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 closed lower with no solution on the government shutdown and also a weaker US crude oil inventory report. Crude stocks reported a massive build of +6.81 mbbl, much higher than the 1.50 mbbl expected , while  product inventory, Distillates and Gasoline  saw a draw of -3.14 mbbl and  a marginal build +0.15 mbbl respectively. To add pressure the IMF reported a lower than expected global economic growth for the end of the year and kept its prognostic intact for 2014. Also August UK Manufacturing Production was disappointing at -1,2% vs +0,4% exp. The November WTI contract closed at  $101.61/bbl down -$1.88 while Brent settled at $109.06/bbl, down -$1.10. Obama steps up discussions to find a way out of the stand off, he will meet about 20 senior Republicans from the House of Representatives at the White House today. This afternoon, we will see the weekly US jobless claims while other economic data are still delayed due to the partial shutdown of the US government. This morning, crude prices are trading 0,80% higher.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw another day with tight avails and price fluctuations generally following Brent trend. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$3/mt down vs previous close. Prompt supplies in Rotterdam were delayed for 3-5 days and were quoted at higher premiums. The Singapore fuel oil markets surged app. $8.0 during the Asian Platts window yesterday. The Asian fuel oil cracks saw a firm rebound and delivered bunker premiums were seen between $4.5 and $5.5 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) (1,88) 101,61 ↑ 101,65 101,22 101,59 99,77 97,27 96,34 ICE Brent Swap (1st month) (1,10) 109,06 ↑ 108,81 108,07 108,11 107,45 106,84 104,59 ICE Gasoil Swap (1st month) (10,25) 925,25 ↑ 932,17 928,25 931,92 923,50 910,06 908,99 3.5% Barges FOB Rtdm (5,50) 577,25 ↑ 583,25 581,00 583,00 583,50 581,25 578,75 3.5% Cargoes FOB Med (4,50) 577,75 ↑ 579,25 575,50 579,00 576,50 574,25 572,50 1.0% Cargoes FOB NWE (8,00) 584,75 ↑ 597,75 601,00 597,25 604,75 604,75 601,50 3% no. 6 USGC WB (0,55) 91,25 ↑ 91,00 90,75 91,00 90,50 90,20 89,95 380 CST Cargoes FOB S'pore 8,00 610,25 ↑ 604,00 600,75 605,75 601,00 600,25 599,00 0.1 % GO Barges FOB Rtdm (10,00) 926,00 ↑ 933,25 929,25 933,25 922,25 909,25 907,25 Physical Rotterdam 380 CST (3,00) 584,75 ↑ 588,50 586,25 588,25 588,25 585,50 583,00 Physical Singapore 380 CST 7,25 614,75 ↑ 609,25 605,00 610,00 605,25 604,50 603,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Oct 3:00 PM Aug $12.0B $10.4B $13.6B Non-farm Payrolls High - - Sep 180K 169K - Unemployment Rate High - - Sep 7.3% 7.3% - Trade Balance Medium - - Aug -$40.0B -$39.1B - Wholesale Inventories Medium - - Aug 0.2% 0.1% - Initial Claims Medium 10-Oct 8:30 AM 5-Oct 315K 308K - Treasury Budget Medium 10-Oct 2:00 PM Sep NA $75.18B - Retail Sales Medium 11-Oct 8:30 AM Sep -0.1% 0.2% - Core PPI Medium 11-Oct 8:30 AM Sep 0.1% 0.0% - Mich Sentiment High 11-Oct 9:55 AM Oct 73.0 77.5 - Business Inventories Medium 11-Oct 10:00 AM Aug 0.2% 0.4% -

Source: OW Risk Management