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

Following the weakness in the market, crude oil prices dipped lower yesterday. The September WTI futures closed at $101.67/bbl, down -$0.42 while Brent contracts slipped -$0.82 to settle at $107.57/bbl. The weakness of the crude oil was broadly attributed to soft demand both in Europe and Asia coupled with ample global supply. The recent spate of geopolitical tensions namely; the Ukraine, Libya and Gaza were mostly ignored. Adding to the price softness, the recent resumption of the Libya crude export seems to be on track with no significant reported incidents. Markets are expected to focus on tomorrow US Federal Reserve FOMC minutes release. The US Federal Reserve is expected to continue reducing its bond buying program and to end by this October. The US Commerce department will release US 2nd Quarter GDP and the July ADP employment figure. Today, we will see the US May Case-Shiller home prices and July Consumer Confidence index being release. EU members are also expected to reach a final decision today on stronger sanctions on Russia which might include the closing of capital market to Russian state banks, embargo on future arms sales and “restrictions on energy technology and technology that could be used for defense”. This morning, crude prices are trading mixed with Brent up +0.20% and WTI down -0.1%.

Fueloil Specifics

The NWE bunker fuel oil prices started the week on the lower note following weaker crude values. Delivered 380cst product in the main ARA ports was assessed nearly $3/mt down vs previous close. Suppliers reported subdued buying interest while RMK avails were heard to improve slightly. The Singapore market was closed yesterday on public holiday and reopens today. Bunker fuel oil swaps lost app.$2.5/mt for the front month contracts both for Rotterdam and Singapore papers. The back end of the forward curve was slightly weaker, assessed app. $3.5/mt down. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Aug Sep Oct Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,42) 101,67 ↓ 101,24 100,05 98,51 98,51 96,64 95,18 ICE Brent Swap (1st month) (0,82) 107,57 ↑ 108,01 108,15 108,08 107,61 106,68 106,13 ICE Gasoil Swap (1st month) (2,75) 889,25 ↑ 894,58 897,67 900,08 901,22 - - 3.5% Barges FOB Rtdm (2,00) 569,50 ↑ 572,25 570,25 569,25 568,75 571,25 569,75 3.5% Cargoes FOB Med (3,25) 572,50 ↑ 571,25 568,50 566,50 565,75 568,25 566,75 1.0% Cargoes FOB NWE (4,00) 584,50 ↑ 586,25 588,75 588,75 587,75 588,00 587,75 3% no. 6 USGC WB (0,50) 89,00 ↑ 89,50 89,32 89,20 89,08 89,13 88,93 380 CST Cargoes FOB S'pore (1,50) 596,00 ↑ 597,00 594,00 592,50 592,00 592,50 590,75 0.1 % GO Barges FOB Rtdm (2,50) 887,25 ↑ 894,25 897,25 899,25 900,25 - - Physical Rotterdam 380 CST (3,00) 571,75 ↑ 577,50 575,50 574,50 574,00 576,50 575,00 Physical Singapore 380 CST (1,00) 604,25 ↑ 602,25 599,25 597,75 597,25 597,75 596,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Markit PMI Medium 28-Jul 9:45 AM Jul - 61.1 60.9 Case- Shiller 20-city Index Medium 29-Jul 9:00 AM May 10.5% 10.8% - Consumer Confidence Medium 29-Jul 10:00 AM Jul 86.5 85.2 - ADP Employment Change Medium 30-Jul 8:15 AM Jul 225K 281K - GDP- Adv. High 30-Jul 8:30 AM Q2 3.6% -2.9% - FOMC Rate Decision High 30-Jul 2:00 PM Jul 0.25% 0.25% - Initial Claims Medium 31-Jul 8:30 AM 26-jul 310K 284K - Chicago PMI Medium 31-Jul 9:45 AM Jul 60.0 62.6 - Nonfarm Payrolls High 1-Aug 8:30 AM Jul 250K 288K - Unemployment Rate High 1-Aug 8:30 AM Jul 6.1% 6.1% - PCE Prices- Core High 1-Aug 8:30 AM Jun 0.2% 0.2% - ISM Index Medium 1-Aug 10:00 AM Jul 56.0 55.3 -

Source: OW Risk Management