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 oil prices closed higher yesterday on better than expected US inventory data and also a bullish looking US economic data. The US inventory data released yesterday reported more than expected crude and gasoline draws. The most notable was the Cushing crude stockpile draw of -1.83 mbbl- the ninth straight week of draws, bringing the total inventory to just below 35mbbl. Cushing; the physical delivery point for the WTI futures has been suffering from bottleneck issues previously and has seen the issue gradually easing. The US economic data showed some bright spots as the weekly jobless claims fell to 323k, below the expected 330k while the ADP reported 176k jobs created in August. Overall, the positive economic data proved to be a double edged sword which provide some level of support and yet capped higher gains as this would give more cases for US Federal Reserve tightening of the bond buying program. The October WTI futures closed at $108.37/bbl, up $1.14 and Brent settled at $115.26, inching $0.35. Today, we will see the August US nonfarm payroll and Unemployment Rate which will also be key data eyed by the US Federal Reserve. This morning, crude is trading higher with Brent above $115/bbl.

Fueloil Specifics

The NWE bunker fuel oil markets reporter relatively slow day yesterday. Demand remained subdued in Rotterdam while Antwerp saw some increased activity in the afternoon. Delivered 380cst product in the main ports traded slightly higher in the morning but dropped later in the day and closed unchanged. The Singapore fuel oil markets fell app. $2.0/mt during the morning Platts window yesterday. The Asian Fuel Oil cracks continued to weaken as fundamentals were soft. The delivered bunker premiums were higher at around +$3.0 above cargo prices yesterday as the softer prices attracted more buying. This morning both markets are trading slightly lower.

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) 1,14 108,37 ↑ 107,52 106,13 106,08 101,57 98,11 97,25 ICE Brent Swap (1st month) 0,35 115,26 ↑ 112,95 111,46 111,54 110,28 108,34 105,36 ICE Gasoil Swap (1st month) 3,00 963,75 ↓ 959,00 954,75 954,72 938,36 916,81 913,34 3.5% Barges FOB Rtdm (0,25) 597,00 ↓ 599,00 599,00 599,00 601,25 597,50 592,50 3.5% Cargoes FOB Med 0,00 598,25 ↓ 596,00 595,25 594,50 595,75 591,25 587,50 1.0% Cargoes FOB NWE 0,25 619,00 ↓ 622,50 625,50 625,25 629,00 625,25 618,75 3% no. 6 USGC WB 0,57 95,70 ↑ 94,25 94,25 94,00 94,00 93,45 92,50 380 CST Cargoes FOB S'pore (2,25) 605,00 ↓ 611,50 613,75 612,25 616,00 614,50 610,75 0.1 % GO Barges FOB Rtdm 2,50 962,00 ↓ 960,25 956,25 956,25 939,25 919,25 915,25 Physical Rotterdam 380 CST 0,00 600,00 ↓ 604,25 604,25 604,25 606,00 601,75 596,75 Physical Singapore 380 CST 0,00 608,25 ↓ 616,75 619,00 618,50 622,00 619,75 616,00

Focus of the day: Piraeus

Crude market was volatile this week and average CIF MED 3.5% was lower by $ 3.7. Activity in the East Med market was lower than expected, as everybody is waiting for the outcome regarding the crisis in Syria. Product and barge availability in Piraeus was good with most suppliers being able to accommodate even very prompt deliveries. Demand in Piraeus is still largely fuelled by the cruisers and the spot market has been rather quiet during the past few days. Istanbul avails were also very good this week with all physical suppliers offering for all grades of HSFO and gasoil 0.1%. The spread for HSFO 380 between Istanbul and Piraeus has narrowed down to $ 10-12 and the Turkish hub is regaining its competitiveness.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 3-Sep 10:00 AM Aug 53.0 55.4 55.7 Construction Spending Medium 3-Sep 10:00 AM Jul 0.3% -0.6% 0.6% Trade Balance Medium 4-Sep 8:30 AM Jul -$41.5B -$34.2B -$39.1B Fed's Beige Book Medium 4-Sep 2:00 PM Sep NA NA - Challanger Job Cuts Medium 5-Sep 7:30 AM Aug NA 2.3% 56.5% ADP Empoyment Cahnge Medium 5-Sep 8:15 AM Aug 210K 200K 176K Initial Claims Medium 5-Sep 8:30 AM 31-aug 335K 331K 323K Factory Orders Medium 5-Sep 10:00 AM Jul -4.0% 1.5% -2.4% ISM Services Medium 5-Sep 10:00 AM Aug 54.0 56.0 58.6 Nonfarm Payrolls High 6-Sep 8:30 AM Aug 210K 162K - Unemployment Rate High 0-Jan 8:30 AM Aug 7.5% 7.4% -

Source: OW Risk Management