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 finally closed lower Friday. The October WTI futures settled at $93.65/bbl, down -$0.31 while Brent slipped by -$0.34 to $102.29/bbl. Market was weaker on lack of drivers rather than due to bearish factors. Oil Production in South Iraq remains safe so far while production in Libya has been upgraded by export out of Es Sider; one of Libyan largest oil exporting terminal. The US Federal Reserve meeting with global central bankers at Jackson Hole was perceived as pretty neutral. Market expectations are that the Bank of England first and the US Federal Reserve may start increasing interest rates as their economies continue to improve. The US Federal Reserve made clear that the labor market improvements will be its main focus and not Inflation for now. The European Central Bank President and the Bank of Japan by contrast may introduce fresh stimulus to spur their economies. This morning the German Business Confidence declined for a fourth month to 106,3 vs 107 expected.  In terms of economic data we will have the US July New Home sales later this afternoon. Today with the UK Bank holiday volumes should be subdued. This morning, crude prices are trading around flat.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed last week largely unchanged. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$1/mt higher vs previous close. Suppliers reported average demand while hsfo avails for prompt deliveries remain tight. The Singapore fuel oil prices closed last Friday gaining back previous loss, up more than +$2.0 during the Asian Platts window. The market fundamentals remain firm as cargo premiums are trading around $3.0/mt. The delivered bunker premiums were seen around +$9.0 above cargo prices at the end of the week. Please note that due to the Summer Bank Holiday in UK the official Platts closing numbers for European products will not be published today. This morning both markets are trading slightly 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) (0,31) 93,65 ↓ 93,46 93,07 92,73 92,89 92,50 92,03 ICE Brent Swap (1st month) (0,34) 102,29 ↑ 102,82 103,47 104,16 103,84 104,34 104,11 ICE Gasoil Swap (1st month) 1,00 860,25 ↓ 862,25 865,83 868,83 868,58 - - 3.5% Barges FOB Rtdm (3,50) 556,50 ↑ 555,00 553,25 552,75 553,50 558,50 560,25 3.5% Cargoes FOB Med (7,75) 551,50 ↑ 553,25 550,75 550,50 551,25 556,25 557,75 1.0% Cargoes FOB NWE (2,75) 560,75 ↑ 563,75 564,25 564,50 565,25 570,25 572,92 3% no. 6 USGC WB (0,49) 87,55 ↑ 87,15 86,75 86,55 86,59 86,83 87,08 380 CST Cargoes FOB S'pore 2,25 586,50 ↑ 580,00 578,25 577,50 578,25 580,75 582,00 0.1 % GO Barges FOB Rtdm 0,25 859,25 ↓ 861,25 865,25 868,25 868,25 - - Physical Rotterdam 380 CST 1,00 561,00 ↑ 560,25 558,50 558,00 558,25 563,25 565,00 Physical Singapore 380 CST 4,00 595,50 ↑ 585,25 583,50 582,75 583,00 585,50 586,75

Focus of the day: Gibraltar

Good product avails and fine weather conditions this morning at the Mediterranean hub of Gibraltar Strait, with bunkering operations taking place as per schedule without delays at any on the three ports in the hub. Prompt requirements are possible to accommodate with most suppliers in the area. Bunker premiums are slightly higher than average. CIF Med 3.5% is trading some 8 usd/mt above FOB Barges Rotterdam. The HILO spread in the Med keeps narrowing, currently at app. 20 usd/mt. The Med market is relatively flat this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual New Home Sales Medium 25-Aug 10:00 AM Jul 415K 406K - Durable Orders High 26-Aug 8:30 AM Jul 12.6% 1.7% - Case- Schiller 20-city Index Medium 26-Aug 9:00 AM Jun 8.5% 9.3% - Consumer Confidence High 26-Aug 10:00 AM Aug 88.0 90.9 - Initial Claims Medium 28-Aug 8:30 AM 23-aug 315K 298K - GDP- 2nd estimate High 28-Aug 8:30 AM Q2 4.0% 4.0% - PCE Prices- Core High 29-Aug 8:30 AM Jul 0.1% 0.1% - Chicago PMI Medium 29-Aug 9:45 AM Aug 53.0 52.6 - Michigan Sentiment Medium 29-Aug 9:55 AM Aug 80.0 79.2 -

Source: OW Risk Management