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 started on the weak side then rallied towards the US close. Market fading concerns from Syria and reviving discussions between Iran and the US presidents initially pressured the crude Oil prices. Iran has more than 1 mbpd production that is under UN sanctions. We saw some profit taking with the Brent/WTI spread widening by nearly $1 to a high of $5.56/bbl. The November WTI Oil contract lost -$0.46 to settle at $103.13/bbl and Brent rose +$0.48 to $108.64/bbl. Market is following the meetings between Iran and the Western powers as it could take some Oil premium off if it comes to a result, needless to say the market is quite skeptical. The US inventory report by the Energy Department will be released later today and expectations are as follows: Crude -1.13 mbbl, Distillates -0.59 mbbl, Gasoline +0.14 mbbl. This morning, crude prices are trading around 0,40% higher.

Fueloil Specifics

The NWE bunker fuel oil markets reported relatively busy day yesterday as demand increased following weakening prices. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$2/mt down from previous day. Most suppliers continuously faced tight avails for both hsfo and lsfo prompt deliveries that kept premiums at the higher end. Antwerp suppliers were quoting for 27-28 September and onwards. The Singapore fuel oil markets fell another $2.0 during the Asian Platts window yesterday. There were some signs of market seeing some rebalancing in the fundamentals. The delivered bunker premiums were app. $2.5/mt above cargo prices. This morning both markets are trading 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) (0,46) 103,13 ↑ 103,25 102,51 102,44 99,34 96,37 95,62 ICE Brent Swap (1st month) 0,48 108,64 ↑ 108,58 107,65 106,82 106,04 105,33 102,94 ICE Gasoil Swap (1st month) (7,00) 906,00 ↑ 913,08 911,50 911,33 902,11 890,42 889,40 3.5% Barges FOB Rtdm 2,00 586,00 ↑ 591,25 588,75 588,75 588,25 583,25 579,50 3.5% Cargoes FOB Med (0,75) 585,75 ↑ 587,75 583,50 583,50 582,25 576,75 574,00 1.0% Cargoes FOB NWE (2,75) 596,75 ↑ 606,50 608,75 609,00 613,75 610,00 604,50 3% no. 6 USGC WB 0,34 93,55 ↑ 93,00 92,50 92,25 91,75 91,20 90,50 380 CST Cargoes FOB S'pore (2,75) 605,75 ↑ 612,50 608,25 608,00 604,50 601,75 599,00 0.1 % GO Barges FOB Rtdm (6,00) 905,00 ↑ 914,25 913,25 912,25 903,25 892,25 891,25 Physical Rotterdam 380 CST (1,00) 588,25 ↑ 596,50 594,00 594,00 593,00 587,50 583,75 Physical Singapore 380 CST (1,00) 609,00 ↑ 617,75 613,50 614,25 610,50 607,00 604,25

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% - Durable Orders High 25-Sep 8:30 AM Aug -1.5% -7.4% - New Home Sales Medium 25-Sep 10:00 AM Aug 390K 394K - Initial Claims Medium 26-Sep 8:30 AM 21-sep 335K 309K - GDP- Third Estimate Medium 26-Sep 8:30 AM Q2 2.5% 2.5% - Pending Home Sales Medium 26-Sep 10:00 AM Aug -2.5% -1.3% - 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