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 selling pressure yesterday after the weaker than expected Chinese manufacturing data. Also the IEA announced that US Crude Production rose 0,9% last week to 7,6 Mios bbl/d, the highest level since 1990. The September WTI contract saw a drop of -$1.84 to close at $105.39/bbl and Brent lost -$1.23 to settle at $107.19/bbl. The US inventory from the Energy Department saw more than expected  draws in all products despite seeing a -0.5% drop in refinery utilization. However, the news failed to support Oil prices. South Korea economy expanded at the fastest pace in more than two years at +1,1% as consumer spending rebounded and the new government increased state expenditure. This morning, the  UK Q2 GDP increased to +0,6% as all main industries (Services, Production, Construction and Agriculture) showed expansion for the first time in three years. In the US we will look today at the US Durable Goods orders and jobless claims. This morning, crude prices are trading down.

Fueloil Specifics

The NWE bunker fuel oil prices closed mixed yesterday. Delivered hsfo 380cst product in Rotterdam and Antwerp firmed slightly and closed app$1/mt higher vs previuos days close. On the other hand, lsfo 380cst prices softened and were assessed nearly $2/mt down in Rotterdam. Demand in the area was sluggish mainly due to summer holidays season. The Singapore fuel oil market closed mixed yesterday ranging between -$0.25 to +$3.0 on the Asian Platts window yesterday. The delivered bunker premiums saw a big range between +$2.5 to $6.0 above cargo prices as crude started to soften after the window. This morning both markets are trading slightly down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Aug Sep Oct Q413 Q114 2014 NYMEX WTI Swap (1st month) -1,84 105,39 ↓ 104,41 103,17 101,87 100,52 97,24 100,52 ICE Brent Swap (1st month) (1,23) 107,19 ↓ 106,39 105,73 105,17 104,64 103,16 100,82 ICE Gasoil Swap (1st month) (5,50) 914,25 ↓ 910,83 910,75 908,33 905,14 894,50 876,73 3.5% Barges FOB Rtdm (1,25) 599,25 ↓ 594,50 586,25 582,50 581,75 581,00 573,00 3.5% Cargoes FOB Med (3,25) 595,75 ↓ 9,25 21,50 19,00 575,75 575,75 569,25 1.0% Cargoes FOB NWE (4,00) 657,50 ↓ 604,25 606,75 608,25 607,75 608,50 599,75 3% no. 6 USGC WB (0,16) 91,99 ↓ 91,50 91,22 90,95 90,77 90,54 89,38 380 CST Cargoes FOB S'pore (0,25) 602,00 ↓ 599,50 601,50 602,00 602,50 601,75 594,50 0.1 % GO Barges FOB Rtdm (4,75) 912,75 ↑ 911,25 911,25 908,25 906,25 894,25 876,25 Physical Rotterdam 380 CST 1,00 602,25 ↓ 604,75 596,50 592,75 591,00 590,25 583,25 Physical Singapore 380 CST 0,50 608,00 ↓ 609,75 611,75 612,25 612,25 611,50 605,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 22-jul 10:00 AM Jun 5.18M 5.25M 5.08M New Home Sales Medium 24-jul 10:00 AM Jun 470K 476K - Initial Claims Medium 25-jul 8:30 AM jul-13 340K 334K - Continuing Claims Medium 25-jul 8:30 AM 13-jul 2980K -6.902M - Durable Orders High 25-jul 8:30 AM Jun 3.7% 0.6% - Michigan Sentiment- Final Medium 26-jul 9:55 AM Jul 84.2 83.9 -

Source: OW Risk Management