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 higher after a volatile session on Friday. The December WTI contract inched up +$0.23 to close at $86.28/bbl and Brent settled at $109.55, up +$1.06. A slightly better than expected US Q3GDP at +2,0% vs 1,9%exp. sent Brent $2/bbl higher. Hurricane Sandy is expected to reach New York by today and with all public transports closed and only electronic trading opened we could have a slow day. Next week will be the stage for the US election and with continuous uncertainty around the Eurozone and Spain particularly investors could adopt a more risk -adverse attitude. In terms of data the focus of the week will be the US Unemployment and Non Farm Payroll figures on Friday. Today we will have US manufacturing activity, personal income and spending data. This morning, crude is trading down.

Fueloil Specifics

The Northwest European fuel oil markets closed last week higher following higher crude in the afternoon. Delivered 380cst product in Rotterdam and cargo prices were assessed app.$4/mt up versus previous day close. HSFO premiums for prompt deliveries remain on the higher side due to ongoing delays at loading installations and were seen at $5-10/mt last Friday. The Singapore market was closed last Friday on public holiday and reopened today. Bunker fuel oil swaps gained app.$6/mt at the front of the forward curve both in Rotterdam and Singapore papers. Backend was slightly weaker, posting app. $5.5/mt gains. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Jan Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.23 86.28 ↓ 85.67 86.23 86.77 87.23 88.64 88.43 ICE Brent Swap (1st month) 1.06 109.55 ↓ 108.33 107.40 106.77 106.26 104.93 104.22 ICE Gasoil Swap (1st month) 10.50 968.50 ↑ 958.25 946.17 938.33 934.50 922.00 919.50 3.5% Barges FOB Rtdm 4.00 600.75 ↓ 600.25 599.75 601.00 601.00 598.00 595.50 3.5% Cargoes FOB Med 6.00 597.50 ↓ 593.25 593.25 593.00 596.50 594.00 591.50 1.0% Cargoes FOB NWE 7.00 633.75 ↓ 633.75 634.25 636.50 636.50 622.75 629.75 3% no. 6 USGC WB 0.90 95.95 ↓ 94.21 93.71 93.91 93.26 92.56 92.84 380 CST Cargoes FOB S'pore (0.50) 626.25 ↓ 624.75 624.00 624.00 624.00 621.75 619.00 0.1 % GO Barges FOB Rtdm 7.50 970.25 ↑ 958.25 946.25 939.25 934.25 921.25 919.25 Physical Rotterdam 380 CST 4.00 609.00 ↓ 610.50 610.00 611.25 611.25 608.25 605.75 Physical Singapore 380 CST 1.00 633.75 ↓ 635.00 634.25 634.25 634.75 632.50 629.75

Focus of the day: Gibraltar

The Gibraltar Strait is recovering this morning after last weeks congestion, with only 4 vessels queuing to enter the bunkering anchorage in Gibraltar, and all bunkering operations taking place within schedule in both Algeciras and Ceuta. Ceuta will be receiving new cargoes within the next days, so the three ports in the hub enjoy good avails of all products. CIF Med 3.5% is trading some $13 above FOB barges Rotterdam today and the HILO spread is widening significantly to some $40/mt. The first half of the week is expected to be busy in view of the 1st November holiday in many countries. Bunker premiums were narrowing the whole week. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Personal Income Medium 29-Oct 8:30 AM Sep 0.5% 0.1% - PCE Prices- Core High 29-Oct 8:30 AM Sep 0.1% 0.1% - Case-Shiller 20-city Index Medium 30-Oct 9:00 AM Aug 1.5% 1.2% - Consumer Confidence High 30-Oct 10:00 AM Oct 73.0 70.3 - ADP Employment Change Medium 31-Oct 8:15 AM Oct 135K 162K - Chicago PMI Medium 31-Oct 9:45 AM Oct 50.0 49.7 - Initial Claims Medium 01-Nov 8:30 AM 27-Oct 375K 369K - Productivity- Prel. Medium 01-Nov 8:30 AM Q3 2.0% 2.2% - ISM Index High 01-Nov 10:00 AM Oct 50.5 51.5 - Construction Spending Medium 01-Nov 10:00 AM Sept 1.0% -0.6% - Nonfarm Payroll High 02-Nov 8:30 AM Oct 135K 114K - Unemployment Rate High 02-Nov 8:30 AM Oct 7.9% 7.8% - Factory Orders Medium 02-Nov 10:00 AM Sept 5.0% -5.2% -

Source: OW Risk Management