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 pretty mixed yesterday due to divergent economic news. The Chinese Manufacturing index was disappointing, falling below the 50 mark suggesting contraction. The US economic data were more leaning bearish, with Homes sales prices up only 0,1% showing a slowdown. The US dollar weakened. US crude prices managed to stay supported despite a weak equity market. US crude inventory showed a build of +0.99 mbbl while distillates drew -3.21 mbbl. Gasoline stockpile build as expected at +2.12 mbbl, largely due to the cold winter dampening traveling fuel consumption in the US. The March WTI contract settled at $97.32/bbl, up +$0.59 and Brent fell -$0.69 to $107.58/bbl. This morning, crude prices are trading -0,6% for Brent and -0,25% for WTI.

Fueloil Specifics

The NWE bunker fuel oil markets reported picking up demand and good product avails yesterday. Delivered 380cst product both in Antwerp and Rotterdam was assessed some $2/mt down from previous close. The Singapore fuel oil markets closed app. $3/mt higher during the AsianPlatts window yesterday. The latest Singapore heavy residual inventory saw a draw of -1.08 mbbl to 18.89 mbbl. The delivered bunker premiums were ranging between +$7.0 and +$9.0 above cargo prices. This morning both markets are trading lower.

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) 0,59 97,32 ↓ 96,88 96,26 94,58 94,55 91,84 89,85 ICE Brent Swap (1st month) (0,69) 107,58 ↓ 106,66 106,15 105,76 105,39 104,08 102,25 ICE Gasoil Swap (1st month) 3,50 922,50 ↓ 912,25 906,75 902,17 899,14 893,47 887,36 3.5% Barges FOB Rtdm 1,25 559,50 ↓ 565,50 567,50 569,00 569,25 567,75 564,25 3.5% Cargoes FOB Med 1,25 568,00 ↓ 562,25 564,75 565,50 566,25 565,00 561,50 1.0% Cargoes FOB NWE 3,00 584,00 ↓ 585,50 588,75 591,00 592,25 591,00 584,00 3% no. 6 USGC WB (1,05) 87,39 ↑ 88,95 89,20 89,45 89,20 89,20 88,95 380 CST Cargoes FOB S'pore 3,75 610,50 ↓ 601,75 598,75 592,00 590,75 588,00 586,25 0.1 % GO Barges FOB Rtdm 3,50 919,25 ↓ 913,25 908,25 903,25 900,25 894,25 888,25 Physical Rotterdam 380 CST (2,00) 562,75 ↓ 570,75 573,50 574,25 574,50 573,00 569,50 Physical Singapore 380 CST 3,75 617,50 ↓ 607,00 600,50 595,25 594,00 591,25 589,50

Focus of the day: Piraeus

This week has been rather slow in Piraeus and Istanbul. Crude market has been going up for the past few days, but the rising prices did not boost buying interest as much as it was expected. CIF MED 3.5% average for this week was higher by $ 3.75 compared to last week. Product availability in Piraeus is finally improving, after a couple of weeks during which only one refinery, Hellenic Petroleum, could offer for HSFO, as MOH had undertaken an export and could not allocate sufficient volumes to the local bunker market. Both Piraeus refineries are working normally these days and all suppliers are able to offer even for prompt enquiries. Product availability and supply conditions have been very good in Istanbul as well.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 22-Jan 7:00 AM 18-jan NA 11.9% 4.7% Initial Claims Medium 23-Jan 8:30 AM 18-jan 330K 326K 326K Existing Home Sales Medium 23-Jan 10:00 AM Dec 4.87M 4.90M 4.87M Leading Indicators Medium 23-Jan 10:00 AM Dec 0.1% 0.8% 0.1%

Source: OW Risk Management