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.
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Yesterday Crude Oil prices plunged more than 3.0% on close on a serie of bearish news. Market was initially supported on speculations that the US Federal Reserve will act at this FOMC meeting. The Weekly US inventory report showed builds across the crude and product inventories. Market came off on two fronts: First, after the US Federal Reserve Chairman said that the US GDP forecast to be weaker to a lower range of 1.9% to 2.4% and that the US job market growth will be soft and unemployment to stay around 8.0%. Secondly, after the lack of strong stimulus policy. However, the Chairman did mention the need to do more should the labor market remains weak. The disappointment resulted in heavy sell off in crude. The equities markets were mostly mixed and ended slightly lower. This morning, crude is trading -1% down.
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The NWE fuel oil prices closed lower yesterday following weaker crude values. Delivered 380cst product in Rotterdam was assessed down app.$4/mt while cargo prices lost more than $6/mt keeping buyers away from the market. ARA hub continues to struggle with tight HSFO and LSFO avails especially for prompt deliveries mainly due to arbitrage to Asia and limited avails on blending stock. The Singapore fuel oil markets rose more than $6.5 during the morning Platts window yesterday. The cargo premiums saw some rebound and the Asian Fuel Oil cracks also narrowed. The bunker premiums climbed to $8.5-9.0 above cargo prices. Bunker fuel oil swaps lost app. $5/mt in the front of forward curve both for Rotterdam and Singapore papers yesterday. Backend was slightly stronger, posting app. $4/mt losses. This morning both markets are trading down.
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Settlement & Indications (mid values)
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Product
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Yesterday's Values
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Forward Indications
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Product
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Change
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Last
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Dir.
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Jul
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Aug
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Sep
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Q312
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Q412
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2013
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NYMEX WTI Swap (1st month)
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(2.23)
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81.45
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↓
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80.86
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81.25
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81.71
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81.28
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82.47
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82.47
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ICE Brent Swap (1st month)
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(3.07)
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92.69
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↓
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91.90
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92.12
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92.34
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92.12
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92.72
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92.72
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ICE Gasoil Swap (1st month)
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(3.75)
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841.25
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↓
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823.08
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819.08
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817.67
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819.94
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840.42
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839.25
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3.5% Barges FOB Rtdm
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(6.25)
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559.25
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↓
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542.25
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537.25
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533.50
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537.75
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529.25
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528.25
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3.5% Cargoes FOB Med
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(6.25)
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557.75
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↓
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539.25
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533.50
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529.50
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534.25
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525.25
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524.00
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1.0% Cargoes FOB NWE
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(8.50)
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657.50
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↓
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572.75
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568.75
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564.50
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568.75
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559.50
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559.25
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3% no. 6 USGC WB
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(2.60)
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84.75
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↓
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84.56
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83.91
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83.51
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82.96
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82.46
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81.98
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380 CST Cargoes FOB S'pore
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6.75
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587.75
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↓
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569.50
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564.00
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559.25
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564.25
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555.00
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552.25
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0.1 % GO Barges FOB Rtdm
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(3.25)
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843.50
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↓
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823.25
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820.25
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818.25
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821.25
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816.25
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816.25
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Physical Rotterdam 380 CST
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(4.00)
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568.00
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↓
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552.50
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547.50
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543.75
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548.00
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539.50
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538.25
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Physical Singapore 380 CST
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6.50
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597.25
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↓
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579.75
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574.25
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569.50
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575.00
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565.25
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563.00
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Focus of the day: Gibraltar
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The three ports in the Strait are running smoothly today, with good weather forecast for the rest of the week and no big delays expected. Good avails of all products and barges, even for prompt requirements.
Algeciras continues being as competitive as Gibraltar, and even more depending on lots sizes.
Activity is picking up after a rather quiet week last week, with lower bunker premiums than those seen last week. The HILO spread remains around 33 USD. The Med market is trading down this morning.
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Economy fundamentals this week
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Fundamental Indicators
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Statistic
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Importance
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Date
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Time
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Period
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Consensus
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Last
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Actual
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NAHB Housing Market Index
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Medium
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18-Jun
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10:00 AM
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Jun
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28
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29
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29
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Housing Starts
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Medium
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19-Jun
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8:30 AM
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May
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710K
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717K
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708K
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Building Permits
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Medium
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19-Jun
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8:30 AM
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May
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720K
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715K
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780K
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MBA Mortgage Index
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Medium
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20-Jun
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7:00 AM
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16-Jun
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NA
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18.0%
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-0.8%
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FOMC Rate Decision
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Medium
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20-Jun
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12:30 PM
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Jun
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0.25%
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0.25%
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0.25%
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Initial Claims
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Medium
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21-Jun
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8:30 AM
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16-Jun
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380K
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386K
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-
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Existing Home Sales
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Medium
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21-Jun
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10:00 AM
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May
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4.50M
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4.62M
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-
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Philadelphia Fed
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Medium
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21-Jun
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10:00 AM
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Jun
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-3.5
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-5.8
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-
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Leading Indicators
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Medium
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21-Jun
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10:00 AM
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May
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0.0%
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-0.1%
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-
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Source: OW Risk Management