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 are trading in a narrow range since the 16th of October low. Traders were positioning themselves in front of today’s FOMC announcement. The December WTI futures settled at $81.42/bbl, up +$0.42 and Brent recovered early loss by +$0.20 to close at $86.03/bbl. The September US Durable Goods Orders showed a contraction by -1.3% against an expected +0.2% but the October US Consumer Confidence jumped to a seven year high at 94.5 and the Richmond Fed Manufacturing Index to 20 from 11. Also Japan’s September Industrial output rose at the fastest pace in eight months in September adding to the positive mood. The US Energy department will release its Inventory Report later today and expectations are as follows: Crude +3.37 mbbl, Gasoline -0.99 mbbl, Distillates -1.16 mbbl. This morning, crude prices are trading firm 0,50% higher.

Fueloil Specifics

The NWE bunker fuel oil prices gained some strength yesterday following Brent values. Delivered 380cst product in the main ARA ports was assessed app. $2/mt higher vs previous close with Antwerp pricing at a premium of $3/mt compared to Rotterdam. The Singapore fuel oil prices extended gains by nearly $2.5 during the Asian Platts window yesterday tracking the crude values. The delivered bunker premiums came off to around $6.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) 0,42 81,42 ↑ 81,77 81,45 81,28 81,20 80,92 80,82 ICE Brent Swap (1st month) 0,20 86,03 ↑ 86,73 87,23 88,30 89,15 90,03 91,39 ICE Gasoil Swap (1st month) 2,00 739,75 ↑ 745,58 747,33 760,00 - - - LS ICE Gasoil Swap (1st month) - - ↑ - - - 766,75 776,11 778,16 3.5% Barges FOB Rtdm 0,50 449,25 ↑ 453,50 452,75 456,00 459,50 466,75 469,00 3.5% Cargoes FOB Med 1,75 457,00 ↑ 454,00 451,25 453,75 457,50 464,75 467,00 1.0% Cargoes FOB NWE 1,50 460,75 ↑ 461,00 460,25 462,50 466,50 474,75 477,50 3% no. 6 USGC WB 1,10 70,65 ↑ 71,15 71,37 71,57 72,06 73,15 74,07 380 CST Cargoes FOB S'pore 2,25 476,25 ↑ 480,75 480,75 481,00 483,50 488,50 491,50 0.1 % GO Barges FOB Rtdm 2,50 739,00 ↑ 745,25 746,25 759,25 755,25 763,25 766,25 Physical Rotterdam 380 CST 1,00 451,50 ↑ 463,75 463,00 466,25 467,75 476,00 479,25 Physical Singapore 380 CST 2,75 482,00 ↑ 491,00 491,00 491,25 491,75 497,75 501,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Goods Orders High 28-Oct 8:30 AM Sep 0.5% -18.4% -1.3% Case- Shiller 20-city Index Medium 28-Oct 9:00 AM Aug 5.5% 6.7% 5.6% Consumer Confidence High 28-Oct 10:00 AM Oct 87.0 86.0 94.5 FOMC Rate Decision High 29-Oct 2:00 PM Oct 0.25% 0.25% - Initial Claims Medium 30-Oct 8:30 AM 25-Oct 295K 283K - GDP-Adv. High 30-Oct 8:30 AM Q3 2.3% 4.6% - Personal Income Medium 31-Oct 8:30 AM Sep 0.4% 0.3% - PCE Prices- Core Medium 31-Oct 8:30 AM Sep 0.1% 0.1% - Chicago PMI Medium 31-Oct 9:45 AM Oct 58.0 60.5 - Michigan Sentiment Medium 31-Oct 9:55 AM Oct 85.5 86.4 -

Source: OW Risk Management