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 prices managed to close slightly higher yesterday. The October WTI contract rose +$0.17 to $95.53/bbl and Brent closed at $113.49/bbl, up +$0.40. The US DOE Inventory showed a massive crude draw of -7.43 mbbl, more than expected mainly due disruption caused by Hurricane Isaac. Market focus was on the ECB meeting where Mr Draghi did announce a bond purchasing program but nothing more than the market knew already. US weekly jobless came out lower and market is looking for today’s US labor US non-farm payroll for new jobs creations and the US unemployment. Markets will watch the FOMC decision next week more closely than usual. This morning, crude is trading slightly higher.

Fueloil Specifics

Bunker fuel oil prices were firming in Northwest European markets yesterday. Delivered 380cst product in Rotterdam was up app.$7/mt while cargo prices posted app. $6/mt gains. Higher prices resulted in low buying interest in main ports. The Singapore fuel oil market rose more than $3.0/mt during the morning Platts window yesterday. The delivered bunker premiums were around $8.0-9.0 above cargo prices. Bunker fuel oil swaps gained up to $8/mt at the front and a few dollars less at the backend of the forward curve both for Rotterdam and Singapore papers. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.17 95.53 ↑ 96.31 96.63 96.99 97.36 97.43 96.65 ICE Brent Swap (1st month) 0.40 113.49 ↑ 113.24 112.86 112.46 111.64 110.18 112.85 ICE Gasoil Swap (1st month) 9.25 990.75 ↓ 983.42 979.33 975.58 964.47 950.56 949.72 3.5% Barges FOB Rtdm 6.25 653.25 ↓ 648.00 644.25 641.00 636.00 628.50 624.25 3.5% Cargoes FOB Med 8.25 646.75 ↓ 641.75 638.75 636.25 631.25 624.00 619.75 1.0% Cargoes FOB NWE 9.50 717.75 ↓ 699.25 690.00 682.75 673.25 664.25 659.75 3% no. 6 USGC WB (0.10) 101.10 ↑ 101.25 100.75 100.25 97.67 96.37 97.03 380 CST Cargoes FOB S'pore 3.50 678.25 ↓ 670.75 667.25 664.50 659.75 652.25 647.75 0.1 % GO Barges FOB Rtdm 8.75 988.75 ↓ 983.25 979.25 976.25 965.25 952.25 951.25 Physical Rotterdam 380 CST 7.00 660.25 ↓ 658.25 654.50 651.25 646.25 638.75 634.50 Physical Singapore 380 CST 2.00 686.00 ↓ 681.00 677.50 674.75 670.50 663.00 658.50

Focus of the day: Piraeus

Week 36 was busy in Piraeus. The market was very volatile and this affected buying interest; demand was higher than expected. The liner/cruiser sector remains very active, but at the same time spot market activity is picking up rapidly. The port's barges met the increased demand easily and product availability has been very good for both HSFO and LSFO, after the tight 1% fuel situation of the past few weeks. Weather and supply conditions have been excellent. We expect demand to be high next week too.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 04-Sep 10:00 AM Aug 49.0 49.8 49.6 Construction Spending Medium 04-Sep 10:00 AM Jul 0.5% 0.4% -0.9% MBA Mortgage Index Medium 05-Sep 7:00 AM 01-Sep NA -4.3% -2.5% Productivity- Rev. Medium 05-Sep 8:30 AM Q2 1.8% 1.6% 2.2% Challanger Job Cuts Medium 06-Sep 7:30 AM Aug NA -44.5% -36.9% ADP Employment Change Medium 06-Sep 8:15 AM Aug 150K 163K 201K Initial Claims Medium 06-Sep 8:30 AM 01-Sep 375K 374K 365K ISM Services Medium 06-Sep 10:00 AM Aug 51.0 52.6 53.7 Nonfarm Payrolls High 07-Sep 8:30 AM Aug 140K 163K - Unemployment Rate High 07-Sep 8:30 AM Aug 8.2% 8.3% -

Source: OW Risk Management