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 succumbed to profit taking yesterday after more than $6 gains in a week. Market is pulled between forces, with on the bearish side a progressive end to the US Federal Reserve stimulus program which has pushed  interest rate higher and on the bullish one unrest in Egypt compounded by lower Oil production in Libya and Iraq than expected. Equities have started to retreat the last days and Asian stocks lost more than 2.0% this morning. The September WTI contract expired yesterday  at $107.10/bbl, down -$0.36 while the next most active October WTI settled at $106.86, down -$0.43. The October Brent contract closed  at $109.90/bbl, down -$0.50. This morning, crude prices are under pressure trading  around -0,70% lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week with low demand and slightly higher prices. Delivered 380cst product in Rotterdam and Antwerp was assessed some $2-3/mt vs previous close. Suppliers reported good avails in both ports. Premiums for delivered hsfo product varied from flat to $8/mt above 3.5% Rtdam fob barges. The Singapore fuel oil market rose only app. $2.25 during the Asian Platts window yesterday. Market fundamentals remained weak with soft demand and ample supply. The delivered bunker premiums were ranging between +$4.5 to +$5.0 above cargo prices yesterday. This morning both markets are significantly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) (0,36) 107,10 ↓ 105,68 104,72 103,36 103,33 99,89 96,33 ICE Brent Swap (1st month) (0,43) 109,90 ↓ 108,66 107,77 107,00 106,37 105,21 102,79 ICE Gasoil Swap (1st month) 1,00 942,25 ↓ 933,33 931,75 927,58 927,61 912,89 893,28 3.5% Barges FOB Rtdm (1,75) 600,25 ↓ 591,75 589,00 587,25 587,75 588,25 580,75 3.5% Cargoes FOB Med 3,00 597,75 ↓ 586,75 585,25 583,00 582,00 581,75 576,00 1.0% Cargoes FOB NWE 1,75 617,00 ↓ 613,00 615,75 616,00 616,00 616,75 607,50 3% no. 6 USGC WB (0,33) 92,48 ↓ 91,95 91,95 91,45 91,20 90,90 90,70 380 CST Cargoes FOB S'pore 2,25 611,00 ↓ 607,50 608,50 607,50 607,25 606,75 601,00 0.1 % GO Barges FOB Rtdm 0,50 939,25 ↓ 934,25 933,25 929,25 929,25 916,25 896,25 Physical Rotterdam 380 CST 2,00 604,25 ↓ 597,00 594,25 592,50 592,50 592,50 585,00 Physical Singapore 380 CST 2,25 615,50 ↓ 612,75 613,75 613,75 613,25 612,00 606,25

Focus of the day: ARA

Last week was a very quiet week with very low demand and various suppliers screaming for an outlet. The lack of barges due to the crude carrier mentioned last week, still determined the market. Worth mentioning is that the RMK seems to firm quite a bit, probably due to the same crude carrier. Low sulphur premium is moving further up, but still at reasonable levels. It depends on the underlying high sulphur what will happen to the premium. A further rise is not unlikely. No changes in the gasoil market worth mentioning. Notification periods for the different grades; four days for high sulphur enquiries and three working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-Aug 7:00 AM 17-aug NA -4.7% - Existing Home Sales Medium 21-Aug 10:00 AM Jul 5.00M 5.08M - FOMC Minutes Medium 21-Aug 2:00 PM 31-jul - - - Initial Claims Medium 22-Aug 8:30 AM 17-aug 345K 320K - Leading Indicators Medium 22-Aug 10:00 AM Jul 0.5% 0.0% - New Home Sales Medium 23-Aug 10:00 AM Jul 475K 497K -

Source: OW Risk Management