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 have been trading in $1 range the last three days trying to stabilize. Yesterday the November WTI contract slipped -$0.27 to $92.53/bbl and Brent inched up only +$0.05 to $97.00/bbl. The US weekly jobless claims reported slightly higher than previous figure while the August Durable Goods orders saw a decline of -18.2%. The US dollar strengthened again which continues to pressure the US dollar denominated crude futures. Oil production in Libya was reported to be at 925 kbpd- 2014 record- despite on going fighting between the various political factions for control. Today, we will see the US 2nd Quarter GDP revision and also the September Michigan Consumer Sentiment index. This morning, crude prices are trading slightly down.

Fueloil Specifics

The NWE bunker fuel oil prices firmed yesterday mainly supported by tight product avails caused by arb to Asia and refinery maintenances. Delivered 380cst product both in Antwerp and Rotterdam gained up to $4.0/mt. The Singapore fuel oil prices rebounded by more than $3.5 during the Asain Platts window. The recent Singapore heavy residual inventory reported a build of +2.15 mbbl to 21.33 mbbl. The delivered bunker premiums slipped slightly to around +$8.5 above cargo prices. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Oct Nov Dec Q115 Q215 2015 NYMEX WTI Swap (1st month) (0,27) 92,53 ↓ 92,07 91,37 90,62 90,44 89,74 89,71 ICE Brent Swap (1st month) 0,05 97,00 ↓ 96,99 97,59 98,48 99,07 99,61 98,89 ICE Gasoil Swap (1st month) 7,00 813,75 ↓ 813,17 816,58 820,42 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 838,56 847,97 850,22 3.5% Barges FOB Rtdm 3,25 539,50 ↓ 532,75 528,75 527,50 533,75 537,50 537,75 3.5% Cargoes FOB Med 4,50 539,00 ↓ 531,00 527,00 525,25 531,75 535,50 535,50 1.0% Cargoes FOB NWE 4,25 548,00 ↓ 544,50 539,50 537,75 543,75 548,75 549,50 3% no. 6 USGC WB (0,43) 84,55 ↓ 84,00 83,47 83,20 84,55 84,95 85,04 380 CST Cargoes FOB S'pore 0,50 561,50 ↓ 557,75 554,00 552,75 554,75 557,00 558,25 0.1 % GO Barges FOB Rtdm 8,00 811,50 ↓ 812,25 816,25 819,25 - - - Physical Rotterdam 380 CST 4,00 540,50 ↓ 538,00 534,00 532,75 538,00 541,75 542,00 Physical Singapore 380 CST 0,50 570,50 ↓ 563,00 559,25 558,00 560,00 562,25 563,50

Focus of the day: Piraeus

This week was fairly busy in Piraeus. Cruisers are still calling the port and enquire large volumes of fuel and the spot market was active enough to keep barges busy. Crude was dropping for a second week, CIF MED 3.5% was lower by $ 5 and fuel prices are also declining. All physical suppliers in Piraeus are able to deliver anytime, even during the weekend. Weather is getting rough in the MED, but supplies in Piraeus roads will not be affected. Motoroil refinery has reported tight avails, but suppliers can still load from Hellenic Petroleum and the situation will be resolved early next week.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-Sep 10:00 AM Aug 5.0M 5.15M 5.05M US Manufacturing PMI High 23-Sep 9:45 AM Sep 58.0 57.9 57.9 New Home Sales High 24-Sep 10:00 AM Aug 420K 412K 504K Initial Claims Medium 25-Sep 8:30 AM 20-sep 310K 280K 293K Continuing Claims Medium 25-Sep 8:30 AM 13-sep 2490K 2429K 2439K Durable Orders High 25-Sep 8:30 AM Aug -18.5% 22.6% -18.2$ GDP- 3rd Estimate High 26-Sep 8:30 AM Q2 4.6% 4.2% - Michigan Sentiment High 26-Sep 9:55 AM Sep 84.6 84.6 -

Source: OW Risk Management