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Market in Brief

Crude oil prices inched higher yesterday supported by worries that violence in Iraq could disrupt oil supplies. The July WTI contract closed at $104.40/bbl, up +$0.05 while Brent settled at $109.95/bbl, up +$0.43. The US inventory report showed a crude draw of -2.60mbbl despite a decline in the refinery utilization rate of -2.9%. The draw was mostly brought about by a 15 year low decline in crude imports as local crude oil is used. The supportive inventory report however was negated by a gasoline stockpiles build of +1.70mbbl suggesting a pretty weak demand during the current summer driving season. OPEC has decided to remain status quo at 30 mbpd for the fifth straight session which is below the forecast demand for the balance of this year. Today, we will see the release of a series of US economic data namely; the US weekly jobless claims and also the US May retail sales figures. This morning, crude prices are trading significantly higher with Brent touching $111.42/bbl, the highest level since March.

Fuel oil Specifics

The Northwest European bunker fuel oil markets reported a relatively quiet day. Delivered 380cst product in the main ports of Rotterdam and Antwerp was assessed app.$3/mt compared to previous day. Even though lsfo avails for prompt deliveries improved, some suppliers still struggled with delays at loading installations. The Singapore fuel oil prices extended gains yesterday and rose up to $2.0 during the Asian Platts window. The delivered bunker premiums were firmer ranging between $4.5 and $6.0 above cargo prices. This morning both markets are trading higher.

Forward Indications

Product	Jul	Aug	Sep	Q414	Q115	Q215
NYMEX WTI Swap (1st month)	104,24	103,25	102,20	100,10	97,14	94,86
ICE Brent Swap (1st month)	110,15	109,47	108,91	107,95	106,38	105,77
ICE Gasoil Swap (1st month)	904,92	906,67	907,92	906,50	-	-
3.5% Barges FOB Rtdm	583,75	581,50	579,00	575,25	574,25	570,75
3.5% Cargoes FOB Med	579,75	578,75	577,75	572,50	570,50	578,50
1.0% Cargoes FOB NWE	622,75	620,00	614,75	603,50	594,50	591,25
3% no. 6 USGC WB	91,85	91,05	90,72	89,93	89,56	88,86
380 CST Cargoes FOB S'pore	604,50	601,25	599,00	597,25	596,50	593,25
0.1 % GO Barges FOB Rtdm	905,25	907,25	908,25	906,25	-	-
Physical Rotterdam 380 CST	589,00	586,75	584,25	580,50	579,50	576,00
Physical Singapore 380 CST	609,75	606,50	604,25	602,50	601,75	598,50

Focus of the day: Houston

In the USA, high sulfur bunker prices increased following higher fuel oil prices, despite weak demand and ample supplies in Houston on Wednesday. IFO 380 CST Houston levels were around $598/mt, which was a discount of $9/mt to the same product in Panama, the narrowest level ever seen between the two ports.

Economic fundamentals this week

Statistic	Importance	Date	Time	Period	Consensus	Last	Actual
Intial Claims	Medium	12-Jun	8:30 PM	07-jun	320K	312K	-
Continuing Claims	Medium	12-Jun	8:30 AM	07-jun	2625K	2603K	-
Retail Sales	High	12-Jun	8:30 AM	May	1.30%	0.70%	-
Core PPI	High	13-Jun	8:30 AM	May	0.20%	0.50%	-
Michigan Sentiment	Medium	13-Jun	9:55AM	Jun	82.5	82.9	-