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 closed the week trading sideway. The market was driven by developments regarding Syria. War fears have eased and investors are shifting their attentions to the upcoming US Federal Reserve two-day FOMC meeting. A bullish surprise for the market may loom in the form of a smaller reduction, about $10bn as the central bank tries to manage a tapering of QE3 in the background of a modest growth and low inflation. After Summers has taken himself out, Janet Yellen, the Fed vice-chairman is now the front runner to replace Ben Bernanke in January. Last Friday, US August retails sales rose less than expected at +0.2% and the US August Producer Price Index (PPI) increased +0.3% which was marginally higher than expected. The October WTI futures slipped -$0.39 to close at $108.21/bbl and Brent expired last Friday inching up +$0.15 to $112.78/bbl. The next front- month contract November Brent settled at $111.70/bbl, up +$0.17. On the latest news, US and Russia had reached an agreement for Syria to hand over and destroy its chemical arms sending Crude Oil lower on the opening. It is now trading significantly lower with Brent down by more than $2/bbl.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed last week on the higher side mainly supported by unstable demand. Delivered 380cst product in Rotterdam gained app.$3/mt and nearly $4/mt in Antwerp. Both ports reported delays at loading installations with barge fees rising up to $11/mt in Rotterdam. The Singapore fuel oil markets rose app. $3.5/mt during the Asian Platts window last Friday. There were no significant changes to the market fundamentals where supplies continued to be ample with a fragile demand. This was despite a rebound in Asian Fuel Oil cracks. The delivered bunker premiums were around $2.0 above cargo prices last Friday. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,39) 108,21 ↓ 106,01 104,53 104,56 100,62 97,66 96,65 ICE Brent Swap (1st month) 0,15 111,70 ↓ 109,29 108,33 107,50 106,72 105,99 103,00 ICE Gasoil Swap (1st month) 6,25 949,75 ↓ 939,83 934,08 934,36 916,67 897,86 895,25 3.5% Barges FOB Rtdm (0,75) 593,50 ↓ 591,00 590,00 590,00 590,75 586,00 581,50 3.5% Cargoes FOB Med (6,50) 591,25 ↓ 588,50 586,25 585,50 585,25 580,00 576,50 1.0% Cargoes FOB NWE (2,25) 617,25 ↓ 615,50 616,75 616,50 618,50 614,00 608,00 3% no. 6 USGC WB 0,47 94,60 ↓ 92,65 92,40 92,40 92,15 91,60 90,65 380 CST Cargoes FOB S'pore 3,50 602,25 ↓ 603,00 605,00 603,75 605,75 603,75 600,75 0.1 % GO Barges FOB Rtdm (2,00) 948,25 ↓ 941,25 935,25 935,25 918,25 900,25 897,25 Physical Rotterdam 380 CST 3,00 598,25 ↓ 596,25 595,25 595,25 595,50 590,25 585,75 Physical Singapore 380 CST 2,25 604,75 ↓ 608,25 610,25 610,00 611,75 609,00 606,00

Focus of the day: Gibraltar

Deliveries at the Gibraltar Strait are running smoothly this morning, with only one supplier behind schedule and most barges supplying on arrival. There are good expectations for this week, with competitive bunker premiums, fine weather forecast, good avails of all products and possibilities for accommodating prompt requirements for most suppliers. CIF Med 3.5% is trading some 9 usd/mt above FOB Barges Rotterdam and the HILO remains around to 29 usd/mt in the Med, with the premium of CIF Med 1% over FOB NWE 1% at 13 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 16-Sep 8:30 AM Sep 7.0 8.6 - Industrial Production Medium 16-Sep 9:15 AM Aug 0.2% 0.0% - Core CPI High 17-Sep 8:30 AM Aug 0.2% 0.2% - NAHB Housing Market Index Medium 17-Sep 10:00 AM Sep 58 59 - Housing Starts Medium 18-Sep 8:30 AM Aug 900K 896K - FOMC Rate Decision High 18-Sep 2:00 PM Sep 0.25% 0.25% - Initial Claims Medium 19-Sep 8:30 AM 14-sep 335K 292K - Existing Home Sales Medium 19-Sep 10:00 AM Aug 5.00M 5.39M - Philadelphia Fed Medium 19-Sep 10:00 AM Sep 8.0 9.3 - Leading Indicators Medium 19-Sep 10:00 AM Aug 0.5% 0.6% -

Source: OW Risk Management