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.
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On Friday Crude Oil prices surged more than 2.5% after a much better than expected US Nonfarm Payroll number (+167k) closing the week on a strong note. However, the US Unemployment rate inched up by 0.1% to 8.3%. The US July ISM non-manufacturing index was also stronger, up slightly at 49.8. The overall market sentiment was lifted with the Euro and Equities closing with gains. The crude prices were also supported by unresolved geopolitical tensions in the Middle East region. The September WTI contracts closed at $91.40/bbl, up $4.27 while Brent futures settled at $108.94/bbl, up +$3.04. It will be a quite start of the week with no much Economic data to look for, at least from the US. This morning, crude is trading slightly down.
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The Northwest European fuel oil markets closed higher last Friday. Both delivered 380cst product in Rotterdam and cargo prices were assessed up by app. $14/mt versus previous day close. Higher prices kept buyers away from the market. Operations in Antwerp were reported to be back to normal while Rotterdam was still struggling with product shortages and delays at loading installations. The Singapore fuel oil market prices were slightly up between flat to +$0.75 during the morning Platts window last Friday. The latest Singapore heavy residual inventory reported a build of +2.20 mbbl to 19.81 mbbl. The delivered bunker premiums were seen around $8.0 above cargo prices. This morning both markets are trading slightly down.
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Settlement & Indications (mid values)
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Product
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Yesterday's Values
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Forward Indications
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Product
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Change
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Last
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Dir.
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Sep
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Oct
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Nov
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Q113
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Q213
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2013
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NYMEX WTI Swap (1st month)
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4.27
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91.40
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↓
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91.52
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91.84
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92.25
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92.97
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93.17
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92.21
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ICE Brent Swap (1st month)
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3.04
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108.94
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↓
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106.67
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106.06
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105.67
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104.79
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103.72
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105.71
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ICE Gasoil Swap (1st month)
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15.00
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923.00
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↑
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922.83
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920.67
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916.92
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908.67
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899.72
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899.38
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3.5% Barges FOB Rtdm
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14.25
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614.00
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↓
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610.50
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607.00
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604.00
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598.25
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594.25
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593.00
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3.5% Cargoes FOB Med
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13.25
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609.00
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↓
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604.25
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601.25
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598.50
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593.75
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590.25
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589.00
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1.0% Cargoes FOB NWE
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15.75
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664.00
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↓
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650.50
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644.50
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639.50
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629.50
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625.00
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624.00
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3% no. 6 USGC WB
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2.75
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96.43
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↓
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95.23
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94.73
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94.48
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92.48
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91.73
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92.23
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380 CST Cargoes FOB S'pore
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0.00
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628.50
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↓
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631.25
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640.75
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627.50
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621.75
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617.25
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616.00
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0.1 % GO Barges FOB Rtdm
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14.75
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920.75
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↑
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923.25
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921.25
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917.25
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912.25
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901.25
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901.25
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Physical Rotterdam 380 CST
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14.00
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622.75
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↓
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620.75
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617.25
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614.25
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608.50
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604.50
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603.25
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Physical Singapore 380 CST
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0.00
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636.75
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↓
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641.50
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651.00
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637.75
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632.50
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628.00
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626.75
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Focus of the day: Gibraltar
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The week starts with good barge and product availability in the Strait of Gibraltar, as well as favorable weather conditions in the hub. Bunker deliveries are running smoothly in the three ports, and most suppliers are delivering within schedule. A rather quiet market during the second half of last week, with relatively little buying activity left quite some room on supply schedules; therefore there are good possibilities for prompt deliveries at still competitive premiums. The HILO spread is expected to narrow as from today with the new replenishments. The Med market is trading down this morning.
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Economy fundamentals this week
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Fundamental Indicators
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Statistic
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Importance
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Date
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Time
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Period
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Consensus
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Last
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Actual
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MBA Mortgage Index
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Medium
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08-Aug
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3:00 PM
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04-Aug
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NA
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0.2%
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-
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Productivity-Prel
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Medium
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08-Aug
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8:30 AM
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Q2
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1.5%
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-0.9%
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-
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Initial Claims
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Medium
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09-Aug
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8:30 AM
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04-Aug
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385K
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365K
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-
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Trade Balance
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Medium
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09-Aug
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8:30 AM
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June
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-$48.0B
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-$48.7B
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-
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Wholesale Inventories
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Medium
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09-Aug
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10:00 AM
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June
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0.6%
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0.3%
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-
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Export Prices
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Medium
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10-Aug
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8:30 AM
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July
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NA
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-1.4%
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-
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Import Prices
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Medium
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10-Aug
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8:30 AM
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July
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NA
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-0.3%
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-
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Treasury Budget
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Medium
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10-Aug
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2:00 PM
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July
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NA
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-$129.4B
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-
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Source: OW Risk Management