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.
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It was a quiet Friday that appeared to be largely dictated by profit taking and position squaring after the large rally we have seen in July. Equities gave up gains and the Euro touched fresh lows versus the dollar at 1,2144. This morning the market is trading sharply lower on jump in Spanish Bond yield and talk (again) of Greek exit of the Euro. This week markets will focus on Jobless Claims onThursday and US GDP on Friday. This morning Brent is trading off with more than 3 USD.
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The Northwest European fuel oil market closed the week slightly lower. Delivered 380cst product in Rotterdam lost app. $2/mt while cargo prices posted 4/mt losses. Ports in the area saw some good demand levels on Friday while ARA hub still reports restrained avails for both LSFO and HSFO prompt deliveries. The Asian fuel oil market was steady on Friday, with intermonth swaps and cash premiums holding firm. The prompt August/September contract closed at $3.13/mt, unchanged from Thursday, while the second-month September/October eased 13 cents to $2.50/mt. The physical trading window was quiet with no deals done. The cash premium for 180cst was unchanged at $3.90/mt above Singapore spot quotes, while the 380cst premium fell 15 cents to $3.20/mt above Singapore spot quotes. In the Singapore marine fuel market, the bunker differential, or price spread between ex-wharf marine fuel prices and fuel oil cargo values, fell to its lowest in one week. Demand for marine fuel has slowed as prices rise due to high underlying crude prices. "Enquiries have come off a little," said a bunker trader based in Singapore. This morning both markets are trading down.
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Settlement & Indications (mid values)
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Product
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Yesterday's Values
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Forward Indications
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Product
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Change
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Last
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Dir.
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Aug
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Sep
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Oct
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Q412
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Q113
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2013
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NYMEX WTI Swap (1st month)
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(1.22)
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91.83
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↓
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88.86
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89.12
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89.42
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89.88
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92.02
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89.88
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ICE Brent Swap (1st month)
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(0.97)
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106.83
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↓
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103.30
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102.75
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102.40
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102.14
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101.29
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102.14
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ICE Gasoil Swap (1st month)
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(6.25)
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919.50
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↓
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898.25
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895.92
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892.67
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889.47
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881.64
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874.77
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3.5% Barges FOB Rtdm
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(4.50)
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610.75
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↓
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590.25
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586.50
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584.00
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581.75
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576.75
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570.50
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3.5% Cargoes FOB Med
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(5.00)
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603.25
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↓
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586.00
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582.00
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579.50
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577.25
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572.25
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566.25
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1.0% Cargoes FOB NWE
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(6.25)
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651.50
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↓
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627.25
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622.00
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617.50
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614.25
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606.75
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600.75
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3% no. 6 USGC WB
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(0.55)
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96.03
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↓
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89.09
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88.59
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88.34
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86.59
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85.84
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86.34
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380 CST Cargoes FOB S'pore
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7.00
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637.25
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↓
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612.50
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609.50
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608.00
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606.25
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600.75
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593.50
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0.1 % GO Barges FOB Rtdm
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(5.75)
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915.75
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↓
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899.25
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897.25
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894.25
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893.25
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885.25
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877.25
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Physical Rotterdam 380 CST
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(2.00)
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620.75
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↓
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600.50
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596.75
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594.25
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592.00
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587.00
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580.75
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Physical Singapore 380 CST
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6.50
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642.25
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↓
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622.75
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619.75
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618.25
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617.00
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611.50
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604.25
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Focus of the day: Gibraltar
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Bunker deliveries this morning at Algeciras and Ceuta are taking place without problems, however at the other side of the bay, in the port of Gibraltar, bunkering operations had to be suspended first time this morning due to lack of visibility which is expected to improve before midday. Bunker premiums seen last week in the hub were considerably lower than recent average. There are currently good avails of all products and good weather forecast for the week. The HILO spread keeps widening to nearly $60/mt. The Med market is trading down this morning.
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Economy fundamentals this week
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Fundamental Indicators
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Statistic
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Importance
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Date
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Time
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Period
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Consensus
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Last
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Actual
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FHFA Housing Price Index
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Medium
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24-Jul
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10:00 AM
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May
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NA
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0.8%
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-
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MBA Mortgage Index
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Medium
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25-Jul
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7:00 AM
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21-Jul
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NA
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NA
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-
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New Home Sales
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Medium
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25-Jul
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10:00 AM
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June
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375K
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369K
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-
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Initial Claims
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Medium
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26-Jul
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8:30 AM
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21-Jul
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365K
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386K
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-
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Durable Orders
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High
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26-Jul
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8:30 AM
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June
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1.0%
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1.3%
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-
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Pending Home Sales
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Medium
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26-Jul
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10:00 AM
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June
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1.0%
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5.9%
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-
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GDP- Adv.
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High
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27-Jul
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8:30 AM
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Q2
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NA
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1.9%
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-
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Michigan Sentiment- Final
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Medium
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27-Jul
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9:55 AM
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July
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71.5
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72.0
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-
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Source: OW Risk Management