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

Last Friday Crude prices were mostly trading sideways. The January WTI futures closed at $85.93/bbl, down -$0.33 and Brent contract settled at $107.02/bbl, down -$0.01. Crude prices were weak but recovered after the US October Unemployment was published- the highest level since 2008 at 7,7%- and that the US economy created 146000 new jobs in November. The US Energy department will publish its monthly reports while OPEC members are meeting in Vienna on November 12 but will probably maintain their production quota at 30 Mios bbl/day. The US FOMC (Federal Open Market Committee) starts meeting tomorrow and the outcome is Wednesday. This morning, Oil rose from the lowest level in three weeks after China’s crude processing climbed to a record and industrial output beat estimates. China’s refining increased 9.1 percent in November from a year ago to 10.2 million barrels a day and industrial production jumped 10.1 percent, the National Bureau of Statistics in Beijing said yesterday. Oil briefly pared gains after customs data today showed China’s exports rose less than estimated. This morning crude is trading higher.

Fueloil Specifics

The Northwest European fuel oil prices closed the week with another loss. Delivered 380cst product in Rotterdam was assessed app.$4/mt down while cargo prices were even weaker, down by $6/mt. There were reported ample product avails in the area while demand remained sluggish. The Singapore markets lost more $6.0 during the morning Platts window last Friday. Bunker demand was said to be mixed; quiet initially and picking up later. The delivered bunker premiums were lifted higher ranging between $5.0- 7.0 above cargo prices. Bunker fuel oil swaps lost app.$2/mt along the curve both for Rotterdam and Singapore papers. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jan Feb Mar Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.33) 85.93 ↑ 87.13 87.74 88.30 87.72 89.08 88.97 ICE Brent Swap (1st month) (0.01) 107.02 ↑ 106.38 105.70 105.22 105.76 104.44 103.98 ICE Gasoil Swap (1st month) (7.75) 905.75 ↑ 912.08 912.17 910.50 911.58 904.44 902.14 3.5% Barges FOB Rtdm (6.00) 567.00 ↑ 579.00 581.50 583.25 581.25 585.75 584.25 3.5% Cargoes FOB Med (1.00) 561.25 ↑ 570.25 575.25 578.00 574.50 580.00 578.75 1.0% Cargoes FOB NWE (1.25) 584.75 ↑ 602.00 605.75 608.50 605.50 612.00 611.75 3% no. 6 USGC WB (0.20) 91.50 ↑ 91.36 91.26 91.26 91.29 91.24 91.12 380 CST Cargoes FOB S'pore (6.50) 593.50 ↑ 601.50 604.50 607.00 604.25 609.75 608.75 0.1 % GO Barges FOB Rtdm (8.00) 905.00 ↑ 912.25 912.25 911.25 913.25 906.25 904.25 Physical Rotterdam 380 CST (4.00) 573.00 ↑ 589.25 591.75 593.50 591.50 596.00 594.50 Physical Singapore 380 CST (6.00) 598.25 ↑ 611.75 614.75 617.25 615.00 620.50 619.50

Focus of the day: Gibraltar

Weather is currently fine in the Gibraltar Strait, and so is the forecast for the next days. However a couple of suppliers are slightly behind schedule this morning and facing some delays there. There are good avails of all products in the hub. Bunker premiums are pretty competitive this morning and the market is relatively quiet. The spread FOB Barges Rotterdam – CIF Med 3.5% has widened significantly to 11 usd, after some very narrow levels during the last couple of weeks. The HILO spread is currently at 23 usd. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Trade Balance Medium 11-Dec 8:30 AM Oct -$43.0B -$41.5B - Wholesale Inventories Medium 11-Dec 10:00 AM Oct 0.3% 1.1% - MBA Mortgage Index Medium 12-Dec 7:00 AM 08-Dec NA 4.5% - FOMC Rate Decision High 12-Dec 12:30 PM Dec 0.25% 0.25% - Treasury Budget Medium 12-Dec 2:00 PM Nov -$113.0B -$137.3B - Initial Claims Medium 13-Dec 8:30 AM 08-Dec 375K 370K - Retail Sales High 13-Dec 8:30 AM Nov 0.6% -0.3% - Core PPI Medium 13-Dec 8:30 AM Nov 0.1% -0.2% - Business Inventories Medium 13-Dec 10:00 AM Oct 0.3% 0.7% - Core CPI High 14-Dec 8:30 AM Nov 0.1% 0.2% - Industrial Production High 14-Dec 9:15 AM Nov 0.5% -0.4% - Capacity Utilization Medium 14-Dec 9:15 AM Nov 78.0% 77.8% -

Source: OW Risk Management