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

The heavy selling continued yesterday with Crude Oil prices losing more than $3.0. Crude rebounded during the Asian session after the Bank of Japan followed in the footsteps of the US Federal Reserve with some stimulus. Nevertheless prices came off and the fall intensified after a bearish US inventory report. The crude stockpile reported a massive build of +8.5 mbbl against +1.0 mbbl expected. This coupled with Saudi Arabia, OPEC largest producer, announcement to commit to bring prices lower by increasing supply target to 10 mbpd and more if necessary. It was definitely another case of buy on rumors during the summer time and a sell on news after the Central banks announcement. The new front month November WTI futures closed at $91.98/bbl, down $3.31 while Brent fell $3.84 to $108.19/bbl yesterday. This morning crude is trading down.

Fueloil Specifics

The Northwest European bunker fuel oil prices fell sharply yesterday following crude’s downward path. Delivered 380cst product in Rotterdam was assessed down by more than $19/mt while cargo prices were even weaker, posting nearly $25/mt losses. Such dramatic fall in prices lead to low trading activity with buyers holding away from the market. The Singapore Fuel Oil markets fell more than $6.0 during the morning Platts window yesterday tracking the crude movement. The demand was said to be pretty firm on softening outright prices. The delivered bunker premiums were around $8.0 above cargo prices. Bunker fuel oil swaps posted app.$26/mt losses at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly stronger again, down by app.$23/mt. This morning both markets continue 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) (3.31) 91.98 ↓ 91.56 91.85 92.18 92.64 92.74 91.86 ICE Brent Swap (1st month) (3.84) 108.19 ↓ 107.02 106.45 105.93 104.97 103.53 106.47 ICE Gasoil Swap (1st month) (22.00) 958.25 ↓ 946.83 940.50 934.92 923.61 907.56 907.81 3.5% Barges FOB Rtdm (24.75) 618.75 ↓ 613.25 610.00 607.00 604.00 596.25 593.00 3.5% Cargoes FOB Med (25.50) 614.75 ↓ 606.25 603.50 601.00 598.75 592.25 589.00 1.0% Cargoes FOB NWE (26.50) 675.50 ↓ 662.50 654.75 648.75 641.25 631.00 627.75 3% no. 6 USGC WB (3.45) 96.60 ↓ 95.90 95.27 94.59 94.14 92.84 92.30 380 CST Cargoes FOB S'pore (6.25) 664.00 ↓ 637.00 633.75 631.00 627.50 620.25 616.75 0.1 % GO Barges FOB Rtdm (29.75) 956.25 ↓ 947.25 941.25 935.25 925.25 909.25 909.25 Physical Rotterdam 380 CST (19.00) 631.00 ↓ 623.50 620.25 617.25 613.75 606.50 603.25 Physical Singapore 380 CST (9.00) 673.00 ↓ 647.25 644.00 641.25 638.25 631.00 627.50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 17-Sep 8:30 AM Sep -3.0 -5.9 -10.4 Current Account Balance Medium 18-Sep 8:30 AM Q2 -$125.0B -$137.3B -$117.4B NAHB Housing Market Index Medium 18-Sep 10:00 AM 08-Sep 38 37 40 MBA Mortgage Index Medium 19-Sep 7:00 AM 15-Sep NA 11.1% -0.2% Housing Starts Medium 19-Sep 8:30 AM Aug 775K 746K 750K Existing Home Sales Medium 19-Sep 10:00 AM Aug 4.55M 4.47M 4.82K Initial Claims Medium 20-Sep 8:30 AM 15-Sep 375K 382K - Philadelphia Fed Medium 20-Sep 10:00 AM Sep -5.0 -7.1 - Leading Indicators Medium 20-Sep 10:00 AM Aug 0.0% 0.4% -

Source: OW Risk Management