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

For the first day of the week, in a light session with no major economic data price consolidation continued. Despite some early weakness during the US session prices recovered towards the close. The November WTI contract expired at $82.71/bbl down-$0.04 and the next month December WTI settled at $81.91/bbl. December Brent closed at $85.40/bbl, down -$0.76. The latest third quarter Chinese GDP rose +7.3%, exceeding slightly the market forecast (+7.2%), nevertheless expanding at its lowest pace since the first quarter 2009. On the plus side China September Industrial Production grew 8% -well above the 6,9% it reached in August- and Retail Sales increased +11.6% in September. The moderate Chinese government stimulus, injecting funds into the market and relaxing home purchase limits to avoid a sharper downturn in the property market, has yet to show it has an effect on growth. Today, are scheduled the US September Existing Home sales figures and weekly API Oil stocks later in the evening. This morning, crude prices are trading 0,80% higher.

Fueloil Specifics

The NWE bunker fuel oil markets started the week mixed tracking higher crude prices in the morning and retreating in the afternoon. Delivered 380cst product both in Antwerp and Rotterdam lost nearly all gains from previous close and settled $13/mt down. The Singapore fuel oil prices, on the other hand, inched up +$0.75 during the Asian Platts window. Singapore fundamentals remain stable and well supplied. The delivered bunker premiums were seen app. +$6.75 above cargo prices. This morning both markets are trading 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) (0,04) 82,71 ↑ 82,45 81,95 81,47 81,09 80,21 80,05 ICE Brent Swap (1st month) (0,76) 85,40 ↑ 86,48 86,86 87,68 88,28 89,14 90,69 ICE Gasoil Swap (1st month) (3,50) 731,50 ↑ 739,17 741,00 753,58 - - - LS ICE Gasoil Swap (1st month) - - ↑ - - - 759,86 769,11 771,34 3.5% Barges FOB Rtdm (8,25) 446,25 ↑ 450,00 449,25 453,75 457,50 465,00 467,50 3.5% Cargoes FOB Med (8,50) 452,00 ↑ 449,00 446,75 451,50 455,50 463,00 465,25 1.0% Cargoes FOB NWE (5,50) 456,50 ↑ 455,25 455,50 459,25 463,50 472,50 475,50 3% no. 6 USGC WB (1,10) 69,75 ↑ 70,45 70,50 70,80 71,35 72,50 73,44 380 CST Cargoes FOB S'pore 1,50 477,00 ↑ 475,75 476,75 478,50 481,50 487,25 490,25 0.1 % GO Barges FOB Rtdm (3,50) 729,25 ↑ 738,25 740,25 753,25 748,25 755,25 758,25 Physical Rotterdam 380 CST (13,00) 450,50 ↑ 460,25 459,50 464,00 465,75 474,25 477,75 Physical Singapore 380 CST 1,00 484,00 ↑ 486,00 487,00 488,75 489,75 496,50 500,50

Focus of the day: ARA

Premiums are the trending topic in ARA at the moment. Tight avails are all over the product pallet with no clear signs of improvement. The ARB being open is not helping either; some VLCCs have been reported to ship product out and create more congestion. RMK and high sulphur RMG are the biggest headaches at the moment and trade in a different zone than the paper. Low sulphur avails are slightly better but still a good notification is advised. Gasoil discounts are coming up as demand is increasing. Notification periods for the different grades: six days for high sulphur, four working days for low sulphur and four days for gasoil enquiries.

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