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 Thursday in the black, however lost the strength in the latter trading session. The November WTI contract lost another -$1.54 to settle at $85.77/bbl while Brent slipped to the lowest level in 27 months and closed at $90.05/bbl, down -$1.33. Market sentiment continues to be driven by weak fundamentals. On one hand, supplies from OPEC rose last month and the shale oil is set to boost oil production in US, while on the other hand the recent downgrade of global growth by the IMF paints a fragile economic outlook. There are not much strong bullish drivers present while a few possibilities remain in the hands of OPEC; to reduce their production output and lower the general global supply inventories. OPEC accounts for 40% of the world production and they will meet up at the end of next month. The US Weekly Jobless Claims were within expectation while the August Wholesale Inventories data improved by +0.7% vs 0.3% expected. This morning, crude is trading lower.

Fueloil Specifics

The NWE bunker fuel oil prices tumbled further down yesterday following weakening Brent. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$7/mt down vs previous close. Suppliers reported good demand and slightly improving avails. The Singapore fuel oil prices were trading around parity yesterday during the Platts window. The recent Singapore heavy residual inventory reported a slight build of +0.58 mbbl to 20.44 mbbl. The delivered bunker premiums were seen at up to $9.0 above cargo prices. This morning both markets are trading double digits 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) (1,54) 85,77 ↓ 83,57 83,25 83,00 82,69 82,27 82,74 ICE Brent Swap (1st month) (1,33) 90,05 ↓ 89,67 90,06 90,46 91,10 91,91 92,72 ICE Gasoil Swap (1st month) (3,00) 766,25 ↓ 759,33 762,75 774,17 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 780,33 789,78 793,10 3.5% Barges FOB Rtdm (3,00) 494,25 ↓ 475,75 474,50 478,50 481,75 487,75 490,50 3.5% Cargoes FOB Med (3,00) 494,50 ↓ 474,00 472,00 474,00 479,75 485,75 488,25 1.0% Cargoes FOB NWE (1,00) 501,00 ↓ 483,00 482,00 485,75 489,25 495,50 497,25 3% no. 6 USGC WB (1,93) 74,60 ↓ 74,60 74,45 74,70 75,87 76,42 76,70 380 CST Cargoes FOB S'pore 0,25 522,25 ↓ 501,50 501,00 502,50 505,00 509,50 512,25 0.1 % GO Barges FOB Rtdm (3,50) 764,75 ↓ 758,25 762,25 773,25 769,25 779,25 782,25 Physical Rotterdam 380 CST (7,00) 505,50 ↓ 486,00 484,75 488,75 490,00 496,00 498,25 Physical Singapore 380 CST 0,00 529,50 ↓ 511,75 511,25 512,75 513,25 517,75 520,50

Focus of the day: Piraeus

Crude market has nose-dived this week and the drop continues this morning. Cargo prices in the MED have slipped downwards and we are seeing and immense drop in CIF MED 3.5%, which was lower on average by $ 27 compared to last week and has reached its lowest since January 2011. Product availability is very good and both refineries are working normally. Demand has been quite steady. Amidst this drop there is a number of enquiries circulating the market this morning. We expect high demand in the next week as well, as buyers will want to benefit from the low fuel prices.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Oct 3:00 PM Aug $20.0B $26.0B $13.5B Initial Claims Medium 9-Oct 8:30 AM 4-Oct 295K 287K 287K Continuing Claims Medium 9-Oct 8:30 AM 27-sep 2425K 2398K 2381K Wholesale Inventories Medium 9-Oct 10:00 AM Aug 0.3% 0.1% 0.7% Treasury Budget Medium 10-Oct 2:00 PM Sep NA $75.1B -

Source: OW Risk Management