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

Despite some volatility Crude Oil settled barely unchanged last Friday. The November WTI Oil contract slipped -$0.16 to settle at $102.87/bbl and Brent lost -$0.58 to close at $108.63/bbl. Market remains directionless as the 3rd quarter closes today. However, it stays under pressure on an increasing possibility of Monday shutdown of the US government (the last time it happened in 1996). This uncertainty has negated the positive US Personal Income data and also the Consumer sentiment index published on Friday. Europe and the Euro is not spared by problems as the Italian government is on the edge of a collapse. To close the gloomy Monday picture the final China HSBC Purchasing Manager’s Index (factory sector) was revised down from the preliminary reading of 51,2 to 50,2. Today, we will see the US Chicago Purchasing Manager figures releasing to provide further guidance. This morning, crude prices are trading close to 1.0% down.

Fueloil Specifics

The Northwest European bunker fuel oil prices strengthened slightly following crude values last Friday. Delivered 380cst product in Rotterdam and Antwerp gained $6-5/mt supported by supply disruptions at local refineries. The Singapore fuel oil markets rose app. $5.0 during the Platts window last Friday. The Singapore heavy residual stockpile saw a draw of -0.77 mbbl to 21.79 mbbl, drawing for the second consecutive week. The delivered bunker premiums remained firm at around $4.0 above cargo prices. This morning both markets are trading significantly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,16) 102,87 ↓ 101,70 101,11 101,00 98,07 95,84 94,86 ICE Brent Swap (1st month) (0,58) 108,63 ↓ 107,46 106,54 105,72 104,95 104,27 101,72 ICE Gasoil Swap (1st month) 6,75 927,25 ↓ 913,17 910,25 910,03 897,72 884,19 881,99 3.5% Barges FOB Rtdm 4,75 596,00 ↓ 586,50 582,00 582,50 578,75 572,75 569,00 3.5% Cargoes FOB Med 4,00 595,00 ↓ 583,00 576,75 577,25 571,75 565,50 562,75 1.0% Cargoes FOB NWE 2,50 602,25 ↓ 598,50 600,50 600,75 603,75 599,00 593,50 3% no. 6 USGC WB 0,32 94,50 ↓ 91,95 91,45 91,40 90,45 89,65 88,95 380 CST Cargoes FOB S'pore 5,25 613,50 ↓ 611,50 604,25 604,50 596,25 592,00 589,00 0.1 % GO Barges FOB Rtdm 5,75 925,75 ↓ 914,25 911,25 911,25 899,25 886,25 883,25 Physical Rotterdam 380 CST 6,00 597,00 ↓ 591,75 587,25 587,75 583,50 577,00 573,25 Physical Singapore 380 CST 5,75 617,00 ↓ 616,75 609,50 610,75 602,25 597,25 594,25

Focus of the day: Gibraltar

The Gibraltar Strait is running smoothly this Monday morning, with the three ports more or less within schedule, except for a couple of suppliers who are having some 8hrs delays on their barge schedules. Weather conditions are fine and so is products availability. Prompt requirements are still possible to accommodate for most suppliers in the hub. CIF Med 3.5% is trading some 11 usd/mt above FOB Barges Rotterdam and the HILO is currently around to 17 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% at 21 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Chicago PMI Medium 30-Sep 9:45 AM Sep 52.0 53.0 - ISM Index High 1-Oct 10:00 AM Sep 54.0 55.7 - Construction Spending Medium 1-Oct 10:00 AM Aug 0.3% 0.6% - ADP Employment Change Medium 2-Oct 8:15 AM Sep 180K 176K - Initial Claims Medium 3-Oct 8:30 AM 28-sep 315K 305K - Factory Orders Medium 3-Oct 10:00 AM Aug 0.3% -2.4% - ISM Services High 3-Oct 10:00 AM Sep 58.0 58.6 - Nonfarm Payrolls High 4-Oct 8:30 AM Sep 165K 169K - Unemployment Rate High 4-Oct 8:30 AM Sep 7.3% 7.3% -

Source: OW Risk Management