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 prices surged more than $3.0 to a six-month high. Stocks dropped for a second day on concern that the US will take military action against Syria. The October WTI futures settled at $109.01/bbl, up by +$3.09 and  Brent  closed at $114.36/bbl, up  by +$3.63. Markets are weary of contangion risk in the Middle East. Experts, on the other hand, put the risk of escalation into a regional conflict relatively low. In terms of data the US August Consumer Confidence came out surprisingly stronger at 81.5, above consensus. The US Energy department will release its inventory report later today and expectations are as follows: Crude +0.20 mbbl, Distillates +0.68 mbbl, Gasoline -1.19 mbbl. The US July Pending Home sales will also be reported later today. This morning, crude prices are trading around +0,80 % .

Fueloil Specifics

The Northwest European bunker fuel oil prices firmed yesterday following higher crude prices. Delivered 380sct product in Rotterdam and Antwerp was assessed some $7-6/mt up versus previous days close. Premiums over ex-wharf remained on the low side. Suppliers reported increased demand as buyers were eager to fix their before further increasing prices. The Singapore fuel oil markets settled between flat to +$0.75 during the Asian Platts window. The delivered bunker premiums remained weak at +$0.25 to $1.5 above cargo prices as demand was muted. The Asian Fuel Oil cracks stayed weak as fuel oil values lagged behind the stronger crude movements. Bunker fuel oil swaps gained up to $8/mt at the front of the forward curve both for Rtdam and Sing papers. Backend was weaker with Cal14 papers assessed app.$5/mt and Cal15 only some $3/mt. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) 3,09 109,01 ↑ 109,53 108,49 106,96 106,90 102,64 98,16 ICE Brent Swap (1st month) 3,63 114,36 ↑ 114,51 113,17 112,05 111,06 109,19 106,18 ICE Gasoil Swap (1st month) 21,50 961,75 ↑ 969,33 967,58 962,67 962,72 948,61 926,39 3.5% Barges FOB Rtdm 7,50 602,00 ↑ 602,75 602,75 602,25 602,75 603,75 595,00 3.5% Cargoes FOB Med 7,75 597,75 ↑ 598,50 599,25 598,25 597,25 597,75 590,00 1.0% Cargoes FOB NWE 7,25 616,25 ↑ 623,00 627,00 629,00 628,75 630,75 620,75 3% no. 6 USGC WB 2,35 95,92 ↑ 95,35 95,10 94,35 94,60 94,30 92,85 380 CST Cargoes FOB S'pore 0,00 604,25 ↑ 616,75 619,25 619,50 619,75 620,75 613,50 0.1 % GO Barges FOB Rtdm 20,25 959,25 ↑ 970,25 969,25 964,25 964,25 947,25 924,25 Physical Rotterdam 380 CST 7,00 603,00 ↑ 608,00 608,00 607,50 607,50 608,00 599,25 Physical Singapore 380 CST (0,50) 604,75 ↑ 622,00 624,50 625,75 625,75 626,00 618,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 26-Aug 8:30 AM Jul -4.5% -3.9% -7.3% Case-Shiller 20-city Index Medium 27-Aug 9:00 AM Jun 12.0% 12.2% 12.1% Consumer Confidence High 27-Aug 10:00 AM Aug 77.0 80.3 81.5 MBA Mortgage Index Medium 28-Aug 7:00 AM 28-aug NA -4.6% - Pending Home Sales Medium 28-Aug 10:00 AM Jul -1.0% -0.4% - Initial Claims Medium 29-Aug 8:30 AM 24-aug 335K 336K - GDP- Second Estimate Medium 29-Aug 8:30 AM Q2 2.1% 1.7% - Personal Income Medium 30-Aug 8:30 AM Jul -0.1% 0.3% - PCE Prices- Core Medium 30-Aug 8:30 AM Jul 0.2% 0.2% - Chicago PMI Medium 30-Aug 9:45 AM Aug 53.0 52.3 - Michigan Sentiment- Final Medium 30-Aug 9:55 AM Aug 78.0 80.0 -

Source: OW Risk Management