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 continued their ascent on the prospect of extended monetary stimulus after the next Federal Reserve chairman testimony. The US inventory reported another larger than the expected crude build of +2.6 mbbl and Cushing stockpile also rose by +1.69 mbbl. The US weekly jobless claims also rose more than expected further depressing market sentiment. The December WTI contract settled at $93.76/bbl, slipping -$0.12 while the December Brent futures expired at $108.54/bbl, up +$1.42. The more actively traded January Brent contract rose +$1.39 to close at $108.28/bbl which resulted in Brent to WTI spread widening to $14.78, the widest since March this year. To add to the negative sentiment, disappointing growth figures in the Eurozone and Japan driven by weak export numbers have lower hopes that a global economic recovery would gather pace in the second half of the year. The International nuclear watchdog said that Iran has sharply slowed down the expansion of it is nuclear program the last three months. This morning, crude is trading marginally higher.

Fueloil Specifics

The NWE bunker fuel oil prices remained largely unchanged yesterday despite strengthening Brent. Suppliers in Rotterdam reported sluggish demand, continuous delays at loading installations and premiums as high as $8/mt for prompt deliveries. The Singapore fuel oil market only managed to lift marginally higher during the Platts window yesterday. The Asian Fuel Oil cracks continue to weaken while the short term Singapore fundamentals look pretty balance with occasional tightness. The delivered bunker premiums were seen in a range of $7.0 to $10.5 above cargo prices yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,12) 93,76 ↑ 94,58 94,87 95,02 94,94 94,28 93,44 ICE Brent Swap (1st month) 1,39 108,28 ↑ 108,24 107,80 107,39 107,01 106,25 105,42 ICE Gasoil Swap (1st month) 7,50 908,75 ↑ 911,17 911,33 910,50 910,85 907,25 904,63 3.5% Barges FOB Rtdm 2,50 568,50 ↑ 569,75 574,00 575,50 575,75 578,00 577,00 3.5% Cargoes FOB Med 3,25 569,75 ↑ 566,00 569,25 570,50 569,75 571,50 571,50 1.0% Cargoes FOB NWE 6,00 590,00 ↑ 596,00 599,00 601,00 600,75 603,00 601,00 3% no. 6 USGC WB (0,19) 88,41 ↑ 89,60 89,60 89,85 89,60 89,85 89,60 380 CST Cargoes FOB S'pore 2,50 594,50 ↑ 594,00 594,25 594,00 594,00 596,00 596,25 0.1 % GO Barges FOB Rtdm 7,50 907,50 ↑ 912,25 912,25 910,25 911,25 907,25 903,25 Physical Rotterdam 380 CST 0,00 574,00 ↑ 575,00 579,25 580,75 580,50 582,25 581,25 Physical Singapore 380 CST 1,75 601,50 ↑ 599,25 598,50 599,25 599,25 601,25 601,50

Focus of the day: Piraeus

Demand in Piraeus was weak this week, following the decrease in the number of cruisers calling the port. Spot demand was active though and, as rough weather caused disruptions in supplies in nearby ports, some vessels shifted to Piraeus for bunker only calls. Product and barge availability are very good in the greek port and both refineries are online; no supply disruptions are expected in the coming weeks. HSFO availability is very tight in Istanbul with most suppliers expecting replenishment in the beginning of next week. Prices for fuel oil are driven upwards by those suppliers still being able to offer, but we expect supply premiums to return to normal levels when the tight product situation is resolved in the next few days.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 13-Nov 7:00 AM 09-nov NA -7.0% -1.8% Treasury Budget Medium 13-Nov 2:00 PM Oct NA -$120.0B -$91.6B Initial Claims Medium 14-Nov 8:30 AM 09-nov 335K 336K 339K Trade Balance Medium 14-Nov 8:30 AM Sep -$38.5B -$38.8B -$41.8K Productivity- Prel Medium 14-Nov 8:30 AM Q3 0.5% 0.0% 1.9% Empire Manufacturing Medium 15-Nov 8:30 AM Nov 3.0 1.5 - Industrial Production Medium 15-Nov 9:15 AM Oct 0.2% 0.6% - Capacity Utilization Medium 15-Nov 9:15 AM Oct 78.4% 78.3% - Wholesale Inventories Medium 15-Nov 10:00 AM Sep -0.1% 0.5% -

Source: OW Risk Management