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 focus is on the Brent/ WTI spread -trading at $6.85 right now- where stocks at Cushing, WTI delivery point, continue to draw. The June WTI futures closed in the green, up marginally by +$0.02 to $99.48/bbl while Brent extended its loss and dropped by -$0.66 to close at $107.06/bbl. Yesterday the API Weekly stocks came out with a surprise draw of 1,8mbbl and builts in Gasoline and Distillates respectively of 2,4mbbl and 0,7mbbl.The US Energy department will release its inventory report later today and the expectations are as follows: Crude +1.42 mbbl, Gasoline +0.01 mbbl, Distillates +0.93 mbbl. This morning, crude prices are trading close to +1% for WTI and only +0,25% for Brent.

Fueloil Specifics

The NWE bunker fuel oil prices fell yesterday following weaker Brent. Delivered 380cst product in Antwerp and Rotterdam was assessed nearly $4/mt. Suppliers reported sufficient HSFO prompt avails while LSFO remained hindered by unstable supplies due to delays at loading installations. The Singapore fuel oil prices were trading around parity between -$0.5 to +$1.0 during the Platts window yesterday. There is some level of short term tightness heard in the market due to congestions and cargo works in the terminal. The delivered bunker premiums were seen at $5.50-4.00 above cargo prices yesterday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jun Jul Aug Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,02 99,50 ↑ 99,13 98,14 97,18 94,34 92,01 90,26 ICE Brent Swap (1st month) (0,66) 107,06 ↑ 106,42 105,81 105,19 103,83 101,83 101,47 ICE Gasoil Swap (1st month) 2,25 900,25 ↓ 894,92 893,17 893,08 888,81 - - 3.5% Barges FOB Rtdm (0,50) 566,50 ↑ 569,00 568,00 566,50 561,25 559,75 556,00 3.5% Cargoes FOB Med (0,25) 570,75 ↑ 566,75 565,50 564,50 558,25 556,25 563,50 1.0% Cargoes FOB NWE (1,75) 604,25 ↑ 604,25 601,00 598,25 587,50 578,00 574,75 3% no. 6 USGC WB 0,04 91,35 ↑ 88,95 88,60 88,30 87,50 87,15 86,45 380 CST Cargoes FOB S'pore (0,50) 584,25 ↑ 588,00 587,75 587,00 584,00 582,50 579,25 0.1 % GO Barges FOB Rtdm (9,00) 898,00 ↓ 895,25 894,25 893,25 888,25 - - Physical Rotterdam 380 CST (4,00) 570,00 ↑ 574,25 573,25 571,75 566,50 565,00 561,25 Physical Singapore 380 CST 0,75 591,00 ↑ 593,25 593,00 592,25 589,25 587,75 584,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Service Medium 5-May 10:00 AM Apr 54.0 53.1 55.2 Trade Balance Medium 6-May 8:30 AM Mar -$42.5B -$42.3B -$40.4B Initial Claims Medium 8-May 8:30 AM 3-May 325K 344K - Wholesale Inventories Medium 9-May 10:00 AM Mar 1.1% 0.5% - JOLTS- Job Openings Medium 9-May 10:00 AM Mar NA 4.173M -

Source: OW Risk Management