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 were under heavy selling pressure caused by a series of bearish drivers which has previously been off-set by geopolitical tensions that impacted lower oil export out of Libya. The latest comments however by the Libyan oil minister states its oil production output has grown. There is also an improvement in Iraqi exports in. The heavy supply overhang in the US from the latest inventory report has dampened market sentiment and this has in conjunction with a stronger US dollar last Friday added further selling pressure on the crude futures. The US PMI for October was slightly lower than previous while the US October ISM figure was higher than market expectation. The December WTI futures closed at $94.61/bbl, down -$1.77 while the December Brent contract saw a huge drop of -$2.93 to settle at $105.91/bbl. This resulted in a narrowing of the Brent/WTI spread to $11.51 This morning crude prices are trading up .

Fueloil Specifics

Singapore fuel oil markets fell between -$6.0 to -$2.0 during the Platts window last Friday. The latest Singapore heavy residual stockpile fell -1.41 mbbl to 19.18 mbbl. The delivered bunker premiums varied widely between +$8.0 to +$12.0 above cargo prices last Friday. Rotterdam prices fell Friday in conjunction with the sliding crude prices there is still tightness on the spot market and higher premiums are applied to barge deliveries over ex-wharf barges.

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) (1,77) 94,61 ↑ 95,21 95,25 95,10 95,03 93,66 92,70 ICE Brent Swap (1st month) (2,93) 105,91 ↑ 106,16 105,83 105,81 105,44 104,23 103,54 ICE Gasoil Swap (1st month) (17,50) 915,00 ↓ 902,67 900,58 899,00 898,92 893,28 890,14 3.5% Barges FOB Rtdm (6,75) 573,00 ↓ 567,00 569,75 569,50 570,00 569,25 567,75 3.5% Cargoes FOB Med (5,25) 573,00 ↓ 561,75 564,00 563,25 562,75 562,25 561,75 1.0% Cargoes FOB NWE (8,50) 584,25 ↓ 585,00 589,00 590,25 590,25 592,00 589,50 3% no. 6 USGC WB (1,39) 90,46 ↓ 89,85 89,35 89,35 89,35 88,85 88,60 380 CST Cargoes FOB S'pore (2,00) 611,00 ↓ 591,75 587,50 586,25 586,75 586,25 585,75 0.1 % GO Barges FOB Rtdm (18,25) 915,50 ↓ 904,25 902,25 900,25 900,25 895,25 891,25 Physical Rotterdam 380 CST (7,00) 578,75 ↓ 572,25 575,00 574,75 574,75 573,50 572,00 Physical Singapore 380 CST (2,50) 618,50 ↓ 595,25 592,75 591,50 592,00 591,50 591,00

Focus of the day: Gibraltar

This week is having a pretty hectic start in Gibraltar, with high levels of demand since the beginning of the morning, after quite a hectic Friday last week, where most buying decisions were finally postponed in view of the crude fall. Operations wise, the Gibraltar Strait is running smoothly this morning, with fine weather conditions, good product availability at the three ports and all suppliers are delivering within schedule both by barge and expipe. Prompt requirements could be an issue for most suppliers though. CIF Med 3.5% is trading some 11 usd/mt above FOB Barges Rotterdam and the HILO is currently around to 18 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% on 18 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 4-Nov 10:00 AM Sep 1.5% NA - ISM Services High 5-Nov 10:00 AM Oct 55.0 54.4 - Challenger Job Cuts Medium 7-Nov 10:30 AM Oct - 19.1% - Initial Claims Medium 7-Nov 8:30 AM 02-nov 335K 340K - GDP- Adv. High 7-Nov 8:30 AM Q3 1.9% 2.5% - Nonfarm Payrolls High 8-Nov 8:30 AM Oct 85K 148K - Unemployment Rate High 8-Nov 8:30 AM Oct 7.4% 7.2% - PCE Prices- Core Medium 8-Nov 8:30 AM Sep 0.1 0.2% - Mich Sentiment High 8-Nov 9:55 AM Nov 75.0 73.2 -

Source: OW Risk Management