices. Bunker fuel oil swaps lost more that$10/mt at the front of the forward curve both for Singapore and Rotterdam papers. Backend was a few cents stronger, cal2014 papers down by app.$9/mt in Singapore and -$9.75/mt in Rotterdam. This morning both markets are trading marginally lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) (2,38) 92,84 ↑ 93,02 93,43 93,79 93,77 94,20 93,45 ICE Brent Swap (1st month) (2,07) 113,53 ↑ 113,71 112,87 112,14 112,16 110,07 108,28 ICE Gasoil Swap (1st month) (14,50) 981,50 ↓ 976,42 970,42 964,08 964,61 953,47 944,17 3.5% Barges FOB Rtdm (12,50) 615,50 ↓ 614,75 614,50 614,00 614,00 611,25 607,00 3.5% Cargoes FOB Med (9,50) 612,75 ↓ 609,25 610,00 609,00 609,75 606,75 602,25 1.0% Cargoes FOB NWE (14,25) 651,25 ↓ 650,75 651,00 650,75 650,50 646,25 639,00 3% no. 6 USGC WB (1,16) 97,02 ↑ 96,70 96,45 96,20 96,45 95,70 95,20 380 CST Cargoes FOB S'pore (12,25) 640,50 ↓ 636,50 636,25 636,00 636,25 633,50 629,50 0.1 % GO Barges FOB Rtdm (14,00) 980,25 ↓ 976,25 971,25 964,25 966,25 952,25 944,25 Physical Rotterdam 380 CST (11,00) 621,25 ↓ 622,00 621,75 621,25 621,25 618,50 614,25 Physical Singapore 380 CST (12,00) 645,75 ↓ 644,25 644,00 643,75 644,00 641,25 637,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Housing Starts Medium 20-feb 8:30 AM Jan 900K 954K 890K Building Permits Medium 20-feb 8:30 AM Jan 915K 903K 925K Core PPI Medium 20-feb 8:30 AM Jan 0.1% 0.1% 0.2% Initial Claims Medium 21-feb 8:30 AM 16-feb 365K 341K 362K Continuing Claims Medium 21-feb 8:30 AM 09-feb 3200K 3114K 3148K Core CPI High 21-feb 8:30 AM Jan 0.1% 0.1% 0.3% Existing Home Sales Medium 21-feb 10:00 AM Jan 4.95M 4.94M 4.92M Philadelphia Fed Medium 21-feb 10:00 AM Feb 2.0 -5.8 -12.5 Leading Indicators Medium 21-feb 10:00 AM Jan 0.3% 0.5% 0.2%

Souce: OW Risk Management