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 rebounded yesterday as the US Congress finally reached an agreement to pass the bill to increase the debt ceiling and avoid a default at the eleventh hour yesterday. The agreement extends the Treasury’s borrowing authority til February 7 and government funding until January 15. Equities, the dollar and commodities rallied higher, however the positive talks over Iran’s nuclear program helt crude futures capped. The US API inventory report showed a +5.9 mbbl crude build, more than twice the market expectation of +2.2 mbbl. The November WTI futures closed at $102.29/bbl, up $1.08 while November Brent expired at $110.86/bbl, up $0.90. The next active contract; December settled at $110.59/bbl, similarly up by $1.17. With a temporary US debt solution, investors await delayed economic indicators to guide a clear direction for the market. This morning, crude is trading slightly lower.

Fueloil Specifics

The bunker fuel oil prices in the main NWE ports rose yesterday following general market trend. Delivered 380cst product in Rotterdam and Antwerp was assessed nearly $2/mt higher vs previous close. Traders reported relatively low activity in Rotterdam with improved prompt avails while Antwerp continuously was facing delays at loading installations. The Singapore fuel oil markets lost more than $6.0 during the Asian Platts window yesterday tracking the lower crude values. The Asian fuel oil crack also weakened on stronger selling interest. The delivered bunker premiums were higher, seen at $9.5- 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 Q114 Q214 2014 NYMEX WTI Swap (1st month) 1,08 102,29 ↓ 101,89 101,62 101,77 100,42 98,34 97,46 ICE Brent Swap (1st month) 1,17 110,59 ↓ 109,80 109,21 108,64 108,07 108,07 105,62 ICE Gasoil Swap (1st month) 4,75 945,00 ↓ 938,58 934,67 931,17 929,17 918,31 914,69 3.5% Barges FOB Rtdm 4,00 587,75 ↓ 587,25 585,25 588,25 587,75 586,00 584,25 3.5% Cargoes FOB Med 3,25 586,75 ↓ 583,25 580,25 583,25 582,75 581,00 579,00 1.0% Cargoes FOB NWE 2,75 605,00 ↓ 603,00 606,00 609,50 610,25 611,50 608,50 3% no. 6 USGC WB 1,37 93,10 ↓ 92,65 92,15 91,90 91,65 91,35 91,10 380 CST Cargoes FOB S'pore (6,00) 612,00 ↓ 609,00 604,00 603,75 603,75 604,00 603,50 0.1 % GO Barges FOB Rtdm 4,75 946,25 ↓ 940,25 936,25 932,25 929,25 918,25 915,25 Physical Rotterdam 380 CST 2,00 591,00 ↓ 592,50 590,50 593,50 593,00 591,25 589,50 Physical Singapore 380 CST (3,50) 618,25 ↓ 614,25 609,25 609,00 609,00 609,25 608,75

Focus of the day: Houston

Despite a quite limited demand, prices in the US Gulf Coast came up in general following an increase in Brent crude futures. With the EIA (Energy Information Administration) not updating and releasing their data due to the US Government shutdown, the market has been missing many of the key indicators. Platts assessed IFO380 Houston at $602/mt exwharf, up $6/mt from Tuesday’s assessment. In NOLA, demand was decent with 6-7 stems done around $605-608/mt ex-wharf, Platts assessment was $606/mt exwharf which set the premium in the regular level of $4-6/mt above Houston. Feedback from some traders in the market is that the current stocks won’t be sufficient to meet the winter demand which could potentially mean that supplies now moving to Latin America could be directed to the New York market. That could have a direct impact in the market prices in Panama, traditionally dependent of the US Gulf Coast residual fuel exports.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 15-Oct 8:30 AM Oct 4.5 6.3 1.5 Core CPI Medium - - Sep 0.1% 0.1% - NAHB Housing Market Index Medium 16-Oct 10:00 AM Oct 57 58 55 Initial Claims Medium 17-Oct 8:30 AM 12-Oct 320K 374K - Housing Starts Medium 17-Oct 8:30 AM Sep 900K 891K - Industrial Production Medium 17-Oct 9:15 AM Sep 0.3% 0.4% - Philadelphia Fed Medium 17-Oct 10:00 AM Oct 7.0 22.3 - Leading Indicators Medium 18-Oct 10:00 AM Sep NA 0.7% -

Source: OW Risk Management