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

The last three days Crude prices rose more than $3 going into the Fed Meeting to lose some gains into the close. The December WTI contract settled at $82.20/bbl, up +$0.78 and Brent rose more than $1.0 to close at $87.12/bbl. The US DOE Weekly Inventory Report was supportive as crude build was less than expected at 2,1mbbl and Distillates and Gasoline drew respectively -5,3mbbl and -1,2mbbl. As expected the US Federal Reserve ended its last round of aggressive bond buying program. In a remarked changed of wording the Federal Reserve Committee acknowledged a significant improvement in the US labor market and set its focus to its first interest rise after being close to zero for years. The US dollar climbed sharply on the news capping further crude gains. Industrial & Commercial Bank of China, the world biggest lender by assets, reported its biggest increase in bad loans (+9%) as the property market and the economy are cooling. Today, the market will look forward to the US 3rd Quarter GDP and the Weekly Jobless Claims to provide further guidance. This morning, crude prices are trading -0,70% for Brent for Brent and -1,0% for WTI.

Fueloil Specifics

The NWE bunker fuel oil prices gained some strength yesterday following the rise in Brent. Delivered 380cst product gained $6/mt in Antwerp and a dollar more in Rotterdam. Suppliers in ARA reported tight prompt avails for both hsfo and lsfo products. The Singapore fuel oil prices rose another $4.0 during the Asian Platts window tracking the firmer crude prices. The Singapore fundamentals look balanced with ample supply. The delivered bunker premiums were seen at app. $6.75 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) 0,78 82,20 ↓ 81,29 81,08 80,77 80,79 80,57 80,70 ICE Brent Swap (1st month) 1,09 87,12 ↓ 86,71 87,22 88,25 89,06 89,90 91,00 ICE Gasoil Swap (1st month) 17,25 757,00 ↓ 747,25 748,67 760,92 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 766,28 773,78 775,99 3.5% Barges FOB Rtdm 8,50 457,75 ↓ 452,75 452,00 455,00 458,50 465,75 467,75 3.5% Cargoes FOB Med 9,25 466,00 ↓ 453,75 451,25 453,25 456,50 463,75 465,75 1.0% Cargoes FOB NWE 8,00 469,25 ↓ 461,00 459,50 462,00 465,75 474,00 476,50 3% no. 6 USGC WB 0,75 71,65 ↓ 71,20 71,38 71,51 71,95 72,94 73,84 380 CST Cargoes FOB S'pore 3,50 480,25 ↓ 480,25 480,00 480,00 482,25 484,25 489,50 0.1 % GO Barges FOB Rtdm 17,00 757,00 ↓ 746,25 748,25 760,25 755,25 764,25 766,25 Physical Rotterdam 380 CST 7,00 458,50 ↓ 463,00 462,25 465,25 466,75 475,00 478,00 Physical Singapore 380 CST 4,50 486,50 ↓ 490,50 490,25 490,25 490,50 493,50 499,75

Focus of the day: Houston

US bunker markets rebounded Wednesday following a rise in the Brent crude futures contract. In Houston prices climbed quick tracking a hike on market movement, despite sluggish buying interest prevailing. High and low sulfur bunker fuel prices were up $15/mt and $30/mt, respectively. In the marine gasoil segment, market participants described the day as slow. Besides market movement, limited supplies and firm demand was responsible for rising in price in Panama. So far only two physical suppliers were offering IFO 380 CST grades in Panama with limited avails.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Goods Orders High 28-Oct 8:30 AM Sep 0.5% -18.4% -1.3% Case- Shiller 20-city Index Medium 28-Oct 9:00 AM Aug 5.5% 6.7% 5.6% Consumer Confidence High 28-Oct 10:00 AM Oct 87.0 86.0 94.5 FOMC Rate Decision High 29-Oct 2:00 PM Oct 0.25% 0.25% 0.25% Initial Claims Medium 30-Oct 8:30 AM 25-Oct 295K 283K - GDP-Adv. High 30-Oct 8:30 AM Q3 2.3% 4.6% - Personal Income Medium 31-Oct 8:30 AM Sep 0.4% 0.3% - PCE Prices- Core Medium 31-Oct 8:30 AM Sep 0.1% 0.1% - Chicago PMI Medium 31-Oct 9:45 AM Oct 58.0 60.5 - Michigan Sentiment Medium 31-Oct 9:55 AM Oct 85.5 86.4 -

Source: OW Risk Management