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 was trading mostly flat the whole day and closed slightly higher yesterday. The October WTI contract closed at $96.33/bbl, up +$0.86 and October Brent rose +$0.32 to $112.58/bbl. Hurricane Isaac is hitting land after 90% of production was shut down in the US Gulf coast area. The Euro is surprisingly resilient so far. This in turn also provided some level of support in the light of a rather mixed US economic data session yesterday. Market is on wait-and-see mode and looking forward to the US Federal Reserve Chairman’s speech on Friday. The US Q2 revised GDP figures and US July Pending Home sales will be published later in the afternoon. The US Energy department will release the Inventory Report later today and the expectations are as follows: Crude -1.5 mbbl, Distillates -0.1 mbbl, Gasoline -1.4 mbbl. This morning, crude is trading down.

Fueloil Specifics

The NWE fuel oil prices weakened yesterday. Delivered 380cst product in Rotterdam was assessed app.$3/mt down versus Friday’s closing while cargo prices were even weaker, down by more than $7/mt. There were reported good availabilities in most of the ports. The Singapore fuel oil markets were down more than -$6.5 during the morning Platts window. The strong demand for cargoes has lifted the cargo premium to around $4.5 yesterday. The delivered bunker premiums similarly inched up to around $8.25 above the cargo prices. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.86 96.33 ↓ 95.70 95.99 96.36 97.16 97.10 96.35 ICE Brent Swap (1st month) 0.32 112.58 ↓ 111.49 111.16 110.86 109.78 108.41 110.85 ICE Gasoil Swap (1st month) (3.75) 979.00 ↓ 974.00 971.50 966.75 950.67 935.97 935.44 3.5% Barges FOB Rtdm - 642.50 ↓ 640.25 636.75 633.25 625.75 619.25 616.50 3.5% Cargoes FOB Med - 637.25 ↓ 635.25 631.75 628.25 621.25 615.00 612.50 1.0% Cargoes FOB NWE - 695.75 ↓ 688.75 680.75 673.75 660.00 652.50 649.75 3% no. 6 USGC WB 0.22 100.28 ↓ 99.50 99.00 98.50 96.00 95.00 95.50 380 CST Cargoes FOB S'pore (6.50) 673.00 ↓ 664.00 659.75 655.50 648.75 642.25 639.75 0.1 % GO Barges FOB Rtdm - 975.25 ↓ 974.25 972.25 967.25 958.25 941.25 940.25 Physical Rotterdam 380 CST - 651.75 ↓ 650.50 647.00 643.50 636.00 629.50 626.75 Physical Singapore 380 CST (5.50) 681.75 ↓ 674.25 670.00 665.75 659.50 653.00 650.50

Focus of the day: Singapore

Singapore's onshore fuel oil stocks have fallen for a second consecutive week to reach a seven-month low. Data showed stocks had sunk to 16.28 million, down by around 8.5% from 17.8 mbbl the week before. Analysts said fuel oil volumes arriving from the West had fallen to around 153,000mt in the seven day period, down from 900,000mt the week before. Inflows from the Middle East were 56% down at 43,000mt. At the same time fuel oil exports to China climbed 6% to 212,000mt. The price of 380 intermediate fuel oil (IFO) fell while supplies of bunker fuels were largely fine across key Asian ports on Tuesday. In Singapore, the price of 380cst grade fell $7 to $676/mt while marine gas oil (MGO) was down $11.50 to $995/mt. Demand was below average and avails were tight. September 4 was the earliest date for bunker deliveries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case-Shiller 20-city Index High 28-Aug 9:00 AM Jun -0.3% -0.7% 0.5% Consumer Confidence Medium 28-Aug 10:00 AM Aug 66.5 65.9 60.6 GDP- Second Extimate Medium 29-Aug 8:30 AM Q2 1.6% 1.6% - Fed's Beige Book Medium 29-Aug 2:00 PM Aug - - - Initial Claims Medium 30-Aug 8:30 AM 25-Aug 370K 372K - Personal Income High 30-Aug 8:30 AM Jul 0.2% 0.5% - Personal Spending Medium 30-Aug 8:30 AM Jul 0.5% 0.0% - PCE Prices Medium 30-Aug 8:30 AM Jul 0.1% 0.2% - Chicago PMI Medium 31-Aug 9:45 AM Aug 53.0 53.7 - Michigan Sentiment Medium 31-Aug 9:55 AM Aug 74.0 73.6 - Factory Orders Medium 31-Aug 10:00 AM Jul 2.1% -0.5% -

Source: OW Risk Management