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

Friday Crude prices closed the week higher: the December WTI contract settled at $86.07/bbl, up +$0.98 and Brent rose by +$2.15 to $109.40/bbl. The market was lifted by better economic data out of US and China: the US consumer sentiment data came out higher than forecasted and the Chinese October industrial production rose to 9.6% vs 9.4% expected. On the geopolitical front there are some tensions as Iranian fighters violated Saudi Arabia’s airspace and Israel warned Syria that additional cross-border fire would bring a “painful” response. The US dollar continued to firm which capped the appeal of US dollar denominated commodities. The US government will deliberate in the coming days with the Republicans to find an agreement over the US fiscal cliff as the current tax breaks are coming to an end and spending cuts are soon to be implemented. The Euro continues to weaken as the Market-despite the last Greek parliament vote- believes that major issues on the debt are not resolved. This week Greece will issue 5Bln Euros short term date to cover some short term installments. This uncertainty continues to weigh on the market with the coming debate in the US on the US fiscal cliff. This morning, crude prices are trading down.

Fueloil Specifics

The NWE fuel oil markets closed last week without big changes. Delivered 380cst product was assessed flat from previous day close while cargo prices were up by $3/mt. HSFO prices for prompt deliveries remained firm in Rotterdam. Also some suppliers in Hamburg reported difficulties with HSFO loading due to congestions at loading installations. The Singapore fuel oil markets fell around -$5.5 during the morning Platts window last Friday. The Asian fuel oil crack continued to weaken with strong selling interest. The delivered bunker premiums were ranging $4.0- 5.5 above cargo prices last Friday. The Singapore markets are closed tomorrow on public holiday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.98 86.07 ↓ 86.61 87.19 87.84 87.82 89.19 89.23 ICE Brent Swap (1st month) 2.15 109.40 ↓ 107.74 107.09 106.55 106.58 105.19 104.71 ICE Gasoil Swap (1st month) 10.00 930.50 ↑ 934.58 933.08 929.92 929.75 916.97 614.52 3.5% Barges FOB Rtdm 3.00 574.25 ↑ 582.75 586.25 590.00 589.50 592.50 591.75 3.5% Cargoes FOB Med 3.75 567.75 ↑ 575.00 580.50 580.25 583.75 588.50 587.75 1.0% Cargoes FOB NWE 1.75 599.75 ↑ 608.25 612.25 616.25 615.75 619.50 619.00 3% no. 6 USGC WB 2.15 92.95 ↓ 91.55 90.95 91.20 91.71 91.76 91.57 380 CST Cargoes FOB S'pore (5.25) 587.50 ↑ 606.50 608.75 612.75 612.25 615.75 615.25 0.1 % GO Barges FOB Rtdm 11.75 931.25 ↑ 935.25 933.25 930.25 931.25 920.25 918.25 Physical Rotterdam 380 CST 0.00 581.25 ↑ 593.00 596.50 600.25 599.75 602.75 602.00 Physical Singapore 380 CST (6.00) 592.75 ↑ 616.75 619.00 623.00 623.00 626.50 626.00

Focus of the day: Gibraltar

The Gibraltar Strait faced strong congestion issues last weekend but the list of vessels queuing outside the port has gone down this morning to 8 vessels from the 25 seen queuing at a time over the last couple of days. Trading wise the market is relatively quiet this morning and premiums are slightly lower than last week. There are good avails of all products, including LSFO. CIF Med 3.5% is trading only some 8 usd above FOB barges Rotterdam this morning and the HILO spread remains around 38 usd. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 13-Nov 2:00 PM Oct -$113.0B -$98.5B - Retail Sales High 14-Nov 8:30 AM Oct -0.4% 1.1% - Core PPI High 14-Nov 8:30 AM Oct 0.1% 0.0% - Business Inventories Medium 14-Nov 10:00 AM Sep 0.6% 0.6% - FOMC Minutes High 14-Nov 2:00 PM 24-Oct - - - Initial Claims Medium 15-Nov 8:30 AM 10-Nov 475K 355K - Core CPI High 15-Nov 8:30 AM Oct 0.1% 0.1% - Empire Manufacturing Medium 15-Nov 8:30 AM Nov -8.0 -6.2 - Philadelphia Fed Medium 15-Nov 10:00 AM Nov -2.0 5.7 - Industrial Production Medium 16-Nov 9:15 AM Oct 0.0% 0.4% - Capacity Utilization Medium 16-Nov 9:15 AM Oct 78.3% 78.3% -

Source: OW Risk Management