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 Oil ended mixed again last night with WTI near the highest price since October closing at 98.51 (up $1.17) and Brent slightly lower on back of news that Libya will reopen three ports. The Brent/WTI spread settled at $10.87, the narrowest level in 2 months. Overall product space remains weak near term. The API Weekly Data showed yesterday that Crude stocks shrank by 7,5 mbbl , Gasoline increased by 6,27 mbbl and distillates, including heating oil and diesel, rose by 1.18 million barrels. Gasoline supplies are projected to have climbed by 1.55 million and Oil stocks drawing close to 3mbbl in the report from the EIA. Refinery utilization probably rose by 0.5 percentage points to 92.9% of capacity, the fastest rate since July 2012, according to the survey. In the US, budget negotiators struck an important deal yesterday to set spending levels to 2015. The agreement is small –around $85bn- but it is a major move towards stopping the era of crisis driven economic policy in Washington. This morning Crude is trading slightly higher.

Fueloil Specifics

Sources said high sulfur fuel oil market has seen support from regional buying which could be related to North Asia continues to head into cold weather and low refinery run rates point to continued demand for imports. This has been reflected on higher spreads between MOPS and delivered bunker 380cst prices versus ports in North China including Shanghai, Japan and South Korea since late November. Bal Dec 380CF swap value 602.50/mt. basis front Brent 109.32/bbl., which is around USD -1.00/mt. from yesterdays MOPS close. Delivered 380cst in Singapore today would be expected to be seen between USD 595/mt – 605/mt. Bunker fuel oil prices in the North European ports remained largely unchanged. Suppliers reported slightly improved forward product avails while prompt remained tight.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 2014 NYMEX WTI Swap (1st month) 1,17 98,51 ↓ 98,63 98,41 97,93 98,33 96,62 95,36 ICE Brent Swap (1st month) (0,01) 109,38 ↑ 109,24 109,02 109,01 108,79 108,28 107,54 ICE Gasoil Swap (1st month) (6,25) 928,00 ↑ 932,42 931,58 929,42 931,14 923,72 921,61 3.5% Barges FOB Rtdm (3,00) 575,50 ↑ 582,75 584,00 584,50 583,75 585,00 584,00 3.5% Cargoes FOB Med (6,00) 562,75 ↑ 579,75 581,00 581,25 580,75 581,75 581,75 1.0% Cargoes FOB NWE 4,75 606,25 ↑ 605,50 607,25 608,25 607,00 609,25 607,50 3% no. 6 USGC WB 0,70 90,60 ↑ 91,75 91,50 91,50 91,50 91,50 91,50 380 CST Cargoes FOB S'pore (2,50) 601,75 ↑ 605,75 604,75 603,75 604,75 603,75 604,25 0.1 % GO Barges FOB Rtdm (5,25) 927,25 ↑ 933,25 933,25 930,25 932,25 925,25 923,25 Physical Rotterdam 380 CST 0,00 580,75 ↑ 588,00 589,25 589,75 589,00 590,25 589,25 Physical Singapore 380 CST (2,00) 609,25 ↑ 611,00 610,00 609,00 610,00 609,00 609,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Wholesale Inventories Medium 10-Dec 10:00 AM Oct 0.3% 0.4% 1.4% Treasury Budget Medium 11-Dec 2:00 PM Nov - -$172.1B - Initial Claims High 12-Dec 8:30 AM 07-dec 315K 298K - Continuing Claims High 12-Dec 8:30 AM 30-nov 2750K 2744K - Retail Sales High 12-Dec 8:30 AM Nov 0.6% 0.4% - Business Inventories Medium 12-Dec 10:30 AM Oct 0.3% 0.6% - PPI High 13-Dec 8:30 AM Nov 0.1% 0.1% -

Source: OW Risk Management