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

The crude market came off yesterday after rumors of a cease fire in Israel-Palestinian conflict. The January WTI erased the previous day gains by $2.53, to close at $86.75/bbl and Brent futures similarly settled at $109.83/bbl, down -$1.87. Still the markets are pretty cautious of any short term success of a real ceasefire and also going into a long week end in the US with tomorrow’s Thanksgiving. The API inventory report yesterday was bullish as crude and product dropped to a four- year lows. The more widely watched US Energy department will release its inventory report later today and the expectations are as follows: Crude +0.9 mbbl, Distillates -1.4 mbbl, Gasoline +1.0 mbbl. The US weekly jobless claims and Consumer confidence will also be published later today. The US market will be closed for Thanksgiving tomorrow and reopens on Friday but trading volumes will likely be thin. This morning, crude is trading up.

Fueloil Specifics

The Northwest European fuel oil markets weakened following following lower crude values. Both delivered 380cst product in Rotterdam and cargo prices were assessed more than $9/mt down compared to previous day’s close. The main ports in the area reported subdued buying interest as customers were looking for lower prices. The Singapore markets inched up +$1.0-2.0 during the morning Platts window yesterday. The market remains weak and the selling interest is high which narrowed the Asian Fuel Oil crack. The delivered bunker premiums slipped to around +$3.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) (2.53) 86.75 ↑ 87.65 88.30 88.98 88.94 89.92 89.76 ICE Brent Swap (1st month) (1.87) 109.83 ↑ 110.44 109.78 109.20 109.22 107.82 107.13 ICE Gasoil Swap (1st month) (7.25) 944.75 ↑ 953.50 953.08 949.83 949.64 940.13 937.01 3.5% Barges FOB Rtdm (9.50) 583.50 ↑ 591.25 595.00 598.25 598.00 604.00 602.25 3.5% Cargoes FOB Med (11.50) 570.50 ↑ 581.75 588.50 588.25 592.50 599.50 598.00 1.0% Cargoes FOB NWE (5.25) 612.00 ↑ 620.75 624.75 628.00 627.75 634.00 632.00 3% no. 6 USGC WB (2.03) 92.98 ↑ 92.04 92.44 92.69 93.45 93.57 93.28 380 CST Cargoes FOB S'pore 1.25 615.75 ↑ 615.00 618.00 621.50 621.25 628.50 627.00 0.1 % GO Barges FOB Rtdm (6.75) 943.25 ↑ 954.25 953.25 950.25 951.25 939.25 936.25 Physical Rotterdam 380 CST (9.00) 593.00 ↑ 601.50 605.25 608.50 608.25 614.25 612.50 Physical Singapore 380 CST 0.50 618.75 ↑ 625.25 628.25 631.75 632.00 639.25 637.75

Focus of the day: Singapore

Singapore onshore fuel oil stocks have climbed to their highest level in three weeks. Figures released on Thursday said stocks rose to 21.244mbbl. That represented a 1.5% increase on stock levels the week before. Players said high volumes of Western arbitrage arrivals in November were dampening market sentiment. December arrivals are also expected to be high with a preliminary survey showing about 5 million metric tonnes of fuel oil due to arrive in Asia. Meanwhile the price of 380cst bunker fuel in Singapore rose $2.50 from the previous day's level to average at $617/mt. The price of marine gas oil gained $10 to average at $941/mt. Demand at the port varied, according to local traders. Supplies were ample and earliest deliveries were available from November 26-27, depending on the supplier.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 19-Nov 10:00 AM Oct 4.75M 4.75M 4.79M Housing Starts Medium 20-Nov 8:30 AM Oct 840K 872K 894K Building Permits Medium 20-Nov 8:30 AM Oct 865K 894K 866K Initial Claims Medium 21-Nov 8:30 AM 17-Nov 400K 439K - Michigan Sentiment- Final High 21-Nov 9:55 AM Nov 84.5 84.9 - Leading Indicators Medium 21-Nov 10:00 AM Oct 0.1% 0.6% -

Source: OW Risk Management