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 oil continued to trade in a tight range yesterday. The WTI futures fell after speculations that the shutdown of a Kansas refinery due to a fire will reduce crude demand, however losses were offset by API data reporting bigger than expected fall in crude inventories (-4.40 vs -1.50 exp.). September WTI closed the day at $100.97/bbl, down -$0.70 while Brent managed to stay above parity, inching up +$0.15 to settle at $107.72/bbl. The Brent premiums over the WTI widened yesterday to $6.75 while market expects the spread to narrow on firmer US fundamentals against the European outlook. Even though there have not been any major supply disruptions due to tensions in the Middle East, Africa and Europe, fears continue to underpin crude prices. The focus is now on Russia, after additional sanctions yesterday were imposed both by the EU and United States. The US economic data yesterday surprised to the upside with the July Consumer Confidence index at 90.90- a 7-year high. Today markets will be looking at the US Federal Reserve FOMC minutes, the US 2nd Quarter GDP and the July ADP employment figure. The US Energy Department will be releasing the inventory report later in the afternoon and the expectations are as follows: Crude -1.47 mbbl, Gasoline +1.26 mbbl, Distillates +1.51 mbbl. This morning, Brent is trading -0.1% while WTI is +0.4% up.

Fueloil Specifics

The Northwest European bunker fuel oil prices were mixed yesterday with hsfo gaining some strength while lsfo weakened mainly due to strong offer competition and narrowing hi-lo spread. Delivered 380cst product in the main ports was assessed app.$1/mt higher vs previous close. Suppliers reported relatively good demand levels while avails for prompt hsfo product in Rotterdam was limited until the end of the week. The Singapore fuel oil prices opened the market up between $3.0 and $1.5 during the Asian Platts window yesterday after a long holiday weekend. The delivered bunker premiums were seen app.$8.5 above cargo prices. This morning both markets are trading higher.

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) 100,97 ↑ 100,99 99,82 98,29 98,31 96,45 94,97 ICE Brent Swap (1st month) 0,15 107,72 ↓ 107,86 108,12 108,18 107,84 107,03 106,36 ICE Gasoil Swap (1st month) 4,75 894,00 ↑ 897,33 900,25 902,25 903,69 - - 3.5% Barges FOB Rtdm 1,75 571,25 ↑ 572,00 570,00 569,00 568,50 571,00 569,50 3.5% Cargoes FOB Med 1,75 574,25 ↑ 571,50 569,00 567,00 565,75 568,00 566,50 1.0% Cargoes FOB NWE 1,50 585,25 ↑ 586,75 589,00 588,75 587,50 587,75 587,50 3% no. 6 USGC WB 0,15 89,15 ↑ 89,45 89,23 89,13 89,03 89,10 88,90 380 CST Cargoes FOB S'pore 1,75 597,75 ↑ 598,50 595,25 593,25 592,50 592,75 591,25 0.1 % GO Barges FOB Rtdm 4,25 891,00 ↑ 896,25 899,25 901,25 902,25 - - Physical Rotterdam 380 CST 1,00 572,75 ↑ 577,25 575,25 574,25 573,75 576,25 574,75 Physical Singapore 380 CST 2,00 606,00 ↑ 603,25 600,50 598,50 597,75 598,00 596,50

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 - GDP- Adv. High 30-Jul 8:30 AM Q2 3.6% -2.9% - FOMC Rate Decision High 30-Jul 2:00 PM Jul 0.25% 0.25% - Initial Claims Medium 31-Jul 8:30 AM 26-jul 310K 284K - Chicago PMI Medium 31-Jul 9:45 AM Jul 60.0 62.6 - 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