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 were trading in a choppy fashion but eventually closed lower, losing more than $2.0. The August WTI contract closed at $77.69/bbl, down -$2.52 and the August Brent futures was down -$2.14 to $91.36/bbl. Market was under selling pressure coming into the end of the session on reduced risk appetite ahead of the EU summit. The European Commission released the June economic sentiment indicator for the Eurozone and it fell from the previous month. This coupled with renewed weakness in the Euro further pressured Crude Oil. US economic data were mostly within expectation and didn’t really affect price significantly with the US jobless claims slightly above forecast. Market rebounds this morning as EU allowed the financial rescue package fund to lend directly to banks regardless of recipient countries, as long as they will comply with EU budget rules. The news did boost market sentiment shoring back some confidence. This morning, crude is trading just below 2% up.

Fueloil Specifics

Bunker fuel oil prices in Northwest European hubs weakened yesterday. Cargo prices lost nearly $10/mt while delivered 380cst product in Rotterdam was assessed down byapp.$7/mt versus previous day’s close. The Singapore fuel oil markets rebounded more than $5.0 during the morning Platts window yesterday. The Singapore heavy residual inventory saw a build of +1.4 mbbl to 20.63 mbbl as June incoming cargoes were estimated to be at 4.2 to 4.3 million mt. The bunker premiums remained around $8.5 above cargo prices yesterday. Bunker fuel oil swaps posted app.$7.5/mt losses at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly stronger, down only by app.$5/mt. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jul Aug Sep Q312 Q412 2013 NYMEX WTI Swap (1st month) (2.52) 77.69 ↑ 79.68 80.09 80.49 80.09 81.32 81.32 ICE Brent Swap (1st month) (2.14) 91.36 ↑ 93.13 93.00 92.91 93.01 92.99 92.99 ICE Gasoil Swap (1st month) (7.25) 821.75 ↑ 825.75 821.50 819.58 822.28 818.50 818.11 3.5% Barges FOB Rtdm (9.75) 537.75 ↑ 542.25 537.50 534.00 538.00 528.50 521.00 3.5% Cargoes FOB Med (8.25) 540.00 ↑ 540.50 535.00 530.75 535.50 527.00 525.00 1.0% Cargoes FOB NWE (6.50) 571.50 ↑ 573.75 569.50 565.50 569.75 561.00 559.00 3% no. 6 USGC WB (1.85) 82.65 ↑ 84.30 83.72 83.37 82.93 82.62 82.23 380 CST Cargoes FOB S'pore 5.25 572.25 ↑ 569.25 563.25 559.00 563.75 55.50 553.50 0.1 % GO Barges FOB Rtdm (7.50) 821.25 ↑ 826.25 822.25 820.25 823.25 816.25 817.25 Physical Rotterdam 380 CST (7.00) 550.00 ↑ 552.50 547.75 544.25 548.25 540.75 538.75 Physical Singapore 380 CST 5.50 582.00 ↑ 579.50 573.50 569.25 574.50 565.25 564.25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual New Home Sales Medium 25-Jun 10:00 AM May 350K 343K 369K Case- Shiller 20-city Index Medium 26-Jun 9:00 AM Apr -2.5% -2.6% -1.9% Consumer Confience Medium 26-Jul 10:00 AM Jun 63.0 64.9 62.0 MBA Mortgage Index Medium 27-Jun 7:00 AM 23-Jun NA -0.8% -7.1% Durable Orders High 27-Jun 8:30 AM May 1.0% 0.0% 1.1% Initial Claims Medium 28-Jun 8:30 AM 23-Jun 385K 387K 386K GDP- Third estimate High 28-Jun 8:30 AM Q1 1.9% 1.9% 1.9% Personal Income Medium 29-Jun 8:30 AM May 0.0% 0.2% - Personal Spending Medium 29-Jun 8:30 AM May 0.2% 0.1% - PCE Prices High 29-Jun 8:30 AM May 0.2% 0.1% - Chicago PMI Medium 29-Jun 9:45 AM Jun 52.0 52.7 - Michigan Sentiment High 29-Jun 9:55 AM Jun 73.0 74.1 -

Source: OW Risk Management