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 rose by more than $2, to a one-month high on Friday, fueled by a sharp rally in gasoline and heating oil as supplies tightened with the cold spell in the US and refiners started to shut down plants for maintenance. March Brent settled $2.38 higher at $109.57, the highest point since Jan 2. March WTI settled up $2.04 to $99.88, its highest point since Dec. 27.  Britain’s biggest oilfield, Buzzard will undergo a total nine weeks of maintenance in 2014, rather than the two weeks market had expected. The market still posts news of renewed export issues in Libya; we can expect Brent to be supported short term. Friday’s disappointing Non-Farm Payrolls number was shrugged off by the market. Despite Friday’s Impressive gains for Brent, overall Oil fundamentals look bearish on the Medium Term and would expect Brent to be toppish around $109-$110 for the short term. This morning Brent is down around -0,10%and WTI close to -0,30%.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed the week significantly higher gaining another $6/mt both in Antwerp and Rotterdam. Suppliers reported mixed demand in the main ports while LSFO avails remained tight and prompt inquiries were quoted at the higher premiums. Friday’s weak momentum looks to continue from the start of this week in Asia. We saw the 180cst and 380cst cash premiums to Singapore spot quotes continue being on pressure from growing supplies into Asia, highlighted by strong selling interest from major traders Glencore and Mercuria. Looking at todays opening window in Singapore, FO paper is extremely weak 180FO Mar value 607.50 only up $4.65/mt and 380FO value 601.00 up $4.50  from Fridays close versus Brent level 108.94 and Dubai 104.77. This is a firm indication that the crack spread will continue to widen on weaker residues market amid higher supplies and less winter demand expected going forward.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Mar Apr May Q214 Q314 Q414 NYMEX WTI Swap (1st month) 2,04 99,88 ↓ 98,74 98,00 97,14 97,13 94,73 92,47 ICE Brent Swap (1st month) 2,38 109,57 ↓ 108,41 107,97 107,97 107,50 105,89 104,40 ICE Gasoil Swap (1st month) 12,75 919,00 ↑ 920,17 916,67 914,50 914,22 907,92 902,17 3.5% Barges FOB Rtdm 4,00 576,25 ↑ 579,00 578,50 578,00 578,00 576,25 572,50 3.5% Cargoes FOB Med 1,00 576,75 ↑ 577,00 576,25 575,75 575,75 573,75 569,50 1.0% Cargoes FOB NWE 3,50 613,00 ↑ 607,50 605,00 603,50 603,50 600,50 593,25 3% no. 6 USGC WB 1,42 91,42 ↓ 91,00 90,83 90,95 90,70 90,31 90,37 380 CST Cargoes FOB S'pore 4,50 602,50 ↑ 602,50 600,75 599,50 599,50 597,50 595,50 0.1 % GO Barges FOB Rtdm 12,75 918,50 ↑ 921,25 918,25 915,25 914,25 907,25 902,25 Physical Rotterdam 380 CST 6,00 578,00 ↑ 584,25 583,75 583,25 583,25 581,50 577,75 Physical Singapore 380 CST 5,00 616,50 ↑ 607,75 606,00 604,75 604,75 602,75 600,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 11-Feb 10:00 AM Dec 0.6% 0.5% - Treasury Budget Medium 12-Feb 2:00 PM Jan NA $2.9B - Initial Claims Medium 13-Feb 8:30 AM 08-feb 335K 331K - Retail Sales High 13-Feb 8:30 AM Jan -0.2% 0.2% - Business Inventories Medium 13-Feb 10:00 AM Dec 0.6% 0.4% - Industrial Production Medium 14-Feb 9:15 AM Jan 0.6% 0.3% - Mich Sentiment High 14-Feb 9:55 AM Jan 79.8% 79.2% -

Source: OW Risk Management