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 was a typical summer trading session with no much direction where Crude managed to close marginally higher. The September WTI futures inched up +$0.29 to close at $107.23/bbl and Brent settled at $108.42/bbl, up +$0.27. At the end of the day Crude was supported by continued crude inventory draws reported by API. We continue to see firm equities coupled with a weak dollar. This morning, crude is trading down as the latest Chinese July Manufacturing PMI came out at 47.7 vs 48.2exp. If confirmed the 1 August, it would be the lowest reading in 11 months showing that China slowdown deepens. The good news came for once from Europe with some improvement in the  July flash PMI Services out at 49,6 vs 48,7 exp. and Manufacturing at 50,4 vs 49,1 showing expansion for the later. Today will be published the Weekly Inventory Report from the US Energy department and the expectations are as follows: Crude -2.5 mbbl, Distillates +1.9 mbbl, Gasoline +1.1 mbbl. Brent Crude Oil is trading -0,40% down while WTI is flat.

Fueloil Specifics

Bunker fuel oil prices in the NWE hub fell slightly yesterday following general market trend. Delivered 380cst product in Rotterdam and Antwerp ports was assessed some $2/mt down versus previous days close. Suppliers reported increased number of inquires though for small volumes. Delivered lsfo premiums firmed and were assessed up to $10/mt versus 1% lsfo cargoes. The Singapore fuel oil market fell -$3.0 to -$1.0 during the Asian Platts window yesterday. Market demand was said to remain slow despite softer prices. The delivered bunker premiums hovered between +$4.0 to $5.5 above cargo prices. Bunker fuel oil swaps gained app.$2.5/mt at the front of the forward curve both for Rotterdam and Singapore papers. The backend was slightly stronger, up by up to $4/mt for cal2015 papers. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,29 107,23 ↑ 106,85 105,32 103,74 102,23 98,41 94,98 ICE Brent Swap (1st month) 0,27 108,42 ↓ 107,63 106,88 106,24 105,62 103,87 101,40 ICE Gasoil Swap (1st month) 1,25 919,75 ↓ 918,50 918,33 916,17 912,86 901,22 882,51 3.5% Barges FOB Rtdm 4,75 600,50 ↓ 595,50 588,25 585,75 583,50 582,25 574,00 3.5% Cargoes FOB Med 1,00 599,25 ↓ 590,00 582,75 580,25 575,50 574,00 569,25 1.0% Cargoes FOB NWE 1,50 603,75 ↓ 608,00 610,75 612,00 611,25 610,75 600,25 3% no. 6 USGC WB 0,55 91,90 ↓ 91,40 91,40 90,90 91,10 90,15 89,90 380 CST Cargoes FOB S'pore (3,00) 603,00 ↓ 605,25 606,75 607,25 606,75 604,00 597,50 0.1 % GO Barges FOB Rtdm (0,50) 917,75 ↓ 920,25 919,25 917,25 914,25 903,25 884,25 Physical Rotterdam 380 CST (2,00) 601,00 ↓ 600,75 593,50 590,00 588,25 586,50 578,25 Physical Singapore 380 CST (2,50) 608,50 ↓ 610,50 612,00 612,50 611,50 608,25 601,75

Focus of the day: Singapore

Singapore's bunker market remains oversupplied with ex-wharf differentials under pressure. An overhang of prompt supplies and weak regional demand were keeping prices soft, according to a Reuters report. Premiums for the 380 centistoke ex-wharf bunker grade were valued at $1.42/mt, down more than $1.50 pmt from levels seen in early July.Traders said term discussions were now taking place at levels of between $1-$2 a tonne, versus $3-$4 in the previous month. The price of 380cst supplied to ship dropped $1.50 in today's trading to average $602/mt. In general this week, we still see a strong demand for bunkers and some prompt supplies. Earliest availability we are looking at 26-27th onwards.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-Jul 10:00 AM Jun 5.18M 5.25M 5.08M New Home Sales Medium 24-Jul 10:00 AM Jun 470K 476K - Initial Claims Medium 25-Jul 8:30 AM 20-jul 340K 334K - Continuing Claims Medium 25-Jul 8:30 AM 13-jul 2980K -6.902M - Durable Orders High 25-Jul 8:30 AM Jun 3.7% 0.6% - Michigan Sentiment- Final Medium 26-Jul 9:55 AM Jul 84.2 83.9 -

Source: OW Risk Management