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 Crude Oil rallied above $100 and Asian stocks fell on geopolitical turmoil in Middle East. With Egypt tensions, market is worried of a disruption in the Suez Canal where 2,29m b/d transit every day from the Middle-East. There is a strong buying interest especially in the WTI futures as market is seeing a Cushing inventory draw at today’s DOE Weekly Inventory. Yesterday the API inventory reported a massive crude draw of -9.36 mbbl and also draws in product stockpile. The WTI /Brent spread contract narrowed further to $3.25/bbl. With Independence Day holiday in the US tomorrow market trading volume is expected to be thin and price movements accentuated. The US May factory orders rose +2.1%, better than estimated. The market is cautious ahead of series of US labor data later today normally scheduled tomorrow: US jobless claims figures, ADP June employment data and the ISM June non-manufacturing figures. The US inventory report by Energy Department will be released later today and the expectations are as follows: Crude -2.32 mbbl, Distillates +1.20 mbbl, Gasoline +0.61 mbbl. This morning, crude prices are trading strongly up.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed slightly higher yesterday supported by lower product avails. Delivered 380cst product in Rotterdam gained app.$2/mt and a dollar more in Antwerp. The Singapore fuel oil markets were mostly mixed as outright prices were ranging between -$1.5 to +$1.5 during the Asian Platts window yesterday. Bunker demand was said to be better than average. The delivered bunker premiums were ranging between +$6.0 to +$9.0 above cargoes prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q413 Q114 2014 NYMEX WTI Swap (1st month) 1,61 99,60 ↑ 100,88 100,34 99,25 96,98 94,74 91,89 ICE Brent Swap (1st month) 1,00 104,00 ↑ 104,37 103,78 103,23 102,36 101,12 99,41 ICE Gasoil Swap (1st month) (3,50) 879,75 ↑ 889,92 887,42 885,92 888,06 883,33 871,92 3.5% Barges FOB Rtdm 0,75 581,50 ↑ 581,00 574,25 572,25 568,50 567,00 561,50 3.5% Cargoes FOB Med 1,25 575,25 ↑ 574,25 568,25 566,75 562,00 560,00 558,00 1.0% Cargoes FOB NWE 5,00 591,75 ↑ 597,00 598,75 598,25 595,00 594,00 586,25 3% no. 6 USGC WB 0,02 89,90 ↓ 89,95 89,95 89,45 88,95 88,70 87,70 380 CST Cargoes FOB S'pore 1,25 584,50 ↑ 587,75 587,00 589,00 588,25 585,25 582,00 0.1 % GO Barges FOB Rtdm (1,00) 881,50 ↑ 891,25 888,25 887,25 884,25 879,25 870,25 Physical Rotterdam 380 CST 2,00 585,00 ↑ 586,25 579,50 576,00 572,25 570,75 564,75 Physical Singapore 380 CST 0,25 590,00 ↑ 593,00 592,25 594,25 593,50 590,50 587,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 1-Jul 10:00 AM Jun 50.5 49.0 50.9 Construction Spending Medium 1-Jul 10:00 AM May 0.5% 0.4% 0.5% Factory Orders Medium 2-Jul 10:00 AM May 2.0% 1.0% 2.1% Challenger Job Cuts Medium 3-Jul 7:30 AM Jun NA -41.2% - ADP Employment Change Medium 3-Jul 8:15 AM Jun 150K 135K - Initial Claims Medium 3-Jul 8:30 AM 29-jun 345K 346K - Trade Balance Medium 3-Jul 8:30 AM May -$42.0B -$40.3B - ISM Services Medium 3-Jul 10:00 AM Jun 53.5 53.7 - Nonfarm Payrolls High 5-Jul 8:30 AM Jun 175K 175K - Unemployment Rate High 5-Jul 8:30 AM Jun 7.6% 7.6% -

Source: OW Risk Management