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 remained firm and closed higher despite a weaker Euro and a flat equity market. The September WTI future was up +$0.01 to $93.36/bbl and Brent rose +$1.08 to $113.22/bbl. After gaining more than 20$ since the end of June, Brent seems to be caught back by fundamentals. Despite some draw in weekly US DOE stocks the last week, the market has ample Oil stocks. Iraq is now producing more than 3Mios bbl/day. The International Energy Agency cut global growth oil demand forecasts for this year and next saying growth will decelerate respectively to 800k for 2012 and 900k for 2013. The US weekly jobless claims saw a decline of 9k. This morning, crude is trading 0,9% down.

Fueloil Specifics

The Northwest European fuel oil prices closed yesterday with only marginal gains. Delivered 380cst product was assessed app.$1/mt up while cargo prices were app.$4/mt higher compared to previous day close. Buyers in ARA hub remain hesitant to fix on current levels while Hamburg port reported good demand. The Singapore market was closed for public holiday yesterday and reopened today. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.01 93.36 ↓ 92.86 93.19 93.59 94.63 95.02 93.60 ICE Brent Swap (1st month) 1.08 113.22 ↓ 110.32 109.74 109.34 108.10 106.76 109.34 ICE Gasoil Swap (1st month) 4.00 959.50 ↓ 956.08 953.58 950.33 941.23 928.36 929.24 3.5% Barges FOB Rtdm 4.25 635.25 ↓ 630.00 626.50 623.75 618.50 611.75 609.75 3.5% Cargoes FOB Med 3.50 631.25 ↓ 624.25 621.00 618.75 614.00 607.75 605.75 1.0% Cargoes FOB NWE 5.00 688.00 ↓ 675.25 667.75 662.25 651.75 644.75 642.75 3% no. 6 USGC WB 0.85 99.50 ↓ 98.25 98.00 97.50 95.25 94.25 94.75 380 CST Cargoes FOB S'pore 4.00 651.25 ↓ 651.25 648.50 646.25 641.25 634.25 632.25 0.1 % GO Barges FOB Rtdm 6.75 960.25 ↓ 956.25 954.25 951.25 945.25 935.25 931.25 Physical Rotterdam 380 CST 1.00 644.00 ↓ 640.25 636.75 634.00 628.75 622.00 620.00 Physical Singapore 380 CST 3.00 657.50 ↓ 661.50 658.75 656.50 652.00 645.00 643.00

Focus of the day: Piraeus

The first week of August was calm in Piraeus. Crude values moved upwards and average CIF MED 3.5% was higher by $ 22.00 this week compared to the last one in July. Apart from the cruisers, which accounted for the biggest part of the demand in the port, spot market was surprisingly quiet, with only a small number of low volume enquiries coming in. Product availability has been very good even for LSFO grades and the calm weather that prevailed led to very good supply conditions. MOH refinery will undertake an export during the weekend, therefore no loadings will take place before Monday and this is expected to cause some congestion in Hellenic Petroleum Refinery; the situation will be resolved by Monday afternoon.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 08-Aug 3:00 PM 04-Aug NA 0.2% -1.8% Productivity-Prel Medium 08-Aug 8:30 AM Q2 1.5% -0.9% 1.6% Initial Claims Medium 09-Aug 8:30 AM 04-Aug 385K 365K 361K Trade Balance Medium 09-Aug 8:30 AM June -$48.0B -$48.7B -$42.9B Wholesale Inventories Medium 09-Aug 10:00 AM June 0.6% 0.3% -0.2% Export Prices Medium 10-Aug 8:30 AM July NA -1.4% - Import Prices Medium 10-Aug 8:30 AM July NA -0.3% - Treasury Budget Medium 10-Aug 2:00 PM July NA -$129.4B -

Source: OW Risk Management