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Market in Brief

Yesterday crude prices saw some corrections with WTI slipping -$0.39/bbl to settle at $102.92/bbl and Brent dropping -$0.17/bbl to close at $110.30/bbl. The EIA said demand for gasoline and diesel decreased, while crude supplies increased for a fifth time in the week ended Feb 14. Supplies at Cushing, Oklahoma, shrank while stockpiles along the Gulf Coast gained as the southern leg of TransCanada Corp.’s Keystone XL pipeline moved oil to Texas. Geopolitical situation in the Middle East continue to provide a good support to oil prices, while the weaker Chinese Manufacturing data pull down the bull momentum. In product, demand for gasoline dropped for a third week, while supplies are increasing. Consumption of distillate fuel, including diesel and heating oil, fell 1.4% to 3.62 million, however data show distillate stocks declines due to lower production. This morning both Brent and WTI are trading slightly down.

Fueloil Specifics

Yesterday the NWE bunker fuel oil markets had a mixed day with varied supply and demand. The delivered 380cst product prices followed rangebound trading Brent and closed the day unchanged from previous close. LSFO avails remain tight with higher premiums applied to prompt deliveries. Physical 380cst cash premium in Singapore moved up during Thursday, supported by dominant buyer BP. Delivered 380cst where seen in range of $615-605/mt and Bunker Ex-wharf 380cst where assessed $1.0 higher at $619.00/mt. Singapore onshore fuel oil stocks were at a five week high of 19.842mbbl. FO paper market where seen bit firmer reflected in Dubai/180 cracks closed at -11.58 from Wednesdays close -11.97 and FO180 time spreads in the front as well closed firmer at 3.00/mt from Wednesdays close at 2.0/mt. Overall FO looks to recover before weekend on a well bid physical play by dominant players in Singapore. This morning both markets are trading slightly higher.

Forward Indications

Product	Mar	Apr	May	Q214	Q314	Q414
NYMEX WTI Swap (1st month)	102,30	101,47	99,43	100,46	97,43	94,79
ICE Brent Swap (1st month)	109,97	109,65	109,30	109,34	107,72	106,34
ICE Gasoil Swap (1st month)	934,75	930,75	926,42	927,00	919,08	912,11
3.5% Barges FOB Rtdm	588,50	587,00	586,25	586,25	583,50	579,25
3.5% Cargoes FOB Med	586,50	584,75	583,75	583,75	580,75	576,50
1.0% Cargoes FOB NWE	632,75	624,25	620,50	620,75	613,25	604,75
3% no. 6 USGC WB	92,05	91,88	91,97	91,72	91,27	89,00
380 CST Cargoes FOB S'pore	611,75	609,00	607,00	607,25	604,50	602,25
0.1 % GO Barges FOB Rtdm	936,25	932,25	927,25	928,25	920,25	913,25
Physical Rotterdam 380 CST	593,75	592,25	591,50	591,50	588,75	584,50
Physical Singapore 380 CST	617,00	614,25	612,25	612,50	609,75	607,50

Focus of the day: Piraeus

Demand in the East Med increased this week. Crude market was bullish and CIF MED 3.5% average was higher by $4.00 compared to last week. In Piraeus, a 4-day strike in Hellenic Petroleum Refinery means that physical suppliers who load from this installation can only start offering again on the 25th; however MOH refinery is not affected by the strike and has reported very good product availability. Istanbul was troubled by heavy fog that delayed vessels' crossing the Bosphorus channel and held back supplies. Weather situation has now significantly improved and operations are once again moving, with vessels arriving on time and supplies proceeding smoothly.

Economic fundamentals this week

Statistic	Importance	Date	Time	Period	Consensus	Last	Actual
Empire State Index	Medium	18-Feb	8:30 AM	Feb	9	12.5	4.48
Core PPI	High	19-Feb	8:30 AM	Jan	0.20%	0.30%	0.20%
Weekly Jobless Claims	Medium	20-Feb	8:30 AM	15-feb	325K	339K	336K
Core CPI	High	20-Feb	8:30 AM	Jan	0.20%	0.10%	0.10%
Leading Indicators	Medium	20-Feb	10:00 AM	Jan	-	0.10%	0.30%
Existing Home Sales	Medium	21-Feb	10:00 AM	Jan	4.7M	4.87M	-