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 closed slightly higher recovering partially from the previous day sell-off. The market was boosted by better US weekly jobless claims but the 2nd quarter US GDP posted a growth of +2.5%, revised downwards from +2.7%. The November WTI contract inched up +$0.37 to settle at $103.03/bbl and  Brent closed up +$0.89 at $109.21/bbl. The UN Security Council has endorsed the Russian plan to remove chemical weapons in Syria. Obama and the Republicans stay apart on resolving their latest stand off over the budget crises days away from the first deadline. Yesterday was announced that negotiations over Iran’s program will start in Geneva next month. Today in terms of data , we will have the US August Personal Income and Consumer spending to provide further economic guidance. This morning, crude prices are trading app. 0,30% down.

Fueloil Specifics

Bunker fuel oil prices fell yesterday in the main Northwest European ports. Delivered 380cst product in Antwerp lost app.$4/mt and a dollar more in Rotterdam. Suppliers reported falling demand however avails remained tight with majority of them not able to quote earlier than the start of October. The Singapore fuel oil market erased previous gains, dropping app. -$3.0 to -$2.0 during the Asian Platts window yesterday. The delivered bunker premiums saw some improvement moving firmer to $3.5-4.0/mt  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. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,37 103,03 ↓ 102,36 101,73 101,65 98,91 96,47 95,59 ICE Brent Swap (1st month) 0,89 109,21 ↓ 108,41 107,49 106,66 105,89 105,19 102,63 ICE Gasoil Swap (1st month) 1,50 920,50 ↑ 920,42 917,58 917,25 904,75 891,31 890,13 3.5% Barges FOB Rtdm (0,50) 591,25 ↑ 590,75 587,25 587,50 585,50 580,25 576,50 3.5% Cargoes FOB Med (1,25) 591,75 ↑ 587,25 582,50 582,50 578,50 573,50 570,75 1.0% Cargoes FOB NWE (3,00) 600,75 ↑ 604,75 607,50 607,00 611,25 607,25 601,50 3% no. 6 USGC WB 0,40 94,18 ↑ 92,55 92,30 92,25 91,55 90,00 90,30 380 CST Cargoes FOB S'pore (2,50) 608,50 ↑ 614,75 609,00 609,25 602,50 599,25 596,50 0.1 % GO Barges FOB Rtdm 1,25 920,75 ↑ 921,25 919,25 918,25 906,25 893,25 891,25 Physical Rotterdam 380 CST (5,00) 590,75 ↑ 596,00 592,50 592,75 590,25 584,50 580,75 Physical Singapore 380 CST (1,50) 611,00 ↑ 620,00 614,25 615,50 608,50 604,50 601,75

Focus of the day: Piraeus

This week was very busy in Piraeus as a result of the soft crude market that drove bunker prices to a two week low. CIF MED 3.5% was lower by $ 4.75 on average compared to last week; product availability was very good and barges were able to easily accommodate the increased demand. Loading conditions at both refineries were smooth and no strikes are foreseen in the near future. Istanbul was faced with increased demand as well, however no congestion has been reported and all suppliers are still able to offer for prompt enquiries. The spread for HSFO 380 between the two ports is nowadays as low as $ 10-12.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller 20-city Index Medium 24-Sep 9:00 AM Jul 10.0% 12.1% 12.4% Consumer Confidence High 24-Sep 10:00 AM Sep 83.0 81.5 79.7 MBA Mortgage Index Medium 25-Sep 7:00 AM 21-sep NA 11.2% 5.5% Durable Orders High 25-Sep 8:30 AM Aug -1.5% -7.4% 0.1% New Home Sales Medium 25-Sep 10:00 AM Aug 390K 394K 421K Initial Claims Medium 26-Sep 8:30 AM 21-sep 335K 309K 305K GDP- Third Estimate Medium 26-Sep 8:30 AM Q2 2.5% 2.5% 2.5% Pending Home Sales Medium 26-Sep 10:00 AM Aug -2.5% -1.3% -1.6% Personal Income Medium 27-Sep 8:30 AM Aug 0.2% 0.1% - PCE Prices- Core Medium 27-Sep 8:30 AM Aug 0.1% 0.1% - Michigan Sentiment- Final Medium 27-Sep 9:55 AM Sep 77.0 76.8 -

Source: OW Risk Management