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 rallied in the European session to lose momentum during the US trading hours. The November WTI settled at $103.31/bbl, falling -$0.79 and Brent closed at $109.00/bbl, down -$0.19. Market sentiment is still heavy as the US government partial shutdown is ongoing and the 17th October deadline to increase the debt ceiling and avoid a US default by month-end is getting closer. In the meantime market is looking for economic data for guidance. The US weekly jobless claims came out slightly better than expected. The US unemployment number that should have been released today is delayed to Monday. The US dollar remains weak supporting Crude Oil prices. A newly formed Tropical Storm Karen in the US Gulf coast is impacting some of the oil production facilities and evacuation is on its way for the staffs. This morning, crude prices are trading slightly up.

Fueloil Specifics

Bunker fuel oil prices in the main NWE ports remained largely unchanged yesterday. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$1/mt higher vs previous close. Suppliers in Rotterdam reported restrains at loading terminals leading to supply delays up to 5 days. The Singapore fuel oil markets surged up more than $10.5 during the Asian Platts window yesterday lifted by firm buying interest. The Asian fuel oil cracks strengthened as well. The delivered bunker premiums rose accordingly to the strength in physical fuel oil market, seen at $8.0-5.0 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. Nov Dec Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,79) 103,31 ↑ 102,99 102,17 102,87 100,06 97,10 96,18 ICE Brent Swap (1st month) (0,19) 109,00 ↑ 107,91 107,08 107,11 106,36 105,68 103,16 ICE Gasoil Swap (1st month) 4,00 926,50 ↑ 923,50 919,50 923,33 910,64 896,72 895,08 3.5% Barges FOB Rtdm (2,25) 593,75 ↓ 582,75 579,00 583,25 579,50 574,75 571,25 3.5% Cargoes FOB Med (1,00) 587,25 ↓ 576,50 572,50 577,75 572,25 567,75 565,00 1.0% Cargoes FOB NWE (4,25) 594,75 ↓ 595,75 599,25 596,00 601,75 599,00 594,25 3% no. 6 USGC WB (1,58) 92,30 ↓ 91,40 90,90 91,40 90,65 90,10 89,60 380 CST Cargoes FOB S'pore 10,50 625,00 ↓ 603,50 599,25 606,00 597,25 593,25 591,00 0.1 % GO Barges FOB Rtdm 4,00 926,50 ↑ 925,25 921,25 924,25 912,25 898,25 896,25 Physical Rotterdam 380 CST 1,00 601,00 ↓ 588,00 584,25 588,50 584,25 579,00 575,50 Physical Singapore 380 CST 12,00 629,75 ↓ 608,75 603,50 610,25 601,50 597,50 595,25

Focus of the day: Piraeus

This was another busy week for Piraeus and Istanbul. Crude market was somewhat volatile, but, overall, CIF MED 3.5% average for this week remained at same levels as last week. Product availability and loading conditions in Piraeus were very good and barges managed to meet the increased demand without any congestions being reported. Istanbul market was active as well, while supply conditions were very smooth. We expect high demand for the coming week as well.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Chicago PMI Medium 30-Sep 9:45 AM Sep 52.0 53.0 55.7 ISM Index High 1-Oct 10:00 AM Sep 54.0 55.7 56.2 Construction Spending Medium 1-Oct 10:00 AM Aug 0.3% 0.6% - ADP Employment Change Medium 2-Oct 8:15 AM Sep 180K 176K 166K Initial Claims Medium 3-Oct 8:30 AM 28-sep 315K 305K 308K Factory Orders Medium 3-Oct 10:00 AM Aug 0.3% -2.4% - ISM Services High 3-Oct 10:00 AM Sep 58.0 58.6 54.4 Nonfarm Payrolls High 4-Oct 8:30 AM Sep 165K 169K - Unemployment Rate High 4-Oct 8:30 AM Sep 7.3% 7.3% -

Source: OW Risk Management