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 managed to stabilize after two days of hard sell-off. The October WTI futures inched up $0.17 to close at $107.56/bbl and Brent gained $0.25 to $111.50. With diplomacies taking over imminent strike on Syria, Crude Oil lost its entire “war premium” and came back to pre war fears level. This could change if the Russian proposition fails. Supply disruptions particularly in Libya (0,2 Mios vs 1,4 Mios bbl ) are supportive driver but as usual Saudi Arabia said that they could increase production to cover the short fall. The DOE US inventory was bearish with Crude Oil stocks posting a small draw of -0.22 mbbl vs -1.5 mbbl expected and product inventories seeing builds instead. It was the tenth consecutive draws of the crude stockpile in Cushing and refinery utilization rate increase. The IEA released its September report and forecast global demand growth to rise 1,1 mb/d in 2014 as “the underlying macroeconomics solidifies”. Asian stock Indices swung between gains and loss after the Japanese machinery orders  accelerated less than expected and as investors are already looking to next week and the Federal’s Reserve meeting outcome. This morning, crude prices are trading around +0,35% up.

Fueloil Specifics

The Northwest European bunker fuel oil markets saw mixed day with increased demand. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$3/mt higher vs previous day. LSFO avails in Rotterdam remained tight and some suppliers could offer only for Friday deliveries. The Singapore fuel oil markets only came off between -$4.0 to -$3.0 during the Platts window yesterday on choppy crude movements. The delivered bunker premiums were seen app.$3.0 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. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,17 107,56 ↑ 106,36 104,82 104,85 100,56 97,45 96,42 ICE Brent Swap (1st month) 0,25 111,50 ↑ 110,20 109,14 109,18 108,22 106,56 103,96 ICE Gasoil Swap (1st month) 4,75 943,50 ↑ 944,83 939,33 940,47 928,11 908,58 906,10 3.5% Barges FOB Rtdm 6,25 586,50 ↑ 590,75 591,00 591,00 593,75 590,50 586,50 3.5% Cargoes FOB Med 7,75 591,75 ↑ 588,75 587,50 586,75 588,25 584,50 581,50 1.0% Cargoes FOB NWE 6,25 611,75 ↑ 617,50 619,00 618,75 622,25 619,25 613,50 3% no. 6 USGC WB (1,86) 93,54 ↑ 92,85 92,60 92,60 92,35 91,80 91,10 380 CST Cargoes FOB S'pore (1,75) 595,25 ↑ 604,50 606,75 606,00 610,25 609,75 607,00 0.1 % GO Barges FOB Rtdm 4,50 942,75 ↑ 946,25 940,25 940,25 923,25 905,25 904,25 Physical Rotterdam 380 CST 3,00 587,25 ↑ 596,00 596,25 596,25 598,50 594,75 590,75 Physical Singapore 380 CST (2,00) 598,75 ↑ 609,75 612,00 612,25 616,25 615,00 612,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 9-Sep 3:00 PM Jul $13.0B $13.8B $10.4B Wholesale Inventories Medium 11-Sep 10:00 AM Jul 0.2% -0.2% 0.1% Initial Claims Medium 12-Sep 8:30 AM 07-sep 330K 323K - Continuing Claims Medium 12-Sep 8:30 AM 31-aug 2975K 2951K - Treasury Budget Medium 13-Sep 2:00 PM Aug NA -$190.5B - Retail Sales High 13-Sep 8:30 AM Aug 0.5% 0.2% - Core PPI Medium 13-Sep 8:30 AM Aug 0.1% 0.1% - Mich Sentiment High 13-Sep 9:55 AM Sep 81.0 82.1 - Business Inventories Medium 13-Sep 10:00 AM Jul 0.2% 0.0% -

Source: OW Risk Management