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 remain weak driven by ample supply and fading expectations that OPEC could cut output in effort to bolster prices. Two of OPEC’s biggest members, Saudi Arabia and Kuwait, say they won’t immediately reduce oil production and at the moment seem to be more interested in fighting for their market shares. The November WTI contract slipped -$0.08 to close at $85.74/bbl. Brent prices hit the lowest levels since Dec 2010 at $87.74 in the early morning but managed to recover slightly and closed at $88.89/bbl, down by -$1.32. This also resulted in a contraction of the Brent/WTI spread to around $3.0 level. Investors are looking ahead to the Weekly Oil Inventories data from the United States for price direction. According to Reuters survey, US commercial crude stocks are forecasted to have increased while refined products likely fell. The API will issue its report tomorrow and the Department of Energy will follow on Thursday, a delay due to Columbus Day on Monday. This morning, crude is trading app. -0,60% down.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with a fall in prices following weaker crude oil complex. Delivered 380cst product both in Antwerp and Rotterdam was assessed app. $12/mt down vs previous close. Premiums for prompt deliveries in ARA remain on the higher side supported by continuous tight avails and loading delays. Most suppliers were offering only for next week deliveries. The Singapore fuel oil prices fell app. -$5.5 during the Asian Platts window. The delivered bunker premiums were stable at around +$8.25 above cargo prices. This morning both markets are trading lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) (0,08) 85,74 ↓ 84,12 83,70 83,39 83,26 82,95 83,24 ICE Brent Swap (1st month) (1,32) 88,89 ↓ 88,89 89,45 89,94 90,82 91,94 93,27 ICE Gasoil Swap (1st month) (5,75) 760,50 ↓ 758,67 760,75 772,50 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 779,19 789,28 792,63 3.5% Barges FOB Rtdm (6,00) 476,25 ↓ 469,75 468,75 473,25 477,00 484,75 487,75 3.5% Cargoes FOB Med (4,50) 481,00 ↓ 468,00 466,00 471,25 475,00 482,75 485,50 1.0% Cargoes FOB NWE (6,00) 485,50 ↓ 477,00 476,00 480,00 484,00 493,00 496,50 3% no. 6 USGC WB (1,05) 74,55 ↓ 73,10 72,95 73,25 73,75 74,75 75,62 380 CST Cargoes FOB S'pore (5,25) 498,50 ↓ 496,00 495,50 497,25 500,25 506,25 510,00 0.1 % GO Barges FOB Rtdm (2,25) 756,50 ↓ 758,25 760,25 772,25 768,25 778,25 782,25 Physical Rotterdam 380 CST (13,00) 482,50 ↓ 480,00 479,00 483,50 485,25 493,00 496,00 Physical Singapore 380 CST (6,00) 507,00 ↓ 506,25 505,75 507,50 508,50 514,50 518,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 15-Oct 8:30 AM Sep 0.2% 0.6% - Core PPI Medium 15-Oct 8:30 AM Sep 0.1% 0.1% - Empire Manufacturing Medium 15-Oct 8:30 AM Oct 20.0 27.5 - Business Inventories Medium 15-Oct 10:00 AM Aug 0.5% 0.4% - Intial Claims Medium 16-Oct 8:30 AM 11-Oct 295K 287K - Industrial Production Medium 16-Oct 9:15 AM Sep 0.5% -0.1% - Philadelphia Fed Medium 16-Oct 10:00 AM Oct 15.0 22.5 - Housing Starts Medium 17-Oct 8:30 AM Sep 975K 956K - Building Permits Medium 17-Oct 8:30 AM Sep 1000K 998K - Michigan Sentiment High 17-Oct 9:55 AM Oct 83.5 84.6 -

Source: OW Risk Management