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, disappointing Manufacturing data from Germany compounded with the IMF lowering its global growth estimate for 2015 from 4.0% to 3.8%, sent Crude prices lower. IMF also estimated that there is now a four in 10 chance that the Eurozone will slide into a third recession since the financial crisis. The November WTI contract lost -$1.49 to settle at $88.85/bbl while Brent futures erased previous gains falling -$0.68 to $92.11/bbl. The EIA Short Term Oil Demand was also reduced for both 2014 and next year. Daily exports of North Sea Brent will increase by around 8% in November and average 980k b/d, the highest loadings since Nov 2013, making it more difficult for African producers to find outlets for their crude. China resumed trading after their week National Holiday. The US Energy Department will release its Weekly Inventory Report later in the afternoon and the expectations are as follows: Crude +1.53mbbl, Gasoline -1.00mbbl, Distillates -1.10mbbl. This morning, crude is trading around -1,1% lower.

Fueloil Specifics

The NWE bunker fuel oil markets closed another day with tight product avails and delays at loading installations. Delivered 380cst product was assessed app.$2/mt down both in Antwerp and Rotterdam however, the delivered premium over ex-warf prices for hsfo topped $20/mt. The Singapore fuel oil prices lost more than -$12.5 during the Asian Platts window yesterday after a long weekend. Bunker demand was strong and delivered bunker premiums were hovering between +$8.0 and +$9.5 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) (1,49) 88,85 ↓ 86,64 86,14 85,82 85,56 85,05 85,17 ICE Brent Swap (1st month) (0,68) 92,11 ↓ 91,78 92,28 92,71 93,37 93,94 93,96 ICE Gasoil Swap (1st month) (1,75) 777,00 ↓ 777,67 781,08 792,92 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 798,86 807,67 809,95 3.5% Barges FOB Rtdm (7,75) 505,00 ↓ 493,50 491,50 495,50 498,25 503,00 504,00 3.5% Cargoes FOB Med (2,75) 510,00 ↓ 491,50 489,00 491,00 496,25 501,00 501,75 1.0% Cargoes FOB NWE (3,25) 514,00 ↓ 501,00 499,25 503,25 506,25 512,25 513,75 3% no. 6 USGC WB (1,27) 79,20 ↓ 77,95 77,72 77,95 79,11 79,57 79,78 380 CST Cargoes FOB S'pore (12,75) 533,50 ↓ 518,50 517,75 518,75 520,00 523,25 525,00 0.1 % GO Barges FOB Rtdm (0,50) 776,50 ↓ 777,25 780,25 792,25 788,25 797,25 800,25 Physical Rotterdam 380 CST (2,00) 528,50 ↓ 498,75 496,75 500,75 502,50 507,25 508,25 Physical Singapore 380 CST (12,75) 541,50 ↓ 523,75 523,00 524,00 525,25 528,50 530,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Oct 3:00 PM Aug $20.0B $26.0B $13.5B Initial Claims Medium 9-Oct 8:30 AM 4-Oct 295K 287K - Continuing Claims Medium 9-Oct 8:30 AM 27-sep 2425K 2398K - Wholesale Inventories Medium 9-Oct 10:00 AM Aug 0.3% 0.1% - Treasury Budget Medium 10-Oct 2:00 PM Sep NA $75.1B -

Source: OW Risk Management