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 recover pushed by renewed market nervousness about looming Military strike in Syria. There were also reported oil supply outages in traditional oil exporting countries like Libya, South Sudan, Iraq and Nigeria. A tighter global supply scenario and  US President Obama looking for members from the House of Representatives for a  strike on Syria keep the bullish momentum alive. Saudi Arabia, OPEC largest producer, has pledged to ramp up production to a record high of 10.5 mbpd to balance the shortfall.  On the economic side recent positive manufacturing data from US and also China's service sector is showing that world economy is recovering although at a slow pace.  The October WTI futures closed at $108.54/bbl, +$0.89 and Brent settled at $115.68, up +$1.35. The US inventory report by the Energy Department will be delayed by one day due to the public holiday on Monday and  will be released tomorrow. This morning, crude prices are trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported one more slow day with prices remaining largely unchanged from previous day. Delivered 380cst product in Rotterdam and Antwerp gained some $1-2/mt. The Singapore fuel oil markets slipped more than $0.5 during the Asian Platts window yesterday. The delivered bunker premiums were around +$4.0 above cargo prices amidst volatile crude movements after the window. Bunker fuel oil swaps posted up to $5/mt gains at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly weaker, assessed up by app.$3/mt. Visco spread gained some strength on spot and closed at $6.33/mt yesterday. Balance September is trading at $7.0 while forward prices remain stable trading in a range of $7.5-8.0/mt for the rest of the year. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,89 108,54 ↓ 107,83 106,95 105,52 105,51 101,44 97,03 ICE Brent Swap (1st month) 1,35 115,68 ↓ 114,54 112,79 111,41 110,21 108,19 105,00 ICE Gasoil Swap (1st month) 1,75 960,25 ↑ 961,92 959,67 954,83 954,78 938,83 914,16 3.5% Barges FOB Rtdm 3,75 596,00 ↑ 598,00 599,00 599,25 599,75 602,25 593,00 3.5% Cargoes FOB Med 4,75 594,50 ↑ 596,25 595,50 595,25 594,25 596,25 588,00 1.0% Cargoes FOB NWE 6,25 617,00 ↑ 620,00 623,75 626,00 625,75 629,25 618,75 3% no. 6 USGC WB 0,79 96,07 ↑ 94,85 94,35 93,85 93,85 93,80 92,35 380 CST Cargoes FOB S'pore (0,75) 601,75 ↑ 611,25 614,25 615,75 616,00 619,75 613,00 0.1 % GO Barges FOB Rtdm 3,50 960,50 ↑ 963,25 961,25 956,25 956,25 940,25 915,25 Physical Rotterdam 380 CST 1,00 597,00 ↑ 603,25 604,25 604,50 604,50 606,50 597,25 Physical Singapore 380 CST 0,50 607,00 ↑ 616,50 619,50 622,00 622,00 625,00 618,25

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 - 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% - ADP Empoyment Cahnge Medium 5-Sep 8:15 AM Aug 210K 200K - Initial Claims Medium 5-Sep 8:30 AM 31-aug 335K 331K - Factory Orders Medium 5-Sep 10:00 AM Jul -4.0% 1.5% - ISM Services Medium 5-Sep 10:00 AM Aug 54.0 56.0 - 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