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

Market was quiet yesterday with Brent crude prices largely unchanged as US markets were closed for Thanksgiving.  While the US markets reopens later today, we are likely to see light trading volumes anyway going into the week-end. The January Brent contract erased its previous gains, losing -$0.45 to close at $110.86/bbl. Market is still skeptical that Iran will oblige to the agreement with the West regarding its nuclear program. If done, some more economic sanctions will be lifted probably in the coming year. The coming week, market will also focus on the OPEC production meeting on Wednesday and the US Unemployment on Friday. This morning, crude prices are trading slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices weakened slightly yesterday. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$1/mt down. Spot markets however remained supported by healthy demand and tight avails. The majority of suppliers were able to offer from December 3rd and onwards. The Singapore fuel oil market inched up +$1.25 during the morning Platts window yesterday. The latest Singapore heavy residual stockpile saw a slight build of +0.03 mbbl to 20.32 mbbl. The delivered bunker premiums maintained around +$6.00 above cargo prices. 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) - 92,30 ↑ 92,67 93,01 93,19 93,13 92,91 92,05 ICE Brent Swap (1st month) (0,45) 110,86 ↑ 110,71 110,29 109,94 109,62 109,00 108,25 ICE Gasoil Swap (1st month) 1,00 942,00 ↑ 941,83 940,00 937,75 937,53 927,78 928,32 3.5% Barges FOB Rtdm 1,00 573,50 ↑ 577,00 580,75 582,00 582,00 584,50 583,75 3.5% Cargoes FOB Med (0,75) 577,50 ↑ 574,25 577,00 578,25 578,25 580,75 580,00 1.0% Cargoes FOB NWE 1,75 612,50 ↑ 614,50 610,50 610,50 610,50 611,50 610,00 3% no. 6 USGC WB (0,10) 90,05 ↑ 91,50 90,75 91,00 91,00 91,25 91,25 380 CST Cargoes FOB S'pore 1,25 607,25 ↑ 604,00 601,50 601,25 601,50 602,75 603,50 0.1 % GO Barges FOB Rtdm 0,75 941,50 ↑ 942,25 941,25 938,25 938,25 929,25 927,25 Physical Rotterdam 380 CST (1,00) 583,00 ↑ 582,25 586,00 587,25 587,25 589,75 589,00 Physical Singapore 380 CST 0,75 612,75 ↑ 609,25 606,75 606,50 606,75 608,00 608,75

Focus of the day: Piraeus

Demand in Piraeus increased this week and despite cruiser season being over, large volumes were enquired from liner and spot vessels. Market was relatively unchanged this week, with CIF MED 3.5 % remaining on average on the same levels as the previous week. Product availability in Piraeus is very good but Istanbul is once again troubled by shortages and higher supply premiums as a result of tight avails for fueloil. Tupras refinery will only start allocating bunker fuel to the local market in the beginning of next week, so most physicals are not able to offer for prompt enquiries at the moment.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Pending Home Sales Medium 25-Nov 10:00 AM Oct 1.0% -5.6% -0.6% Housing Starts Medium 26-Nov 8:30 AM Oct 915K NA - Building Permits Medium 26-Nov 8:30 AM Oct 930K NA 1034K Case-Shiller 20- city Index Medium 26-Nov 9:00 AM Sep 13.0% 12.8% 13.3% Consumer Confidence High 26-Nov 10:00 AM Nov 74.0 71.2 70.4 Initial Claims Medium 27-Nov 8:30 AM 23-nov 335K 323K 316K Durable Orders High 27-Nov 8:30 AM Oct -3.0% 3.8% -2.0% Chicago PMI Medium 27-Nov 9:45 AM Nov 58.0 65.9 63.0 Michigan Sentiment- Final Medium 27-Nov 9:55 AM Nov 73.5 72.0 75.1 Leading Indicators Medium 27-Nov 10:00 AM Oct -0.1% 0.7% 0.2%

Source: OW Risk Management