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

WTI and Brent crude futures moved in opposite directions which translated into a wider spread ($4,90). Brent futures prices remain supported by supply disruptions and worries in Middle East with notably Libya and Egypt in focus. With commodities and Equities falling, it is probably a pre-positioning before the US Federal Reserve FOMC Minutes release today as many are expecting a scale down of the stimulus program. The October WTI contract fell -$1.75 to settle at $105.11/bbl and Brent managed to stay above the black inching up +$0.25 to $110.15/bbl. The US Energy department will release its  inventory report later today and expectations are as follows: Crude -0.96 mbbl, Distillates +0.86 mbbl, Gasoline -1.49 mbbl. Market will probably react more to the US Federal Reserve than the inventory data. This morning, crude prices are trading around 0,70% down.

Fueloil Specifics

Bunker fuel oil prices fell app.$5/mt in both Rotterdam and Antwerp ports yesterday. Suppliers reported firming demand and busy barge schedules. This resulted in tight hsfo prompt avails. Delivered premiums were heard to rise up to $6/mt. Antwerp suppliers reported tightening lsfo avails with earliest deliveries from Aug 23-25 onwards. The Singapore fuel oil markets fell more than $7.0 during the Asian Platts window yesterday. Market remained weak and saw strong selling pressure on the window which weakened the Asian fuel oil crack. The delivered bunker premiums were around $5.0 above cargo prices yesterday. This morning both markets are trading a few dollars down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) (1,75) 105,11 ↓ 104,39 103,68 102,58 102,53 99,21 96,05 ICE Brent Swap (1st month) 0,25 110,15 ↓ 108,91 107,98 107,21 106,54 105,35 102,93 ICE Gasoil Swap (1st month) (3,50) 938,75 ↓ 934,50 932,58 928,33 928,50 914,97 896,69 3.5% Barges FOB Rtdm (5,50) 594,25 ↓ 590,50 588,75 587,25 587,75 588,50 581,75 3.5% Cargoes FOB Med (7,00) 591,00 ↓ 585,75 585,00 583,00 582,00 582,00 577,00 1.0% Cargoes FOB NWE (3,00) 613,75 ↓ 613,00 616,00 616,25 616,00 617,25 608,50 3% no. 6 USGC WB (0,23) 92,50 ↓ 92,25 92,25 91,75 91,70 91,40 91,20 380 CST Cargoes FOB S'pore (7,25) 603,00 ↓ 608,25 609,00 608,00 607,75 607,50 602,25 0.1 % GO Barges FOB Rtdm (2,00) 936,25 ↓ 936,25 934,25 929,25 930,25 917,25 898,25 Physical Rotterdam 380 CST (5,00) 599,25 ↓ 595,75 594,00 592,50 592,50 592,75 586,00 Physical Singapore 380 CST (6,75) 608,25 ↓ 613,50 614,25 614,25 613,75 612,75 607,50

Focus of the day: Singapore

Singapore’s onshore residual fuel oil stocks were climbing last week and jumped more than 3.5% to 20.985million barrels. Observers said that recent increase was expected as more than 12million mt have been arriving in the region during the last 2 months. Relatively low demand was another factor. Singapore RMG 380 is trading around $600pmt levels and we do foresee an increase in demand as compared to a week ago. The Maritime and Port Authority in Singapore advised that due to the presence of haze, the visibility in the area could be significantly reduced. Earliest supplies are from 24th-25th August onwards.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-Aug 7:00 AM 17-aug NA -4.7% - Existing Home Sales Medium 21-Aug 10:00 AM Jul 5.00M 5.08M - FOMC Minutes Medium 21-Aug 2:00 PM 31-jul - - - Initial Claims Medium 22-Aug 8:30 AM 17-aug 345K 320K - Leading Indicators Medium 22-Aug 10:00 AM Jul 0.5% 0.0% - New Home Sales Medium 23-Aug 10:00 AM Jul 475K 497K -

Source: OW Risk Management