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

Despite a bit of volatility, Crude prices are trading sideways waiting for developments from the US government partial shutdown. The US dollar continued to soften. The API crude inventory reported a massive crude build of more than 4,5 mbbl as US refineries utilization rate fell cutting demand for Oil. The more widely watched US inventory report by the Department of Energy will be released later today, expectations are as follows: Crude +2.27 mbbl, Distillates -0.77 mbbl, Gasoline -0.64 mbbl. The equity and currency sectors traded firmer which suggests that market is optimistic that the current US stand-off will be resolved in the next 10 days maximum. That being said, market sentiment remains weighted down. The November WTI contract settled at $102.04/bbl, slipping -$0.29 and Brent futures closed $107.94/bbl, down -$0.43. This morning, crude prices are trading around -0,35% down.

Fueloil Specifics

The NWE bunker fuel oil markets remained under pressure yesterday following weakening crude. Rotterdam suppliers reported continuously tight avails and premiums for prompt deliveries surging up to $8/mt. On the other hand suppliers in Antwerp were able to offer prompt product and saw some traders shifting from Rotterdam to Antwerp. The Singapore fuel oil markets were mixed yesterday ranging between -$1.5 to +$2.0 during the Asian Platts window. There was larger than usual number of physical cargoes traded at high values which further suggested strong bull trading agenda. The delivered bunker premiums were seen between +$2.5 to +$6.5 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) (0,29) 102,04 ↓ 101,61 101,12 101,00 98,45 95,90 95,15 ICE Brent Swap (1st month) (0,43) 107,94 ↓ 107,40 106,57 105,81 105,11 104,47 102,22 ICE Gasoil Swap (1st month) (7,75) 905,25 ↑ 912,92 909,75 909,75 901,25 890,06 889,47 3.5% Barges FOB Rtdm (5,75) 584,00 ↑ 585,75 581,50 582,00 579,25 574,50 571,25 3.5% Cargoes FOB Med (4,75) 585,50 ↑ 583,50 576,25 577,00 572,00 567,50 565,00 1.0% Cargoes FOB NWE (5,75) 591,50 ↑ 597,75 599,75 600,00 604,25 601,25 596,50 3% no. 6 USGC WB (1,18) 92,62 ↓ 91,50 90,75 90,80 90,25 89,70 89,00 380 CST Cargoes FOB S'pore 1,75 613,75 ↑ 607,00 603,00 603,50 596,25 592,25 590,25 0.1 % GO Barges FOB Rtdm (7,75) 904,25 ↑ 914,25 911,25 911,25 900,25 890,25 889,25 Physical Rotterdam 380 CST (2,00) 592,25 ↑ 591,00 586,75 587,25 584,00 578,75 575,50 Physical Singapore 380 CST (0,50) 615,50 ↑ 614,25 607,25 607,75 600,50 596,50 594,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Chicago PMI Medium 30-Sep 9:45 AM Sep 52.0 53.0 55.7 ISM Index High 1-Oct 10:00 AM Sep 54.0 55.7 56.2 Construction Spending Medium 1-Oct 10:00 AM Aug 0.3% 0.6% - ADP Employment Change Medium 2-Oct 8:15 AM Sep 180K 176K - Initial Claims Medium 3-Oct 8:30 AM 28-sep 315K 305K - Factory Orders Medium 3-Oct 10:00 AM Aug 0.3% -2.4% - ISM Services High 3-Oct 10:00 AM Sep 58.0 58.6 - Nonfarm Payrolls High 4-Oct 8:30 AM Sep 165K 169K - Unemployment Rate High 4-Oct 8:30 AM Sep 7.3% 7.3% -

Source: OW Risk Management