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

The market did a classic “buy on rumors sell on fact” after the Federal Reserve decision yesterday. The October WTI contract fell -$1.68 to close at $106.39/bbl and will be expiring later today; November closed at $105.86/bbl. The November Brent came off by -$1.84 back to $108.76/bbl. Asian stocks rose on course to their biggest three-week advance in two years, volumes were thin though with many Asian countries closed for holidays. Fed’s decision has triggered a backlash from Republicans unhappy with the protracted easy-money policy and raised pressure on Janet Yellen the favorite runner to take the head position at the central bank. There is no economic data released from the US today. This morning, crude prices are trading up.

Fueloil Specifics

The NWE bunker fuel oil markets saw increasing demand and higher prices following rising Brent. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$5/mt higher supported also by tight prompt avails due to maintenance at local refineries. Most suppliers were able to offer only from 25 September and onwards. The Singapore fuel oil markets extended losses by app. $5.0 during Asian Platts window yesterday. The delivered bunker premiums were seen between flat to +$3.5 above cargo prices. Asian market is expected to be quieter as several Asian countries are closed on a major holiday. This morning both markets are trading slightly lower.

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) (1,68) 106,39 ↑ 105,46 104,19 104,17 100,36 97,28 96,42 ICE Brent Swap (1st month) (1,84) 108,76 ↑ 108,83 108,07 107,35 106,65 105,98 103,44 ICE Gasoil Swap (1st month) 10,25 934,50 ↓ 927,67 924,67 924,67 912,44 897,86 895,89 3.5% Barges FOB Rtdm 3,50 593,75 ↓ 592,25 589,75 589,75 588,00 582,50 578,50 3.5% Cargoes FOB Med 4,75 598,50 ↓ 588,75 584,25 584,25 582,25 576,25 573,25 1.0% Cargoes FOB NWE 0,75 609,00 ↓ 610,25 612,25 612,00 614,00 609,00 603,50 3% no. 6 USGC WB (1,26) 94,68 ↑ 92,90 92,40 92,40 91,65 91,10 90,15 380 CST Cargoes FOB S'pore 13,50 609,50 ↓ 611,00 608,75 608,00 604,75 601,75 599,25 0.1 % GO Barges FOB Rtdm 9,75 933,00 ↓ 929,25 926,25 926,25 913,25 900,25 897,25 Physical Rotterdam 380 CST 5,00 598,00 ↓ 597,50 595,00 595,00 592,75 586,75 582,75 Physical Singapore 380 CST 11,50 610,25 ↓ 616,25 614,00 614,25 610,75 607,00 604,50

Focus of the day: Piraeus

This was another week of soft crude market, however CIF MED 3.5 was only $1.5 lower than last week's average and bunker prices in Piraeus and Istanbul did not follow the sharp midweek crude drop. Demand was enough to keep barges busy in both major East Med ports, while product availability is satisfactory and no shortages are expected in the near future. A scheduled 48 hr strike in Greek Customs Offices was cancelled after all; supplies in Piraeus would not have been affected by the strike, as all loadings had been scheduled in advance.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 16-Sep 8:30 AM Sep 7.0 8.6 6.3 Industrial Production Medium 16-Sep 9:15 AM Aug 0.2% 0.0% 0.4% Core CPI High 17-Sep 8:30 AM Aug 0.2% 0.2% 0.1% NAHB Housing Market Index Medium 17-Sep 10:00 AM Sep 58 59 58 Housing Starts Medium 18-Sep 8:30 AM Aug 900K 896K 891K FOMC Rate Decision High 18-Sep 2:00 PM Sep 0.25% 0.25% 0,25% Initial Claims Medium 19-Sep 8:30 AM 14-sep 335K 292K 309K Existing Home Sales Medium 19-Sep 10:00 AM Aug 5.00M 5.39M 5.48M Philadelphia Fed Medium 19-Sep 10:00 AM Sep 8.0 9.3 22.3 Leading Indicators Medium 19-Sep 10:00 AM Aug 0.5% 0.6% 0.7%

Source: OW Risk Management