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

On Friday crude prices closed sharply higher after the October US Non Farm Payroll (new jobs created) surprisingly jumped to 204k. The much better than expected US economic data boosted market expectation that the US Federal Reserve may reduce their Bond Buying program as soon as December. Some Oil supporting news came during the weekend. Firstly, talks between Iran and six world powers ended without an agreement on Iran’s nuclear program, they will meet again on the 20th November. Secondly, Saudi Arabia cut its output in October from 10,1mio bpd to 9,75 mbpd  and finally disruptions in Libya are far from over. The December WTI oil contract closed at $94.60/bbl, up +$0.40 and Brent jumped +$1.66, to settle at $105.12/bbl. This morning, crude prices are trading slightly higher for Brent (+0,30%) and WTI slightly lower (-0,36%).

Fueloil Specifics

The Northwest European bunker fuel oil markets closed higher last Friday following general market trend. Delivered 380cst product in Rotterdam and Antwerp was assessed some $3-4/mt up versus previous close. Suppliers reported increased buying interest in the afternoon however product avails remained tight. Singapore fuel oil markets fell app. $2.25 during the Asian Platts window last Friday following the weaker crude values. The Singapore heavy residual inventory reported a draw of -2.26 mbbl to 16.92 mbbl. The delivered bunker premiums were seen app. $9.5 above cargo prices at the end of the week. This morning both markets are trading higher.

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) 0,40 94,60 ↓ 94,64 94,73 94,77 94,73 93,62 92,76 ICE Brent Swap (1st month) 1,66 105,12 ↑ 105,09 104,77 104,76 104,43 103,47 102,93 ICE Gasoil Swap (1st month) 4,50 893,00 ↑ 893,42 892,75 892,83 892,25 887,42 886,31 3.5% Barges FOB Rtdm 2,75 564,75 ↑ 566,50 569,25 569,25 569,75 569,25 567,75 3.5% Cargoes FOB Med 4,25 567,75 ↑ 561,25 564,00 563,50 563,00 562,25 561,75 1.0% Cargoes FOB NWE 2,75 579,00 ↑ 587,00 590,25 591,25 591,25 593,00 590,25 3% no. 6 USGC WB 0,80 89,75 ↑ 89,25 89,00 89,00 89,00 88,75 88,50 380 CST Cargoes FOB S'pore (2,50) 592,50 ↑ 593,00 589,25 588,50 588,75 588,00 587,75 0.1 % GO Barges FOB Rtdm 4,25 893,25 ↑ 894,25 894,25 894,25 893,25 888,25 887,25 Physical Rotterdam 380 CST 3,00 568,25 ↑ 571,75 574,50 574,50 574,50 573,50 572,00 Physical Singapore 380 CST (2,00) 601,75 ↑ 598,25 594,50 593,75 594,00 593,25 593,00

Focus of the day: Gibraltar

Fine weather conditions and good products availability at the three ports in the Strait this morning, without any congestion to start up the week. The first levels seen this morning in the Strait show quite competitive bunker premiums. Prompt requirements are still possible to accommodate for some suppliers. CIF Med 3.5% is trading some 15 usd/mt above FOB Barges Rotterdam and the HILO is currently around 19 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% at 18 usd/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 13-Nov 7:00 AM 09-nov NA -7.0% - Treasury Budget Medium 13-Nov 2:00 PM Oct NA -$120.0B - Initial Claims Medium 14-Nov 8:30 AM 09-nov 335K 336K - Trade Balance Medium 14-Nov 8:30 AM Sep -$38.5B -$38.8B - Productivity- Prel Medium 14-Nov 8:30 AM Q3 0.5% 0.0% - Empire Manufacturing Medium 15-Nov 8:30 AM Nov 3.0 1.5 - Industrial Production Medium 15-Nov 9:15 AM Oct 0.2% 0.6% - Capacity Utilization Medium 15-Nov 9:15 AM Oct 78.4% 78.3% - Wholesale Inventories Medium 15-Nov 10:00 AM Sep -0.1% 0.5% -

Source: OW Risk Management