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 closed higher before a long week end in the US despite mixed economic releases. The US Industrial Production rose for fifth month in a row while the US December Housing Starts and Building Permits fell less than expected. The US Preliminary January Consumer Confidence fell from 83,5 to 80,4 .The February WTI futures rose +$0.41 to close at $94.37/bbl while the March Brent futures settled  up +$0.73, at  $106.48/bbl. China reported  slightly lower economic growth last quarter from 7,8% to 7,7% amid easing industrial production and asset spending. The US markets are closed today due to Martin Luther King Day. This morning, Brent and WTI crude prices are trading down -0,35% and -0,78 % respectively.

Fueloil Specifics

The Northwest European bunker fuel oil prices remained largely unchanged last Friday. Suppliers in Rotterdam reported weak demand and plenty of product pressuring spot bunker fuel prices further down. Lsfo avails were slightly hindered by small delays at loading installations. Antwerp port reported good demand with the majority of suppliers were fully booked for prompt deliveries. The Singapore fuel oil markets closed last week moving higher by +$2.0 during the Asian Platts window. The delivered bunker premiums rose higher to between +$7.0 to +$8.0 above cargo prices. This morning both markets are trading lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,41 94,37 ↓ 93,81 93,59 93,15 92,55 90,45 88,52 ICE Brent Swap (1st month) - 106,48 ↓ 105,87 105,40 105,04 104,69 103,55 101,96 ICE Gasoil Swap (1st month) 8,75 916,25 ↓ 906,58 901,42 896,75 893,89 888,83 882,50 3.5% Barges FOB Rtdm 3,75 558,25 ↓ 562,25 564,50 564,75 564,75 563,50 560,25 3.5% Cargoes FOB Med 0,50 564,25 ↓ 559,00 561,50 562,00 562,00 560,75 557,50 1.0% Cargoes FOB NWE 2,50 581,75 ↓ 582,75 586,00 588,25 589,25 588,00 581,25 3% no. 6 USGC WB (0,04) 88,19 ↓ 88,75 88,50 88,75 88,50 88,50 88,25 380 CST Cargoes FOB S'pore 2,00 603,25 ↓ 596,50 589,25 585,75 584,75 582,25 580,75 0.1 % GO Barges FOB Rtdm 6,75 913,25 ↓ 908,25 902,25 898,25 895,25 890,25 885,25 Physical Rotterdam 380 CST 0,00 561,75 ↓ 567,50 569,75 570,00 570,00 568,75 565,50 Physical Singapore 380 CST 2,00 611,25 ↓ 601,75 594,50 591,00 590,00 587,50 586,00

Focus of the day: Gibraltar

A relatively quiet morning opens up this week in the Gibraltar Strait, with good product avails for most suppliers and some of them still recovering from yesterday’s disruptions due to bad weather. The whole situation in the hub is expected to be fully up and running within this morning therefore relatively prompt requirements are still possible to be taken in. CIF Med 3.5% is trading some 24 usd/mt above FOB Barges Rotterdam and the HILO is currently around 30 usd/mt in the Med. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 22-Jan 7:00 AM 18-jan NA 11.9% - Initial Claims Medium 23-Jan 8:30 AM 18-jan 330K 326K - Existing Home Sales Medium 23-Jan 10:00 AM Dec 4.87M 4.90M - Leading Indicators Medium 23-Jan 10:00 AM Dec 0.1% 0.8% -

Source: OW Risk Management