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 rose yesterday supported by escalating geopolitical tensions between Turkey and Syria which raised fears over supply disruptions. The lower production supply in North Sea is also supportive for Brent futures as compared to the US production case where supply is stronger. Oil fields in the North Sea are coming back online from their seasonal maintenance but at a slower than expected pace. The spread between Brent and WTI is set to be stronger, currently above $23/bbl. The November WTI contract was up $0.82 to close at $92.07/bbl while Brent settled at $115.71/bbl, up by $1.38. The US jobless claims fell surprisingly to a four and half years low which lifted market sentiment amidst a mostly directionless week. Equities and the Euros were stronger yesterday which also supported crude futures. The US inventory showed a more bearish report with crude build of 1.68mbbl (0.78mbbl expected)based on increased domestic production and flat demand while distillates and gasoline were drawing more than expected, -3.18mbbl and -0.53mbbl respectively. In terms of data, we will look at US PPI and Michigan sentiment later this afternoon. This morning, crude is trading down.

Fueloil Specifics

The NWE fuel oil markets remained more or less flat during Thursday. High and low sulphur fuel oil prices in Rotterdam remained firm for prompt deliveries. Demand in the area continuously was reported as sluggish. The Singapore fuel oil market rose marginally between $1.0-3.0 during the morning Platts window yesterday. The latest Singapore heavy residual inventory reported a build of +1.7 mbbl to 19.61 mbbl. The delivered bunker premiums were seen around $4.5-5.5 above cargo prices. Bunker fuel oil swaps remained unchanged at the front and added a few dollars at the backend of the forward curve both for Rotterdam and Singapore papers. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Jan Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.82 92.07 ↓ 92.32 92.81 93.30 93.93 94.52 92.34 ICE Brent Swap (1st month) 1.38 115.71 ↓ 113.10 112.42 111.80 111.22 109.69 113.16 ICE Gasoil Swap (1st month) 0.00 1014.75 ↓ 992.50 981.50 972.08 962.15 942.95 941.16 3.5% Barges FOB Rtdm (0.25) 627.50 ↓ 623.75 623.75 624.25 623.75 619.25 616.75 3.5% Cargoes FOB Med 1.25 626.75 ↓ 618.75 618.25 617.25 618.75 615.25 612.75 1.0% Cargoes FOB NWE (0.50) 664.50 ↓ 656.75 657.25 657.75 657.25 652.50 650.00 3% no. 6 USGC WB 0.85 99.63 ↓ 97.52 97.32 97.12 97.11 96.32 95.87 380 CST Cargoes FOB S'pore 3.00 654.50 ↓ 647.25 646.75 647.25 647.00 643.00 640.25 0.1 % GO Barges FOB Rtdm 6.25 1029.00 ↓ 993.25 982.25 973.25 966.25 949.25 947.25 Physical Rotterdam 380 CST 0.00 634.75 ↓ 634.00 634.00 634.50 634.00 629.50 627.00 Physical Singapore 380 CST 3.00 658.75 ↓ 657.50 657.00 657.50 657.75 653.75 651.00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 10-Oct 10:00 AM Aug 0.5% 0.7% 0.5% Treasury Budget Medium 10-Oct 2:00 PM Sep NA -$62.8B - Initial Claims Medium 11-Oct 8:30 AM 06-Oct 375K 367K 339K Trade Balanace Medium 11-Oct 8:30 AM Aug -$44.6B -$42.0B -$44.2B Core PPI High 12-Oct 8:30 AM Sep 0.1% 0.2% - Mich Sentiment High 12-Oct 9:55 AM Oct 80.0 78.3 -

Source: OW Risk Management