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- for the second straight day- managed to close higher yesterday. The July WTI futures rose +$1.10 to $94.76/bbl and Brent closed at $103.61/bbl, up +$0.57. The market was mostly supported by the weaker US dollar against Euros driven by news of ECB chairman comments of a more stabilized Eurozone. Recent data from the US Energy department showed an increase in US refinery utilization runs which will lift US crude demand. The spread between the Brent to WTI crude narrowed to around $9/bbl yesterday. Today, we will see a series of US labor data; the nonfarm payroll and unemployment rate. The data will prove interesting in its interpretation since a positive data may implied a possible tightening of stimulus program which will drag market lower. This morning, crude prices are trading app. 0.50% up.

Fueloil Specifics

Prices softened slightly in the main NWE ports yesterday. Delivered 380cst product in Rotterdam and Antwerp was assessed some $2-3/mt down versus previous days close. Demand was described as average and avails were said to be improving slightly. The Singapore fuel oil markets fell -$2.5 to flat during the Asian Platts window yesterday. The latest Singapore heavy residual inventory rose +1.26 mbbl to 22.3 mbbl. The delivered bunker premiums were around +$6.25 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 Q313 Q413 2014 NYMEX WTI Swap (1st month) 0,43 94,76 ↑ 95,25 95,23 94,97 95,15 93,85 90,70 ICE Brent Swap (1st month) (0,20) 103,61 ↑ 103,55 103,18 102,85 103,19 102,01 99,74 ICE Gasoil Swap (1st month) 13,25 865,75 ↑ 869,75 871,75 873,83 872,78 877,25 867,55 3.5% Barges FOB Rtdm (2,75) 581,25 ↑ 581,25 579,00 577,00 579,00 573,75 566,00 3.5% Cargoes FOB Med 0,00 582,50 ↑ 577,75 575,25 573,00 574,25 566,75 562,75 1.0% Cargoes FOB NWE (2,25) 607,50 ↑ 613,00 611,00 609,25 611,00 605,75 596,00 3% no. 6 USGC WB (0,12) 89,46 ↑ 91,00 91,00 90,75 90,75 90,25 89,30 380 CST Cargoes FOB S'pore (2,25) 598,50 ↑ 597,75 600,00 600,00 601,50 597,75 590,75 0.1 % GO Barges FOB Rtdm (5,00) 865,75 ↑ 870,25 872,25 874,25 872,25 876,25 867,25 Physical Rotterdam 380 CST (3,00) 584,75 ↑ 586,50 584,75 582,25 584,25 579,00 571,25 Physical Singapore 380 CST (2,00) 605,25 ↑ 605,00 607,25 607,25 608,75 605,00 598,00

Focus of the day: Piraeus

Crude market traded up this week and bunker prices shot up both in Piraeus and Istanbul. Product avails were much better this week in the Greek hub as MOH refinery was allocating small lots of HSFO into the local bunker market. The refinery however will be constantly exporting product until the 16th of June, meaning that the local bunker market will be faced with tight avails during the coming days. Supply premiums in Piraeus remain quite low despite the tight product avails and the port remains the most competitive option in the East Med. Product avails remain strained in Istanbul too, where some physical suppliers are unable to quote due to lack of HSFO. Following the bullish crude market, demand was high in both ports, especially Piraeus where the number of cruisers calling the port is very high during the summer months.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 3-Jun 10:00 AM May 49.5 50.7 49.0 Construction Spending Medium 3-Jun 10:00 AM Apr 0.5% -1.7% 0.4% Trade Balance Medium 4-Jun 8:30 AM Apr -$41.0B -$38.8B -$40.3B ADP Employment Change Medium 5-Jun 8:15 AM May 140K 119K 135K Productivity- Rev. Medium 5-Jun 8:30 AM Q1 0.9% 0.7% 0.5% Factory Orders Medium 5-Jun 10:00 AM Apr 1.5% -4.9% 1.0% ISM Services Medium 5-Jun 10:00 AM May 52.5 53.1 53.7 Initial Claims Medium 6-Jun 8:30 AM 1-June NA 347K 346K Nonfarm Payrolls High 7-Jun 8:30 AM May 170K 165K - Unemployment Rate High 7-Jun 8:30 AM May 7.5% 7.5% - Consumer Credit Medium 7-Jun 3:00 PM Apr $10.0B $8.0B -

Source: OW Risk Management