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

Crude prices closed the week trading lower last Friday. The September WTI futures settled $97.88/bbl, slipped only -$0.29 while the September Brent contracts fell more than -$1.0 to close at $104.84/bbl. The Brent/WTI premium narrowed to close at $7.0 last Friday. The US economic data was generally slightly below expectations and US equities also closed lower Friday. The July nonfarm payroll reported at 209k, lower than the expected 235k while the US unemployment rate came in at 6.2% - above the forecasted 6.0%. Both US personal Income and Consumer Spending were within expectations while the July ISM data reported higher growth at 57.1%. The Brent futures were looking fragile technically as it has breached most support while market sentiment remains weak due to supply figures out of Libya while OPEC production remains unchanged. The front Brent structure came more in contango suggesting weaker front fundamentals or simply that front positions is being forced out due to stop-loss. This morning crude prices are trading marginally higher.

Fueloil Specifics

The Singapore fuel oil prices traded around parity ranging between -$1.0 to +$1.5 during the Platts window Friday. The Singapore heavy residual inventory reported a slight build of +0.53 mbbl to 18.82 mbbl. The delivered bunker premiums maintained an elevated level at +$10.0 to +$12.50 above cargo last Friday on short term shortage of on specifications 380cst bunker grade supply. In Rotterdam cargo prices fell -$4.25 in the window. Delivered prices continue to trade roughly $1.00 - $1.50 above.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Aug Sep Oct Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,38) 97,88 ↑ 97,79 96,99 95,92 95,94 94,63 93,39 ICE Brent Swap (1st month) (1,18) 104,84 ↑ 105,37 105,96 106,61 106,65 106,06 105,42 ICE Gasoil Swap (1st month) (3,50) 883,50 ↑ 886,17 889,17 891,58 892,86 - - 3.5% Barges FOB Rtdm (4,50) 565,50 ↑ 568,00 565,50 564,50 563,75 566,75 565,50 3.5% Cargoes FOB Med (3,25) 570,75 ↑ 569,75 564,50 562,50 561,00 563,75 562,50 1.0% Cargoes FOB NWE (4,75) 577,75 ↑ 582,50 584,50 584,00 582,75 583,67 583,25 3% no. 6 USGC WB (0,22) 87,31 ↑ 88,10 87,92 87,77 88,19 88,28 88,08 380 CST Cargoes FOB S'pore (1,00) 595,50 ↑ 592,25 588,75 586,00 585,25 586,00 584,50 0.1 % GO Barges FOB Rtdm (3,75) 881,00 ↑ 885,25 888,25 891,25 892,25 - - Physical Rotterdam 380 CST (4,00) 566,00 ↓ 573,25 570,75 569,75 569,00 572,00 570,75 Physical Singapore 380 CST 0,00 608,25 ↓ 597,75 594,00 591,25 590,50 591,25 589,75

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual Nonfarm Payrolls High 1-Aug 8:30 AM Jul 250K 288K 209K Unemployment Rate High 1-Aug 8:30 AM Jul 6.1% 6.1% 6.2% PCE Prices- Core High 1-Aug 8:30 AM Jun 0.2% 0.2% 0.1% ISM Index Medium 1-Aug 10:00 AM Jul 56.0 55.3 57.1 Factory Orders Mediuim 5-Aug 10:00 AM Jun 0.4% -0.5% - ISM Services Medium 5-Aug 10:00 AM Jul 56.5 56.0 - Trade Balance Medium 6-Aug 8:30 AM Jun -$45.1B $44.4B - Crude Inventories High 6-Aug 10.30 AM 02-aug -3.697M -   Intial Claims High 7-Aug 8:30 AM 02-aug 310K 302K - Continuing Claims High 7-Aug 8:30 AM 26-jul 2525K 2539K - Consumer Credit High 7-Aug 3:00 PM Jun $15.0B $19.6B - Wholesale -Inventories Medium 8-Aug 10:00 AM Jun 0.3% 0.5% -

Source: OW Risk Management