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

Yesterday Crude prices closed lower for a second day in a row with most traders taking a risk off approach before today's ECB Rate policy meeting. The WTI Brent spread declined on profit taking to around $17.50/bbl. The WTI October contract inched up +$0.06 to close at $95.36/bbl and Brent contract slid -$1.09 to $113.09/bbl. The inventory report by US Energy Department will be released later today and their expectations are as follows: Crude -5.3, Distillates -1.9, Gasoline -3.4. However, due to Hurricane Isaac and disruption in supply and production, Crude Oil and product inventories are expected to draw significantly. The market is currently focused on the ECB policy meeting outcome and also the US labor data tomorrow. Today we will have the US ADP Employment change before ECB’S head speech. And later on the Initial Jobless claims and ISM Non Manuf. Composite. Markets are just adopting a wait-and-see attitude and it is now to the Central Banks to deliver the goods. This morning Crude Oil is trading higher.

Fueloil Specifics

The Northwest European fuel oil prices weakened yesterday following lower crude. Cargo prices were down by app.$8/mt while delivered 380cst product in Rotterdam was even weaker, down by nearly $11/mt. Buying interest in the area remained sluggish. The Singapore fuel oil markets plummeted more than -$13.5 during the morning Platts window yesterday tracking crude movements. Despite the lower price, demand was said to be slow yesterday. The delivered bunker premiums strengthened to $9.0- 10.0 yesterday as sellers were reluctant to sell at lower outrights. Bunker fuel oil swaps lost app.$8.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. The Backend was slightly stronger, loosing app.$5.5/mt. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.06 95.36 ↑ 96.88 97.26 97.72 98.23 97.72 97.29 ICE Brent Swap (1st month) (1.09) 113.09 ↑ 113.48 113.09 112.72 111.85 110.51 113.10 ICE Gasoil Swap (1st month) (16.50) 981.50 ↑ 983.67 979.75 975.92 967.11 952.44 952.08 3.5% Barges FOB Rtdm (8.00) 646.50 ↑ 654.75 651.00 647.50 642.25 632.75 627.50 3.5% Cargoes FOB Med (5.75) 638.50 ↑ 647.50 645.00 642.00 637.00 628.00 623.00 1.0% Cargoes FOB NWE (12.00) 709.00 ↑ 706.00 697.00 690.00 680.25 669.25 663.50 3% no. 6 USGC WB (0.45) 101.70 ↑ 101.45 100.90 100.40 98.00 96.75 97.37 380 CST Cargoes FOB S'pore (13.75) 674.75 ↑ 677.25 673.75 670.75 666.00 656.50 651.00 0.1 % GO Barges FOB Rtdm (13.75) 980.50 ↑ 984.25 980.25 976.25 968.25 954.25 954.25 Physical Rotterdam 380 CST (11.00) 653.25 ↑ 665.00 661.25 657.75 652.50 643.00 637.75 Physical Singapore 380 CST (13.00) 684.75 ↑ 687.50 684.00 681.00 676.75 667.25 661.75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 04-Sep 10:00 AM Aug 49.0 49.8 49.6 Construction Spending Medium 04-Sep 10:00 AM Jul 0.5% 0.4% -0.9% MBA Mortgage Index Medium 05-Sep 7:00 AM 01-Sep NA -4.3% -2.5% Productivity- Rev. Medium 05-Sep 8:30 AM Q2 1.8% 1.6% 2.2% Challanger Job Cuts Medium 06-Sep 7:30 AM Aug NA -44.5% - ADP Employment Change Medium 06-Sep 8:15 AM Aug 150K 163K - Initial Claims Medium 06-Sep 8:30 AM 01-Sep 375K 374K - ISM Services Medium 06-Sep 10:00 AM Aug 51.0 52.6 - Nonfarm Payrolls High 07-Sep 8:30 AM Aug 140K 163K - Unemployment Rate High 07-Sep 8:30 AM Aug 8.2% 8.3% -

Source: OW Risk Management