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

The pre-Fed rally was short lived, Oil prices came off yesterday. The December WTI futures settled at $81.12/bbl, down -$1.08 and Brent fell -$0.88 to close at $86.24/bbl. After the US Federal Reserve has shifted gear towards higher interest rate in view of improving US economy, a stronger US dollar is adding pressure on crude oil prices. The latest US 3rd Quarter GDP showed a growth of +3.5% exceeding forecasts of 3.0% while the US weekly jobless claims were slightly above market expectation. The Bank of Japan sent the Nikkei Index 4% higher and the yen to a six-year low after surprising the market by expanding its already aggressive monetary easing programme. Russia has agreed a last minute deal with Ukraine to provide Gas on a pre-payment basis for the next winter at a fixed price, avoiding a possible winter  crisis in Europe. Today the market will look forward to the last economic numbers of the week with the US Personal spending and Income, the Univ. of Michigan and the Chicago Purchasing Manager. This morning, crude prices trade around 0,70% lower.

Fueloil Specifics

The NWE bunker fuel oil markets saw a relatively quiet day yesterday. Delivered 380cst product prices both in Antwerp and Rotterdam lost app. $1/mt. Premiums for hsfo product in Antwerp remain at $2/mt compared to Rotterdam. Suppliers reported tightening lsfo avails in Rotterdam mainly due to loading problems. The Singapore fuel oil prices were mostly flat during the Asian Platts window led by softer crude prices. The latest Singapore heavy residual inventory saw a slight draw of -0.41 mbbl to 20.07 mbbl. The delivered bunker premiums remained around $7.5-6.5 above cargo prices. This morning both markets are trading down.

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) (1,08) 81,12 ↓ 80,44 80,26 80,03 80,04 79,84 80,10 ICE Brent Swap (1st month) (0,88) 86,24 ↓ 85,64 86,12 87,13 87,96 88,82 90,16 ICE Gasoil Swap (1st month) (10,50) 746,50 ↓ 741,67 742,42 753,75 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 760,61 768,97 771,60 3.5% Barges FOB Rtdm (3,75) 454,00 ↓ 449,25 447,75 450,50 454,00 460,75 464,00 3.5% Cargoes FOB Med (4,75) 461,25 ↓ 452,50 446,00 448,50 452,00 458,75 462,00 1.0% Cargoes FOB NWE (7,25) 462,00 ↓ 456,50 455,50 457,50 461,25 468,50 472,50 3% no. 6 USGC WB (1,05) 70,60 ↓ 70,45 70,62 70,79 71,22 72,21 73,14 380 CST Cargoes FOB S'pore 0,25 480,75 ↓ 476,50 476,75 476,00 478,25 482,75 486,75 0.1 % GO Barges FOB Rtdm (9,50) 747,25 ↓ 741,25 741,25 753,25 747,25 754,25 758,25 Physical Rotterdam 380 CST (1,00) 457,50 ↓ 459,50 458,00 460,75 462,25 470,00 473,25 Physical Singapore 380 CST 0,00 486,50 ↓ 486,75 487,00 486,25 486,50 492,00 496,00

Focus of the day: Piraeus

This week demand in Piraeus has been healthy and supplies were without any problems despite the rough weather that prevailed during the previous weekend. As Tuesday was a national holiday in Greece, Piraeus was quiet and demand picked up only when business resumed Wednesday. Suppliers are a bit congested and prompt enquiries for delivery during the weekend are a bit hard to offer for; there is very good barge availability Monday onwards. Average CIF MED 3.5% for the week was slightly higher (by almost $4) compared to last week.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Goods Orders High 28-Oct 8:30 AM Sep 0.5% -18.4% -1.3% Case- Shiller 20-city Index Medium 28-Oct 9:00 AM Aug 5.5% 6.7% 5.6% Consumer Confidence High 28-Oct 10:00 AM Oct 87.0 86.0 94.5 FOMC Rate Decision High 29-Oct 2:00 PM Oct 0.25% 0.25% 0.25% Initial Claims Medium 30-Oct 8:30 AM 25-Oct 295K 283K 287K GDP-Adv. High 30-Oct 8:30 AM Q3 2.3% 4.6% 3.5% Personal Income Medium 31-Oct 8:30 AM Sep 0.4% 0.3% - PCE Prices- Core Medium 31-Oct 8:30 AM Sep 0.1% 0.1% - Chicago PMI Medium 31-Oct 9:45 AM Oct 58.0 60.5 - Michigan Sentiment Medium 31-Oct 9:55 AM Oct 85.5 86.4 -

Source: OW Risk Management