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 continues to trade in a range bound fashion after the recent price decline. There is some support coming from Iraq where fighting increased in the Oil rich part. The February WTI Oil contract inched up +$0.24 to $93.67/bbl and Brent +$0.62 to settle at $107.35/bbl. The American shale Oil revolution helped to push down the November US Trade Balance to -$34bln, the lowest level in four years, increasing calls to relax the restriction on Crude US oil exports. This also prompted some economists to upgrade their US 4th quarter growth previsions. API Weekly numbers showed a big draw of -7mios bbl on Crude but builts of above 5mios in Gasoline and Distillates. The Department of Energy will release its Inventory Report later today and expectations are as follows: Crude -0.89 mbbl, Distillates +1.90 mbbl, Gasoline +2.28 mbbl. In terms of economic data we will have the November Factory Orders from Germany and the US December ADP Employment figures which is a precursor to the weekly jobless claims numbers tomorrow. Also the Federal Reserve will release the Minutes from Dec17-18 FOMC meeting. This morning, crude prices are trading marginally higher.

Fueloil Specifics

Despite slightly stronger Brent values the NWE bunker fuel oil prices fell yesterday. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$6/mt down vs previous close. Suppliers in both ports reported average demand and good hsfo avails while Antwerp was struggling with limited lsfo product for prompt deliveries. The Singapore fuel oil markets managed a slight increase of app.$1/mt during the Asian Platts window yesterday. Market is expected to tighten with fewer incoming cargoes from the West. The delivered bunker premiums were seen at app. $6.5 above cargo prices yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) 0,24 93,67 ↑ 93,90 93,72 93,34 92,70 90,73 88,79 ICE Brent Swap (1st month) 0,62 107,35 ↑ 107,05 106,74 103,58 106,03 104,65 103,58 ICE Gasoil Swap (1st month) 0,25 910,50 ↑ 909,58 906,58 904,67 901,97 897,86 892,47 3.5% Barges FOB Rtdm (0,50) 561,50 ↑ 568,50 568,50 568,25 568,00 566,25 562,50 3.5% Cargoes FOB Med 0,25 567,75 ↑ 566,25 566,25 566,00 565,75 560,00 563,50 1.0% Cargoes FOB NWE 4,50 586,00 ↑ 586,50 588,50 589,75 590,25 589,50 582,75 3% no. 6 USGC WB 0,01 88,55 ↑ 89,00 89,00 89,25 88,75 88,75 88,50 380 CST Cargoes FOB S'pore 0,50 599,25 ↑ 594,50 591,50 589,75 589,00 587,25 585,50 0.1 % GO Barges FOB Rtdm 1,00 910,25 ↑ 911,25 908,25 905,25 902,25 899,25 893,25 Physical Rotterdam 380 CST (6,00) 570,00 ↑ 573,75 573,75 573,50 573,25 571,50 567,75 Physical Singapore 380 CST 0,50 606,25 ↑ 599,75 596,75 595,00 594,25 592,50 590,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 6-Jan 10:00 AM Nov 2.0% -0.9% 1.8% ISM Services High 6-Jan 10:00 AM Dec 53.0 53.9 53.0 Trade Balance Medium 7-Jan 8:30 AM Nov -$41.5B -$40.6B -$34.3B ADP Employment Change Medium 8-Jan 8:15 AM Dec 185K 215K - FOMC Minutes High 8-Jan 2:00 PM 18-dec - - - Consumer Credit Medium 8-Jan 3:00 PM Nov $15.0B $18.2B - Nonfarm Payrolls High 10-Jan 8:30 AM Dec 185K 203K - Unemployment Rate High 10-Jan 8:30 AM Dec 7.1% 7.0% - Wholesale Inventories Medium 10-Jan 10:00 AM Nov -0.2% 1.4% -

Source: OW Risk Management