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 edged up marginally and closed higher yesterday. The August WTI futures settled at $103.53/bbl, up +$0.39 while Brent gaind +$0.38 to $107.81/bbl. Market was generally lifted up by the better than expected corporate earnings released yesterday in US and Europe. The market was also supported when Euro finance minister agreed to release 3 billion Euros as the latest financial aid to Greece. However, the initial gains were trimmed after International Monetary Fund (IMF) revised the world economy growth downwards by -0.2% to 3.1% in 2013 and 3.8% in 2014. Yesterday weekly numbers from API estimated that crude oil inventories declined more than expected by -8.97mbbl. The US Energy department will be releasing the inventory report later today and the expectations are as follows: Crude -3.3 mbbl, Distillates +1.3 mbbl, Gasoline +1.2 mbbl. The market is widely expecting the FOMC announcement by the US Federal Reserve Chairman later today and market is likely to be strongly reactive towards the outcome. This morning, crude prices are trending up.

Fueloil Specifics

Bunker fuel oil prices remained largely unchanged yesterday, posting a dollar gains in the main ports. Rotterdam reported mixed demand and continuously tight product avails. Premiums for prompt deliveries were seen up to $5/mt over Rtdam FOB barges. The Singapore fuel oil market lost between -$4.0 to -$2.5 during the Asian Platts window yesterday. Market demand was said to be slow amidst an ample supply situation depressing current outright prices. The delivered bunker premiums were ranging between +$4.0 to +$5.5 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,39 103,53 ↑ 103,85 102,45 100,95 99,44 95,93 93,31 ICE Brent Swap (1st month) 0,38 107,81 ↑ 107,11 106,47 105,90 105,35 103,63 101,33 ICE Gasoil Swap (1st month) (4,00) 909,25 ↑ 913,42 912,17 910,08 909,53 900,86 885,69 3.5% Barges FOB Rtdm 0,50 594,00 ↑ 586,25 582,25 581,25 578,25 576,50 569,00 3.5% Cargoes FOB Med (3,00) 581,50 ↑ 580,25 576,75 574,25 571,75 569,75 565,50 1.0% Cargoes FOB NWE (2,50) 598,00 ↑ 607,00 608,75 608,25 607,00 605,50 596,00 3% no. 6 USGC WB 0,65 91,67 ↑ 91,45 91,45 90,95 90,70 90,70 89,95 380 CST Cargoes FOB S'pore (3,75) 593,50 ↑ 599,50 602,00 602,25 602,50 600,00 594,75 0.1 % GO Barges FOB Rtdm (4,25) 911,00 ↑ 914,25 913,25 911,25 909,25 901,25 886,25 Physical Rotterdam 380 CST 1,00 597,00 ↑ 591,50 587,50 585,00 583,50 581,75 574,25 Physical Singapore 380 CST (4,50) 598,25 ↑ 604,75 606,25 606,50 606,25 603,25 598,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 8-Jul 3:00 PM May $10.5B $11.1B $19.6B Wholesale Intentories Medium 10-Jul 10:00 AM May 0.4% 0.2% - FOMC Minutes High 10-Jul 2:00 PM 16-jun - - - Initial Claims Medium 11-Jul 8:30 AM 06-jul 345K 343K - Continuing Claims Medium 11-Jul 8:30 AM 29-jun 2950K 2933K - Treasury Budget Medium 11-Jul 2:00 PM Jun NA -$59.7B - Core PPI Medium 12-Jul 8:30 AM Jun 0.1% 0.1% - Mich Sentiment High 12-Jul 9:55 AM Jul 85.5 84.1 -

Source: OW Risk Management