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

Price action was again on the Brent /WTI spread with further liquidation on the long side as it closed at app.$11 yesterday. The January WTI futures managed a slight gain of $0.06 to $97.50/bbl and Brent lost -$1.03 to settle at $108.67/bbl. The US crude price was supported by increased refinery run: the DOE Inventory Report Crude stocks draw -10.58 mbbl.  The US weekly jobless claims figures were higher than expected at 368k vs 335 k but US November Retail sales figures were strong. Brent stays under pressure on prospect of some Libyan crude supply coming back on the market next week. The US budget passed the House of Representatives by a large majority yesterday evening and will head to the senate for a final vote next week. Today, we will see the US November Producer Price Index (PPI) release to provide price guidance. This morning, crude prices are trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil prices dropped slightly yesterday following weakening Brent. Delivered 380cst product in Rotterdam and Antwerp lost app.$2/mt. Suppliers continue to report tight avails especially for LSFO. Premiums for prompt hsfo deliveries remain on the higher side as only two suppliers were able to supply on Friday. The Singapore fuel oil markets were up $2.0-1.0 during the Asian Platts window yesterday. The Singapore heavy residual inventory saw a build of +1.44 mbbl to 22.23 mbbl citing weaker demand especially from the bunker sector. The delivered bunker premiums were app. $5.5 above cargo prices yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,06 97,50 ↓ 97,64 97,51 97,14 97,43 95,88 94,76 ICE Brent Swap (1st month) (1,03) 108,67 ↓ 108,22 107,99 107,97 107,72 107,24 106,61 ICE Gasoil Swap (1st month) 0,00 925,50 ↓ 921,58 920,67 918,22 920,67 914,47 912,63 3.5% Barges FOB Rtdm (4,00) 572,75 ↑ 578,50 580,00 580,50 579,75 581,25 580,25 3.5% Cargoes FOB Med 4,50 573,50 ↑ 576,25 577,25 577,50 577,00 578,00 578,00 1.0% Cargoes FOB NWE (3,25) 607,00 ↑ 602,25 604,00 604,75 603,75 606,00 604,25 3% no. 6 USGC WB (0,74) 90,36 ↑ 90,75 90,50 90,50 90,50 90,50 90,50 380 CST Cargoes FOB S'pore 1,00 605,25 ↑ 602,50 601,50 601,25 601,75 601,50 601,75 0.1 % GO Barges FOB Rtdm (4,00) 926,25 ↓ 923,25 922,25 917,25 921,25 916,25 914,25 Physical Rotterdam 380 CST (1,00) 581,25 ↑ 583,75 585,25 585,75 585,00 586,50 585,50 Physical Singapore 380 CST 1,00 610,75 ↑ 607,75 606,75 606,50 607,00 606,75 607,00

Focus of the day: Piraeus

This week was rather quiet in Piraeus and Istanbul. Crude market was soft and CIF MED 3.5% was lower on average by $ 5.35 compared to last week. Istanbul market is still struggling with shortages, although product avails were much better this week and most physical suppliers were able to offer for prompt supplies. Product and barge availability is very good in Piraeus, both refineries are operating properly and despite the strong winds and rough seas that prevailed in the East Med this week, all supplies in Piraeus roads were carried out smoothly without delays.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 10-Dec 10:00 AM Oct 0.3% 0.4% 1.4% Treasury Budget Medium 11-Dec 2:00 PM Nov -$140B -$172.1B -$135.2B Initial Claims High 12-Dec 8:30 AM 07-dec 315K 298K 368K Continuing Claims High 12-Dec 8:30 AM 30-nov 2750K 2744K 2791K Retail Sales High 12-Dec 8:30 AM Nov 0.6% 0.4% 0.7% Business Inventories Medium 12-Dec 10:30 AM Oct 0.3% 0.6% 0.7% PPI High 13-Dec 8:30 AM Nov 0.1% 0.1% -

Source: OW Risk Management