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 corrected yesterday with the US WTI Oil contract losing more than -$2.0 and reaching a five months low. Asian stocks fell heading for a five-week low after China’s communist party four –day “plenum” intended to map direction for the next decade disappointed, showing no change in the state dominance of the economy and amid bets that the US Federal Reserve may start reducing stimulus next month. The December WTI futures settled at $93.04/bbl and Brent slipped -$0.59, to close at $105.81/bbl. The Brent/WTI spread widened to $13.0.  Pressure on Oil prices is also coming from oil stocks as tomorrow’s US DOE inventory report could show that inventories rose to the highest since June. This morning, crude prices are trading around +0,40% .

Fueloil Specifics

The NWE bunker fuel oil prices fell slightly yesterday following weakening fuel oil cracks. Delivered 380cst product both in Rotterdam and Antwerp was assessed app. $2/mt down versus previous close. Both ports reported relatively busy day. Suppliers in Antwerp continuously struggled with prompt inquiries due to busy barge schedule. Situation is expected to improve at the beginning of the next week. The Singapore fuel oil markets were trading mixed yesterday ranging form -$1.0 to +$0.5 during the morning Platts window. The delivered bunker premiums softened to between +$8.5 to $10.0 above cargo prices as buying interest was low. Bunker fuel oil swaps lost app. $3.0-1.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. The backend was slightly stronger, closing the day largely unchanged. Visco spreads remain on the low side at the front and spot closed at $3.64/mt yesterday. Bal November is trading at app. $3.5 while forward prices remain stable trading in a range of $7.00-7.75/mt for cal14. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) (2,10) 93,04 ↑ 94,02 94,26 94,33 94,27 93,34 92,47 ICE Brent Swap (1st month) (0,59) 105,81 ↑ 106,03 105,61 105,63 105,27 104,28 103,75 ICE Gasoil Swap (1st month) - 894,75 ↓ 893,67 894,17 892,58 893,56 889,56 887,97 3.5% Barges FOB Rtdm (2,25) 567,25 ↓ 563,50 566,50 566,50 567,00 567,00 565,75 3.5% Cargoes FOB Med (2,00) 566,75 ↓ 558,75 561,25 560,75 560,25 560,00 559,75 1.0% Cargoes FOB NWE (1,00) 583,75 ↓ 586,50 589,50 590,00 590,00 591,00 588,75 3% no. 6 USGC WB (1,00) 89,70 ↑ 89,05 88,80 89,05 88,80 88,55 88,55 380 CST Cargoes FOB S'pore (0,75) 597,50 ↓ 588,25 586,50 585,25 585,25 585,00 585,00 0.1 % GO Barges FOB Rtdm (8,00) 894,50 ↓ 895,25 895,25 894,25 895,25 891,25 889,25 Physical Rotterdam 380 CST (2,00) 573,25 ↓ 568,75 571,75 571,75 571,75 571,25 570,00 Physical Singapore 380 CST (1,00) 607,00 ↓ 593,50 590,75 590,50 590,50 590,25 590,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 13-Nov 7:00 AM 09-nov NA -7.0% - Treasury Budget Medium 13-Nov 2:00 PM Oct NA -$120.0B - Initial Claims Medium 14-Nov 8:30 AM 09-nov 335K 336K - Trade Balance Medium 14-Nov 8:30 AM Sep -$38.5B -$38.8B - Productivity- Prel Medium 14-Nov 8:30 AM Q3 0.5% 0.0% - Empire Manufacturing Medium 15-Nov 8:30 AM Nov 3.0 1.5 - Industrial Production Medium 15-Nov 9:15 AM Oct 0.2% 0.6% - Capacity Utilization Medium 15-Nov 9:15 AM Oct 78.4% 78.3% - Wholesale Inventories Medium 15-Nov 10:00 AM Sep -0.1% 0.5% -

Source: OW Risk Management