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 US Federal Reserve FOMC meeting minutes showed broad support for tapering the Bond buying program this year. Members also debated about lowering the unemployment threshold, now fixed at 6,5% for the first increase in rates. The current unemployment rate is around 7.4%. Equities stayed under pressure with another day in the red. Crude prices also suffered losses with the October WTI futures losing -$1.26 to $103.85/bbl and October Brent contract only slipped -$0.34 to settle at  $109.81/bbl. The US inventory report released yesterday had limited price impact despite a more bullish picture with  crude stocks drawing as expected but with  a massive draw in the gasoline (-4 mb).  The preliminary China PMI rose to 50,1 for August, the strongest result in four months. However exports orders declined at a faster rate and employment growth continued to slow. Today, we will have the US weekly jobless claims. This morning, crude prices are slightly up.

Fueloil Specifics

Bunker fuel oil prices closed lower again in the main NWE ports yesterday. Delivered 380cst product in Rotterdam lost app.$4/mt and a dollar more in Antwerp. Suppliers reported subdued demand. Lsfo avails were tightening in Antwerp as Totsa refinery will not able to load before next week. The Singapore fuel oil markets saw mixed price ranging from flat to +$1.0 during the Asian Platts window. It was mainly due to sharp discount of the fuel oil cargo premiums as supply remained ample. The delivered bunker premiums fell and were assessed between +$3.5 to $4.5 above cargo prices. Bunker fuel oil swaps remained largely unchanged along the forward curve yesterday. Visco spread remains weak with yesterday spot closing at $0,08. September Visco is trading at app.$3.25/mt and cal14 at app.$7.5. Both markets are trading marginally higher this morning.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) (1,26) 103,85 ↑ 104,32 103,66 102,63 102,60 99,16 95,72 ICE Brent Swap (1st month) (0,34) 109,81 ↑ 109,43 108,50 107,74 107,15 105,99 103,65 ICE Gasoil Swap (1st month) 0,00 938,75 ↑ 939,83 937,67 932,83 933,00 918,86 901,42 3.5% Barges FOB Rtdm (0,50) 594,25 ↑ 593,00 591,75 590,50 591,00 592,00 585,25 3.5% Cargoes FOB Med (1,25) 589,50 ↑ 588,75 588,25 586,50 585,50 585,75 580,50 1.0% Cargoes FOB NWE (0,75) 613,25 ↑ 616,75 619,25 619,25 619,25 620,75 612,00 3% no. 6 USGC WB 0,50 93,75 ↑ 93,25 93,25 92,75 92,75 93,15 91,95 380 CST Cargoes FOB S'pore 0,75 604,50 ↑ 610,75 611,50 610,25 610,50 610,50 605,50 0.1 % GO Barges FOB Rtdm 1,00 938,25 ↑ 941,25 939,25 934,25 934,25 921,25 903,25 Physical Rotterdam 380 CST (4,00) 596,00 ↑ 598,25 597,00 595,75 595,75 596,25 589,50 Physical Singapore 380 CST (0,50) 608,25 ↑ 616,00 616,75 616,50 616,50 615,75 610,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-Aug 7:00 AM 17-aug NA -4.7% -4.6$ Existing Home Sales Medium 21-Aug 10:00 AM Jul 5.00M 5.08M 5.39M FOMC Minutes Medium 21-Aug 2:00 PM 31-jul - - - Initial Claims Medium 22-Aug 8:30 AM 17-aug 345K 320K - Leading Indicators Medium 22-Aug 10:00 AM Jul 0.5% 0.0% - New Home Sales Medium 23-Aug 10:00 AM Jul 475K 497K -

Source: OW Risk Management