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 sold off last Friday, closing more than $2.0 lower. The December WTI futures fell $2.23 to $84.86/bbl, while Brent closed down -$2.49 at $105.68/bbl. Europe is looking at Greece difficulties to get a parliament approval for another 13,5Bln-euro austerity package, although rumors say that Greece will get 2 years extension in exchange to meet its budget targets. The Euro/Usd plunged bringing lower Commodities and Equities. This, despite a better than expected US Nonfarm Payroll, adding 171k more jobs in October. It is –for now-all about being risk –averse and with uncertainties surrounding the US elections on Tuesday and the Greek vote on Wednesday. In terms of data it is a slow start of the week: the October UK PMI Services came out lower at 50,2 vs 54,5 exp. and the USM ISM Non- Manufacturing Composite will be published later in the day. This morning, crude is trading down.

Fueloil Specifics

The NWE bunker fuel oil markets closed the week bearish. Both delivered 380cst product in Rotterdam and cargo prices were assessed more than $10/mt down following Brent crude that weakened almost $2/bbl. Demand was sluggish in the area as many market participants were attending industry event in Hamburg. The Singapore fuel oil markets dropped between -$5.0 to -$2.5 during the morning Platts window last Friday. The Singapore fuel oil is still weak on demand while supply remains ample. The delivered bunker premiums were around $5.0-6.0 above cargo prices last Friday. Bunker fuel oil swaps posted app.$10/mt loss at the front of the forward curve for Rotterdam papers and a few dollars more for Singapore. Backend of the curve was stronger for both papers, assessed down by app.$9/mt. 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) (2.23) 84.86 ↓ 84.79 85.31 85.91 86.46 87.75 87.82 ICE Brent Swap (1st month) (2.49) 105.68 ↓ 104.94 104.30 103.82 103.45 102.37 101.80 ICE Gasoil Swap (1st month) (17.25) 925.00 ↓ 917.33 915.58 912.50 908.89 898.53 896.65 3.5% Barges FOB Rtdm (10.25) 577.00 ↓ 569.50 569.25 571.50 573.25 573.75 573.75 3.5% Cargoes FOB Med (9.75) 573.75 ↓ 563.50 563.25 563.00 568.50 569.75 568.75 1.0% Cargoes FOB NWE (8.00) 609.00 ↓ 598.00 598.75 601.00 602.75 603.25 602.25 3% no. 6 USGC WB (2.20) 90.73 ↓ 89.56 88.86 89.09 89.09 88.64 88.73 380 CST Cargoes FOB S'pore (3.00) 609.00 ↓ 595.50 594.50 595.25 597.00 597.75 596.50 0.1 % GO Barges FOB Rtdm (19.50) 922.75 ↓ 917.25 916.25 913.25 910.25 900.25 898.25 Physical Rotterdam 380 CST (10.00) 586.25 ↓ 579.75 579.50 581.75 583.50 584.00 583.00 Physical Singapore 380 CST (3.00) 615.00 ↓ 605.75 604.75 605.50 607.75 608.50 607.25

Focus of the day: Gibraltar

The Gibraltar Strait is running more or less fine this morning, with only three vessels queuing outside Gibraltar, that are expected to be called in shortly. Trading wise the market is relatively quiet this morning. With the new cargo arrivals the hub enjoys good avails of all products, including LSFO. CIF Med 3.5% is trading some 12 usd above FOB barges Rotterdam this morning and the HILO spread is widening since last week up to 41 usd. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Service Medium 05-Nov 10:00 AM Oct 54.5 55.1 - MBA Mortgage Index Medium 07-Nov 7:00 AM 03-Nov NA -4.8% - Consumer Credit Medium 07-Nov 3:00 PM Sep $10.0B $18.1B - Initial Claims Medium 08-Nov 8:30 AM 03-Nov 370K 363K - Trade Balance Medium 08-Nov 8:30 AM Sep -$45.4B -$44.2B - Michigan Sentiment Medium 09-Nov 9:55 AM Nov 83.5 82.6 - Wholesale Inventories Medium 09-Nov 10:00 AM Sep 0.7% 0.5% -

Source: OW Risk Management