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 started the week on a firm note with more positive economic data stemming from Germany and China. However, prices started to lose steam and came off going into the end of the trading session. There is still a lot of uncertainty surrounding talks about US fiscal cliff which is weighting on the market. No much change in production target is expected from the OPEC meeting on Wednesday. The US FOMC starts its 2 days meeting and comments will be out on Wednesday as well. The January WTI futures closed at $85.56/bbl, slipped -$0.37 while Brent settled at $107.33/bbl, up only +$0.31. This morning, crude prices are trading up.

Fueloil Specifics

The NWE bunker fuel oil markets edged higher at the start of the week. Cargo prices were assessed app.$4.5/mt higher versus previous close while delivered 380cst product in Rotterdam was even stronger, up by $6/mt. Rotterdam port saw some increased trading however still struggled with prompt deliveries due to delays at loading installations. The Singapore markets inched up more than +$1.0 during the morning Platts window yesterday. Although current supply seems to outstrip demand, market is expecting to see fresh demand coming regionally as winter season approaches. The delivered bunker premiums were lifted higher ranging $4.0-5.0 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jan Feb Mar Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.37) 85.56 ↑ 86.69 87.30 87.87 87.29 88.58 88.52 ICE Brent Swap (1st month) 0.31 107.33 ↑ 106.43 105.66 105.09 105.73 104.21 103.77 ICE Gasoil Swap (1st month) (2.00) 903.75 ↑ 912.33 912.25 910.00 911.53 906.20 904.13 3.5% Barges FOB Rtdm 4.50 571.50 ↑ 579.75 582.00 583.25 581.75 585.25 583.50 3.5% Cargoes FOB Med 5.50 566.25 ↑ 572.75 576.00 578.25 575.75 580.50 579.00 1.0% Cargoes FOB NWE 8.00 593.00 ↑ 605.25 608.75 610.50 608.25 613.00 611.50 3% no. 6 USGC WB 0.17 90.92 ↑ 91.39 91.21 91.11 91.24 91.06 90.96 380 CST Cargoes FOB S'pore 1.25 595.00 ↑ 603.25 606.00 607.75 605.75 609.75 608.50 0.1 % GO Barges FOB Rtdm (0.75) 904.25 ↑ 912.25 912.25 911.25 913.25 906.25 904.25 Physical Rotterdam 380 CST 6.00 580.00 ↑ 590.00 592.25 593.50 592.00 595.50 593.75 Physical Singapore 380 CST 0.00 598.75 ↑ 613.00 615.75 617.50 616.00 620.50 619.25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Trade Balance Medium 11-Dec 8:30 AM Oct -$43.0B -$41.5B - Wholesale Inventories Medium 11-Dec 10:00 AM Oct 0.3% 1.1% - MBA Mortgage Index Medium 12-Dec 7:00 AM 08-Dec NA 4.5% - FOMC Rate Decision High 12-Dec 12:30 PM Dec 0.25% 0.25% - Treasury Budget Medium 12-Dec 2:00 PM Nov -$113.0B -$137.3B - Initial Claims Medium 13-Dec 8:30 AM 08-Dec 375K 370K - Retail Sales High 13-Dec 8:30 AM Nov 0.6% -0.3% - Core PPI Medium 13-Dec 8:30 AM Nov 0.1% -0.2% - Business Inventories Medium 13-Dec 10:00 AM Oct 0.3% 0.7% - Core CPI High 14-Dec 8:30 AM Nov 0.1% 0.2% - Industrial Production High 14-Dec 9:15 AM Nov 0.5% -0.4% - Capacity Utilization Medium 14-Dec 9:15 AM Nov 78.0% 77.8% -

Source: OW Risk Management