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 opened the week trading initially lower but managed to sustain a small rebound. US Equities also posted a modest gain. The September WTI contracts rose +$0.41 to settle at $98.29/bbl while the September Brent future increased similarly by +$0.57 to close at $105.41/bbl. The Brent over WTI premium widened slightly to $7.1/bbl. Market is showing increasing concern that the US Federal Reserve will move to raise interest rate which will reduce risk a while lifting the US dollar thus resulting in lowering the appeal of US dollar denominated asserts like crude. Market has also grown to be pretty imminent to the geopolitical tensions recently. The China’s non-manufacturing index for July fell to 50.0 as compiled by HSBC and Markit Economics saw a record low which borderlines between contraction and expansion. This morning crude prices are trading marginally higher.

Fueloil Specifics

The Singapore fuel oil prices open the week trading lower and fell -$2.0 to -$0.5 during the Platts window. The Asian fuel oil crack narrowed considerably as fuel oil values lagged behind weak crude prices. The delivered bunker premiums maintained an elevated level at +$10.5 to +$12.0 above cargo yesterday. In the Northwest Region cargo prices fell $1.25 as delivered prices rose marginally due to tight avails widening the spread for delivered prices over cargo.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Aug Sep Oct Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,37 98,29 ↑ 98,25 97,43 96,28 96,29 94,85 93,74 ICE Brent Swap (1st month) 0,57 105,41 ↑ 105,74 106,20 106,59 106,47 105,82 105,38 ICE Gasoil Swap (1st month) (3,50) 880,00 ↑ 882,92 886,08 888,58 889,94 - - 3.5% Barges FOB Rtdm (0,75) 564,75 ↑ 564,75 564,00 563,00 562,50 565,50 564,50 3.5% Cargoes FOB Med (0,75) 570,00 ↑ 566,75 562,75 561,00 559,75 562,50 561,50 1.0% Cargoes FOB NWE (4,00) 573,75 ↑ 576,50 580,50 580,50 580,00 581,75 582,00 3% no. 6 USGC WB 0,60 87,91 ↑ 88,38 88,20 88,00 88,19 88,28 88,08 380 CST Cargoes FOB S'pore (1,50) 594,00 ↑ 592,75 587,50 586,25 585,75 586,50 585,25 0.1 % GO Barges FOB Rtdm (3,25) 877,75 ↑ 882,25 885,25 888,25 889,25 - - Physical Rotterdam 380 CST 1,00 567,00 ↓ 571,00 569,25 568,25 567,75 570,75 569,75 Physical Singapore 380 CST (2,50) 605,75 ↓ 596,00 592,75 591,50 591,00 591,75 590,50

Focus of the day: ARA

The international tensions between U.S, U.N and the Russian Federation is providing some swings on the crudes and justifying the strength we currently experience on the high sulphur fuel a bit. But if you look at the position of Russia on the oil producers list, it is surprisingly calm on the markets still. We should be cautious as we anticipate some supply disruptions still regarding the high sulphur. On the RMK side, things look a little brighter, but still quite strong compared to earlier this year. The low sulphur premium has come off dramatically and is just shy of 12 dollars only. No signals for it to pick up soon. The gasoil is well supplied, discounts remain unchanged. Low density gasoil is well supplied. Notification periods for the different grades; five days for high sulphur enquiries and four working days for low sulphur enquiries; two days for gasoil enquiries

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual Nonfarm Payrolls High 1-Aug 8:30 AM Jul 250K 288K 209K Unemployment Rate High 1-Aug 8:30 AM Jul 6.1% 6.1% 6.2% PCE Prices- Core High 1-Aug 8:30 AM Jun 0.2% 0.2% 0.1% ISM Index Medium 1-Aug 10:00 AM Jul 56.0 55.3 57.1 Factory Orders Mediuim 5-Aug 10:00 AM Jun 0.4% -0.5% - ISM Services Medium 5-Aug 10:00 AM Jul 56.5 56.0 - Trade Balance Medium 6-Aug 8:30 AM Jun -$45.1B $44.4B - Crude Inventories High 6-Aug 10.30 AM 02-aug -3.697M -   Intial Claims High 7-Aug 8:30 AM 02-aug 310K 302K - Continuing Claims High 7-Aug 8:30 AM 26-jul 2525K 2539K - Consumer Credit High 7-Aug 3:00 PM Jun $15.0B $19.6B - Wholesale -Inventories Medium 8-Aug 10:00 AM Jun 0.3% 0.5% -

Source: OW Risk Management