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

Yesterday Crude lost more than $2 closing below the 100-day moving average at $109.70 to settle at $109.49. The Brent-WTI spread shrunk from -14$/bbl to -12$/bbl. Brent selling could be mirroring the weakness in physical OTC trades at a time of weaker European refinery demand and triggered by production recovery in the North Sea. Today we will see the API released and attention will revert back to Cushing where US central bank policymakers will meet on Dec. 17-18. Although the odds of tapering have risen along with gains in the labor market it seems that we are  looking more at next year in terms of timing, although a mild reduction is still possible in December. China Industrial Production rose slightly less than estimated in November (10 vs 10.1)while Retail Sales accelerated (+13.7%)  giving a mixed picture. This morning Crude is trading up 0.88%.

Fueloil Specifics

Bunker fuel demand remained slow for most sellers, looks like plenty of oil on hand, delivered 380cst around 598/mt – 603/mt. A shortage of blending materials had led to high viscosity cargoes in the region and adding to the bearish sentiment, demand for high sulphur fuel oil cargoes in North Asia has tapered off, with South Korean importers heard to have covered their requirements for December. The volume of finished grade fuel oil remains limited, providing some support to the market in December. Fuel oil crack are up 75c this morning in Asia compared to NY close, slightly stronger on the back of lower flat price. As refiners continue to move into the peak seasonal run period, there appears to be little reason to expect a rebound in the crack any time soon. Jan 380 swap value up +7.00 at 599.00 from yesterdays assessments. In Rotterdam both Cargo and Bunkerwire prices fell $3

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,31) 97,34 ↑ 98,54 98,40 97,88 98,27 96,38 95,19 ICE Brent Swap (1st month) (2,22) 109,39 ↑ 109,92 109,70 109,69 109,44 108,83 108,09 ICE Gasoil Swap (1st month) (6,50) 934,25 ↑ 939,50 938,25 935,58 937,78 930,75 927,93 3.5% Barges FOB Rtdm (3,00) 575,50 ↑ 582,50 584,25 585,00 584,00 585,75 584,75 3.5% Cargoes FOB Med (6,00) 563,00 ↑ 579,50 581,25 581,75 581,00 582,50 582,75 1.0% Cargoes FOB NWE (11,00) 600,50 ↑ 603,50 606,00 607,50 605,75 609,00 607,25 3% no. 6 USGC WB (1,06) 90,90 ↑ 91,25 91,00 91,00 91,00 91,00 91,00 380 CST Cargoes FOB S'pore 2,75 605,50 ↑ 604,25 604,00 604,00 604,00 603,00 602,50 0.1 % GO Barges FOB Rtdm (7,00) 932,50 ↑ 940,25 939,25 936,25 938,25 931,25 927,25 Physical Rotterdam 380 CST (3,00) 581,00 ↑ 587,75 589,50 590,25 589,25 591,00 590,00 Physical Singapore 380 CST 2,50 611,25 ↑ 607,50 607,00 606,25 607,00 606,75 607,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Low 10-Dec 10:00 AM Oct 0,3% 0,4% - Treasury Budget Medium 11-Dec 2:00 PM Nov - -$172,1B - Initial Claims High 12-Dec 8:30 AM 07-dec 315K 298K - Continuing Claims High 12-Dec 9:30 AM 30-nov 2750K 2744K - Retail Sales High 12-Dec 9:30 AM Nov 0,6% 0,4% - Bussiness Inventories Medium 12-Dec 10:30 AM Oct 0,3% 0,6% - PPI Medium 13-Dec 8:30 AM Nov 0,1% 0,1% -

Source: OW Risk Management