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 the US Federal Reserve –after a lot of speculation from the market –started a mild tapering of its $85 billion per month bond buying programme, trimming $10 billion starting on 1st January next year. The interest rate however will not be touched until 2015. The US Federal Reserve has also forecasted a stronger US labour market next year lowering its unemployment estimate to 6.3%. The US November Housing starts and building permits figures came out very strong and this continuing improvement should also be reflected in the Existing home sales data released later today. Market sentiment is very positive, the US equities making new record highs. Crude prices were lifted by the firmer US Weekly Oil inventory report while the US Federal Reserve tapering impact seems to be already priced in. The crude stockpile drew more than expected at -2.94 mbbl while the distillates inventory also recorded a big draw at -2.11 mbbl. This is despite a fall in the US refinery utilization rate. The January WTI future rose +$0.84 to $98.06/bbl and the February Brent contract closed higher by +$1.19 to $109.63/bbl. This morning, crude is trading mixed with Brent -0,1% down.

Fueloil Specifics

Bunker fuel oil prices yesterday closed largely unchanged in the main NWE ports. However spot prices remained on the higher side supported by firming demand and continuous tight product avails. The Singapore fuel oil markets fell more than $5.0 during the Platts window yesterday tracking the lower crude values. The Asian fuel oil cracks weakened during the window session. The delivered bunker premiums remained largely unchanged at around +$4.5 to +$5.0 above cargo prices. Market is said to be well supplied with avails. This morning both markets are trading slightly lower.

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) 0,84 98,06 ↑ 98,04 97,77 97,16 97,66 95,61 94,43 ICE Brent Swap (1st month) 1,19 109,63 ↓ 109,33 109,06 108,76 108,45 108,13 107,27 ICE Gasoil Swap (1st month) 9,50 929,00 ↓ 927,83 926,17 923,50 925,83 917,58 916,15 3.5% Barges FOB Rtdm 3,25 577,00 ↓ 581,00 582,00 582,50 581,75 582,75 581,50 3.5% Cargoes FOB Med 4,00 570,25 ↓ 579,25 579,50 580,00 579,50 580,25 579,75 1.0% Cargoes FOB NWE 3,50 600,25 ↓ 599,25 602,50 604,50 602,00 606,25 604,00 3% no. 6 USGC WB 0,98 91,62 ↓ 91,45 91,20 91,45 91,20 91,20 90,95 380 CST Cargoes FOB S'pore (5,75) 604,00 ↓ 605,25 603,75 602,50 603,75 602,25 602,25 0.1 % GO Barges FOB Rtdm 9,75 928,75 ↓ 929,25 927,25 925,25 927,25 919,25 917,25 Physical Rotterdam 380 CST 0,00 581,25 ↓ 586,25 587,25 587,75 587,00 588,00 586,75 Physical Singapore 380 CST (6,00) 608,25 ↓ 610,50 609,00 607,75 609,00 607,50 607,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 16-Dec 8:30 AM Dec 5.0 -2.2 1.0 Industrial Production Medium 16-Dec 9:15 AM Nov 0.4% -0.1% 1.1% Core CPI High 17-Dec 8:30 AM Nov 0.1% 0.1% 0.2% Housing Starts Medium 18-Dec 8:30 AM Nov 2750K 2744K 1091K Building Permits Medium 18-Dec 8:30 AM Nov 975K 1034K 1007K FOMC Rate Decision High 18-Dec 2:00 PM Dec 0.25% 0.25% 0.25% Initial Claims Medium 19-Dec 8:30 AM 14-dec 335K 368K - Existing Home Sales Medium 19-Dec 10:00 AM Nov 4.98M 5.12M - Philadelphia Fed Medium 19-Dec 10:00 AM Dec 4.0 6.5 - Leading Indicators Medium 19-Dec 10:00 AM Nov 0.7% 0.2% - GDP (Annualized) High 20-Dec 8:30 AM Q3 3.6% 3.6% -

Source: OW Risk Management