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 prices closed lower. The November WTI contract lost another -$1.54 to settle at $87.31/bbl and Brent fell -$0.73 to $91.38/bbl. The US inventory data showed a big build in crude Oil stockpile at +5.02 mbbl and so did product inventories. The only bright spot for the bull side was a draw at Cushing of -1.58 mbbl. The release of the FOMC minutes sent the dollar lower as the US Federal Reserve pledged to maintain current near zero interest rate policy “for a considerable time”. The Federal Reserve is concerned by the US dollar strength the last months and its implication on the US economic growth. Today, we will see the US weekly Jobless Claims and August Wholesale Inventories to provide further guidance. This morning, crude is trading around +0,50% higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices lost double digits yesterday following further drop in Brent values. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $16/mt down vs previous day close. Suppliers continuously report tight product avails with some traders forced to wait 3-7 days for loadings. The Singapore fuel oil prices fell another -$10.0 during the Asian Platts window yesterday tracking weaker crude values. The Asian fuel oil crack was extremely soft yesterday led by the strong selling. The delivered bunker premiums were seen around +$8.0 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) (1,54) 87,31 ↑ 87,00 86,55 86,16 85,85 85,27 85,12 ICE Brent Swap (1st month) (0,73) 91,38 ↑ 92,35 92,77 93,17 93,73 94,44 94,87 ICE Gasoil Swap (1st month) (7,75) 769,25 ↑ 778,67 782,42 794,42 - - - LS ICE Gasoil Swap (1st month) - - ↑ - - - 800,31 809,22 812,71 3.5% Barges FOB Rtdm (8,50) 497,25 ↑ 493,50 492,50 496,75 500,00 505,25 506,50 3.5% Cargoes FOB Med (12,25) 498,25 ↑ 491,75 490,00 492,00 498,00 503,25 504,25 1.0% Cargoes FOB NWE (11,00) 503,00 ↑ 500,75 500,00 504,00 507,50 513,75 515,50 3% no. 6 USGC WB (1,67) 76,53 ↑ 77,50 77,33 77,58 78,78 79,36 79,64 380 CST Cargoes FOB S'pore (11,75) 521,00 ↑ 518,50 518,25 520,00 521,75 525,50 527,25 0.1 % GO Barges FOB Rtdm (7,50) 768,00 ↑ 778,25 781,25 793,25 789,25 798,25 801,25 Physical Rotterdam 380 CST (16,00) 512,50 ↑ 503,75 502,75 507,00 507,25 512,50 513,75 Physical Singapore 380 CST (12,00) 529,50 ↑ 528,75 528,50 530,25 530,00 533,75 535,50

Focus of the day: Houston

Bunker markets at most US and Canadian ports plunged Wednesday as the Brent crude futures contract fell to a 28-month low. On the US Gulf Coast, Houston bunker fuel prices dropped as a result of fierce supplier competition and a fall in Brent crude and fuel oil values. IFO 380cst and IFO 380cst 1% were offered at $510/mt and $563/mt, a fall of $14 and $7, respectively.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Oct 3:00 PM Aug $20.0B $26.0B $13.5B Initial Claims Medium 9-Oct 8:30 AM 4-Oct 295K 287K - Continuing Claims Medium 9-Oct 8:30 AM 27-sep 2425K 2398K - Wholesale Inventories Medium 9-Oct 10:00 AM Aug 0.3% 0.1% - Treasury Budget Medium 10-Oct 2:00 PM Sep NA $75.1B -

Source: OW Risk Management