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

Yesterday Crude prices closed with strong gains. The January WTI surged +$2.36 to $89.28/bbl and Brent settled at $111.70/bbl, up +$2.75. Crude prices were lifted by several factors. First, the conflict between Israel and Hamas in Palestine worsened with worries that regional Arab leaders’ rhetoric will be tougher towards Israel. The market is also optimistic that the US leadership will avert US fiscal cliff finding a last minute compromise. A better than expected US home sales numbers lifted market sentiment. Global equities had strong gains after falling for many days. The US October Housing starts will be released later today. This morning, crude is trading down.

Fueloil Specifics

The NWE fuel oil markets started the week with higher prices and increased demand. Cargo prices were assessed nearly $12/mt up while delivered 380cst product in Rotterdam was even stronger, up by app.$13/mt. The Singapore markets rose more than $5.0 during the Platts window on the start of the week. Market sentiment remains weak despite an improving cargo premium yesterday. The delivered bunker premiums softened to around +$4.0 above cargo prices. Bunker fuel oil swaps gained app.$12/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was a few dollars stronger for both papers. This morning both markets are trading slightly lower.

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) 1.05 89.28 ↓ 89.16 89.67 90.14 90.15 91.31 91.21 ICE Brent Swap (1st month) 0.94 111.70 ↓ 111.07 110.38 109.80 109.83 108.36 107.63 ICE Gasoil Swap (1st month) 31.50 952.00 ↑ 956.17 955.25 951.33 951.28 940.35 937.41 3.5% Barges FOB Rtdm 11.75 592.25 ↓ 592.25 595.50 598.50 598.25 603.25 602.00 3.5% Cargoes FOB Med 9.75 581.75 ↓ 582.75 588.75 588.50 592.50 598.75 597.75 1.0% Cargoes FOB NWE 12.25 617.75 ↓ 617.75 621.75 625.00 624.75 630.50 629.25 3% no. 6 USGC WB 1.52 95.00 ↓ 93.14 93.44 93.67 94.28 94.25 94.06 380 CST Cargoes FOB S'pore 5.50 614.25 ↓ 616.75 619.25 622.50 622.25 627.75 626.75 0.1 % GO Barges FOB Rtdm 31.25 949.50 ↑ 956.25 955.25 952.25 952.25 940.25 938.25 Physical Rotterdam 380 CST 13.00 602.75 ↓ 602.50 605.75 608.75 608.50 613.50 612.25 Physical Singapore 380 CST 4.00 618.75 ↓ 627.00 629.50 632.75 633.00 638.50 637.50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 19-Nov 10:00 AM Oct 4.75M 4.75M 4.79M Housing Starts Medium 20-Nov 8:30 AM Oct 840K 872K - Building Permits Medium 20-Nov 8:30 AM Oct 865K 894K - Initial Claims Medium 21-Nov 8:30 AM 17-Nov 400K 439K - Michigan Sentiment- Final High 21-Nov 9:55 AM Nov 84.5 84.9 - Leading Indicators Medium 21-Nov 10:00 AM Oct 0.1% 0.6% -

Source: OW Risk Management