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 Oil positive momentum was kept yesterday unscathed by the Government shutdown. The November WTI Crude Oil contract settled at $103.49/bbl, up $0.46 and Brent at  $110.16/bbl, up $0.48. President Obama said he is exploring all contingencies in the event Congress fails to increase the country’s borrowing limits. He would accept even a short –term increase to give lawmakers time to negotiate but warned that a US debt default is still a possible outcome. The White House will officially nominate J. Yellen as Fed Chairman at a ceremony today. J. Yellen is on the pro-stimulus side and it reinforces US commitment to maintain current measures. Note that China has overtaken the US as the largest net importer of Oil. Yesterday API Oil stocks showed a build in Crude Oil of 2,7 mb but draws in Distillates and Gasoline of respectively +1 mbbl and +2,8 mbbl. This morning, Crude prices are trading app. 0,25% down.

Fueloil Specifics

The NWE bunker fuel oil markets saw lower prices and slightly improving avails yesterday. Delivered 380cst product in Rotterdam and Antwerp was assessed some $3-4/mt down vs. previous close. Traders in Rotterdam reported improving supplies though premiums for prompt deliveries remained on the higher side. The Singapore fuel oil markets fell more than $5.5 during the Platts window yesterday. The Asian fuel oil cracks saw strong sell- off. The delivered bunker premiums also weakened marginally to range between +$5.0 to +$6.5 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,46 103,49 ↓ 102,95 102,33 102,85 100,69 98,19 97,17 ICE Brent Swap (1st month) 0,48 110,16 ↓ 108,91 108,23 108,24 107,59 106,96 104,53 ICE Gasoil Swap (1st month) 9,25 935,50 ↓ 931,42 928,08 931,14 920,28 907,53 905,70 3.5% Barges FOB Rtdm (0,75) 582,75 ↑ 582,75 581,50 582,75 584,50 583,00 580,50 3.5% Cargoes FOB Med 1,75 581,25 ↑ 578,50 576,25 578,50 577,50 576,00 574,25 1.0% Cargoes FOB NWE 0,50 592,50 ↑ 599,75 603,50 599,50 607,50 608,00 604,25 3% no. 6 USGC WB 0,36 92,55 ↑ 91,45 91,20 91,45 91,20 90,90 90,65 380 CST Cargoes FOB S'pore (7,75) 602,75 ↑ 602,25 601,25 604,50 602,75 602,50 601,50 0.1 % GO Barges FOB Rtdm 9,00 936,00 ↓ 932,25 929,25 932,25 921,25 909,25 907,25 Physical Rotterdam 380 CST (3,00) 587,75 ↑ 588,00 586,75 588,00 589,25 587,25 584,75 Physical Singapore 380 CST (7,00) 607,50 ↑ 607,50 605,50 608,75 607,00 606,75 605,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Oct 3:00 PM Aug $12.0B $10.4B $13.6B Non-farm Payrolls High - Sep 180K 169K -   Unemployment Rate High - Sep 7.3% 7.3% -   Trade Balance Medium 8-Oct 8:30 AM Aug -$40.0B -$39.1B - Wholesale Inventories Medium 9-Oct 7:00 AM Aug 0.2% 0.1% - Initial Claims Medium 10-Oct 8:30 AM 5-Oct 315K 308K - Treasury Budget Medium 10-Oct 2:00 PM Sep NA $75.18B - Retail Sales Medium 11-Oct 8:30 AM Sep -0.1% 0.2% - Core PPI Medium 11-Oct 8:30 AM Sep 0.1% 0.0% - Mich Sentiment High 11-Oct 9:55 AM Oct 73.0 77.5 - Business Inventories Medium 11-Oct 10:00 AM Aug 0.2% 0.4% -

Source: OW Risk Management