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 managed to stabilize closing in the black: the November WTI contract rose +$1.03 to settle at $94.57/bbl and Brent settled at $97.20/bbl, inched up +$0.20. the Price action continues to be on the Brent and WTI spread. The premium of Brent over the WTI extended its weakness, narrowing to $2.6/bbl. Lately the Eurozone and Chinese economies have reported weaker than expected figures: the latest HSBC China Manufacturing Index came out slightly lower at 50.2 vs 50.5 while ongoing civil protests in Hong Kong dampened Asian equities sentiment. The stronger US dollar against major currencies also pressures the US dollar denominated crude futures. The recent step up military actions against the terrorist group in Iraq further reduced possibility of supply disruptions while Libyan production is holding on at around 900 kbpd. This morning, crude prices are trading higher.

Fueloil Specifics

The NWE bunker fuel oil markets started the week on a slightly lower note. Delivered 380cst product in both Antwerp and Rotterdam was assessed app.$3/mt down at the end of the day. Suppliers in the area reported tight hsfo avails both for 380cst and RMK with the later expected to improve not earlier than mid October. The Singapore fuel oil prices softened by around -$3.25 during the Asian Platts window. The weaker outright prices saw stronger bunker demand. The delivered bunker premiums at around +$9.25 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Oct Nov Dec Q115 Q215 2015 NYMEX WTI Swap (1st month) 1,03 94,57 ↑ 94,35 93,42 92,18 91,69 90,37 90,20 ICE Brent Swap (1st month) 0,20 97,20 ↑ 97,78 98,27 98,99 99,33 99,69 98,23 ICE Gasoil Swap (1st month) 2,25 815,00 ↑ 820,08 822,50 825,25 - - - LS ICE Gasoil Swap (1st month) - - ↑ - - - 843,08 847,94 850,62 3.5% Barges FOB Rtdm (0,25) 538,00 ↑ 538,25 533,25 531,25 537,25 540,25 540,50 3.5% Cargoes FOB Med 1,00 537,25 ↑ 536,75 531,25 529,00 535,25 538,25 538,25 1.0% Cargoes FOB NWE 0,00 549,00 ↑ 551,50 544,00 541,50 547,25 551,00 551,75 3% no. 6 USGC WB 0,64 85,75 ↑ 84,50 84,02 83,72 84,97 85,22 85,23 380 CST Cargoes FOB S'pore (3,50) 556,25 ↑ 560,25 557,00 556,00 557,50 559,50 560,50 0.1 % GO Barges FOB Rtdm 3,50 812,75 ↑ 819,25 822,25 824,25 - - - Physical Rotterdam 380 CST (3,00) 540,50 ↑ 543,50 538,50 536,50 541,50 544,50 544,75 Physical Singapore 380 CST (3,00) 566,00 ↑ 565,50 562,25 561,25 562,75 564,75 565,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual PCE Prices- Core Medium 29-Sep 8:30 AM Aug 0.0% 0.1% 0.1% Case- Shiller 20-city Index Medium 30-Sep 9:00 AM Jul 7.0% 8.1% - Chicago PMI Medium 30-Sep 9:45 AM Sep 59.0 64.3 - Consumer Confidence High 30-Sep 10:00 AM Sep 93.0 92.4 - ADP Employment Change High 1-Oct 8:15 AM Sep 225K 204K - ISM Index High 1-Oct 10:00 AM Sep 60.0 59.0 - Construction Spending Medium 1-Oct 10:00 AM Aug 0.5% 1.8% - Initial Claims Medium 2-Oct 8:30 AM 27-sep 300K 293K - Factory Orders Medium 2-Oct 10:00 AM Aug -9.5% 10.5% - Nonfarm Payrolls High 3-Oct 8:30 AM Sep 245K 142K - Unemployment Rate High 3-Oct 8:30 AM Sep 6.1% 6.1% - ISM Services Medium 3-Oct 10:00 AM Sep 59.0 59.6 -

Source: OW Risk Management