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 prices surged yesterday lifted by a series of bullish drivers. It started with a strong buying in US Gasoline futures pushed by several refinery issues in the US Gulf coast region bringing down the overall refinery utilization rate. The US weekly jobless claims came out surprisingly lower than expected while the US October Core PPI rose +0.2% and the November Markit flash PMI was also higher than previous. China's manufacturing activity from a survey by HSBC showed expansion in November but at a slower pace than previous month  to 50.4 from a seven-month high of 50.9 in October. An index above the key 50 mark shows expansion. The January WTI futures rose +$1.59 to close at $95.44/bbl and  Brent contract spiked up +$2.02 to close $110.08/bbl. There are no major economic figures from the US today. This morning, crude is trading marginally lower.

Fueloil Specifics

The NWE bunker fuel oil prices remained supported by tight product avails yesterday. Delivered 380cst product posted app.$2/mt gains in Antwerp and a dollar more in Rotterdam. Some suppliers reported to be fully booked until the start of next week. The Singapore fuel oil market rose more than $4.0 during the Asian Platts window yesterday. The Singapore heavy residual stockpile reported a slight dip of -0.44 mbbl to 20.29 mbbl. The delivered bunker premiums eased to between +$6.5 and +$7.5 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) 1,59 95,44 ↓ 95,24 95,47 95,37 95,46 94,55 93,61 ICE Brent Swap (1st month) 2,02 110,08 ↓ 109,70 109,17 108,75 108,36 107,59 106,64 ICE Gasoil Swap (1st month) 12,25 923,25 ↑ 930,58 929,50 927,67 927,31 919,42 916,15 3.5% Barges FOB Rtdm 0,50 573,75 ↑ 575,25 577,75 577,75 577,75 577,25 575,75 3.5% Cargoes FOB Med 3,25 585,25 ↑ 572,00 574,00 573,50 573,00 572,25 571,75 1.0% Cargoes FOB NWE 4,25 598,50 ↑ 602,75 604,75 604,50 604,50 603,75 601,25 3% no. 6 USGC WB 1,23 91,10 ↑ 90,75 90,75 90,75 90,75 90,50 90,50 380 CST Cargoes FOB S'pore 5,00 604,00 ↑ 605,00 599,00 597,50 596,75 595,25 596,25 0.1 % GO Barges FOB Rtdm 11,75 921,25 ↑ 932,25 931,25 926,25 928,25 919,25 916,25 Physical Rotterdam 380 CST 3,00 580,75 ↑ 580,50 583,00 583,00 583,00 582,50 581,00 Physical Singapore 380 CST 3,50 611,50 ↑ 609,00 603,75 602,75 602,50 601,50 601,50

Focus of the day: Piraeus

Business has been subdued in the East Med this week. Crude market was bullish trading up all week and average CIF MED 3.5% was higher by $ 14.4 compared to the previous week. Piraeus saw some large spot enquiries but in general trading activity was weak. With the cruise season officially over, overall monthly demand is expected to drop by more than 10% during the winter months. Loading and supply conditions have been very good and both Hellenic Petroleum and MOH refinery are online, while all physical suppliers can offer for prompt enquiries. Istanbul product availability is much better these days and prices are getting more attractive as more players have entered the market and competition is driving supply premiums lower.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-Nov 10:00 AM Nov 53 55 54 Employment Cost Index Medium 19-Nov 8:30 AM Q3 0.5% 0.5% 0.4% Retail Sales High 20-Nov 8:30 AM Oct 0.3% -0.1% 0.4% Core CPI High 20-Nov 8:30 AM Oct 0.1% 0.1% 0.1% Existing Home Sales Medium 20-Nov 10:00 AM Oct 4.95M 5.29M 5.12M Business Inventories Medium 20-Nov 10:00 AM Sep 0.0% 0.3% 0.6% Initial Claims Medium 21-Nov 8:30 AM 16-nov 335K 339K 323K Core PPI Medium 21-Nov 8:30 AM Oct 0.1% 0.1% 0.2% Philadelphia Fed Medium 21-Nov 10:00 AM Nov 5.0 19.8 6.5 Leading Indicators Medium 21-Nov 10:00 AM Oct NA 0.7% -

Source: OW Risk Management