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 oil prices settled with marginal gains last Friday. The November WTI contracts edged up slightly +$0.14 to $100.81/bbl while December Brent rose by +$0.83 to $109.94/bbl. Although the market was cheered by the resolution of the US senate avoiding debts default, it does leave a bad aftertaste as such scenarios of political negotiation may set precedence for future issues. However, with the recent developments, it does give a stronger case for the current loose monetary measures to continue. The sentiment was lifted higher as the US dollar weakened on profit taking and the Chinese GDP data proved to be better than expected. The market remains in a wait-and-see mood awaiting the delayed US data. Inventory report from the Energy Information Administration was canceled last Thursday; however it will be released later this afternoon and the expectations are as follows: Crude +2.16 mbbl, Distillates -1.56 mbbl, Gasoline +0.11 mbbl. Delayed Nonfarm Payrolls and Unemployment Rate data will be published tomorrow. This morning, crude is trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel markets reported good demand and mixed prices depending on product avails and delivery dates last Friday. Delivered 380cst product in Rotterdam and Antwerp at the end of the day was assessed app.$1/mt higher according to Platts. Antwerp suppliers reported lack of lsfo and delays at loading installations. The Singapore fuel oil markets fell app. $2.5 during the Platts window last Friday. The delivered bunker premiums continued to be lifted higher to $10.0-8.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,14 100,81 ↓ 100,45 100,25 100,33 99,29 97,47 96,51 ICE Brent Swap (1st month) 0,83 109,94 ↓ 109,44 108,87 108,25 107,66 107,66 105,33 ICE Gasoil Swap (1st month) 7,75 939,25 ↑ 935,92 930,92 927,33 924,14 913,22 910,61 3.5% Barges FOB Rtdm 0,75 583,25 ↑ 586,25 583,75 586,50 586,00 584,00 582,00 3.5% Cargoes FOB Med 2,50 584,25 ↑ 582,25 579,50 581,75 586,00 579,25 577,00 1.0% Cargoes FOB NWE (0,75) 597,25 ↑ 600,25 603,50 606,50 606,75 607,75 604,75 3% no. 6 USGC WB 1,50 94,50 ↑ 93,15 92,40 92,15 91,65 91,35 91,10 380 CST Cargoes FOB S'pore (2,75) 613,00 ↑ 609,50 603,50 602,50 602,25 602,25 601,75 0.1 % GO Barges FOB Rtdm 7,50 940,75 ↓ 937,25 932,25 928,25 925,25 915,25 912,25 Physical Rotterdam 380 CST 1,00 588,00 ↑ 591,50 589,00 591,75 591,25 589,25 587,25 Physical Singapore 380 CST (2,00) 621,25 ↑ 614,75 608,75 607,75 607,50 607,50 607,00

Focus of the day: Gibraltar

Fine weather conditions and good products availability result in a good start of the week at the Gibraltar Strait, with suppliers running smoothly at the three ports and good expectations for the rest of the week. Prompt requirements are possible to accommodate for most suppliers in the hub and premiums remain quite competitive. CIF Med 3.5% is trading some 12 usd/mt above FOB Barges Rotterdam and the HILO is currently around 17 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% at 13 usd/mt. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 21-Oct 10:00 AM Sep 5.15M 5.48M - Nonfarm Payrolls High 22-Oct 8:30 AM Sep 165K 169K - Unemployment Rate High 22-Oct 8:30 AM Sep 7.3% 7.3% - Initial Claims Medium 24-Oct 8:30 AM 19-Oct 330K 358K - Continuing Claims Medium 24-Oct 8:30 AM 12-Oct 2900K 2859K - New Home Sales Medium 24-Oct 10:00 AM Sep 410K 421K - Durable Orders High 24-Oct 8:30 AM Sep 4.2% 0.1% - Mitchigan Sentiment- Final Medium 25-Oct 9:55 AM Oct 73.0 75.2 -

Source: OW Risk Management