A bunker fuel and oil report, detailing the day per day trading patterns and prices in the market.The report is prepared from OW Risk Management and covers all major bunker fuel oil markets around the world, including all major ports, ranging from Singapore to Rotterdam.

Market in Brief

After retesting the lows, Brent future prices managed to hold yesterday. The October Brent slipped only -$0.04 to settle at $101.56/bbl while WTI for September contract fell -$1.93 to expire at $94.48/bbl. The next most active October WTI contract closed at $92.86/bbl, down -$0.89. The US July CPI came out largely in line with expectations while the US Housing Starts and Building Permits showed strong figures which are reassuring for the US economy. The US Energy department will release its inventory report later today and the expectations are as follows: Crude -1.16 mbbl, Gasoline -1.59 mbbl, Distillates -0.55 mbbl. The FOMC will release their last meeting ”minutes” with a probably dovish tone. The market will likely take cues from the DOE weekly Inventory Report for short term direction. This morning, crude prices are trading higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices rebounded yesterday recovering from Monday’s loss. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $4/mt vs previous close. Suppliers reported increased demand especially for hsfo while lsfo remained weak and oversupplied. The Singapore fuel oil prices slipped app.-$1.0 during the Asian Platts window yesterday. The delivered bunker premiums maintained around +$8.5 to +$10.0 above cargo prices. Bunker fuel oil swaps gained app. $2/mt at the front of the forward curve while the backend was significantly stronger with cal15 papers assessed nearly $5/mt higher vs previous close. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Sep Oct Nov Q414 Q115 Q215 NYMEX WTI Swap (1st month) (1,93) 94,48 ↑ 92,94 92,53 92,35 92,38 91,88 91,31 ICE Brent Swap (1st month) (0,04) 101,56 ↑ 102,39 102,98 103,69 103,35 103,89 103,69 ICE Gasoil Swap (1st month) 2,25 855,75 ↑ 862,75 866,58 869,42 869,31 - - 3.5% Barges FOB Rtdm 3,00 557,25 ↑ 557,50 556,00 555,50 555,75 560,75 563,50 3.5% Cargoes FOB Med 4,50 556,25 ↑ 556,00 554,75 554,00 554,25 559,25 561,75 1.0% Cargoes FOB NWE 1,75 565,25 ↑ 567,50 568,75 568,25 568,50 573,50 577,25 3% no. 6 USGC WB 0,04 86,43 ↑ 87,35 87,10 87,10 87,10 87,35 87,60 380 CST Cargoes FOB S'pore (0,75) 583,25 ↑ 582,75 580,75 580,00 580,25 582,50 584,75 0.1 % GO Barges FOB Rtdm 3,25 853,25 ↑ 862,25 866,25 868,25 868,25 - - Physical Rotterdam 380 CST 4,00 558,75 ↑ 562,75 561,25 560,75 561,00 566,00 568,75 Physical Singapore 380 CST (0,50) 592,25 ↑ 588,00 586,00 585,25 585,50 587,75 590,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-Aug 10:00 AM Aug 50.0 53.0 55.0 Core CPI High 19-Aug 8:30 AM Jul 0.1% 0.1% 0.1% Housing Starts Medium 19-Aug 8:30 AM Jul 925K 893K 1093K Building Permits Medium 19-Aug 8:30 AM Jul 975K 963K 1052K FOMC Minutes High 20-Aug 2:00 PM 30-jul - - - Initial Claims Medium 21-Aug 8:30 AM 16-aug 315K 311K - Continuing Claims Medium 21-Aug 8:30 AM 09-aug 2530K 2544K - Existing Home Sales Medium 21-Aug 10:00 AM Jul 4.9M 5.04M - Philadelphia Fed Medium 21-Aug 10:00 AM Aug 15.0 23.9 - Leading Indicators Medium 21-Aug 10:00 AM Jul 0.6% 0.3% -

Source: OW Risk Management