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Market in Brief

Crude retreated Friday, after six consecutives weekly gain, on speculations that price has climbed more than justified as the heating season nears its end. The losses, however, were capped by news on supply disruption in South Sudan, Libya and Venezuela. Brent fell $0.45 to close at $109.85/bbl while WTI lost $0.55 to end the day at $102.20/bbl. This week, after a short break, the cold weather will reappear in the US as frigid artic air will return to the Northeast and Midwest supporting Crude. Technically, despite this correction, Crude Oil is still holding some key support but beware as targets higher have been hit and the contracts have completed a price cycle. Brent and WTI this morning are trading some 0,2% higher.

Fueloil Specifics

The NWE bunker fuel oil markets closed last week with tightening supply and mixed demand levels. Delivered 380cst product in Antwerp remained unchanged from previous close while it lost app.$1/mt in Rotterdam. LSFO avails remain tight in the area and higher premiums are charged for prompt deliveries. The absence of demand from BP last Friday surprised traders in Asia as they had expected the oil major to continue its spree to cover commitments; they may have been affected by delays in cargo arrivals from the west. Still, the oil major was heard to have placed at least four Aframaxes and a VLCC on short term T/C to be used as temporary storage for fuel oil. Singapore fuel oil market closed app. $1.0/mt lower last Friday and was assessed at 618.00/mt. Delivered 380cst was seen from 605/mt to 615/mt. This morning both markets are trading slightly higher.

Forward Indications

Product	Mar	Apr	May	Q214	Q314	Q414
NYMEX WTI Swap (1st month)	102,12	101,29	99,51	100,41	97,48	94,74
ICE Brent Swap (1st month)	109,80	109,39	108,92	108,89	107,29	106,26
ICE Gasoil Swap (1st month)	929,92	926,33	922,33	923,17	917,33	910,50
3.5% Barges FOB Rtdm	587,00	585,25	584,50	584,50	581,75	577,50
3.5% Cargoes FOB Med	585,00	583,00	582,00	582,00	579,00	574,75
1.0% Cargoes FOB NWE	629,50	621,25	616,00	616,75	609,75	601,50
3% no. 6 USGC WB	91,80	91,60	91,67	91,43	90,97	88,69
380 CST Cargoes FOB S'pore	609,25	607,00	605,25	605,50	603,00	600,75
0.1 % GO Barges FOB Rtdm	931,25	927,25	923,25	924,25	917,25	911,25
Physical Rotterdam 380 CST	592,25	590,50	589,75	589,75	587,00	582,75
Physical Singapore 380 CST	614,50	612,25	610,50	610,75	608,25	606,0

Focus of the day: Gibraltar

The Gibraltar Strait is waking up this morning with good product avails and all three ports running smoothly as only two suppliers are behind schedule on barges. The level of demand this morning is rather slow yet. There is good expectations for the rest of the week as weather conditions are expected to remain favorable and prompt requirements are possible to accommodate by most suppliers in the hub. CIF Med 3.5% is trading some $14.0/mt above FOB Barges Rotterdam. The HILO is currently around $60.0/mt in the Med and the CIF Med 1% premium over FOB NWE 1% at $25.0/mt. The Med market is trading up this morning.

Economic fundamentals this week

Statistic	Importance	Date	Time	Period	Consensus	Last	Actual
Case- Shiller Home Price Index	Medium	25-Feb	9:00 AM	Dec	13.38%	13.70%	-
Consumer Confidence	High	25-Feb	10:00 AM	Feb	80.5	80.7	-
New Home Sales	Medium	26-Feb	10:00 AM	Jan	405K	414K	-
Initial Jobless Claims	Medium	27-Feb	8:30 AM	22-feb	335K	336K	-
Durable Goods Orders	High	27-Feb	8:30 AM	Jan	-2.50%	-4.20%	-
Chicago PMI	Medium	28-Feb	8:30 AM	Feb	56.4	59.6	-
GDP (Annualized)	High	28-Feb	8:30 AM	Q4	2.60%	3.20%	-