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

After two days of decline, crude prices rebounded back on close. The market was lifted following headlines that Israel assassinated a top Hamas military commander in a strike on Gaza City, a move that drew a strong reaction from Hamas. The US dollar weakened in anticipation of a looser monetary policy by the FOMC which proved to be supportive for the crude values. The US government is preparing to meet up congressional leaders to find an agreement to avert the fiscal cliffs that involve tax hikes and spending cuts. There are still a lot of uncertainties and politics involved but the market believes a solution will be found at the end. The December WTI futures rose +$0.94 to close at $86.32/bbl while the December Brent settled at $109.61/bbl, up +$1.35 and is going to expire later today. The January Brent futures closed at $108.78/bbl yesterday. The US Energy Department is releasing its inventory report later today and the expectations are as follows: Crude +1.9 mbbl, Distillates -1.3 mbbl, Gasoline -0.8 mbbl. This morning, crude prices are trading up.

Fueloil Specifics

The NWE bunker fuel oil prices rebounded yesterday following stronger crude in the afternoon. Both delivered 380cst product in Rotterdam and cargo prices were up more than $4/mt compared to previous day close. Demand in the area remained sluggish as most shipowners were still reluctant about current price levels. Rotterdam continued to report higher premiums for prompt deliveries. The Singapore markets were up between +$1.0 to +$2.5 during the morning Platts window yesterday. The market was firmer on stronger buying interest narrowing the Asian Fuel Oil cracks. The delivered bunker premiums were around +$5.5 to $6.5 above cargo prices. Bunker fuel oil swaps gained app.$3.5/mt along the curve for Rotterdam papers. Singapore was a few cents weaker. This morning both markets are trading up.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.94 86.32 ↑ 86.94 87.48 88.11 88.07 89.40 89.37 ICE Brent Swap (1st month) 1.35 109.61 ↑ 108.19 107.62 107.15 107.17 105.98 105.44 ICE Gasoil Swap (1st month) 5.00 928.25 ↑ 931.33 931.67 929.83 929.67 920.94 918.67 3.5% Barges FOB Rtdm 4.25 587.00 ↑ 589.25 592.25 594.50 594.25 598.00 597.25 3.5% Cargoes FOB Med 3.50 578.00 ↑ 580.50 585.75 585.50 588.50 593.50 593.00 1.0% Cargoes FOB NWE 3.00 608.00 ↑ 612.50 616.25 619.25 619.00 624.25 623.50 3% no. 6 USGC WB 0.33 93.53 ↑ 93.44 92.54 92.79 93.27 93.19 93.07 380 CST Cargoes FOB S'pore - 602.50 ↑ 612.25 615.00 617.25 617.00 621.75 621.00 0.1 % GO Barges FOB Rtdm 4.50 924.50 ↑ 931.25 932.25 930.25 931.25 922.25 920.25 Physical Rotterdam 380 CST 5.00 594.75 ↑ 599.50 602.50 604.75 604.50 608.25 607.50 Physical Singapore 380 CST - 608.00 ↑ 622.50 625.25 627.50 627.75 632.50 631.75

Focus of the day: Houston

The Gulf Coast bunker market was strong yesterday, particularly in NOLA, as demand picked up and avails were tight for prompt deliveries. New Orleans 380 CST numbers moved around $609-611/mt with a premium of $6-8/mt against Houston market. High sulfur bunker fuel oil grade is almost not available till November 17th, with only a few players with limited availability. New Orleans 1%S 380 CST was assessed $14/mt higher at $714-716/mt. The Houston bunker market was slightly stronger with increasing demand. However, the 380 and 1%S 380 markets in Houston did not strengthen a lot seeing levels around $606-608/mt. 1%S 380 CST was also assessed $2/mt higher than Tuesday at $708-710.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 13-Nov 2:00 PM Oct -$113.0B -$98.5B -$120.0B Retail Sales High 14-Nov 8:30 AM Oct -0.4% 1.1% -0.3% Core PPI High 14-Nov 8:30 AM Oct 0.1% 0.0% -0.2% Business Inventories Medium 14-Nov 10:00 AM Sep 0.6% 0.6% 0.7% FOMC Minutes High 14-Nov 2:00 PM 24-Oct - - - Initial Claims Medium 15-Nov 8:30 AM 10-Nov 475K 355K - Core CPI High 15-Nov 8:30 AM Oct 0.1% 0.1% - Empire Manufacturing Medium 15-Nov 8:30 AM Nov -8.0 -6.2 - Philadelphia Fed Medium 15-Nov 10:00 AM Nov -2.0 5.7 - Industrial Production Medium 16-Nov 9:15 AM Oct 0.0% 0.4% - Capacity Utilization Medium 16-Nov 9:15 AM Oct 78.3% 78.3% -

Source: OW Risk Management