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 stay under pressure. The December WTI futures closed at $97.11/bbl up +$0.25 and Brent at $106.99/bbl down -$0.81. The US weekly jobless claims -despite posting a higher than expected data at 350k- was largely ignored as the number was distorted by the effect of the US government partial shutdown. Asian stock markets closed more than 1.45% down as they failed to extend the positive close in the US on fears of a liquidity squeeze in China. Today, we will see the September US Durable Goods Orders, October Michigan Consumer Confidence and Wholesale Inventories.  This morning, crude is trading slightly down.

Fueloil Specifics

The NWE bunker fuel oil prices weakened yesterday following dropping Brent values. Delivered 380cst product in Rotterdam and Antwerp lost $2.0-3.0/mt. Suppliers reported strong demand lifting premiums for prompt deliveries. Suppliers in Rotterdam could offer from the next week on while situation in Antwerp is a bit more difficult with barges fully booked until November 1. The Singapore fuel oil markets managed to stay positive ranging -$0.5 to +$2.50 during the Asian Platts window yesterday. The Asian fuel oil cracks were extremely strong lifted by strong buying interest that could be fuelled by hedging activities and also stronger fuel oil fundamentals. The delivered bunker premiums were seen app. $8.5-6.5 above cargo prices. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Jan Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,25 97,11 ↑ 97,44 97,44 97,08 96,45 94,57 93,70 ICE Brent Swap (1st month) (0,81) 106,99 ↓ 106,70 106,24 105,75 105,27 103,83 103,14 ICE Gasoil Swap (1st month) (8,50) 911,50 ↓ 906,33 903,08 900,75 899,00 892,75 890,15 3.5% Barges FOB Rtdm (3,00) 578,00 ↓ 573,00 570,00 572,25 572,00 570,25 568,50 3.5% Cargoes FOB Med (4,75) 573,00 ↓ 569,00 564,25 566,00 581,75 563,50 562,50 1.0% Cargoes FOB NWE (7,50) 584,00 ↓ 584,25 588,25 591,25 591,50 592,25 589,50 3% no. 6 USGC WB (0,35) 89,30 ↑ 91,05 90,25 89,75 89,50 88,95 88,95 380 CST Cargoes FOB S'pore (0,50) 608,25 ↓ 598,00 591,25 588,50 589,00 588,50 587,75 0.1 % GO Barges FOB Rtdm (9,75) 911,50 ↓ 907,25 904,25 902,25 900,25 893,25 890,25 Physical Rotterdam 380 CST (3,00) 583,75 ↓ 578,25 575,25 577,50 576,75 574,50 572,75 Physical Singapore 380 CST (0,75) 616,50 ↓ 602,25 596,50 594,75 595,00 593,75 593,00

Focus of the day: Piraeus

Piraeus was busy this week with high demand on the spot market and cruiser traffic still being very active. 3.5% CIF MED average remained roughly at the same levels with the previous week. However since last night crude has been dropping, cargo prices are expected to be lower next week. Monday is a national holiday in Greece and customs offices will be closed; all scheduled deliveries will be affected and no loadings will take place during this day. Istanbul was busy this week but at the moment the majority of physical suppliers are not able to offer because of very tight avails. Replenishment date remains unclear so prompt enquiries are hard to quote for.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 21-Oct 10:00 AM Sep 5.15M 5.48M 5.29M Nonfarm Payrolls High 22-Oct 8:30 AM Sep 165K 169K 148K Unemployment Rate High 22-Oct 8:30 AM Sep 7.3% 7.3% 7.2% Initial Claims Medium 24-Oct 8:30 AM 19-Oct 330K 358K - Continuing Claims Medium 24-Oct 8:30 AM 12-Oct 2900K 2859K - New Home Sales Medium 24-Oct 10:00 AM Sep 410K 421K - Durable Orders High 24-Oct 8:30 AM Sep 4.2% 0.1% - Michigan Sentiment- Final Medium 25-Oct 9:55 AM Oct 73.0 75.2 -

Source: OW Risk Management