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 rallied strongly yesterday as market priced in geopolitical risks pushing prices to an eight-month high. The July WTI closed at $106.53/bbl, surging up +$2.13 while the July Brent which expires later today settled at $113.02/bbl, up +$3.07. The next most active August Brent settled at $112.42/bbl. The markets escalated on the news of growing unrests in western and central Iraq renewing concerns of a possible return to civil war in OPEC’s second largest producer. On other economic news, the US weekly Jobless Claims were slightly higher than expected at 317k while Retail Sales rose only 0.3% vs. +0.7% expected. This morning, crude prices are trading app.0.6% higher both for Brent and WTI.

Fueloil Specifics

The NWE bunker fuel oil markets rose significantly yesterday following Brent strength. Delivered 380cst product in the main ports of Antwerp and Rotterdam was assessed nearly $9/mt higher vs. previous close. Suppliers reported relatively busy morning, though trading activity died down in the afternoon following spiking prices. The Singapore fuel oil prices rose between $5.5-4.0 during the Asian Platts window yesterday tracking firm crude values. The latest Singapore heavy residual inventory reported a slight build of 0.62 million mt to 21.68 million mt. The delivered bunker premiums softened to app.$3.5 above cargo prices yesterday. This morning both markets are trading strongly up.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jul Aug Sep Q414 Q115 Q215 NYMEX WTI Swap (1st month) 2,13 106,53 ↑ 106,06 105,03 103,91 101,81 98,70 95,92 ICE Brent Swap (1st month) 3,07 113,02 ↑ 112,84 112,07 111,41 110,19 108,42 107,39 ICE Gasoil Swap (1st month) - 911,50 ↑ 926,67 928,83 929,83 928,44 - - 3.5% Barges FOB Rtdm 6,50 584,25 ↑ 593,25 591,00 588,50 584,75 583,25 579,00 3.5% Cargoes FOB Med 7,00 575,50 ↑ 588,75 588,00 587,00 582,00 580,00 588,00 1.0% Cargoes FOB NWE 11,00 639,50 ↑ 631,25 628,25 623,75 613,00 603,50 599,50 3% no. 6 USGC WB 2,25 94,33 ↑ 92,40 92,05 91,73 91,19 90,75 89,95 380 CST Cargoes FOB S'pore 5,50 605,50 ↑ 614,50 611,25 608,75 606,75 605,50 601,50 0.1 % GO Barges FOB Rtdm 17,00 908,75 ↑ 927,25 929,25 930,25 927,25 - - Physical Rotterdam 380 CST 9,00 588,25 ↑ 598,50 596,25 593,75 590,00 588,50 584,25 Physical Singapore 380 CST 3,75 608,25 ↑ 619,75 616,50 614,00 612,00 610,75 606,75

Focus of the day: Piraeus

This week has been busy in Piraeus, after business resumed on Tuesday following a local holiday. Refineries are allocating enough capacity to the local bunker fuel production and availability is very good for all grades in the Greek market. Market rallied yesterday following unrest in Iraq and cargo prices are expected to be significantly higher in the following days, stirring buying interest. The uncertainty as to where market might go has already caused a number of buyers to bring enquiries for quite a few days ahead in the market, but barge availability is still very good even for prompt supplies.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 10-Jun 10:00 AM Apr 0.2% 1.1% 1.1% Intial Claims Medium 12-Jun 8:30 PM 07-jun 320K 312K 317K Continuing Claims Medium 12-Jun 8:30 AM 07-jun 2625K 2603K 2614K Retail Sales High 12-Jun 8:30 AM May 1.3% 0.7% 0.3% Core PPI High 13-Jun 8:30 AM May 0.2% 0.5% - Michigan Sentiment Medium 13-Jun 9:55AM Jun 82.5 82.9 -

Source: OW Risk Management