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 were trending sideways with low volume as the UK markets were closed for bank holiday. The October WTI futures contract closed at $93.35/bbl, -$0.30 and October Brent erased previous loss by gaining +$0.36 to $102.65/bbl. The Oil market looks like it is trying for a bottom after nearly 2 months of sell-off. Despite Oil supply flowing out from Iraq and Libya there is still too much uncertainty on the geopolitical side. Twice in the last seven days, Egypt and the UAE have secretly launched airstrikes against Islamic militias battling for control of Tripoli. On the Futures Oil market investors have cut their speculative length to a 17 months low. Today is rich in terms of data in the US with July Durable Goods Orders, June Schiller 20 City House price Index, August Consumer Confidence Index (CPI). This morning, crude prices are trading around flat.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week on a soft note. Suppliers reported slightly lower prices following weakening Brent values. Due to Summer Bank Holiday in the UK there were no official Platts data. The Singapore fuel oil prices fell more than -$3.0 during the Asian Platts window yesterday tracking the weaker crude values. Market fundamentals remain firm as reflected in the physical premiums. The delivered bunker premiums were seen between +$8.0 and +$9.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Sep Oct Nov Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,30) 93,35 ↑ 93,31 92,93 92,64 92,77 92,52 92,14 ICE Brent Swap (1st month) 0,36 102,65 ↑ 103,13 103,73 104,42 104,10 104,55 104,33 ICE Gasoil Swap (1st month) (0,25) 860,00 ↑ 864,33 867,83 870,67 871,00 - - 3.5% Barges FOB Rtdm - - ↑ 557,50 555,75 555,25 556,00 561,00 562,75 3.5% Cargoes FOB Med - - ↑ 555,75 553,25 553,00 553,75 558,75 560,25 1.0% Cargoes FOB NWE - - ↑ 566,25 566,75 567,00 567,25 572,25 574,92 3% no. 6 USGC WB 0,29 86,84 ↑ 87,50 87,07 86,87 86,90 87,13 87,38 380 CST Cargoes FOB S'pore (4,25) 582,75 ↑ 582,50 580,50 580,00 580,75 584,00 585,25 0.1 % GO Barges FOB Rtdm - - ↑ 863,25 867,25 870,25 870,25 - - Physical Rotterdam 380 CST - - ↑ 562,75 561,00 560,50 560,75 565,75 567,50 Physical Singapore 380 CST (4,50) 591,00 ↑ 587,75 585,75 585,25 585,50 588,75 590,00

Focus of the day: ARA

This week fuel cracks firmed as a result of ever tight avails of high sulphur fuels in Rotterdam, leaving the fuel price firm. On the RMK’s, the ‘lower’ viscos still remain pricy. The low sulphur premium is still low, but at least there is a premium again; only 6 dollars at the moment. With the high sulphur being tight, we don’t expect any drastic changes on this premium anytime soon. The gasoil is well supplied, discounts remain unchanged. Low density gasoil is well supplied. Notification periods for the different grades; five days for high sulphur enquiries and two working days for low sulphur enquiries; two days for gasoil enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual New Home Sales Medium 25-Aug 10:00 AM Jul 415K 406K 412K Durable Orders High 26-Aug 8:30 AM Jul 12.6% 1.7% - Case- Schiller 20-city Index Medium 26-Aug 9:00 AM Jun 8.5% 9.3% - Consumer Confidence High 26-Aug 10:00 AM Aug 88.0 90.9 - Initial Claims Medium 28-Aug 8:30 AM 23-aug 315K 298K - GDP- 2nd estimate High 28-Aug 8:30 AM Q2 4.0% 4.0% - PCE Prices- Core High 29-Aug 8:30 AM Jul 0.1% 0.1% - Chicago PMI Medium 29-Aug 9:45 AM Aug 53.0 52.6 - Michigan Sentiment Medium 29-Aug 9:55 AM Aug 80.0 79.2 -

Source: OW Risk Management