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

High volatility on crude prices last Friday before a long week-end with Monday close in the US for Labor Day. Crude ended lower but saw an overall weekly gain. The October WTI futures settled at $107.65/bbl, down by -$1.15 and  Brent closed at $114.01/bbl, with  a drop of -$1.15. The market reacted accordingly to Obama’s position for force despite not having the full support of its allies. This week-end Obama asked approval with a vote from the Congress- which triggered a closure of some long positions. Obama did not ask for an extraordinary session for the congress which means the vote will take place only next week, the 9th September. The official Chinese manufacturing PMI for August was at a 16- month high at 50.1 showing expansion, confirmed by HSBC Markit’s PMI. Stocks gained after the Chinese number and prospect of no imminent strike on Syria. The US economic data reported last Friday were mostly within expectations. This morning, crude prices are trading lower.

Fueloil Specifics

The NWE bunker fuel oil prices closed the week on the lower side. Delivered 380cst product in Antwerp was assessed app.$4/mt and nearly $6/mt down in Rotterdam. Suppliers reported relatively slow demand and continuously low delivered bunker premiums over 3.5% Rtdam fob barges. The Singapore fuel oil markets fell more than -$7.0 during the Asian Platts window last Friday as crude prices corrected from the high. The delivered bunker premiums improved slightly to around +$1.0 to +$2.0 above cargo prices last Friday as lower outright attracted some buying interest. Bunker fuel oil swaps lost $6-7/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend again was stronger with Cal15 papers posting only some $3/mt losses. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) (1,15) 107,65 ↓ 106,44 105,67 104,31 104,27 100,22 96,32 ICE Brent Swap (1st month) (1,15) 114,01 ↓ 112,65 111,13 109,88 108,85 107,06 104,13 ICE Gasoil Swap (1st month) (9,25) 969,50 ↓ 956,17 953,17 946,75 947,17 928,19 903,69 3.5% Barges FOB Rtdm (5,00) 598,25 ↓ 591,75 593,75 593,75 594,25 596,00 586,25 3.5% Cargoes FOB Med (5,75) 594,75 ↓ 588,75 590,25 589,75 588,75 590,00 581,25 1.0% Cargoes FOB NWE (6,00) 616,50 ↓ 614,50 618,00 619,50 619,50 622,50 612,00 3% no. 6 USGC WB (0,56) 95,28 ↓ 93,90 93,65 93,15 93,15 93,10 91,40 380 CST Cargoes FOB S'pore (7,00) 609,75 ↓ 607,00 609,25 610,00 610,50 612,75 605,00 0.1 % GO Barges FOB Rtdm (8,75) 967,25 ↓ 957,25 954,25 948,25 948,25 932,25 907,25 Physical Rotterdam 380 CST (6,00) 599,25 ↓ 597,00 599,00 599,00 599,00 600,25 590,50 Physical Singapore 380 CST (6,50) 611,00 ↓ 612,25 614,50 616,25 616,50 618,00 610,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 3-Sep 10:00 AM Aug 53.0 55.4 - Construction Spending Medium 3-Sep 10:00 AM Jul 0.3% -0.6% - Trade Balance Medium 4-Sep 8:30 AM Jul -$41.5B -$34.2B - Fed's Beige Book Medium 4-Sep 2:00 PM Sep NA NA - Challanger Job Cuts Medium 5-Sep 7:30 AM Aug NA 2.3% - ADP Empoyment Cahnge Medium 5-Sep 8:15 AM Aug 210K 200K - Initial Claims Medium 5-Sep 8:30 AM 31-aug 335K 331K - Factory Orders Medium 5-Sep 10:00 AM Jul -4.0% 1.5% - ISM Services Medium 5-Sep 10:00 AM Aug 54.0 56.0 - Nonfarm Payrolls High 6-Sep 8:30 AM Aug 210K 162K - Unemployment Rate High 0-Jan 8:30 AM Aug 7.5% 7.4% -

 

Source: OW Risk Management