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

The Oil complex slipped yesterday with WTI down $1.59 to close at $103.33/bbl while Brent sunk $1.90 to $109.30/bbl. The Obama administration asked Moscow to pull out its troops from Ukraine and is considering, if the crisis escalates, to place sanction on Russian banks to isolate them from the International financial system. President Vladimir Putin said he sees no immediate reason to invade Eastern Ukraine. Foreign ministers from Russian and US are meeting today in Paris, -a long planned meeting about Liban- and will certainly have tense exchanges about the last developments in Ukraine. Nevertheless, short term, the status quo in Crimea coupled with expectation that the US Weekly Oil stock may show supplies expanded by 1.3 million is likely to pressure the oil complex lower today. Technically, yesterdays crude oil sharp drop leaves a failed upside breakout and opens the way for more downside. If it happens, the 107.7 support for Brent and 102.6 for WTI could be tested. This morning Brent is trading down -0,46% and WTI -0,13%.

Fueloil Specifics

The main Northwest European ports reported mixed sentiment yesterday. While buyers in Rotterdam hold away from the market and waited for it to calm down, Antwerp reported rising demand. Delivered 380cst product was assessed nearly $11/mt down following drop in Brent during the day. HSFO product avails were well balanced while low sulphur remains extremely tight. Singapore bunker fuel oil markets plummeted to near eight-week lows on Tuesday as Asia's residue market grappled with abundant supplies and tepid demand. Cash premiums dropped more than 80% to 25 cents a tonne for 180-cst and 22 cents a tonne for 380-cst over Singapore spot quotes, Reuters data showed. The market structure of 180cst flipped into a contango, with prices for March-loading cargoes 25 cents a tonne lower than those for April-loading, indicating weaker market conditions. Paper market got hammered as well by weak FO fundamentals, front months moved into contango on 180FO and front Dubai/180 cracks continue this week slide down. This morning both markets are trading a few cents lower.

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) (1,59) 103,33 ↓ 102,93 102,15 100,09 101,13 98,03 94,86 ICE Brent Swap (1st month) (1,90) 109,30 ↓ 108,52 108,14 107,74 107,76 106,22 105,05 ICE Gasoil Swap (1st month) (21,25) 919,50 ↓ 915,25 913,08 910,08 910,89 906,11 899,47 3.5% Barges FOB Rtdm (14,25) 576,50 ↓ 577,00 577,25 577,25 577,25 576,00 571,75 3.5% Cargoes FOB Med (15,00) 572,25 ↓ 575,25 575,25 575,00 575,00 573,25 569,00 1.0% Cargoes FOB NWE (24,75) 629,25 ↓ 621,50 612,25 608,50 609,50 604,75 596,75 3% no. 6 USGC WB (1,05) 90,85 ↓ 90,07 90,20 90,40 90,14 89,87 87,59 380 CST Cargoes FOB S'pore (9,00) 602,50 ↓ 597,75 597,75 597,75 597,25 597,00 595,00 0.1 % GO Barges FOB Rtdm (21,00) 917,75 ↓ 916,25 914,25 911,25 911,25 906,25 900,25 Physical Rotterdam 380 CST (11,00) 584,00 ↓ 582,25 582,50 582,50 582,50 581,25 577,00 Physical Singapore 380 CST (9,00) 608,50 ↓ 603,00 603,00 602,75 602,50 602,25 600,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Personal Income Medium 3-Mar 8:30 AM Jan 0.2% 0.0% 0.3% PCE Prices- Core Medium 3-Mar 8:30 AM Jan 0.1% 0.1% 0.1% ISM Index High 3-Mar 10:00 AM Feb 51.0 51.3 53.2 ADP Employment Change Medium 5-Mar 8:15 AM Feb 150K 175K - ISM Services High 5-Mar 10:00 AM Feb 53.5 54.0 - Initial Claims Medium 6-Mar 8:30 AM 01-mar 335K 348K - Productivity- Rev. Medium 6-Mar 8:30 AM Q4 2.5% 3.2% - Factory Orders Medium 6-Mar 10:00 AM Jan -0.3% -1.5% - Nonfarm Payrolls High 7-Mar 8:30 AM Feb 165K 113K - Unemployment Rate High 7-Mar 8:30 AM Feb 6.5% 6.6% - Trade Balance Medium 7-Mar 8:30 AM Jan -$37.0B -$38.7B -

Source: OW Risk Management