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 closed lower for a second day in a row. The January WTI contract closed at $87.88/bbl, down $0.62 and Brent settled at $108.81, down $1.03. The US inventory report presented a mixed picture with crude stockpile seeing a larger than expected draw of -2.3 mbbl. However, the gasoline and distillates inventories both recorded massive builds of +7.8 mbbl and + 3.0 mbbl respectively as US refinery rammed up refining activities going into the winter season. President Obama's confidence on tackling the US fiscal cliff lifted market sentiment in equities but failed to translate into crude prices. The November US ISM non-manufacturing data (+54,7) came out better than expected and so did the October Factory Orders (+0,8%). Today, we will have the Bank of England and ECB monthly Rate announcement with no change expected and before the October German Factory Orders. Later in the day the US weekly jobless claims will be out but all eyes are already for the November US Nonfarm Payroll tomorrow (probably distorted with Hurricane Sandy). This morning, crude prices are trading slightly up.

Fueloil Specifics

The NWE bunker fuel oil markets weakened again Wednesday following lower crude. Both delivered 380cst product in Rotterdam and cargo prices were assessed app.2/mt down versus previous day’s close. Demand in the area remained low as buyers were expecting to see more attractive prices on Thursday. The Singapore markets were around flat ranging between -$1.0 and +$1.0 during the morning Platts window yesterday despite the softer crude values. The market was well-bided by major; BP buying both fuel oil swaps and physical cargoes. The delivered bunker premiums saw some level of revival ranging $5.0-2.0 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. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.62) 87.88 ↑ 88.34 88.95 89.59 89.56 90.87 90.86 ICE Brent Swap (1st month) (1.03) 108.81 ↑ 108.72 107.94 107.33 107.38 106.01 105.54 ICE Gasoil Swap (1st month) (6.00) 928.00 ↑ 931.92 932.92 931.67 930.86 930.52 918.12 3.5% Barges FOB Rtdm (2.00) 578.75 ↑ 582.50 586.75 589.50 589.25 594.50 592.75 3.5% Cargoes FOB Med 0.25 571.75 ↑ 571.50 578.25 583.25 582.50 588.75 587.25 1.0% Cargoes FOB NWE (0.75) 594.50 ↑ 599.00 607.25 611.75 611.00 618.25 616.75 3% no. 6 USGC WB (0.89) 92.16 ↑ 92.41 92.86 92.88 92.95 92.95 92.85 380 CST Cargoes FOB S'pore (1.00) 602.00 ↑ 604.75 608.00 611.50 611.25 618.00 616.50 0.1 % GO Barges FOB Rtdm (5.75) 926.25 ↑ 932.25 933.25 932.25 932.25 921.25 920.25 Physical Rotterdam 380 CST (1.00) 586.00 ↑ 592.75 597.00 599.75 599.50 604.75 603.00 Physical Singapore 380 CST 1.50 607.25 ↑ 615.00 618.25 621.75 622.00 628.75 627.25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 03-Dec 10:00 AM Nov 50.0 51.7 49.5 Construction Spending Medium 03-Dec 10:00 AM Oct 0.3% 0.6% 1.4% MBA Mortgage Index Medium 05-Dec 7:00 AM 01-Dec NA -0.9% 4.5% ADP Employment Change Medium 05-Dec 8:15 AM Nov 125K 158K 118K Productiivity- Rev. Medium 05-Dec 8:30 AM Q3 2.4% 1.9% 2.9% Factory Orders Medium 05-Dec 10:00 AM Oct -0.5% 4.8% 0.8% ISM Services Medium 05-Dec 10:00 AM Nov 53.0 54.2 54.7 Initial Claims Medium 06-Dec 8:30 AM 01-Dec 385K 393K - Nonfarm Payrolls High 07-Dec 8:30 AM Nov 80K 171K - Unemployment Rate High 07-Dec 8:30 AM Nov 8.1% 7.9% - Mich Sentiment High 07-Dec 9:55 AM Dec 82.0 82.7 - Consumer Credit Medium 07-Dec 3:00 PM Oct $8.0B $11.4B -

Source: OW Risk Management