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 Oil prices started the week firm but ended quasi unchanged. The January WTI contract closed at $89.09/bbl, inched up +$0.18 and Brent settled at $110.92/bbl, down by -$0.31. The Chinese manufacturing data was better than expected which gave an initial lift to crude prices, however market optimism was dismissed by the softer US manufacturing data which came out below expectation at 49.5. Market remains cautious and is looking for direction. This morning, crude prices are trading down.

Fueloil Specifics

The Northwest European bunker fuel oil prices firmed slightly yesterday following stronger crude. Delivered 380cst product in Rotterdam was up by app.$2/mt while cargo prices were a dollar stronger. HSFO avails in Rotterdam and Antwerp remain tight due to blending components shortages in the area. The Singapore markets rose more than $6.0 during the morning Platts window. Delivered bunker premiums slipped marginally to between $2.75-3.50 above cargo prices yesterday as crude softened after the window. Bunker fuel oil swaps gained up to $3/mt at the front and app.$1.5 at the backend of the forward curve both for Rotterdam and Singapore papers. This morning both markets are trading down.

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) 0.18 89.09 ↓ 89.21 89.81 90.42 90.35 91.47 91.50 ICE Brent Swap (1st month) (0.31) 110.92 ↓ 110.27 109.48 108.89 108.94 107.55 106.94 ICE Gasoil Swap (1st month) (0.50) 949.75 ↓ 946.33 947.25 945.92 945.31 933.52 931.72 3.5% Barges FOB Rtdm 3.00 583.00 ↓ 582.00 586.75 590.25 590.00 596.75 595.25 3.5% Cargoes FOB Med 6.75 575.50 ↓ 569.75 577.75 584.00 583.25 591.50 590.25 1.0% Cargoes FOB NWE (3.25) 601.50 ↓ 602.25 608.75 613.25 613.00 621.25 620.00 3% no. 6 USGC WB (1.07) 94.61 ↓ 93.18 92.83 92.88 93.28 93.45 93.18 380 CST Cargoes FOB S'pore 6.50 605.25 ↓ 605.50 609.00 613.00 612.75 620.75 619.25 0.1 % GO Barges FOB Rtdm (0.75) 949.00 ↓ 946.25 947.25 946.25 946.25 936.25 933.25 Physical Rotterdam 380 CST 2.00 589.75 ↓ 592.25 597.00 600.50 600.25 607.00 605.50 Physical Singapore 380 CST 6.00 607.75 ↓ 615.75 619.25 623.25 623.50 631.50 630.00

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