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

Oil Crude prices lost more than 3% yesterday. Market sell-off accelerated after the release of the US DOE Weekly Inventory Report. The crude stockpile build more than expected at +2.7 mbbl vs +2.2 mbbl. It was a surprising strong sell-off as Central Banks are engaging in easing more their policies. The Yen weakened the most since October 2011 as the BoJ said it will double asset purchases sending the Nikkei +2% higher.  The May WTI contract closed at  $94.45/bbl, shredding -$2.74 and Brent futures plummeted -$3.58 to settle at $107.11/bbl. Today we will have the Bank of England and ECB Rates meeting and later on the weekly US jobless claims data. Focus is already on tomorrow’s US March Nonfarm Payrolls and the March Unemployment rate. This morning, crude is trading slightly up.

Fueloil Specifics

The Northwest European bunker fuel oil prices posted double digit losses following the downturn in crude oil prices. Regardless lower prices, demand in Rotterdam was sluggish while it picked up in the afternoon hours in Antwerp. Some suppliers in Rotterdam reported tight avails for all grades and higher premiums for prompt deliveries. The Singapore fuel oil market fell more than $4.0 during the morning Platts window yesterday. Fundamentally, the cargo market remains firm with cargo premium more than $2.0/mt. The delivered bunker premiums were kept between $7.0 to 9.0 above cargo prices yesterday. Bunker fuel oil swaps lost up to $10,50/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly stronger with cal 2014 papers assessed app.$6/mt down from previous day. This morning both markets continue trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Apr May Jun Q313 Q413 2014 NYMEX WTI Swap (1st month) (2,74) 94,45 ↑ 94,56 94,87 95,08 94,76 93,61 91,13 ICE Brent Swap (1st month) (3,58) 107,11 ↑ 107,27 107,05 106,74 105,83 104,44 101,59 ICE Gasoil Swap (1st month) (16,75) 912,75 ↓ 907,00 909,83 911,92 912,39 909,03 889,42 3.5% Barges FOB Rtdm (10,75) 599,00 ↓ 594,00 593,00 592,00 589,75 586,50 577,50 3.5% Cargoes FOB Med (13,00) 589,00 ↓ 586,00 587,00 587,00 586,25 580,50 574,50 1.0% Cargoes FOB NWE (9,50) 610,75 ↓ 607,75 612,50 616,50 618,50 615,00 606,25 3% no. 6 USGC WB (3,10) 93,25 ↑ 94,15 93,90 93,65 93,15 92,15 90,65 380 CST Cargoes FOB S'pore (4,25) 637,00 ↓ 618,00 616,25 615,50 614,00 611,00 604,75 0.1 % GO Barges FOB Rtdm (16,25) 912,75 ↓ 908,25 911,25 913,25 913,25 909,25 890,25 Physical Rotterdam 380 CST (10,00) 606,00 ↓ 601,25 600,25 599,25 597,00 592,75 585,75 Physical Singapore 380 CST (4,50) 643,75 ↓ 625,25 623,50 622,75 621,25 618,25 612,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 01-apr 10:00 AM Mar 54.5 54.2 51.3 Factory Orders Medium 02-apr 10:00 AM Feb 2.5% -2.0% 3.0% ADP Employment Change Medium 03-apr 8:15 AM Mar 200K 198K 158K ISM Services Medium 03-apr 10:00 AM Mar 55.0 56.0 54.4 Challenger Job Cuts Medium 04-apr 7:30 AM Mar NA 7.0% - Initial Claims Medium 04-apr 8:30 AM 30-mar 340K 357K - Nonfarm Payrolls High 05-apr 8:30 AM Mar 185K 236K - Unemployment Rate High 05-apr 8:30 AM Mar 7.8% 7.7% - Consumer Credit Medium 05-apr 3:00 PM Feb $12.0B $16.2B -

Source: OW Risk Management