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 closed slightly lower mostly trading in range bound fashion during the day. The January WTI contract closed at $87.74/bbl, down -$0.54 and Brent settled at $110.92/bbl, fell -$0.46. The crude prices were initially softer waiting for an agreement from the European finance ministers and the IMF for Greece. A late announcement that a deal has been reached opened the way for the the next bailout installment package and relieved the market. But everybody knows that it is just a short term fix-although an important one- and that Europe is buying some time (until 2014?) as the debt issue is still not resolved and is at unsustainable levels. In terms of data the US October Durable Goods and S&P Schiller 20-city Index will be published later today. This morning, crude prices are trading up.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week with low activity and barely changed prices. Delivered 380cst product in Rotterdam was assessed app.$2/mt down while cargo prices remained unchanged from Friday closing. Antwerp and Rotterdam ports reported operational delays. The Singapore markets were up $5.0 during the morning Platts window tracking stronger crude movements. The 380cst cargo premiums saw some support. Current delivered bunker premiums remain weak, seen around $1.75-2.00 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.90 87.74 ↑ 88.22 88.84 89.46 89.43 90.60 90.53 ICE Brent Swap (1st month) (0.46) 110.92 ↑ 110.63 109.95 109.40 109.43 108.10 107.41 ICE Gasoil Swap (1st month) (3.75) 948.00 ↑ 952.67 952.17 949.00 948.81 937.86 935.92 3.5% Barges FOB Rtdm 0.00 588.75 ↑ 593.00 596.50 599.00 598.75 603.75 601.75 3.5% Cargoes FOB Med 1.25 574.75 ↑ 579.75 587.75 587.50 592.25 598.75 597.00 1.0% Cargoes FOB NWE (2.00) 611.25 ↑ 616.75 621.25 624.00 623.75 630.00 628.00 3% no. 6 USGC WB - 94.20 ↑ 93.27 93.62 93.87 94.27 94.17 94.00 380 CST Cargoes FOB S'pore 5.50 616.25 ↑ 617.25 619.50 622.00 621.75 627.50 625.75 0.1 % GO Barges FOB Rtdm (2.75) 948.50 ↑ 953.25 952.25 950.25 950.25 939.25 937.25 Physical Rotterdam 380 CST (2.00) 596.25 ↑ 603.25 606.75 609.25 609.00 614.00 612.00 Physical Singapore 380 CST 5.00 617.00 ↑ 627.50 629.75 632.25 632.50 638.25 636.50

Focus of the day: ARA

Heading towards the last month of the year we expect the physical market being a little under pressure, talking about the avails and flexibility of the local suppliers. Due to the Xmas holidays we expect now already some tight product and barging situations for the second half of the month. This should also have a slight impact already and slowly deteriorate the local product situation week by week. For the moment however there is no shortage yet, RMG HS and LS products are available, it is rather on the RMK side where we expect some smaller issues.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 27-Nov 8:30 AM Oct -0.5% 9.8% - Case-Shiller 20-city Index Medium 27-Nov 9:00 AM Sep 2.5% 2.0% - Consumer Confidence High 27-Nov 10:00 AM Nov 73.0 72.2 - New Home Sales Medium 28-Nov 10:00 AM Oct 395K 389K - Initial Claims Medium 29-Nov 8:30 AM 24-Nov 400K 410K - GDP- Second Estimate High 29-Nov 8:30 AM Q3 2.8% 2.0% - Pending Home Sales Medium 29-Nov 10:00 AM Oct 1.0% 0.3% - Personal Income Medium 30-Nov 8:30 AM Oct 0.0% 0.4% - PCE Prices- Core Medium 30-Nov 8:30 AM Oct 0.1% 0.1% - Chicago PMI Medium 30-Nov 9:45 AM Nov 50.0 49.9 -

Source: OW Risk Management