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 settled higher yesterday supported by good economic news from the US: Bank of America showed a solid quarterly result above $3.5Bln showing that the Mortgage losses that banks have been suffering for the last years are now getting more in control. A nearly three times stronger Empire Manufacturing (New York area) figure is confirming that the US economy is on firm pace of growth. The Weekly DOE figures showed that Crude and Distillates drew more than expected with respectively -7.66 mbbl vs -0.61 mbbl and -1.12 mbbl vs +1.46 mbbl. Gasoline on the other hand saw a huge build of +6.18 mbbl against the +2.54 mbbl expected. The February WTI futures rose +$1.58 to close $94.17/bbl and Brent up +$0.74 to settle at $107.13/bbl. Japan machinery orders by businesses hit a 5-year high in November rising to 9,3%  bolstering the Abenomics-driven policy. Today, we will see the US weekly jobless claims and the December CPI data. This morning, crude prices are trading slightly down.

Fueloil Specifics

The NWE bunker fuel oil markets saw another day with poor demand and enough products in the ports. Delivered 380cst product gained app.$2/mt in Antwerp and nearly $4/mt in Rotterdam following Brent rally in the afternoon. The Singapore fuel oil markets fell $2.5 during the Asian Platts window yesterday. Bunker demand was heard to be mixed with delivered bunker premiums ranging between $6.5 and $7.5 above cargo prices. Bunker fuel oil swaps gained app.$5.5/mt at the front and a dollar more at the backend of the forward curve both for Singapore and Rotterdam papers. Visco spreads remain strong in the front with spot closing at $8.57/mt. February is trading at app.$11.25-11.00 while forward prices remain stable trading in a range of $8.5-8.0/mt for the rest of the year.

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) 1,58 94,17 ↑ 94,43 94,14 93,63 92,79 90,42 88,49 ICE Brent Swap (1st month) 0,74 107,13 ↓ 105,82 105,49 105,19 104,86 103,68 102,60 ICE Gasoil Swap (1st month) 13,50 913,75 ↓ 904,17 899,67 896,08 893,44 888,89 882,75 3.5% Barges FOB Rtdm 6,75 562,25 ↓ 567,75 569,25 569,50 569,25 568,00 564,75 3.5% Cargoes FOB Med 8,50 567,75 ↓ 564,00 565,50 566,50 566,50 561,75 564,00 1.0% Cargoes FOB NWE 6,75 583,75 ↓ 583,00 586,50 589,25 590,25 589,75 583,25 3% no. 6 USGC WB 1,27 88,25 ↓ 89,05 88,80 89,05 88,80 88,80 88,55 380 CST Cargoes FOB S'pore (2,25) 600,00 ↑ 599,25 595,25 594,25 593,50 591,75 590,50 0.1 % GO Barges FOB Rtdm 12,00 912,50 ↓ 905,25 901,25 897,25 894,25 891,25 885,25 Physical Rotterdam 380 CST 4,00 564,25 ↓ 573,00 574,50 574,75 574,50 573,25 570,00 Physical Singapore 380 CST (1,50) 606,25 ↑ 604,50 600,50 599,50 598,75 597,00 595,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 14-Jan 8:30 AM Dec -0.3% 0.7% 0.2% Business Inventories Medium 14-Jan 10:00 AM Nov 0.2% 0.7% 0.4% Core PPI Medium 15-Jan 8:30 AM Dec 0.1% 0.1% 0.3% Empire Manufacturing Medium 15-Jan 8:30 AM Jan 4.0 1.0 12.5 Initial Claims Medium 16-Jan 8:30 AM 11-jan 335K 330K - Core CPI High 16-Jan 8:30 AM Dec 0.2% 0.2% - Philadelphia Fed Medium 16-Jan 10:00 AM Jan 8.0 6.4 - Housing Start Medium 17-Jan 8:30 AM Dec 945K 1091K - Building Permits Medium 17-Jan 8:30 AM Dec 1000K 1007K - Industrial Production Medium 17-Jan 9:15 AM Dec 0.3% 1.1% - Mich Sentiment High 17-Jan 9:55 AM Jan 81.5 82.5 -

Source: OW Risk Management