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

On Friday Crude prices jumped after the US Federal Reserve's quantitative easing announcement but pared gains towards the end of the session. The October WTI futures managed to close higher by +$0.69 to $99.00/bbl after reaching the $100 psychological level during intraday trading. The November Brent futures closed at $116.66/bbl, up +$0.78. A weaker than expected US industrial production and profit taking before the weekend pressured crude oil prices. Hedge Funds/Money Managers raised their bullish bets on Oil futures to a four month high before the Federal decision is reporting the Commodity Futures Trading Commission. This is also coupled by the uncertainty and tensions in the Middle East that do give some supports to prices. However, Euro risk remain high for Spain and Greece and market should come back to "reality" after two months of “euphoria” on Central Bank stimuli. Global growths are forecasted to be lower than expected as economies are slowing. This morning, crude is trading slightly down.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed last week higher. Delivered 380cst product in Rotterdam was assessed app.$3/mt up from previous day close while cargo prices were even stronger gaining up to $6/mt. High prices resulted in subdued demand as buyers were counting on lower prices this week. The Singapore fuel oil markets surged more than $6.0 during the Platts window last Friday tracking strong crude gain. The delivered bunker premiums were seen $4.5- 10.0 above cargo prices last Friday due to the stronger crude after window. Bunker fuel oil swaps posted gains up to $6.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was a few dollars weaker. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.69 99.00 ↓ 99.22 99.55 99.85 100.34 100.16 99.54 ICE Brent Swap (1st month) 0.78 116.66 ↓ 116.22 115.67 115.13 113.99 112.22 115.67 ICE Gasoil Swap (1st month) 9.00 1013.50 ↓ 1010.42 1005.08 999.83 991.25 971.56 969.18 3.5% Barges FOB Rtdm 6.00 664.50 ↓ 662.25 658.75 655.25 650.00 639.50 633.75 3.5% Cargoes FOB Med 8.50 666.75 ↓ 656.75 653.00 649.25 645.25 635.50 629.75 1.0% Cargoes FOB NWE 6.75 731.00 ↓ 716.25 707.25 700.00 689.75 676.25 670.50 3% no. 6 USGC WB 0.48 104.45 ↓ 104.55 103.75 103.07 100.14 98.64 99.40 380 CST Cargoes FOB S'pore 6.25 691.00 ↓ 685.00 681.50 678.25 673.75 663.00 657.00 0.1 % GO Barges FOB Rtdm 9.00 1010.00 ↓ 1010.25 1005.25 1000.25 989.25 970.25 969.25 Physical Rotterdam 380 CST 3.00 671.00 ↓ 672.50 669.00 665.50 660.25 649.75 644.00 Physical Singapore 380 CST 7.50 701.50 ↓ 695.25 691.75 688.50 684.50 673.75 667.75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Sep 8:30 AM Sep -3.0 -5.9 - Current Account Balance Medium 18-Sep 8:30 AM Q2 -$125.0B -$137.3B - NAHB Housing Market Index Medium 18-Sep 10:00 AM 08-Sep 38 37 - MBA Mortgage Index Medium 19-Sep 7:00 AM 15-Sep NA 11.1% - Housing Starts Medium 19-Sep 8:30 AM Aug 775K 746K - Existing Home Sales Medium 19-Sep 10:00 AM Aug 4.55M 4.47M - Initial Claims Medium 20-Sep 8:30 AM 15-Sep 375K 382K - Philadelphia Fed Medium 20-Sep 10:00 AM Sep -5.0 -7.1 - Leading Indicators Medium 20-Sep 10:00 AM Aug 0.0% 0.4% -

Source: OW Risk Management