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 kept their previous day gains. The January WTI futures fell by -$0.41 to close at $93.68/bbl and Brent slipped marginally by -$0.12 to settle at $110.88/bbl. The Brent /WTI spread widened to 17.70 usd with ample Oil stocks for WTI whereas the market continues to worry about supplies for equivalent Brent (Lybia, Nigeria…). The US crude market seems to be already in a pre-holiday mood as the US markets will be closed Thursday for the Thanksgivings holiday. US housing data reported better than expected figures with Home Prices in the 20 major cities increasing 11.3% at the highest pace since 2006. The American Petroleum Institute showed that Oil supplies rose 6,92 mbbl last week , the ninth consecutive advance since September 20th, Distillates fell 1,7 mbbl and Gasoline stockpiles increased 201k bbl. Today The US Energy department will release its inventory report and  expectations are as follows: Crude +0.61 mbbl, Distillates -1.11 mbbl, Gasoline +0.26 mbbl. This morning, crude is trading mixed again with Brent up by 0.3% and WTI down by -0.2%.

Fueloil Specifics

The NWE bunker fuel oil prices rose yesterday supported by stronger Brent values and tight product avails. Delivered 380cst product in Rotterdam and Antwerp gained up to $3/mt while premiums for prompt lsfo deliveries were seen as high as $20/mt. The Singapore fuel oil market managed to inch app.$1.0 during the Asian Platts window yesterday despite the stronger crude prices. The Asian fuel oil cracks narrowed significantly. The delivered bunker premiums were hovering around +$6.75 above cargo prices amidst another round of slow demand. This morning both markets are trading slightly 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) (0,41) 93,68 ↓ 93,52 93,80 93,97 93,91 93,51 92,69 ICE Brent Swap (1st month) (0,12) 110,88 ↑ 110,98 110,46 110,07 109,72 108,96 108,12 ICE Gasoil Swap (1st month) 9,75 944,50 ↓ 944,42 942,00 939,17 938,81 928,29 925,98 3.5% Barges FOB Rtdm 2,50 575,50 ↑ 577,75 581,25 582,25 582,25 584,00 583,00 3.5% Cargoes FOB Med 1,00 582,75 ↑ 574,75 577,50 578,00 577,50 579,25 579,25 1.0% Cargoes FOB NWE 6,25 612,25 ↑ 613,25 610,75 610,75 611,00 611,50 609,75 3% no. 6 USGC WB 0,37 89,90 ↑ 91,50 91,00 91,00 91,00 91,25 91,25 380 CST Cargoes FOB S'pore 1,00 601,50 ↑ 605,00 601,50 601,00 600,50 601,25 602,50 0.1 % GO Barges FOB Rtdm 9,75 942,75 ↓ 945,25 943,25 940,25 940,25 930,25 927,25 Physical Rotterdam 380 CST 2,00 581,00 ↑ 583,00 586,50 587,50 587,50 589,25 588,25 Physical Singapore 380 CST 0,50 608,75 ↑ 609,00 606,25 606,25 606,25 607,50 607,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Pending Home Sales Medium 25-Nov 10:00 AM Oct 1.0% -5.6% -0.6% Housing Starts Medium 26-Nov 8:30 AM Oct 915K NA - Building Permits Medium 26-Nov 8:30 AM Oct 930K NA 1034K Case-Shiller 20- city Index Medium 26-Nov 9:00 AM Sep 13.0% 12.8% 13.3% Consumer Confidence High 26-Nov 10:00 AM Nov 74.0 71.2 70.4 Initial Claims Medium 27-Nov 8:30 AM 23-nov 335K 323K - Durable Orders High 27-Nov 8:30 AM Oct -3.0% 3.8% - Chicago PMI Medium 27-Nov 9:45 AM Nov 58.0 65.9 - Michigan Sentiment- Final Medium 27-Nov 9:55 AM Nov 73.5 72.0 - Leading Indicators Medium 27-Nov 10:00 AM Oct -0.1% 0.7% -

Source: OW Risk Management