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     Volatility in crude oil continued yesterday. After gaining 3usd the previous day, Brent lost 4usd going into the close. After the US election result, the market refocused on the difficult day to day economic environment. Equities had a massive sell off yesterday with Obama seen by Wall Street less business supportive. The December WTI futures settled at $84.44/bbl down $4.27/bbl and December Brent lost $4.25/bbl closing at $106.82/bbl. The US inventory report from the US Energy Department revealed crude and gasoline stockpile builds exceeding expectations which provided further selling pressure. The Chinese leadership is having their power transition today which also provides some kind of uncertainty. This morning, crude prices are trading up.        Fueloil Specifics     The NWE bunker fuel oil prices softened yesterday following dropping crude values. Cargo prices lost app.$3.5/mt while delivered 380cst product in Rotterdam was assessed only $1/mt down. Demand in ARA was sluggish as buyers stayed away from the market. Rotterdam still reported difficulties with prompt hsfo deliveries, with some suppliers fully booked for this week. The Singapore fuel oil markets surged up more than $16.0 during the morning Platts window yesterday tracking the crude movement. However, the softer fundamentals of weaker demand and ample supply continued to weaken the market. The delivered bunker premiums were ranging $2.0 -5.5 above cargo prices yesterday. This morning both markets are trading down.       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) (4.27) 84.44 ↑ 85.63 86.27 86.81 86.82 88.11 87.92 ICE Brent Swap (1st month) (4.25) 106.82 ↑ 106.29 105.82 105.44 105.45 104.20 103.54 ICE Gasoil Swap (1st month) (6.00) 931.00 ↓ 926.00 925.50 921.50 921.50 909.50 907.50 3.5% Barges FOB Rtdm (3.50) 580.25 ↓ 577.25 580.00 582.75 582.50 583.25 582.00 3.5% Cargoes FOB Med (5.75) 573.75 ↓ 569.50 574.25 575.00 577.75 579.25 578.00 1.0% Cargoes FOB NWE (3.00) 612.25 ↓ 609.50 611.75 614.25 614.00 614.25 613.00 3% no. 6 USGC WB (3.17) 91.33 ↑ 91.45 90.77 90.99 91.22 90.97 90.93 380 CST Cargoes FOB S'pore 16.00 611.00 ↓ 601.25 602.75 605.75 605.75 607.00 605.75 0.1 % GO Barges FOB Rtdm (5.75) 929.25 ↓ 926.25 926.25 924.25 924.25 912.25 910.25 Physical Rotterdam 380 CST (1.00) 589.25 ↓ 587.50 590.25 593.00 592.75 593.50 592.25 Physical Singapore 380 CST 16.50 615.75 ↓ 611.50 613.00 616.00 616.50 617.75 616.50       Focus of the day: Houston     US Gulf Coast premiums between RMG380 and US Gulf Cargo Index USG3% were very volatile during October. However via our various local supply agreements with suppliers we are able to manage this volatility and often beat the spot market. Houston market was weaker Wednesday as the crude complex fell and bunker fuel oil buyers stayed away. Gulf Coast 3% was assessed $3.175/bbl lower at $90.825/bbl, using a couple of big cargo traders’ deals in the window. The November-December backwardation narrowed $0.05/bbl to $0.65/bbl. The physical hi-lo spread widened $0.62/bbl with the Atlantic Coast 1% sulfur fuel oil assessment at a $7.37/bbl premium to Gulf Coast 3% sulfur fuel oil, reflecting the immediate shortage of distillates in the New York market after the Super storm Sandy ravaged New Jersey, Connecticut and New York coast lines.       Economy fundamentals this week     Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Service Medium 05-Nov 10:00 AM Oct 54.5 55.1 54.2 MBA Mortgage Index Medium 07-Nov 7:00 AM 03-Nov NA -4.8% -5.0% Consumer Credit Medium 07-Nov 3:00 PM Sep $10.0B $18.1B $11.4B Initial Claims Medium 08-Nov 8:30 AM 03-Nov 370K 363K - Trade Balance Medium 08-Nov 8:30 AM Sep -$45.4B -$44.2B - Michigan Sentiment Medium 09-Nov 9:55 AM Nov 83.5 82.6 - Wholesale Inventories Medium 09-Nov 10:00 AM Sep 0.7% 0.5% -

Source: OW Risk Management