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 managed to close week higher, capitalizing on the previous day gain. The April WTI contract settled at $93.13/bbl, up marginally +$0.29 and Brent closed at $114.10/bbl (+$0.57). The German IFO business sentiment came higher than expected and helped to keep price momentum but a stronger USD vs Euro capped the gains. Also the market is seeing enough Oil in the market for now and still a weak demand despite recent better economic numbers from the US and China. Asian markets rose this morning on reports of a probably new leadership in the Bank of Japan –Mr. Kuroda- who is a supporter of aggressive monetary easing. However, news that China’s February Manufacturing grew at the slowest pace in four months (+50,4) limited the gains. China announced its intention to raise domestic fuel prices in the midst of the rising crude prices. This morning, crude is trading 0,70% higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week with lower prices and picking up demand. Delivered 380cst product in Rotterdam was assessed app. $4/mt. Lack of blending components was hindering lsfo prompt avails and barges were still queuing at the loading installations. The Singapore fuel oil market dropped more than $4.0 during the morning Platts window last Friday tracking the softer crude movement. The February incoming cargoes were estimated to be lower at 3.9 million mt as compared to January volume of 5.2 million mt. The delivered bunker premiums were seen app. $4.0-6.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Mar Apr May Q213 Q313 Q413 NYMEX WTI Swap (1st month) 0,29 93,13 ↑ 93,78 94,21 94,60 94,55 94,59 93,96 ICE Brent Swap (1st month) 0,57 114,10 ↑ 114,42 113,58 112,81 112,83 110,68 108,78 ICE Gasoil Swap (1st month) (3,75) 977,75 ↑ 983,75 976,42 969,25 971,39 960,44 950,56 3.5% Barges FOB Rtdm (3,00) 613,00 ↑ 618,75 618,00 617,25 617,25 614,25 609,75 3.5% Cargoes FOB Med (3,00) 609,50 ↑ 613,75 613,75 612,75 613,00 609,75 605,00 1.0% Cargoes FOB NWE (8,50) 642,75 ↑ 650,25 650,75 650,50 650,25 646,75 639,50 3% no. 6 USGC WB 0,38 97,40 ↑ 97,45 97,20 96,95 97,20 96,45 95,70 380 CST Cargoes FOB S'pore (4,75) 635,75 ↑ 641,00 639,75 640,00 639,50 637,25 633,25 0.1 % GO Barges FOB Rtdm (4,75) 975,00 ↑ 984,25 977,25 969,25 971,25 955,25 948,25 Physical Rotterdam 380 CST (4,00) 618,00 ↑ 626,00 625,25 624,50 624,50 621,50 617,00 Physical Singapore 380 CST (3,50) 641,50 ↑ 648,75 647,50 647,75 647,25 645,00 641,00

Focus of the day: Gibraltar

The Gibraltar Strait starts the week with the three ports open after having been closed down during the weekend due to bad weather. There are currently some 24 vessels waiting outside Gibraltar, but Ceuta is already running smoothly and Algeciras only a few hours behind schedule, while the rest are still able to accommodate some requirements within February. CIF Med 3.5% is trading some 12 usd above FOB Barges Rotterdam and the HILO spread has narrowed in the Med to app. 27 usd/mt. The Med market is trading up this morning and some suppliers are already fully booked for the rest of the month.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case Shiller 20-city Index Medium 26-feb 9:00 AM Dec 6.0% 5.5% - New Home Sales Medium 26-feb 10:00 AM Jan 375K 369K - Consumer Confidence High 26-feb 10:00 AM Feb 62.5 58.6 - Durable Orders High 27-feb 8:30 AM Jan -5.0% 4.3% - Initial Claims Medium 28-feb 8:30 AM 23-feb 365K 362K - GDP- Second Estimate High 28-feb 8:30 AM Q4 0.1% -0.1% - Chicago PMI Medium 28-feb 9:45 AM Feb 54.0 55.6 - Personal Income Medium 01-mar 8:30 AM Jan -2.4% 2.6% - Personal Spending Medium 01-mar 8:30 AM Jan 0.1% 0.2% - PCE Price- Core Medium 01-mar 8:30 AM Jan 0.2% 0.0% - Michigan Sentiment-Final Medium 01-mar 9:55 AM Feb 75.0 76.3 - ISM Index High 01-mar 10:00 AM Feb 52.0 53.1 -

Souce: OW Risk Management