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

After initial gains, crude managed to close only slightly higher last Friday. Along with the weaker Euro and equities, markets were pressured down in the latter session by Spanish stress test and likely also a loss of appetite going into the weekend. The November WTI futures inched up $0.34 to $92.19/bbl while Brent futures similarly rose $0.38 to $112.39/bbl. Market seems to be rather directionless tensioned by a myriad of drivers. The Middle East tension which supports the crude while the underlying fundamental major economies remains fragile amidst global slowdown and sovereign debt challenges in Eurozone. China may be the next to introduce some form of stimulus to boost the economy as recent Chinese data showed signs of weakness. China released PMI index showed a seventh straight quarter of slowing economic growth, though the number was slightly better than in August. The US macro calendar this week will be busy starting with US Manufacturing activity expected to show another month of contraction. On Wednesday, the ISM Index is also expected to show a slightly slowing growth in the non-manufacturing sector. Nonfarm payrolls for September are expected to gain 120K and will be published on Friday along with Unemployment Rate expected at 8.2% versus 8.1% in August. This morning, crude is trading down.

Fueloil Specifics

The Northwest European fuel oil markets saw mixed sentiment last Friday. ARA hub reported sufficient demand followed by good supply availability while German ports saw subdued trading activity. Delivered 380cst product in Rotterdam was assessed app.$1/mt lower versus previous day close while cargo prices posted app.$1/mt gain. The Singapore Fuel Oil markets surged up more than $12.5 during the morning window last Friday. The delivered bunker premiums rose to around $9.5 above cargo prices as crude values increased after window. There are several Asian markets like China and Korea, closed for public holiday and demand is expected to be quieter. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.34 92.19 ↓ 92.11 92.44 92.79 93.49 93.75 92.45 ICE Brent Swap (1st month) 0.38 112.39 ↓ 111.67 110.89 110.24 109.02 107.39 110.93 ICE Gasoil Swap (1st month) (0.25) 980.75 ↓ 976.83 969.75 962.25 949.75 933.39 932.13 3.5% Barges FOB Rtdm 1.00 630.00 ↑ 629.75 626.50 623.50 618.75 610.00 605.75 3.5% Cargoes FOB Med 1.25 626.00 ↑ 623.50 621.00 618.25 614.00 606.00 601.75 1.0% Cargoes FOB NWE 5.50 689.25 ↑ 684.75 673.75 668.25 659.75 649.00 644.25 3% no. 6 USGC WB (0.55) 99.55 ↓ 98.95 98.15 97.30 96.90 95.75 95.19 380 CST Cargoes FOB S'pore 12.75 658.00 ↑ 654.50 650.50 648.00 643.25 634.00 629.50 0.1 % GO Barges FOB Rtdm (0.25) 978.50 ↓ 977.25 970.25 963.25 951.25 935.25 934.25 Physical Rotterdam 380 CST (1.00) 638.25 ↑ 640.00 636.75 633.75 629.00 620.25 616.00 Physical Singapore 380 CST 15.00 667.50 ↑ 664.75 660.75 658.25 654.00 644.75 640.25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 01-Oct 10:00 AM Sep 49.2 49.6 - Construction Spending Medium 01-Oct 10:00 AM Aug 0.1% -0.9% - ADP Employment Change Medium 03-Oct 8:15 AM Sep 100K 201K - ISM Services Medium 03-Oct 10:00 AM Sep 52.0 53.7 - FOMC Minutes High 03-Oct 2:00 PM 12-Sep - - - Challenger Job Cuts Medium 04-Oct 7:30 AM Sep NA -36.9% - Initial Claims Medium 04-Oct 8:30 AM 29-Sep 370K 359K - Factory Orders Medium 04-Oct 10:00 AM Aug -5.5% 2.8% - Nonfarm Payrolls High 05-Oct 8:30 AM Sep 120K 96K - Unemployment Rate High 05-Oct 8:30 AM Sep 8.2% 8.1% - Consumer Credit Medium 05-Oct 3:00 PM Aug $5.0B -$3.3B -

Source: OW Risk Management