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

After one more day of sideways trading, crude prices closed moderately higher yesterday. The US equities surged up on market expectations that the US Federal reserve will not reduce easing so soon which aided to be supportive for crude prices. The market is also keeping an eye on the geopolitical tension in Syria as US and allies’ indirect involvement is increasing political risks. The July WTI futures settled at $98.44/bbl, up $0.67 while the August Brent gained $0.55 to $106.02/bbl. All eyes today are on the outcome of a two-day FOMC meeting and the US Federal Reserve Chairman announcement later today regarding the outlook of US monetary policies. The API inventory report yesterday showed a massive crude draw of -4.3 mbbl. The US Energy Department will release its weekly inventory report later today and the expectations are as follows: Crude -0.54 mbbl, Distillates +0.41 mbbl, Gasoline +0.68 mbbl. This morning, crude prices are trading up.

Fueloil Specifics

The Northwest European fuel oil markets remained relatively quiet yesterday. Delivered 380cst product in the main NWE ports lost a few dollars compared to previous days close. Rotterdam reported low demand and continuous loading delays hindering prompt bunker fuel deliveries. Antwerp port saw firmed demand though most suppliers were offering only from June 22 onwards. The Singapore fuel oil markets were assessed app.$3.5/mt down during the Asian Platts window yesterday. Demand was said to be better on lower outright 380cst prices. The delivered bunker premiums were seen around $7.25-6.50/mt 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) 0,67 98,44 ↑ 98,88 98,81 98,44 97,27 95,65 93,38 ICE Brent Swap (1st month) 0,55 106,02 ↑ 106,00 105,68 105,34 104,59 102,49 101,75 ICE Gasoil Swap (1st month) (1,25) 892,75 ↑ 897,58 898,17 900,00 900,39 897,75 885,10 3.5% Barges FOB Rtdm (0,25) 589,25 ↑ 590,00 587,75 585,75 583,00 582,00 576,25 3.5% Cargoes FOB Med (6,50) 589,50 ↑ 587,50 584,00 581,75 577,50 575,50 573,50 1.0% Cargoes FOB NWE (2,25) 623,50 ↑ 624,50 622,25 619,75 615,50 613,00 605,50 3% no. 6 USGC WB 0,41 92,51 ↑ 92,60 92,50 92,25 92,25 91,50 90,75 380 CST Cargoes FOB S'pore (3,75) 608,50 ↑ 613,25 611,00 609,25 606,25 604,00 600,75 0.1 % GO Barges FOB Rtdm (3,00) 894,50 ↑ 898,25 898,25 899,25 900,25 897,25 886,25 Physical Rotterdam 380 CST (4,00) 595,00 ↑ 595,25 593,50 591,00 587,75 586,25 581,00 Physical Singapore 380 CST (2,00) 616,50 ↑ 619,00 617,50 616,00 613,50 610,50 607,00

Focus of the day: Singapore

Singapore's onshore fuel oil stocks have risen to their highest level this year. Inventories climbed to 22.355 mbbl in the week ending June 12, according to data released by Singapore's trade agency International Enterprise (IE). It was a week-on-week increase of less than 1% but enough to bring the stocks to a six-month high. Market sources said demand from China's medium and small-sized refineries had been weak. "If you look at China, there is very little appetite at the moment because of surplus purchases of the past few months. It has been very quiet and we see some barrels actually moving back to Singapore because of the poor demand," said a trader quoted by Reuters. Meanwhile, avails in Singapore are getting tight due to bad terminal congestions with the earliest deliveries from 24th June onwards.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Jun 8:30 AM Jun 1.0 -1.4 7,8 NAHB Housing Market Index High 17-Jun 10:00 AM Jun 45 44 52 Core CPI High 18-Jun 8:30 AM May 0.1% 0.1% 0.2% Housing Starts Medium 18-Jun 8:30 AM May 925K 853K 914K Building Permits Medium 18-Jun 8:30 AM May 975K 1017K 974K FOMC Rate Decision High 19-Jun 2:00 PM Jun 0.25% 0.25% - Initial Claims Medium 20-Jun 8:30 AM 15-jun 345K 334K - Existing Home Sales Medium 20-Jun 10:00 AM May 4.95M 4.97M - Philadelphia Fed Medium 20-Jun 10:00 AM Jun 2.0 -5.2 - Leading Indicators Medium 20-Jun 10:30 AM 15-jun 0.2% 0.6% -

Source: OW Risk Management