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 was trading without any significant moves yesterday and managed to close slightly higher. The October WTI futures were up +$0.63, at $97.17/bbl while Brent rose $0.59 to settle at $115.40/bbl. The supportive gains came mostly from the stronger equities and Euros yesterday. Markets are waiting for more clarity pending from the US FOMC meeting outcome tomorrow. The US API inventory report yesterday showed that crude oil inventories grew by 0.2 mbbl last week, while gasoline stocks dropped by 4.16mbbl. The US Energy department will release the weekly inventory report later today and the expectations are as follows: Crude -2.6 mbbl, Distillates +0.2 mbbl, Gasoline -1.6 mbbl. This morning, crude is trading higher boosted by German approval of the ESM.

Fueloil Specifics

The Northwest European bunker fuel oil prices remained largely unchanged yesterday. Both delivered 380cst product in Rotterdam and cargo prices posted up to $1/mt gains versus previous day close. HSFO product avails tightened in Antwerp mainly due to maintenance in refinery. The Singapore fuel oil markets were up $1.0-4.0/mt during the morning Platts window yesterday tracking crude movements. This month incoming cargoes is estimated to be around 4.6 million mt with around 1.0 million mt reported going to end up in China. The delivered bunker premiums slipped to around $6.0 above the cargo prices yesterday. Bunker fuel oil swaps posted app.$4/mt gains along the curve both for Rotterdam and Singapore papers yesterday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.63 97.17 ↑ 98.08 98.39 98.85 99.20 99.13 98.44 ICE Brent Swap (1st month) 0.59 115.40 ↑ 115.22 114.73 114.25 113.23 111.79 114.73 ICE Gasoil Swap (1st month) 8.25 996.50 ↑ 1000.83 995.50 990.17 981.44 966.63 965.24 3.5% Barges FOB Rtdm 0.75 652.00 ↑ 658.00 654.50 651.00 646.00 637.25 633.00 3.5% Cargoes FOB Med 5.75 652.25 ↑ 651.00 648.00 645.00 640.75 632.75 628.75 1.0% Cargoes FOB NWE 2.50 720.50 ↑ 715.00 705.50 697.75 687.50 675.25 670.75 3% no. 6 USGC WB 0.13 102.63 ↑ 102.45 101.80 101.20 98.60 97.30 97.95 380 CST Cargoes FOB S'pore 3.50 685.50 ↑ 682.00 678.00 675.00 670.00 661.00 656.50 0.1 % GO Barges FOB Rtdm 10.00 995.25 ↑ 1001.25 996.25 991.25 979.25 963.25 964.25 Physical Rotterdam 380 CST 1.00 660.00 ↑ 668.25 664.75 661.25 656.25 647.50 643.25 Physical Singapore 380 CST 1.00 692.00 ↑ 692.25 688.25 685.25 680.75 671.75 667.25

Focus of the day: Singapore

Singapore's onshore fuel oil stocks climbed to a four-week high as they rose 7% to 18.446 million barrels. Imports from the West remained heavy at more than 600,000mt. Sources said arrivals were likely to remain at similar levels with a total of 4 million mt expected for the whole September. Traders predicted that much of the product would head to China, where demand from independent 'teapot' refineries has been picking up. There have been warnings that last month's fire at a major Venezuelan refinery could hit arrivals of 'on spec' fuel oil cargoes for the bunker market, but not until November. The price of intermediate fuel oil (IFO) was firming in key Asian ports on Tuesday. In Singapore, the benchmark price of 380cst grade rose a dollar to $687/mt while marine gas oil increased $4.50 to $991/mt. Demand was soft and avails fine, said local traders. September 14-18 were the earliest dates for deliveries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 10-Sep 3:00 PM Jul $8.0B $6.5B -$3.3B Trade Balance Medium 11-Sep 8:30 AM Jul -$46.0B -$42.9B -$42.0B MBA Mortgage Index Medium 12-Sep 7:00 AM 08-Sep NA -2.5% - Wholes Inventories Medium 12-Sep 10:00 AM Jul 0.0% -0.2% - Initial Claims High 13-Sep 8:30 AM 08-Sep 370K 365K - Core PPI High 13-Sep 8:30 AM Aug 0.1% 0.4% - FOMC Rate Decision High 13-Sep 12:30 PM Sep 0.25% 0.25% - Retail Sales High 14-Sep 8:30 AM Aug 1.0% 0.8% - Core CPI High 14-Sep 8:30 AM Aug 0.1% 0.1% - Industrial Production Medium 14-Sep 9:15 AM Aug -0.3% 0.6% - Mich Sentiment High 14-Sep 9:55 AM Sep 73.0 74.3 - Business Inventories Medium 14-Sep 10:00 AM Jul 0.2% 0.1% -

Source: OW Risk Management