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 Oil retraced partly some gains from the previous week. The two major contracts had some disparities: December WTI contract settled at $93.34/bbl, up marginally +$0.31 and will expire later today. The next active contract, January closed at $93.89/bbl while Brent fell -$1.55 to settle at $107.27/bbl. This diversion translated into a correction in the Brent/ WTI spread from a recent high at around +$15/bbl towards $13,40 today. There is a round of negotiation between Iran and the West power starting today which could put the market on the defensive again. The market will closely read the US FOMC minutes later today for some insights for the next meeting on the 17th-18th December. The US Energy department will release it is weekly Inventory Report later and the expectations are as follows: Crude +0.90 mbbl, Distillates -0.61 mbbl, Gasoline -0.26 mbbl. This morning, crude is trading marginally lower.

Fueloil Specifics

The NWE bunker fuel oil markets started Tuesday with slightly higher prices. However, due to lack of demand and weakening Brent suppliers lowered their offer levels. Delivered 380cst product in Rotterdam and Antwerp closed the day largely unchanged. The Singapore fuel oil prices inched app. +$0.25 to +$1.5 during the Asian Platts window yesterday. Market saw another round of firm buying interests in the physical fuel oil cargo market supporting premiums that were hovering around +$8.25 above cargo prices. Bunker fuel oil swaps gained a few cents at the front of the forward curve both for Rotterdam and Singapore papers. The backend was weaker, loosing nearly $2.0/mt for cal14 papers. Visco spreads gained back some strength at the front with spot closing at $5.95/mt yesterday. December is trading at app.$5.5-6.0 while forward prices remain stable trading in a range of $7.00-7.75/mt for cal14. This morning both markets are trading lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,31 93,34 ↓ 93,97 94,18 94,22 94,19 93,39 92,54 ICE Brent Swap (1st month) (1,55) 106,92 ↓ 106,36 106,00 105,72 105,45 104,85 103,98 ICE Gasoil Swap (1st month) 0,50 910,75 ↓ 901,25 901,08 900,42 900,06 893,81 892,24 3.5% Barges FOB Rtdm 0,25 575,00 ↓ 566,75 569,75 569,75 569,75 569,00 567,50 3.5% Cargoes FOB Med 2,75 584,75 ↓ 563,75 566,00 565,50 565,00 564,25 563,50 1.0% Cargoes FOB NWE 2,25 595,75 ↓ 593,25 595,50 595,75 595,75 595,25 592,75 3% no. 6 USGC WB (0,73) 88,63 ↓ 89,25 89,25 89,00 89,00 89,00 88,75 380 CST Cargoes FOB S'pore 0,25 600,25 ↓ 593,50 590,00 588,50 588,50 587,50 587,50 0.1 % GO Barges FOB Rtdm 1,25 909,50 ↓ 902,25 902,25 900,25 901,25 896,25 893,25 Physical Rotterdam 380 CST 0,00 579,75 ↓ 572,00 575,00 575,00 575,00 574,25 572,75 Physical Singapore 380 CST 0,00 609,50 ↓ 598,75 595,25 593,75 593,75 592,75 592,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-Nov 10:00 AM Nov 53 55 54 Employment Cost Index Medium 19-Nov 8:30 AM Q3 0.5% 0.5% 0.4% Retail Sales High 20-Nov 8:30 AM Oct 0.3% -0.1% - Core CPI High 20-Nov 8:30 AM Oct 0.1% 0.1% - Existing Home Sales Medium 20-Nov 10:00 AM Oct 4.95M 5.29M - Business Inventories Medium 20-Nov 10:00 AM Sep 0.0% 0.3% - Initial Claims Medium 21-Nov 8:30 AM 16-nov 335K 339K - Core PPI Medium 21-Nov 8:30 AM Oct 0.1% 0.1% - Philadelphia Fed Medium 21-Nov 10:00 AM Nov 5.0 19.8 - Leading Indicators Medium 21-Nov 10:00 AM Oct NA 0.7% -

Source: OW Risk Management