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 extended its fall yesterday. The November WTI contract slipped -$3.90 to close at $81.84/bbl and Brent similarly lost -$3.85 to settle at $85.04/bbl. Prices dropped after the  International Energy Agency (IEA) revised lower its 2014 global Oil  Demand forecast to 92.4M bpd in October (down -0.2M bpd from previous month). It was also noted that both OPEC and non- OPEC countries raised output, resulting in a production of 93.8M bpd in September. The increasing gap between OPEC’s members’ views and continuous increase in production diminishes the hopes that they will agree on a production cut for their next meeting at the end of November. In Europe Germany government slashed its growth forecast from 1,8% to 1,2% in 2014 and from 2% to 1,3% for next year.  China's consumer inflation slowed more than expected in September to a near five-year low, adding to concerns that global growth is cooling fast unless governments take bolder measures to shore up their economies. On the economic data flow, the US September Retail Sales, September PPI, August Business Inventories and October Empire Manufacturing data will be publish later today. American Petroleum Institute (API) will issue its report later tonight and the EIA will follow tomorrow. This morning crude is trading app. -1,0% down.

Fueloil Specifics

The Northwest European bunker fuel oil prices closed another day with losses following falling Brent values. Delivered 380cst product in the main ports of Antwerp and Rotterdam was assessed app. $10/mt down compared to previous close. Suppliers reported subdued demand as most of buyers were reluctant to fix any volumes amidst falling prices. Product avails remain tight for prompt deliveries will it looks better for further out dates. The Singapore fuel oil prices were assessed only -$1/mt down during the Asian Platts window yesterday. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) (3,90) 81,84 ↓ 79,82 79,35 78,97 79,02 78,82 79,23 ICE Brent Swap (1st month) (3,85) 85,04 ↓ 84,51 84,95 85,40 86,30 87,59 90,49 ICE Gasoil Swap (1st month) (5,75) 746,25 ↓ 726,67 728,50 740,25 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 745,33 754,69 759,20 3.5% Barges FOB Rtdm (13,00) 463,75 ↓ 440,00 439,25 444,00 447,75 456,00 459,25 3.5% Cargoes FOB Med (13,25) 467,50 ↓ 438,50 436,75 442,00 445,75 454,00 457,00 1.0% Cargoes FOB NWE (14,50) 470,00 ↓ 446,00 445,75 450,00 454,25 463,75 467,75 3% no. 6 USGC WB (4,00) 70,30 ↓ 69,35 69,25 69,60 70,13 71,26 72,23 380 CST Cargoes FOB S'pore (0,50) 498,75 ↓ 466,25 466,00 468,00 471,00 477,50 481,50 0.1 % GO Barges FOB Rtdm (13,25) 743,50 ↓ 726,25 728,25 739,25 734,25 744,25 748,25 Physical Rotterdam 380 CST (9,00) 473,50 ↓ 450,25 449,50 454,25 456,00 464,25 467,50 Physical Singapore 380 CST (1,00) 506,00 ↓ 476,50 476,25 478,25 479,25 485,75 489,75

Economy fundamentals this week

Fundamental Indicators Product Change Last Dir. Nov Dec Jan Q115 NYMEX WTI Swap (1st month) (3,90) 81,84 ↓ 80,03 79,57 79,24 79,17 ICE Brent Swap (1st month) (3,85) 85,04 ↓ 84,58 85,00 85,43 86,33 ICE Gasoil Swap (1st month) (5,75) 746,25 ↓ 726,92 728,75 741,00 - LS ICE Gasoil Swap (1st month) - - ↓ - - - 747,00 3.5% Barges FOB Rtdm (13,00) 463,75 ↓ 440,75 440,00 444,75 448,50 3.5% Cargoes FOB Med (13,25) 467,50 ↓ 439,25 437,50 442,75 446,50 1.0% Cargoes FOB NWE (14,50) 470,00 ↓ 446,75 446,50 450,75 455,00 3% no. 6 USGC WB (4,00) 70,30 ↓ 69,35 69,25 69,60 70,13 380 CST Cargoes FOB S'pore (0,50) 498,75 ↓ 465,75 465,50 467,50 470,50 0.1 % GO Barges FOB Rtdm (13,25) 743,50 ↓ 726,25 728,25 740,25 736,25 Physical Rotterdam 380 CST (9,00) 473,50 ↓ 451,00 450,25 455,00 456,75 Physical Singapore 380 CST (1,00) 506,00 ↓ 476,00 475,75 477,75 478,75

Source: OW Risk Management