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 the Brent/ WTI spread continued to trade actively and narrowed to $13.88. The January WTI contract inched up +$0.18 to close at $97.38/bbl and Brent slumped -$0.90 to settle at $110.98/bbl. The US market remains supported by stronger than expected economic data which suggest a firmer demand for energy. However, the market stays cautious on fear that the US Federal Reserve could start reducing its stimulus measures as soon as the next meeting Dec. 18th. Today, all market focus will be on the US November Nonfarm Payroll and Unemployment Rate. The Fed has always said that a durable improvement in the Unemployment figures could make them decide to start to taper the bond buying program. This morning, crude prices are trading up for Brent (+0,50%) and marginally down (-0,19%)  for WTI.

Fueloil Specifics

The Northwest European bunker fuel oil prices weakened slightly yesterday with operation suspended in some ports due to storm warnings. Delivered 380cst product in Antwerp lost app.$1/mt and nearly $3/mt in Rotterdam. The Singapore fuel oil markets rose more than $3.0 during the Asian window yesterday despite the lower crude values. The Asian fuel oil crack strengthened considerably yesterday. The Singapore heavy residual inventory saw a slight build of +0.48 mbbl to 20.80 mbbl. The delivered bunker premiums fell to +$4.5 to +$5.5 above cargo prices on softer bunker demand. This morning both markets are trading lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,18 97,38 ↓ 97,51 97,48 97,20 97,40 96,18 94,89 ICE Brent Swap (1st month) (0,90) 110,98 ↑ 110,96 110,63 110,63 110,30 109,58 108,73 ICE Gasoil Swap (1st month) (3,50) 943,75 ↓ 944,25 942,83 940,75 942,61 934,67 931,85 3.5% Barges FOB Rtdm (4,75) 578,50 ↑ 584,75 586,50 587,50 586,25 588,75 587,50 3.5% Cargoes FOB Med (6,00) 567,75 ↑ 581,25 582,75 583,75 582,50 585,25 585,00 1.0% Cargoes FOB NWE (10,25) 616,25 ↑ 610,25 611,75 612,50 611,50 613,75 611,75 3% no. 6 USGC WB 0,08 90,55 ↑ 91,75 91,25 91,50 91,50 91,75 91,75 380 CST Cargoes FOB S'pore 2,75 605,25 ↑ 607,00 606,75 606,75 606,75 607,00 607,25 0.1 % GO Barges FOB Rtdm (4,00) 943,50 ↓ 945,25 944,25 942,25 944,25 935,25 932,25 Physical Rotterdam 380 CST (3,00) 584,00 ↑ 590,00 591,75 592,75 591,50 594,00 592,75 Physical Singapore 380 CST 1,25 609,75 ↑ 612,25 612,00 612,00 612,00 612,25 612,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 2-Dec 10:00 AM Nov 55.0 56.4 57.3 Construction Spending Medium 2-Dec 10:00 AM Oct 0.3% NA 0.8% ADP Employment Change Medium 4-Dec 8:15 AM Nov 175K 130K 215K Trade Balance Medium 4-Dec 8:30 AM Oct -$40.5B -$41.8B -$40.6B New Home Sales Medium 4-Dec 10:00 AM Oct 410K 354K 444K ISM Services Medium 4-Dec 10:00 AM Nov 55.0 55.4 53.9 Initial Claims Medium 5-Dec 8:30 AM 30-nov 335K 316K 298K GDP- 2nd Estimate High 5-Dec 8:30 AM Q3 3.1% 2.8% 3.6% Factory Orders Medium 5-Dec 10:00 AM Oct -1.0% 1.7% -0.9% Nonfarm Payrolls High 6-Dec 8:30 AM Nov 185K 204K - Unemployment Rate High 6-Dec 8:30 AM Nov 7.2% 7.3% - PCE Prices- Core Medium 6-Dec 8:30 AM Oct 0.1% 0.1% - Mich Sentiment High 6-Dec 9:55 AM Dec 77.0 75.1 - Consumer Credit Medium 6-Dec 3:00 PM Oct $15.0B $13.7B -

Source: OW Risk Management