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 continue to trade sideways before the US Unemployment number tomorrow. The US WTI contract lost more than -1.4% to close at $92.33/bbl while Brent prices managed to cap losses and settle at $107.15/bbl, down -$0.20. Crude prices came under pressure from a strengthening dollar after a narrower US deficit. Discussions are around since the number,narrowing deficit, translates in less USD net selling pressure from corporates, growth implication, increasing case for more aggressive Fed tapering. Also a firm US ADP employment number (+238K) yesterday could point to a solid Non Farm Payroll tomorrow. The US inventory report was mostly leaning bearish despite a -2,7 Mios bbl draw in Crude Oil while Cushing stockpile built +1.1 mbbl. The product inventories showed a build above 5 mbbl with demand impacted by the cold Arctic snaps hitting North Americas. This morning, crude prices are trading slightly higher (+0,27%).

Fueloil Specifics

Despite slightly stronger Brent values the NWE bunker fuel oil prices fell yesterday. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$6/mt down vs previous close. Suppliers in both ports reported average demand and good hsfo avails while Antwerp was struggling with limited lsfo product for prompt deliveries. The Singapore fuel oil markets managed a slight increase of app.$1/mt during the Asian Platts window yesterday. Market is expected to tighten with fewer incoming cargoes from the West. The delivered bunker premiums were seen at app. $6.5 above cargo prices yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Feb Mar Apr Q214 Q314 Q414 NYMEX WTI Swap (1st month) (1,34) 92,33 ↑ 92,81 92,63 92,32 91,77 89,68 87,95 ICE Brent Swap (1st month) (0,20) 107,15 ↑ 107,09 106,78 103,60 106,08 104,75 103,60 ICE Gasoil Swap (1st month) 1,75 912,25 ↑ 909,75 906,75 904,08 901,97 896,81 891,83 3.5% Barges FOB Rtdm (2,75) 558,75 ↑ 567,75 568,75 569,00 568,75 567,50 564,25 3.5% Cargoes FOB Med (1,25) 566,00 ↑ 565,00 566,25 566,50 566,25 561,50 564,25 1.0% Cargoes FOB NWE 2,00 584,75 ↑ 587,25 589,75 591,25 591,50 591,00 584,50 3% no. 6 USGC WB (0,40) 87,15 ↑ 88,95 89,20 89,45 88,95 89,20 88,95 380 CST Cargoes FOB S'pore (1,75) 597,50 ↑ 595,75 592,75 591,75 592,00 590,25 589,00 0.1 % GO Barges FOB Rtdm 1,25 911,25 ↑ 911,25 908,25 904,25 902,25 898,25 892,25 Physical Rotterdam 380 CST (5,00) 564,00 ↑ 573,00 574,00 574,25 574,00 572,75 569,50 Physical Singapore 380 CST (1,00) 604,75 ↑ 601,00 598,00 597,00 597,25 595,50 594,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 6-Jan 10:00 AM Nov 2.0% -0.9% 1.8% ISM Services High 6-Jan 10:00 AM Dec 53.0 53.9 53.0 Trade Balance Medium 7-Jan 8:30 AM Nov -$41.5B -$40.6B -$34.3B ADP Employment Change Medium 8-Jan 8:15 AM Dec 185K 215K 238K FOMC Minutes High 8-Jan 2:00 PM 18-dec - - - Consumer Credit Medium 8-Jan 3:00 PM Nov $15.0B $18.2B $12.3B Nonfarm Payrolls High 10-Jan 8:30 AM Dec 185K 203K - Unemployment Rate High 10-Jan 8:30 AM Dec 7.1% 7.0% - Wholesale Inventories Medium 10-Jan 10:00 AM Nov -0.2% 1.4% -

Source: OW Risk Management