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

Brent crude prices fell for the 3rd straight day as OPEC sees less demand for its crude to 2018 as US Shale booms. News is also that a deal is close with Iran over their nuclear program which took some of the “geopolitical premiums” off the table. Although the US Weekly jobless claims were slightly above expectation, it fell compared to previous week. The US 3rd Quarter GDP also posted a surprising solid growth of +2.8%, stronger than the expected +2.3%. This increased speculation that the US Federal Reserve will pare back it is monetary stimulus before March 2014. Another surprise was the bold move from the  European Central Bank  head after he  cut rate by 0,25%,  after numbers showed a low inflation in the Eurozone in its bid to revive economic growth. EUR/USD tumbled on the new putting further pressure on Crude oil. The December WTI Oil contract lost -$0.60 to close at $94.20/bbl and Brent dropped -$1.78 to settle at $103.46/bbl. Today focus will be on the US Nonfarm Payroll, Unemployment Rate and Personal Income figures. This morning, crude prices are trading around flat.

Fueloil Specifics

The Singapore fuel oil markets fell more than -$5.5 during the Platts window tracking the weaker crude values. The delivered bunker premiums hovered between +$9.5 to +$11.5 above cargo prices yesterday on previous strong fuel oil cargo premiums and also some near term tightness. In Rotterdam Barges fell $8.5 in the window closing at $561.75.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,60) 94,20 ↑ 94,84 94,93 94,83 94,74 93,48 92,69 ICE Brent Swap (1st month) (1,78) 103,46 ↑ 103,78 103,63 103,62 103,44 102,70 102,15 ICE Gasoil Swap (1st month) (16,50) 888,50 ↑ 886,17 885,08 884,42 884,36 880,28 879,22 3.5% Barges FOB Rtdm (8,50) 562,00 ↑ 560,25 563,00 563,00 563,50 563,50 562,50 3.5% Cargoes FOB Med (7,00) 563,50 ↑ 554,75 557,50 557,00 556,50 556,50 556,50 1.0% Cargoes FOB NWE (9,50) 576,25 ↑ 580,75 584,00 585,00 585,00 587,00 585,00 3% no. 6 USGC WB 0,25 88,20 ↑ 87,85 87,85 87,85 87,85 87,60 87,60 380 CST Cargoes FOB S'pore (5,75) 594,25 ↑ 586,25 584,00 583,50 582,75 582,75 582,75 0.1 % GO Barges FOB Rtdm (15,25) 889,50 ↑ 887,25 886,25 885,25 885,25 882,25 880,25 Physical Rotterdam 380 CST (9,00) 565,25 ↑ 565,50 568,25 568,25 568,25 567,75 566,75 Physical Singapore 380 CST (6,00) 604,50 ↑ 591,50 589,25 588,75 588,00 588,00 588,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 4-Nov 10:00 AM Sep 1.5% -0.1% 1.7% ISM Services High 5-Nov 10:00 AM Oct 55.0 54.4 55.4 Challenger Job Cuts Medium 6-Nov 7:30 AM Oct - 19.1% -4.2% Initial Claims Medium 7-Nov 8:30 AM 02-nov 335K 340K 336K GDP- Adv. High 7-Nov 8:30 AM Q3 1.9% 2.5% 2.8% Nonfarm Payrolls High 8-Nov 8:30 AM Oct 85K 148K - Unemployment Rate High 8-Nov 8:30 AM Oct 7.4% 7.2% - PCE Prices- Core Medium 8-Nov 8:30 AM Sep 0.1 0.2% - Mich Sentiment High 8-Nov 9:55 AM Nov 75.0 73.2 -

Source: OW Risk Management