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Market in Brief

The Oil contracts kept their previous day momentum to settle higher at $107.98/bbl up +$0.31 for Brent and +$1.04 to $103.60/bbl for WTI. The US weekly inventory showed another solid crude build of +4.03 mbbl as refinery utilization rate fell -0.2%. Gasoline stockpile fell -5.19 mbbl; much more than expected implying a strong demand negating the bearish oil stock number. The US Federal Reserve reiterated its dovish stance by reassuring the market that interest rate will not be raise soon which lifted US equities. China latest exports and imports saw a surprise drop in March which added further worries about the Chinese economy. Market is increasingly expecting some kind of stimulus measures from the Chinese government. This morning, crude prices are trading mixed: Brent down -0,1% and WTI up +0,1%.

Fuel oil Specifics

The NWE bunker fuel oil prices closed one more day with gains. Delivered 380cst product in Antwerp and Rotterdam was assessed $5.0-6.0/mt higher vs previous close. Rotterdam suppliers reported relatively quiet day with low demand and tight prompt hsfo avails. Antwerp, on the other hand, saw healthy demand levels. The Singapore fuel oil prices rose yesterday $5.5-3.5 during the Asian Platts window. The delivered bunker premiums softened to $4.5-2.5/mt impacted by muted demand and ample supply. Visco spread weakened in the front with spot closing at $5.21/mt yesterday. May is trading at app.$6.75/7.25 while forward prices remain stable trading in a range of $6.75-7.0/mt for the rest of the year. This morning both markets are trading marginally up.

Forward Indications

Product	May	Jun	Jul	Q314	Q414	Q115
NYMEX WTI Swap (1st month)	102,45	101,49	100,37	102,44	99,33	96,44
ICE Brent Swap (1st month)	107,76	107,51	107,51	107,02	104,99	103,42
ICE Gasoil Swap (1st month)	906,42	905,50	906,08	905,78	902,25	-
3.5% Barges FOB Rtdm	576,50	576,25	575,75	575,00	571,25	569,75
3.5% Cargoes FOB Med	572,25	573,00	572,00	572,00	568,25	566,75
1.0% Cargoes FOB NWE	613,00	608,75	606,75	605,50	596,50	588,25
3% no. 6 USGC WB	89,95	89,73	89,63	89,55	89,06	88,71
380 CST Cargoes FOB S'pore	593,75	595,25	595,50	595,50	594,25	592,75
0.1 % GO Barges FOB Rtdm	907,25	906,25	905,25	904,25	900,25	-
Physical Rotterdam 380 CST	581,75	581,50	581,00	580,25	576,50	575,00
Physical Singapore 380 CST	599,00	600,50	600,75	600,75	599,50	598,00

Focus of the day: Houston

The U.S. Gulf Coast bunker market closed on a strong and strong note as uncertainty and volatility took the general market on an upward move Wednesday. Firm demand prevailed in Houston amid fierce supplier competition. Based on a slight price increase on Brent crude and ample supplies, IFO 380 CST Houston was assessed by Platts at $692/mt, up $4.50/mt from Tuesday, which narrowed the hi-lo spread in Houston by $3/mt to $106.00. LSFO Houston was assessed at $692/mt, $1.50/mt higher from Tuesday. Imports gained 481,000 barrels a day, following a drop of 786,000 barrels in the previous week because the Houston Ship Channel was shut. It was obvious the need to catch up in the aftermath of the Houston Ship Channel closure; however, the build in Cushing stocks is also expected to be temporary. In Panama bunker fuel prices edged up amid decent demand despite competition for business among suppliers. Selling ideas for HSFO in Balboa - the most flexible side in terms of pricing and avails - was at around $608-$610/mt while LSFO and MGO remained tight.

Economic fundamentals this week

Statistic	Importance	Date	Time	Period	Consensus	Last	Actual
Consumer Credit	Medium	7-Apr	3:00 PM	Feb	$13.5B	$13.7B	$16.5B
Wholesale Inventories	Medium	9-Apr	10:00 AM	Feb	0.60%	0.60%	0.50%
Intial Claims	Medium	10-Apr	8:30 AM	05-apr	325K	326K	-
Continuing Claims	Medium	10-Apr	8:30 AM	29-mar	2850K	2836K	-
Treasury Budget	Medium	10-Apr	2:00 PM	Mar	NA	-$106.5B	-
Core PPI	Medium	11-Apr	8:30 AM	Mar	0.10%	-0.20%	-
Mich Sentiment	Medium	11-Apr	9:55 AM	Apr	81	80	-