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 plummeted more than $2.0 yesterday as the diplomatic way is tried with Syria. US have accepted the Russian offer and UN plan to work with Syria in removing chemical weapons under UN supervision. Short after Obama has delayed the vote to the Congress to let some chance to the plan. The October WTI futures came off -$2.13 to close $107.39/bbl and  Brent fell also sharply -$2.47 to $111.25. The US Energy department will release its inventory report later today and the expectations are as follows: Crude -1.50 mbbl, Distillates +0.49 mbbl, Gasoline -1.25 mbbl. This morning, crude prices are trading up.

Fueloil Specifics

The Northwest European bunker fuel oil markets fell yesterday following general market trend. Delivered 380cst product both in Rotterdam and Antwerp lost nearly $15/mt. The drop in prices however did not increase demand in Rotterdam as most buyers decided to wait for possibly even lower prices. Antwerp port on the other hand reported healthy demand and improved loadings from refineries. The Singapore fuel oil markets suffered another drop of more than -$7.5 during the Asian Platts window yesterday tracking crude movements. The delivered bunker premiums were firmer at around +$3.0 above cargo prices as the lower outright prices and weaker crude attracted buying interest. Bunker fuel oil swaps lost nearly $14/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly stronger, with cal14 papers assessed some $11/mt down vs. previous close. This morning both markets are trading slightly higher.

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) (2,13) 107,39 ↑ 106,45 104,88 104,88 100,67 97,34 96,37 ICE Brent Swap (1st month) (2,47) 111,25 ↑ 110,39 109,23 109,28 108,28 106,64 103,78 ICE Gasoil Swap (1st month) (21,25) 938,75 ↑ 943,25 939,08 939,06 923,92 905,08 902,54 3.5% Barges FOB Rtdm (14,25) 581,00 ↑ 588,00 588,50 588,50 592,00 589,25 585,50 3.5% Cargoes FOB Med (14,00) 583,25 ↑ 586,00 585,00 584,25 586,50 583,25 580,50 1.0% Cargoes FOB NWE (12,75) 605,50 ↑ 613,50 616,00 615,75 620,50 618,00 612,50 3% no. 6 USGC WB (0,90) 95,65 ↑ 93,00 92,75 92,75 92,50 92,20 91,50 380 CST Cargoes FOB S'pore (7,75) 598,00 ↑ 600,75 604,25 602,75 608,00 608,00 605,75 0.1 % GO Barges FOB Rtdm (20,75) 938,50 ↑ 944,25 940,25 940,25 923,25 905,25 904,25 Physical Rotterdam 380 CST (15,00) 584,25 ↑ 593,25 593,75 593,75 596,75 593,50 589,75 Physical Singapore 380 CST (5,00) 600,00 ↑ 606,00 609,50 609,00 614,00 613,25 611,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 9-Sep 3:00 PM Jul $13.0B $13.8B $10.4B Wholesale Inventories Medium 11-Sep 10:00 AM Jul 0.2% -0.2% - Initial Claims Medium 12-Sep 8:30 AM 07-sep 330K 323K - Continuing Claims Medium 12-Sep 8:30 AM 31-aug 2975K 2951K - Treasury Budget Medium 13-Sep 2:00 PM Aug NA -$190.5B - Retail Sales High 13-Sep 8:30 AM Aug 0.5% 0.2% - Core PPI Medium 13-Sep 8:30 AM Aug 0.1% 0.1% - Mich Sentiment High 13-Sep 9:55 AM Sep 81.0 82.1 - Business Inventories Medium 13-Sep 10:00 AM Jul 0.2% 0.0% -

Source: OW Risk Management