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

Yesterday Crude prices softened slightly as worries on the state of the global economy were stronger than geopolitical tensions in the Middle East. The December WTI futures fell -$0.87 to close at $85.45/bbl and is expiring later today while the January WTI futures closed $85.95/bbl yesterday. The December Brent futures surged up +$1.39 to expire at $110.98/bbl and January Brent futures closed at $108.01/bbl, down -$0.77 yesterday. Equities fell sharply after weaker than expected Quarter results from Wal Mart and fears of no quick agreement about the “fiscal cliff” in the US. Adding pressure, the US weekly jobless claims rose more than expected but Hurricane Sandy impact may have distorted the numbers. The Weekly Inventory report from the Department of Energy show a smaller build of +1.1 mbbl against +1.9 mbbl expected. The distillates draw more than expected at -2.5 mbbl. The impact of the inventory report on Crude Oil prices was muted as the general economy and geopolitical news in Middle East take the center stage. This morning, Brent is trading up.

Fueloil Specifics

The NWE fuel oil prices firmed yesterday. Cargo prices were assessed app.$3/mt up from previous day close while delivered 380cst product in Rotterdam was a few dollars stronger. Higher prices let to subdued trading activity in most of the ports in the area. Rotterdam continued to report operational delays at loading installations. The Singapore markets rose more than +$6.5 during the Platts window yesterday. The Singapore heavy residual inventory rose +0.32 mbbl to 21.24 mbbl; a three week high as more incoming cargoes flood the republic. The delivered bunker premiums were around +$5.0 to $7.0 above cargo prices. Bunker fuel swaps gained app.$2/mt at the front of the forward curve both for Rotterdam and Singapore papers. Back end was a few cents weaker. this morning both markets are trading down.

Settlement & Indications

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.87) 85.45 ↓ 85.80 86.39 87.00 86.96 88.30 88.40 ICE Brent Swap (1st month) 1.37 108.01 ↑ 107.70 107.07 106.56 106.58 105.30 104.77 ICE Gasoil Swap (1st month) 2.75 931.00 ↓ 926.42 926.33 923.83 923.42 915.25 914.34 3.5% Barges FOB Rtdm 3.00 590.50 ↓ 585.00 587.75 589.75 589.75 593.25 592.25 3.5% Cargoes FOB Med 2.00 580.00 ↓ 576.25 581.25 581.00 584.00 587.75 588.00 1.0% Cargoes FOB NWE 3.25 611.25 ↓ 608.00 612.50 615.25 615.25 620.50 619.50 3% no. 6 USGC WB (0.30) 92.48 ↓ 91.70 91.90 92.05 92.29 92.21 92.06 380 CST Cargoes FOB S'pore 7.50 610.75 ↓ 609.25 611.25 613.50 613.25 617.25 616.25 0.1 % GO Barges FOB Rtdm 3.75 928.50 ↓ 926.25 926.25 924.25 924.25 915.25 913.25 Physical Rotterdam 380 CST 5.00 600.00 ↓ 595.25 598.00 600.00 600.00 603.50 602.50 Physical Singapore 380 CST 7.50 615.75 ↓ 619.50 621.50 623.75 624.00 628.00 627.00

Focus of the day: Piraeus

This was another busy week in Piraeus. Crude market was going up and average CIF MED 3.5% was higher by $4.3 compared to last week. The rising cargo prices boosted buying interest and many large volume enquiries were brought into the market; barges were able to accommodate the increased demand, with only two suppliers reporting to be fully committed until the beginning of the next week. Product availability is very good for all HSFO grades. Hellenic Petroleum Refinery still remains dry on LSFO 1% and it is only through MOH that some lots of low sulphur fuel can be sourced. This situation is expected to be resolved in the next few days, when replenishment cargo will arrive to the refinery.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 13-Nov 2:00 PM Oct -$113.0B -$98.5B -$120.0B Retail Sales High 14-Nov 8:30 AM Oct -0.4% 1.1% -0.3% Core PPI High 14-Nov 8:30 AM Oct 0.1% 0.0% -0.2% Business Inventories Medium 14-Nov 10:00 AM Sep 0.6% 0.6% 0.7% FOMC Minutes High 14-Nov 2:00 PM 24-Oct - - - Initial Claims Medium 15-Nov 8:30 AM 10-Nov 475K 355K 439K Core CPI High 15-Nov 8:30 AM Oct 0.1% 0.1% 0.2% Empire Manufacturing Medium 15-Nov 8:30 AM Nov -8.0 -6.2 -5.2 Philadelphia Fed Medium 15-Nov 10:00 AM Nov -2.0 5.7 -10.7 Industrial Production Medium 16-Nov 9:15 AM Oct 0.0% 0.4% - Capacity Utilization Medium 16-Nov 9:15 AM Oct 78.3% 78.3% -

Source: OW Risk Management