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

For the last day of the month Crude prices opened lower but recovered towards the close. Nevertheless December WTI futures settled down -$0.58 at $80.54/bbl, and Brent similarly fell -$0.34 to close at $85.86/bbl. Markets were trending lower as the US dollar was strengthening. Unexpectedly the Bank of Japan increased their stimulus, sending the Japanese equity higher. By contrast the US Federal Reserve, with a much more aggressive policy the last years, stopped its Bond buying program which resulted in a much stronger US dollar. The latest Chinese official October PMI (service sector) fell to a 9 month low at 50.8 which is lower than previous month of 51.1 and the forecast of 51.2. This morning, crude is trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week with lower prices and slightly picking up activity. Delivered 380cst product lost app. $3/mt in Rotterdam and nearly $5/mt in Antwerp. Suppliers said prompt avails were relatively tight for all grades. The Singapore fuel oil prices lost more than -$2.5 during the Asian Platts window following weaker crude prices. The delivered bunker premiums weakened to app. $5.0 above cargo prices. Visco spread, as expected for the end of the month, jumped to $9,81 last Friday. November is trading at app. $8.50 while the rest of the year and Cal2015 remains relatively stable at the range of $6.75-7.25. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) (0,58) 80,54 ↓ 80,44 80,34 80,13 80,10 80,03 80,13 ICE Brent Swap (1st month) (0,34) 85,86 ↓ 86,02 86,53 87,55 88,35 89,19 90,77 ICE Gasoil Swap (1st month) (4,75) 741,75 ↑ 750,08 749,25 759,50 - - - LS ICE Gasoil Swap (1st month) - - ↑ - - - 765,58 774,92 777,99 3.5% Barges FOB Rtdm (4,25) 450,00 ↑ 449,50 447,50 449,75 453,00 459,75 463,00 3.5% Cargoes FOB Med (6,50) 455,00 ↑ 452,25 446,75 448,00 451,00 457,75 461,00 1.0% Cargoes FOB NWE (6,25) 455,25 ↑ 455,25 454,00 456,50 460,00 467,00 471,25 3% no. 6 USGC WB (0,45) 69,15 ↓ 70,00 70,50 70,78 71,24 72,24 73,18 380 CST Cargoes FOB S'pore (4,25) 475,50 ↑ 476,75 477,50 476,00 478,00 482,25 486,25 0.1 % GO Barges FOB Rtdm (4,75) 741,75 ↓ 749,25 748,25 759,25 752,25 759,25 763,25 Physical Rotterdam 380 CST (3,00) 454,50 ↑ 459,75 457,75 460,00 461,25 469,00 472,25 Physical Singapore 380 CST (5,00) 481,50 ↑ 487,00 487,75 486,25 486,25 491,50 495,50

Focus of the day: Gibraltar

Weather conditions in the Gibraltar Strait are good enough this morning as to ensure smooth operations, despite a couple of suppliers being slightly behind schedule. However there are more challenging prospects for tomorrow when 35 knots wind gusts are expected to hit the bunkering hub. Avails are still extremely tight in the area which keeps bunker premiums rather high. CIF Med 3.5% is trading some $17/mt above FOB Barges Rotterdam. The HILO spread in the Med remains quite narrow at around $10/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 3-Nov 10:00 AM Oct 55.9 56.66 - Construction Spending Medium 3-Nov 10:00 AM Sep 1.1% -0.8% - Factory Orders Medium 4-Nov 10:00 AM Sep -0.5% -10.1% - ADP Employment Change Medium 5-Nov 8:15 AM Oct 235K 213K - ISM Services High 5-Nov 10:00 AM Oct 58.0 58.6 - Challanger Job Cuts Medium 6-Nov 7:30 AM Oct NA -24.4% - Initial Claims Medium 6-Nov 8:30 AM 01-nov 290K 287K - Productivity- Prel Medium 6-Nov 8:30 AM Q3 1.5% 2.3% - Nonfarm Payrolls High 7-Nov 8:30 AM Oct 275K 248K - Unemployment Rate High 7-Nov 8:30 AM Oct 6.0% 5.9% -

Source: OW Risk Management