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 started weak and closed lower yesterday. Crude market was seeing some weakness led by the softening equities and also precious metals. Market was also factoring in possible build in the US inventory report later today. The EIA report on the demand forecasts were generally bearish but didn’t influence the price movements significantly. The US oil fundamentals do look increasingly bearish as supply looks to be increasing faster than demand. However, the Chinese oil demand forecast fared better which could be motivated by the recent release of official Chinese manufacturing data which revealed a better than expected growth. With a light US economic calendar for the remaining week, market remains volatile and could see profit taking and investors taking a sidelines posture. The September WTI contracts fell -$1.26 to close $105.30/bbl while the September Brent closed $108.18/bbl, lost -$0.52. The US Energy department will be releasing the inventory report later today and the expectations are as follows: Crude -1.2 mbbl, Distillates -0.1 mbbl, Gasoline -0.8 mbbl. This morning, crude is trading lower.

Fueloil Specifics

The Singapore fuel oil markets were mostly flat ranging between -$1.0 to +$1.0 on the Platts window yesterday.  The delivered bunker premiums were around $6.0 above cargo prices yesterday. The Singapore market will be closed this coming Thursday and Friday for public holiday. Market will reopen the following Monday.  3.5% Rotterdam barges fell to 595.5 and ended down -$11. The backwardation in the market is steadily decreasing and at this rate it might be gone within a week.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Yesterday's Values Forward Indications               Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) (1,26) 105,30 ↓ 105,21 104,36 102,98 101,57 98,13 101,57 ICE Brent Swap (1st month) (0,52) 108,18 ↓ 107,37 106,41 105,70 105,08 103,46 101,46 ICE Gasoil Swap (1st month) (11,00) 909,25 ↑ 913,00 914,42 913,08 910,08 897,83 883,96 3.5% Barges FOB Rtdm (11,25) 595,25 ↓ 591,50 578,75 576,00 573,75 574,25 568,00 3.5% Cargoes FOB Med (8,75) 593,00 ↓ 584,50 570,75 560,75 567,75 569,00 564,25 1.0% Cargoes FOB NWE (4,25) 604,50 ↓ 602,00 604,25 604,50 604,00 605,00 596,25 3% no. 6 USGC WB (0,02) 91,36 ↓ 91,20 90,90 90,62 90,48 90,44 89,56 380 CST Cargoes FOB S'pore (1,25) 600,50 ↓ 598,00 599,00 600,25 599,50 598,25 593,50 0.1 % GO Barges FOB Rtdm (10,00) 909,75 ↑ 913,25 915,25 913,25 911,25 897,25 883,25 Physical Rotterdam 380 CST (9,00) 604,25 ↓ 601,75 587,00 585,00 584,00 584,50 578,25 Physical Singapore 380 CST 1,00 605,50 ↓ 606,75 606,75 607,00 606,25 605,00 600,25

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual ISM Services High 05-aug 10:00 AM Jul 53.2 52.2 53.1 Trade Balance High 06-aug 8:30 AM Jun -$43.4B -$45.0B -$34.2B MBA Mortgage Index Medium 07-aug 7:00 AM 03-aug N/A -3.7%   Crude Inventories Medium 07-aug 10:30 AM 03-aug N/A 0.431M   Consumer Credit Medium 07-aug 3:00 PM 03-aug 340K 326K   Initial Claims Medium 08-aug 8:30 AM aug-13 340K 326K   Continuing Claims Medium 08-aug 8:30 AM 27-jul 2975K 2951K

Source: OW Risk Management