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 saw another round of softening yesterday. The US equities market saw a sharp drop yesterday as S&P 500 recorded the biggest decline since January. Argentina’s default of debts in line with mixed economic data and earning results triggered the selloff. The soft market sentiments also overflew the crude oil. The September WTI futures slipped below the $100 mark and settled at $98.17/bbl, down a massive -$2.10 while Brent dropped only -$0.49 to close at $106.02/bbl. Price actions are concentrated on the Brent/WTI spread which widened to nearly $8.0. The weekly US jobless claims data (302K) was slightly below expectations (310K) but higher compared to previous readings (284K). The report renewed speculations that the US Federal Reserve may raise interest rate sooner than expected. The US dollar was lifted higher adding more pressure to US dollar denominated crude futures. The Chinese July PMI was reported to be at 51.7 which exceed expectation and suggests expansion when reading is above 50. Today, we will see the important US labor data; the July nonfarm payroll and unemployment rates to provide further market guidance. This morning, crude prices are trading lower.

Fueloil Specifics

The NWE bunker fuel oil prices slipped lower yesterday following dropping crude prices. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$2/mt down vs previous close. Suppliers in ARA region reported low demand, slightly improving hsfo avails and weak lsfo with barges seen traded at cargo levels. The Singapore fuel oil prices dipped between -$2.5 and -$1.0 during the Asian Platts window yesterday. The Asian fuel oil crack strengthened as fuel remained supported and crude values lagged. The delivered bunker premiums continued to be firm and strengthen to +$10.0 to +$12.00 above cargo on short term tightness. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Aug Sep Oct Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,70) 98,17 ↓ 97,25 96,52 95,54 95,58 94,58 93,41 ICE Brent Swap (1st month) (1,21) 106,02 ↓ 106,08 106,50 106,82 106,70 106,02 105,32 ICE Gasoil Swap (1st month) (0,75) 887,00 ↑ 889,42 892,25 894,58 896,00 - - 3.5% Barges FOB Rtdm (1,50) 569,50 ↓ 568,25 566,00 564,75 564,25 566,75 565,25 3.5% Cargoes FOB Med (2,00) 573,25 ↓ 568,75 564,50 562,75 561,50 563,75 562,25 1.0% Cargoes FOB NWE (3,00) 583,25 ↓ 582,75 585,00 584,25 583,25 583,75 583,25 3% no. 6 USGC WB (0,22) 87,53 ↓ 88,65 88,43 88,28 88,18 88,28 88,08 380 CST Cargoes FOB S'pore (2,50) 597,25 ↓ 593,50 591,00 588,25 587,50 588,00 586,25 0.1 % GO Barges FOB Rtdm (6,50) 884,75 ↑ 888,25 891,25 894,25 895,25 - - Physical Rotterdam 380 CST (2,00) 571,00 ↓ 573,50 571,25 570,00 569,50 572,00 570,50 Physical Singapore 380 CST (0,50) 609,00 ↓ 599,00 596,25 593,50 592,75 593,25 591,50

Focus of the day: Piraeus

Piraeus was quite busy this week. Product and barge availability is very good and no supply disruptions are expected. Both refineries are allocating sufficient volumes to the local bunker market and all suppliers can quote for prompt enquiries. Crude market was rather flat this week and CIF MED 3.5% went up by $ 2.00 on average. The market came off a lot Thursday morning but supply premiums for fuel are still quite high in the MED, so prices have not dropped as much as expected. We believe this sharp drop in crude will be depicted in bunker prices early next week.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Markit PMI Medium 28-Jul 9:45 AM Jul - 61.1 60.9 Case- Shiller 20-city Index Medium 29-Jul 9:00 AM May 10.5% 10.8% 9.3% Consumer Confidence Medium 29-Jul 10:00 AM Jul 86.5 85.2 90.9 ADP Employment Change Medium 30-Jul 8:15 AM Jul 225K 281K 218K GDP- Adv. High 30-Jul 8:30 AM Q2 3.6% -2.9% 4.0% FOMC Rate Decision High 30-Jul 2:00 PM Jul 0.25% 0.25% 0.25% Initial Claims Medium 31-Jul 8:30 AM 26-jul 310K 284K 302K Chicago PMI Medium 31-Jul 9:45 AM Jul 60.0 62.6 52.6 Nonfarm Payrolls High 1-Aug 8:30 AM Jul 250K 288K - Unemployment Rate High 1-Aug 8:30 AM Jul 6.1% 6.1% - PCE Prices- Core High 1-Aug 8:30 AM Jun 0.2% 0.2% - ISM Index Medium 1-Aug 10:00 AM Jul 56.0 55.3 -

Source: OW Risk Management