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 the sharp sell-off in Crude prices continued on pre-positioning before the Federal Reserve decision. News from Libya are fluctuating nearly every day with now the announcement that Oil production could  return to around 50% of the pre-strike levels by the end of the week. The FOMC meeting is likely to overshadow the impact of US Weekly Inventory stock report that will be released later today as well. The inventory expectations are as follows: Crude -1.39 mbbl, Distillates +0.79 mbbl, Gasoline +0.34 mbbl. The October WTI extended its loss by -$1.17 to close at $105.42/bbl and November Brent also settled lower at $108.19/bbl, down -$1.88. This morning, crude prices are trading slightly up.

Fueloil Specifics

The Northwest European bunker fuel oil markets remained under pressure yesterday. 380cst product in Rotterdam and Antwerp was assessed some $3-4/mt lower vs previous days close. Delivered barge premiums remained relatively high supported by tight prompt product avails mainly caused by low refinery outputs due to maintenance. In Antwerp hsfo was offered from Friday while lsfo not before next week. The Singapore fuel oil markets fell yesterday on previous weaker crude prices, ranging -$3.0 to -$2.0 during the Asian Platts window. The delivered bunker premiums recovered slightly ranging between +$1.0 to +$2.0 above cargo prices. This morning both markets are trading slightly lower.

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) (1,17) 105,42 ↑ 104,99 103,51 103,52 99,39 96,07 95,48 ICE Brent Swap (1st month) (1,88) 108,19 ↑ 107,90 107,03 106,27 105,58 104,95 102,59 ICE Gasoil Swap (1st month) (18,50) 925,75 ↓ 921,83 918,92 918,89 904,28 889,83 887,17 3.5% Barges FOB Rtdm (2,75) 588,25 ↓ 586,75 585,00 585,00 584,75 580,50 576,75 3.5% Cargoes FOB Med (2,25) 590,25 ↓ 583,75 581,25 580,50 579,25 574,50 571,75 1.0% Cargoes FOB NWE (5,50) 610,50 ↓ 610,50 611,75 611,75 613,25 608,75 603,50 3% no. 6 USGC WB (0,63) 93,72 ↑ 93,45 93,20 92,95 92,70 92,15 91,45 380 CST Cargoes FOB S'pore (2,00) 601,25 ↓ 599,75 600,00 598,75 599,00 597,50 595,25 0.1 % GO Barges FOB Rtdm (18,50) 923,75 ↓ 923,25 920,25 920,25 908,25 894,25 891,25 Physical Rotterdam 380 CST (3,00) 590,75 ↓ 592,00 590,25 590,25 589,50 584,75 581,00 Physical Singapore 380 CST (1,50) 602,50 ↓ 605,00 605,25 605,00 605,00 602,75 600,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 16-Sep 8:30 AM Sep 7.0 8.6 6.3 Industrial Production Medium 16-Sep 9:15 AM Aug 0.2% 0.0% 0.4% Core CPI High 17-Sep 8:30 AM Aug 0.2% 0.2% 0.1% NAHB Housing Market Index Medium 17-Sep 10:00 AM Sep 58 59 58 Housing Starts Medium 18-Sep 8:30 AM Aug 900K 896K - FOMC Rate Decision High 18-Sep 2:00 PM Sep 0.25% 0.25% - Initial Claims Medium 19-Sep 8:30 AM 14-sep 335K 292K - Existing Home Sales Medium 19-Sep 10:00 AM Aug 5.00M 5.39M - Philadelphia Fed Medium 19-Sep 10:00 AM Sep 8.0 9.3 - Leading Indicators Medium 19-Sep 10:00 AM Aug 0.5% 0.6% -

Source: OW Risk Management