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 losing $6 in a few days, Crude prices managed to stabilize on Friday. So far it looks more like a technical rebound on an oversold market. The November WTI contract closed at $82.75/bbl, up +$0.05 and December Brent gained +$0.34 to settle at $86.16/bbl. It still remains an opened question if crude prices have hit a bottom as OPEC members seem more concerned about keeping their own market share rather than current lower prices. The US September Housing Starts were within expectation while October Consumer Sentiment index was stronger than expected at 86.4. There are no economic data expected from the US today. This morning, crude is trading mixed with Brent -0,25% down and WTI +0,20% up.

Fueloil Specifics

After a continuous fall through the last 11 days, the Northwest European bunker fuel oil markets closed the week in a double digit plus. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $18/mt higher vs previous close. Suppliers reported delays at loading installations in Rotterdam while operations were smooth in Antwerp. The Singapore fuel oil prices rebounded and were trading app. $16.0 higher during the Asian Platts window last Friday lifted by the rebounding crude prices. The latest Singapore heavy residual inventory saw a marginal build of +0.42 mbbl to 20.70 mbbl.  The delivered bunker premiums firmed to $7.5-6.0 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) 0,05 82,75 ↑ 82,01 81,57 81,17 80,92 80,26 80,35 ICE Brent Swap (1st month) 0,34 86,16 ↓ 86,15 86,64 87,61 88,33 89,02 90,25 ICE Gasoil Swap (1st month) 8,75 735,00 ↑ 738,83 741,17 753,33 - - - LS ICE Gasoil Swap (1st month) - - ↑ - - - 759,89 769,81 770,97 3.5% Barges FOB Rtdm 9,75 454,50 ↑ 452,25 451,00 455,25 459,00 466,00 468,00 3.5% Cargoes FOB Med 11,50 461,50 ↑ 451,25 448,50 453,25 457,00 464,00 465,75 1.0% Cargoes FOB NWE 11,25 463,00 ↑ 458,00 457,75 461,25 465,50 474,00 476,50 3% no. 6 USGC WB 0,55 71,60 ↓ 71,05 71,10 71,35 71,88 72,96 73,87 380 CST Cargoes FOB S'pore 15,75 475,50 ↑ 476,75 477,50 479,25 482,00 487,50 490,00 0.1 % GO Barges FOB Rtdm 10,25 732,75 ↑ 738,25 740,25 752,25 748,25 757,25 760,25 Physical Rotterdam 380 CST 18,00 463,50 ↑ 462,50 461,25 465,50 467,25 475,25 478,25 Physical Singapore 380 CST 17,75 483,00 ↑ 487,00 487,75 489,50 490,25 496,75 500,25

Focus of the day: Gibraltar

The Gibraltar Strait is still heavily affected by the lack of fuel in the Med, which is pulling bunker premiums up. Prompt requirements are not possible anywhere near but at least bunkering operations for those who ensured avails on time are running smoothly this morning,. Only 3 vessels waiting outside Gibraltar and most suppliers are well within schedule. Weather conditions still allow bunkering despite the 23 knots gusts hitting the Strait this morning. CIF Med 3.5% is trading some $16/mt above FOB Barges Rotterdam. The HILO spread in the Med is narrowing to around $10/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 21-Oct 10:00 AM Sep 4.95M 5.05M - Core CPI Medium 22-Oct 8:30 AM Sep 0.1% 0.0% - Initial Claims Medium 23-Oct 8:30 AM 18-Oct 295K 264K - Continuing Claims Medium 23-Oct 8:30 AM 11-Oct 2400K 2389K - Leading Indicators Medium 23-Oct 10:00 AM Sep 0.6% 0.2% - New Home Sales Medium 24-Oct 10:00 AM Sep 450K 504K -

Source: OW Risk Management