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Market in Brief

WTI rose on Wednesday after EIA stats showed a surprisingly small build in crude inventories and another large drawdown at Cushing. WTI settled 76 cents higher at $102.59 and Brent up a cent at $109.52. The EIA report showed crude stock rising overall by just 68,000 bbl last week, far less than average build of 1.2 mbbl forecast, while stock at Cushing fell 1.1 mbbl as TransCanada Corp’s southern pipeline continued to drain oil to the Golf Coast. Brent market remains under pressure but largely within the $109-111 level so far. The cold weather forecasted for the next 10 days is supporting prices but fears of additional supply in the next months from Iranian notably is hanging over the market. On the support side Libyan supply is very erratic and the market is discounting less than 0,5 mb/d for the rest of this quarter. Today Crude Oil is trading -0,6% for Brent and down -0,24% for WTI.

Fueloil Specifics

The NWE bunker fuel oil markets reported relatively quiet day yesterday. Delivered 380cst product both in Antwerp and Rotterdam lost app.$1/mt vs previous days close. Suppliers reported low demand levels. LSFO avails remain tight in ARA region mainly due to refinery maintenance and lower inflows. Singapore bunker fuel oil prices weakened yesterday assessed $4.5-5.0 down from previous days close. Suppliers reported average demand and good product avails. Bunker fuel oil swaps lost app.$5/mt along the curve for Rtdam 3.5%FOB and a dollar more for Singapore papers. Visco spreads remain stable with spot closing at $5.38 yesterday. March is trading at app. $5.50 while forward prices remain in the range of $6.50-7.50 for the rest of the year. This morning both markets are trading slightly lower.

Forward Indications

Product	Mar	Apr	May	Q214	Q314	Q414
NYMEX WTI Swap (1st month)	102,07	101,16	99,23	100,19	97,17	94,49
ICE Brent Swap (1st month)	108,66	108,24	107,81	107,81	106,23	104,83
ICE Gasoil Swap (1st month)	918,92	915,67	912,00	912,81	906,96	900,39
3.5% Barges FOB Rtdm	580,50	579,75	579,00	579,00	576,75	572,50
3.5% Cargoes FOB Med	579,25	577,50	576,50	576,50	574,00	569,75
1.0% Cargoes FOB NWE	627,50	616,50	612,25	612,75	605,75	597,25
3% no. 6 USGC WB	90,70	90,53	90,61	90,37	89,93	87,68
380 CST Cargoes FOB S'pore	600,75	599,50	599,00	599,25	597,50	595,50
0.1 % GO Barges FOB Rtdm	920,25	917,25	913,25	914,25	907,25	901,25
Physical Rotterdam 380 CST	585,75	585,00	584,25	584,25	582,00	577,75
Physical Singapore 380 CST	607,25	605,75	604,25	604,50	602,75	600,75

Focus of the day: Houston

The US stock market opened the week trending upward and kept its pace; which has been reflected as some gains in the bunker commodities pricing. Amid the tightness and difficulties from weather conditions, the US Gulf Coast prices for both grades of 380 were $10/$15 per metric tons higher Wednesday than it was on Monday. However, instead of cold the Gulf Coast’s mild weather brought the fog to the New Orleans and Houston ports delaying some bunkering activities and vessel schedules. In addition, the Mississippi river was shut down last Sunday after 4000bbls of crude oil spilled from a tugboat happened around mile 40. The situation aggravated the New Orleans market and a three day delay was the best prediction for any vessel working cargo or bunker in the area this week, some sources said.

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%	13.42%
Consumer Confidence	High	25-Feb	10:00 AM	Feb	80.5	80.7	78.1
New Home Sales	Medium	26-Feb	10:00 AM	Jan	405K	414K	468K
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%	-