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 prices continued to trade sideways and closed lower last Friday. The November WTI lost $0.99 to close at $102.02/bbl while Brent futures fell $0.52 to $111.28/bbl. There are no significant changes to the US negotiation standoffs among the US political parties. Even though proposals from both President Obama and Republicans have been considered as signs of progress, the final agreement remains unresolved. The US dollar remains weak and hence provides some level of support to US dollar denominated assets like gold and crude futures. US economic data is still delayed and release dates are uncertain. China’s consumer price index reported this morning surged up to 3.1% in September vs. 2.6% in August; a seven- month high though still below 3.5% official target for 2013. Chinese exports in September dropped unexpectedly 0.3% vs forecasted rise of 6%. Closely watched Chinese GDP for Q3 will be released on Friday. This morning, crude is trading mixed with Nov Brent some 0.15% down. Please note that US markets are closed for Columbus Day today.

Fueloil Specifics

The Northwest European bunker fuel oil prices fell slightly last Friday following general market trend. Delivered 380cst product in Rotterdam and Antwerp were assessed some $2-3/mt down versus previous close. Rotterdam suppliers reported good demand and improved avails. Most of them were able to offer for weekend deliveries and premiums eased significantly. On the other hand, Antwerp was struggling with both tight product avails and barge congestions. Many suppliers were not able to quote for deliveries before Tuesday. The Singapore fuel oil markets rose more than $6.0 during the Asian Platts window last Friday. The delivered bunker premiums were seen at app. $5.5-7.5/mt above cargo prices. Please note that Singapore market will be closed tomorrow for public holiday and will reopen on Wednesday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Jan Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,99) 102,02 ↑ 102,36 102,08 102,29 100,86 98,30 97,44 ICE Brent Swap (1st month) (0,52) 111,28 ↓ 110,03 109,34 109,35 108,69 108,05 105,50 ICE Gasoil Swap (1st month) 8,25 933,50 ↑ 937,92 934,42 930,92 928,31 917,53 914,23 3.5% Barges FOB Rtdm (3,50) 585,25 ↑ 588,75 586,25 589,00 588,25 585,50 583,00 3.5% Cargoes FOB Med (3,50) 582,00 ↑ 584,75 581,25 579,25 582,75 580,50 577,75 1.0% Cargoes FOB NWE 0,75 603,50 ↑ 606,25 609,00 612,00 612,25 612,00 608,00 3% no. 6 USGC WB (0,75) 92,40 ↑ 92,20 91,70 91,70 91,70 91,40 90,90 380 CST Cargoes FOB S'pore 6,75 619,00 ↑ 611,00 605,00 604,25 604,75 603,50 602,50 0.1 % GO Barges FOB Rtdm (10,75) 934,50 ↑ 939,25 935,25 932,25 928,25 917,25 914,25 Physical Rotterdam 380 CST (3,00) 590,00 ↑ 594,00 591,50 594,25 593,50 590,75 588,25 Physical Singapore 380 CST 8,00 624,50 ↑ 616,25 610,25 609,50 610,00 608,75 607,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 15-Oct 8:30 AM Oct 4.5 6.3 - Core CPI Medium 16-Oct 8:30 AM Sep 0.1% 0.1% - NAHB Housing Market Index Medium 16-Oct 10:00 AM Oct 57 58 - Initial Claims Medium 17-Oct 8:30 AM 12-Oct 320K 374K - Housing Starts Medium 17-Oct 8:30 AM Sep 900K 891K - Industrial Production Medium 17-Oct 9:15 AM Sep 0.3% 0.4% - Philadelphia Fed Medium 17-Oct 10:00 AM Oct 7.0 22.3 - Leading Indicators Medium 18-Oct 10:00 AM Sep NA 0.7% -

Source: OW Risk Management