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 closed mixed yesterday with May Brent settling at $105.85/bbl, down -$0.94 after concerns that Russian oil shipments to Europe will be disrupted eased. On the other hand, the April WTI surged above the $100 mark to $100.37/bbl, up $0.67 after a government report showed that inventories at Cushing, Oklahoma, which is the delivery point of the US WTI contracts, dropped for a seventh week. The FOMC announcement yesterday was pretty in line with the tapering rate however, the US Federal Reserve had a shift in their interest rate stance and may revise the current low interest rate to 1.0% at the end of 2015 and 2.25% in 2016. The Federal Reserve has also dropped its 6.5% unemployment rate and 2.5% inflation rate target as an interest rate hike. Today, we will see the US weekly jobless claims and February US existing home sales. This morning, crude prices are trading slightly down.

Fueloil Specifics

Despite weakening Brent values, the NWE bunker fuel oil markets reported largely unchanged prices that were supported by strengthening cracks. Delivered 380cst product both in Antwerp and Rotterdam was assessed app. $1/mt down. Suppliers in ARA continuously reported tight lsfo avails, expecting the situation to improve by next week. The Singapore fuel oil prices ranged mixed, between -$0.5 and +$2.25 during the Asian Platts window yesterday. The 380cst demand fell reflecting in the premiums that traded in discount vs the high of +$2.0 previously. The delivered bunker premiums were ranging between $3.0 and $5.5 yesterday. This morning both markets are trading marginally higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Apr May Jun Q314 Q414 Q115 NYMEX WTI Swap (1st month) 0,67 100,37 ↓ 98,56 97,56 96,53 97,55 94,72 92,39 ICE Brent Swap (1st month) (0,94) 105,85 ↓ 105,61 105,37 105,01 104,54 104,08 101,76 ICE Gasoil Swap (1st month) (4,50) 887,00 ↓ 886,33 887,25 887,00 887,11 883,11 - 3.5% Barges FOB Rtdm (1,50) 572,00 ↑ 573,25 571,25 570,25 568,25 563,50 561,75 3.5% Cargoes FOB Med (3,75) 565,50 ↑ 568,75 569,25 568,25 566,00 561,25 560,25 1.0% Cargoes FOB NWE (4,25) 624,50 ↑ 608,75 602,00 600,00 597,50 589,25 579,25 3% no. 6 USGC WB (0,54) 88,33 ↑ 89,37 89,15 89,25 88,69 87,97 87,57 380 CST Cargoes FOB S'pore (0,50) 592,25 ↑ 592,25 591,75 591,25 589,50 587,00 585,25 0.1 % GO Barges FOB Rtdm (4,75) 885,00 ↓ 887,25 888,25 888,25 887,25 884,25 - Physical Rotterdam 380 CST (1,00) 573,00 ↑ 578,00 576,50 575,50 573,50 568,75 567,00 Physical Singapore 380 CST (0,75) 597,50 ↑ 597,50 597,00 596,50 594,75 592,25 590,50

Focus of the day: Houston

The U.S. Gulf Coast market has seen light activity as demand reportedly subdued this third week of March. Gulf Coast 3% edged down $0.54 Wednesday being assessed at $88.83, with premiums coming off as avails improved in Houston and New Orleans areas. However, prompt deliveries remain scarce with big premiums hidden in the offer prices you may or may not get. Houston 380cst spot market was traded at $580-$585 and assessed by Platts at $579.50/MT. New Orleans maintained its $30/MT premium to Houston, instead of the regular $10/MT, assessed at $633.50/MT. Market participants expect some demand improvement in coming days as Crude price will likely keep its downward trend - aligned with U.S. crude-oil production that rose to the highest level in almost 26 years last week, as imports declined according to the Energy Information Administration report.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Mar 8:30 AM Mar 2.0 4.5 5.6 Industrial Production Medium 17-Mar 9:15 AM Feb -0.1% -0.3% 0.6% Housing Starts Medium 18-Mar 8:30 AM Feb 875K 880K 907K Building Permits Medium 18-Mar 8:30 AM Feb 945K 937K 1018K Core CPI High 18-Mar 8:30 AM Feb 0.1% 0.1% 0.1% FOMC Rate Decision High 19-Mar 2:00 PM Mar 0.25% 0.25% 0.25% Initial Claims Medium 20-Mar 8:30 AM 15-mar 330K 315K - Existing Home Sales Medium 20-Mar 10:00 AM Feb 4.55M 4.62M - Philadelphia Fed Medium 20-Mar 10:00 AM Mar 2.0 -6.3 - Leading Indicators Medium 20-Mar 10:30 AM 15-mar 0.2% 0.3% -

Source: OW Risk Management