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 rose yesterday amid hopes the White House and the Republicans are finally nearing a deal to lift the US debt ceiling and avoid a potential technical default by the world’s largest economy. Market also spiked on geopolitical news that the Libyan Prime Minister was kidnapped by former rebels triggering supply concerns. War rhetoric out of Israel on the social media also injected fear into the market lifting prices higher. The combination of events drove the market higher on close yesterday. The November WTI contract was up $1.40 to close at $103.01/bbl while Brent surged up $2.74 to $111.80/bbl. The US weekly jobless claims rose higher at 374K against expected 312K while other economic data remains delayed due to the partial closure of the US government. This morning, crude prices are trading down.

Fueloil Specifics

The NWE bunker fuel oil prices rose yesterday following general market trend. Delivered 380cst product both in Rotterdam and Antwerp was assessed nearly $8/mt higher compared to previous days close. Suppliers reported increased demand as buyers were eager to fix their stems before further price increase. Premiums for prompt deliveries eased slightly as product avails improved in Rotterdam. The Singapore fuel oil market rose some $1.0- 2.0 during the Asian Platts window yesterday. The latest heavy residual inventory saw a slight draw -0.13 mbbl to 21.85 mbbl. Delivered bunker premiums were between $4.5 to $6.5 above cargo prices. Bunker fuel oil swaps gained up to $12.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was app.$1/mt weaker. Visco spread remains weak on spot and closed at $2.24/mt yesterday. Balance October is trading at app. $3.0-3.50 while forward prices remain stable trading in a range of $7.0-7.5/mt for cal14. 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) 1,40 103,01 ↓ 101,53 101,14 101,46 99,98 98,03 97,08 ICE Brent Swap (1st month) 2,74 111,80 ↓ 110,21 109,48 109,51 108,84 108,22 105,71 ICE Gasoil Swap (1st month) 20,25 945,50 ↓ 938,25 935,00 931,67 927,61 915,58 912,85 3.5% Barges FOB Rtdm 12,00 588,75 ↑ 588,75 586,00 588,75 588,50 586,25 583,75 3.5% Cargoes FOB Med 10,25 586,25 ↑ 584,75 581,00 578,50 581,50 579,25 577,50 1.0% Cargoes FOB NWE 18,00 603,25 ↑ 605,25 608,00 611,00 611,25 611,00 607,50 3% no. 6 USGC WB 1,90 93,15 ↑ 92,45 91,95 91,95 91,70 91,40 90,90 380 CST Cargoes FOB S'pore 2,00 612,75 ↑ 609,25 605,00 604,75 605,25 604,50 603,25 0.1 % GO Barges FOB Rtdm 19,00 945,00 ↓ 939,25 936,25 933,25 929,25 917,25 914,25 Physical Rotterdam 380 CST 8,00 592,75 ↑ 594,00 591,25 594,00 593,25 590,50 588,00 Physical Singapore 380 CST 1,75 616,50 ↑ 614,50 609,25 609,00 609,50 608,75 607,50

Focus of the day: Piraeus

Demand in Piraeus was lower this week and mainly supported by cruisers and containers. The spot market was slower but we expect an increase in demand in the coming days, as all of next week is a national holiday in Turkey and business in Istanbul is expected to be very low. Istanbul product avails turned very tight this week, with most suppliers having sold all their product and being unable to quote before receiving replenishment earliest next week. Suppliers that had some product left in the storage quoted way above market, bringing prices to very high levels compared to other East Med ports. CIF MED 3.5% weekly average was lower by $ 9.15 compared to last week.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Oct 3:00 PM Aug $12.0B $10.4B $13.6B Non-farm Payrolls High - - Sep 180K 169K - Unemployment Rate High - - Sep 7.3% 7.3% - Trade Balance Medium - - Aug -$40.0B -$39.1B - Wholesale Inventories Medium - - Aug 0.2% 0.1% - Initial Claims Medium 10-Oct 8:30 AM 5-Oct 315K 308K 374K Treasury Budget Medium 10-Oct 2:00 PM Sep NA $75.18B 2905K Retail Sales Medium 11-Oct 8:30 AM Sep -0.1% 0.2% - Core PPI Medium 11-Oct 8:30 AM Sep 0.1% 0.0% - Mich Sentiment High 11-Oct 9:55 AM Oct 73.0 77.5 - Business Inventories Medium 11-Oct 10:00 AM Aug 0.2% 0.4% -

Source: OW Risk Management