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 lower over the lack of news and particularly no real progress in the US fiscal cliff negotiations among Republicans and Democrats. There are also disagreements between Germany and France over the future ECB supervisory role over Banks in Eurozone. The inventory report from API saw -2,2 Mios bbl crude draw as refineries increased utilization rate while gasoline (+5,7) and distillates (+1,1) both had builts as winter season approaches in the Northern hemispheres. The January WTI contract closed at $88.50/bbl, down $0.59 and Brent settled at $109.84/bbl, down -$1.08. China’s leadership signaled it was ready to boost stimulus if the economy does not rebound soon. A few data to keep an eye on today: US Factory orders and ISM Non Manufacturing. The US Energy department will release the Inventory report later today and the expectations are as follows: Crude -0.3mbbl, Distillates +0.8 mbbl, Gasoline +1.8 mbbl. This morning, crude prices are trading up.

Fueloil Specifics

The Northwest European fuel oil prices softened yesterday following weaker crude values. Both delivered 380cst product in Rotterdam and cargo prices were assessed app.$3/mt down versus previous day’s close. Demand in the area remained sluggish and both Rotterdam and Antwerp reported improving HSFO avails. The Singapore markets dipped app. $1.0 during the morning window yesterday. The delivered bunker premiums softened to around $2.5 above cargo prices. The demand for bunkers was surprisingly firm yesterday as crude softened after the window. Bunker fuel oil swaps posted $3.00-4.00 losses along the curve both for Rotterdam and Singapore papers. This morning both markets are trading higher.

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) (0.59) 88.50 ↑ 88.93 89.54 90.21 90.16 91.46 91.30 ICE Brent Swap (1st month) (1.08) 109.84 ↑ 109.73 108.92 108.29 108.36 107.13 106.48 ICE Gasoil Swap (1st month) (15.75) 934.00 ↑ 939.25 940.58 939.58 938.83 930.52 926.31 3.5% Barges FOB Rtdm (2.75) 580.25 ↑ 584.25 588.75 592.25 592.00 599.00 597.50 3.5% Cargoes FOB Med (4.00) 571.25 ↑ 572.50 580.00 586.00 585.25 593.75 592.50 1.0% Cargoes FOB NWE (6.25) 595.00 ↑ 603.50 611.25 615.75 615.50 624.00 622.75 3% no. 6 USGC WB (1.56) 93.05 ↑ 93.54 93.44 93.54 93.84 93.99 93.75 380 CST Cargoes FOB S'pore (1.25) 603.25 ↑ 607.75 610.75 614.50 614.25 622.25 621.00 0.1 % GO Barges FOB Rtdm (17.00) 932.25 ↑ 939.25 941.25 940.25 940.25 930.25 928.25 Physical Rotterdam 380 CST (3.00) 586.75 ↑ 594.50 599.00 602.50 602.25 609.25 607.75 Physical Singapore 380 CST (1.50) 606.50 ↑ 618.00 621.00 624.75 625.00 633.00 631.75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 03-Dec 10:00 AM Nov 50.0 51.7 49.5 Construction Spending Medium 03-Dec 10:00 AM Oct 0.3% 0.6% 1.4% MBA Mortgage Index Medium 05-Dec 7:00 AM 01-Dec NA -0.9% - ADP Employment Change Medium 05-Dec 8:15 AM Nov 125K 158K - Productiivity- Rev. Medium 05-Dec 8:30 AM Q3 2.4% 1.9% - Factory Orders Medium 05-Dec 10:00 AM Oct -0.5% 4.8% - ISM Services Medium 05-Dec 10:00 AM Nov 53.0 54.2 - Initial Claims Medium 06-Dec 8:30 AM 01-Dec 385K 393K - Nonfarm Payrolls High 07-Dec 8:30 AM Nov 80K 171K - Unemployment Rate High 07-Dec 8:30 AM Nov 8.1% 7.9% - Mich Sentiment High 07-Dec 9:55 AM Dec 82.0 82.7 - Consumer Credit Medium 07-Dec 3:00 PM Oct $8.0B $11.4B -

Source: OW Risk Management