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

Yesterday Crude Oil prices were volatile and managed to close higher. Market is riding on stimuli from Central Banks for the last 2 months. The US FOMC minutes gave some hope again to the market that they will act. The US dollar continued to weaken against Euro. The soft Chinese manufacturing data was largely ignored. As a pattern the weaker economic data are interpreted positively adding speculations to stronger stimuli from the Central banks. The US jobless claims were higher than expected. Also the German Finance minister made it clear he was not keen to give more time to reform to Greece. The October WTI contract closed at $96.27/bbl, -$0.99 down and October Brent settled at $115.01/bbl, up +$0.10. Today we will be looking at the Durable goods orders. This morning, crude is trading slightly down. Please note that there will be no Platts numbers published on Monday, August 27, due to UK Summer Bank Holiday. DEAR READER, Please note that there will be no Market Update published on Monday, 27th August. We will be back on Tuesday.

Fueloil Specifics

The Northwest European fuel oil prices remained supported by ICE Brent futures rally yesterday. Delivered 380cst product in Rotterdam was up by app.$2/mt while 3.5% Rtdam FOB barges posted nearly $5/mt gains. Demand in the area remained subdued. The Singapore fuel oil markets surged more than $12.0 during the morning Platts window yesterday led by stronger crude values. The latest Singapore heavy residual inventory saw a draw of -1.5 mbbl to 16.3 mbbl. The delivered bunker premiums were seen around $7.0-8.0 above the cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.99) 96.27 ↓ 96.14 96.48 96.87 97.11 96.86 96.84 ICE Brent Swap (1st month) 0.10 115.01 ↓ 114.50 113.87 113.36 111.87 110.32 113.37 ICE Gasoil Swap (1st month) 10.50 995.50 ↓ 989.42 987.00 982.08 971.64 955.95 954.64 3.5% Barges FOB Rtdm 4.75 657.50 ↓ 652.75 649.75 646.75 639.75 633.25 630.00 3.5% Cargoes FOB Med 6.50 655.75 ↓ 647.50 644.50 641.75 635.25 629.00 626.00 1.0% Cargoes FOB NWE 5.25 713.00 ↓ 702.75 694.50 688.00 674.25 667.00 663.75 3% no. 6 USGC WB (0.45) 102.15 ↓ 101.50 101.00 100.75 98.50 97.25 97.75 380 CST Cargoes FOB S'pore 12.25 682.25 ↓ 674.00 670.75 668.50 662.50 656.00 652.75 0.1 % GO Barges FOB Rtdm 10.00 992.50 ↓ 989.25 987.25 983.25 969.25 954.25 954.25 Physical Rotterdam 380 CST 2.00 665.00 ↓ 663.00 660.00 657.00 650.00 643.50 640.25 Physical Singapore 380 CST 13.00 690.25 ↓ 684.25 681.00 678.75 673.25 666.75 663.50

Focus of the day: Piraeus

This week demand in Piraeus was satisfactory. Crude market was very volatile, but on average values were higher compared to the previous few weeks and this boosted buying interest; CIF MED 3.5% was higher by $12.75 this week. Supplies were carried out without any problems, the weather has been calm and product availability for HSFO grades has been excellent. There was a shortage for LSFO grades reported during the week, but Hellenic Petroleum Refinery has announced replenishment, so suppliers have started to quote for 1% enquiries again.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual FOMC Minutes High 22-Aug 2:00 PM 31-Jul - - - MBA Mortgage Index Medium 22-Aug 7:00 AM 18-Aug NA -4.5% -7.4% Existing Home Sales Medium 22-Aug 10:00 AM Jul 4.3M 4.37M 4.47M Initial Claims Medium 23-Aug 8:30 AM 18-Aug 365K 366K 372K New Home Sales Medium 23-Aug 10:00 AM Jul 375K 350K 372K Durable Orders High 24-Aug 8:30 AM Jul 3.5% 1.3% - Durable Orders- ex Transportation Medium 24-Aug 8:30 AM Jul 0.0% -1.4% -

Source: OW Risk Management