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

It was mixed closings for Crude prices on Friday. The October WTI futures expired at $104.67/bbl, losing -$1.72 and the November contract similarly down -$1.11 to $104.75/bbl. The November Brent futures on the other hand saw a marginal gain of +$0.46 to $109.22/bbl. The US dollar has come off more than 2.0% since the US Federal Reserve left –surprisingly- the current Bond buying program intact. However, one of the US Federal Reserve committee members mentioned that the tapering (of the Bond Buying program) could possibly be announced in October- depending on the future economic data- which created some level of caution back into the market. Many experts believe they will not move before beginning of 2014.  In German elections, Angela Merkel is heading for a big personal victory but probably still leaving her short of a majority at the government. The impact should be limited on the market though. The closely watched Chinese Manufacturing data this morning came out better than expected- at six months high which should give some support to Oil. This morning, crude prices are trading marginally lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw lower prices at the end of the week following weakening crude values. Delivered 380cst product in Antwerp was assessed app.$5/mt down vs previous close and a dollar more in Rotterdam. Suppliers continuously reported congestions at loading terminals leading to higher premiums for prompt deliveries. Antwerp reported difficulties with lsfo due to delays at some loading installations. The Singapore fuel oil markets saw marginal loss between -$1.0 to flat during the Asian Platts window last Friday. The latest Singapore heavy residual stockpile saw a draw of -1.05 mbbl to 22.56 mbbl. The delivered bunker premiums were between +2.0 to +$6.0 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) (1,11) 104,75 ↓ 104,33 103,24 103,15 99,65 96,97 96,13 ICE Brent Swap (1st month) 0,46 109,22 ↓ 108,63 107,77 107,00 106,26 105,56 102,98 ICE Gasoil Swap (1st month) (9,25) 925,25 ↓ 921,83 919,08 919,14 907,92 894,67 892,67 3.5% Barges FOB Rtdm (6,00) 587,00 ↑ 590,50 588,25 588,25 587,00 581,75 578,00 3.5% Cargoes FOB Med (12,00) 585,75 ↑ 586,50 583,00 583,00 581,25 575,50 572,75 1.0% Cargoes FOB NWE (7,25) 602,25 ↑ 607,00 610,00 609,75 613,00 608,50 603,00 3% no. 6 USGC WB 0,47 95,15 ↓ 92,80 92,30 92,05 91,55 90,75 89,80 380 CST Cargoes FOB S'pore 0,00 610,25 ↑ 611,00 606,75 606,50 602,50 599,75 597,25 0.1 % GO Barges FOB Rtdm (9,00) 924,00 ↓ 923,25 920,25 920,25 909,25 896,25 894,25 Physical Rotterdam 380 CST (6,00) 593,00 ↑ 595,75 593,50 593,50 591,75 586,00 582,25 Physical Singapore 380 CST 2,00 612,50 ↑ 616,25 612,00 612,75 608,50 605,00 602,50

Focus of the day: Gibraltar

Autumn has just started in Europe; however summer still lasts in the Gibraltar Strait, where deliveries are running smoothly this morning, with certain suppliers some 10hrs behind in Gibraltar but most well within schedule. Such weather conditions are expected to last for the rest of the week, which together with the current fine products avails and competitive bunker premiums should attract buying interest. CIF Med 3.5% is trading some 10 usd/mt above FOB Barges Rotterdam and the HILO is currently around to 25 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% at 20 usd/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller 20-city Index Medium 24-Sep 9:00 AM Jul 10.0% 12.1% - Consumer Confidence High 24-Sep 10:00 AM Sep 83.0 81.5 - MBA Mortgage Index Medium 25-Sep 7:00 AM 21-sep NA 11.2% - Durable Orders High 25-Sep 8:30 AM Aug -1.5% -7.4% - New Home Sales Medium 25-Sep 10:00 AM Aug 390K 394K - Initial Claims Medium 26-Sep 8:30 AM 21-sep 335K 309K - GDP- Third Estimate Medium 26-Sep 8:30 AM Q2 2.5% 2.5% - Pending Home Sales Medium 26-Sep 10:00 AM Aug -2.5% -1.3% - Personal Income Medium 27-Sep 8:30 AM Aug 0.2% 0.1% - PCE Prices- Core Medium 27-Sep 8:30 AM Aug 0.1% 0.1% - Michigan Sentiment- Final Medium 27-Sep 9:55 AM Sep 77.0 76.8 -

Source: OW Risk Management