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 closed the week marginally higher supported by a weak US dollar. Politicians in Washington show no sign of making progress on the Budget stand off. Equity, Oil and the dollar stay under pressure consequently. Market is also tracking the negotiations on the debt ceiling with a deadline looming soon: the 17th October. The November WTI contract settled at $103.84/bbl, up +$0.53 and  Brent closed at $109.46/bbl, up by +$0.46. The market was also supported by tropical storm Karen in the Gulf of Mexico but today workers return to platforms after Karen weakened.  We are not waiting any significant data release today. This morning, crude prices are trading nearly 1.0% down.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported a mixed sentiment last Friday. Delivered 380cst product in Rotterdam and Antwerp lost up to $7/mt versus previous days close. Rotterdam suppliers continuously reported tight prompt avails, most of them able to quote only from mid this week. The Singapore fuel oil markets fell more than $6.0 during the Asian Platts window last Friday. The Asian fuel oil cracks weakened as strong selling interests were seen; an opposite of the previous strength. The latest Singapore heavy residual inventory reported a slight build of +0.19 mbbl to 21.98 mbbl. The delivered bunker premiums fluctuated, ranging from $2.0 to $6.5 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,53 103,84 ↓ 102,04 101,29 101,94 99,48 97,21 96,32 ICE Brent Swap (1st month) 0,46 109,46 ↓ 106,86 106,10 106,12 105,45 104,83 102,48 ICE Gasoil Swap (1st month) (4,00) 922,50 ↓ 912,25 909,17 912,14 902,39 890,64 888,67 3.5% Barges FOB Rtdm (9,25) 584,00 ↓ 576,50 573,75 577,00 575,50 572,00 568,75 3.5% Cargoes FOB Med (6,00) 581,00 ↓ 571,00 567,25 571,50 568,50 565,00 562,50 1.0% Cargoes FOB NWE (4,00) 590,50 ↓ 591,50 594,50 591,50 598,25 597,00 592,25 3% no. 6 USGC WB 0,05 91,85 ↓ 90,60 90,10 90,60 90,10 89,55 89,05 380 CST Cargoes FOB S'pore (5,75) 618,25 ↓ 596,75 593,75 599,75 593,00 590,50 588,50 0.1 % GO Barges FOB Rtdm (4,75) 921,75 ↓ 913,25 910,25 913,25 903,25 892,25 890,25 Physical Rotterdam 380 CST (6,00) 594,25 ↓ 581,75 579,00 582,25 580,25 576,25 573,00 Physical Singapore 380 CST (8,50) 620,50 ↓ 602,00 598,00 604,00 597,25 594,75 592,75

Focus of the day: Gibraltar

The Gibraltar Strait is running smoothly this Monday morning, with suppliers at delivering within schedule at the three ports. However, strong winds are expected to hit Gibraltar during the next couple of days, which could affect bunkering operations there. There is good availability of all products and prompt requirements are possible to accommodate for most suppliers in the hub, of course depending on how the weather develops from tomorrow onwards. CIF Med 3.5% is trading some 8 usd/mt above FOB Barges Rotterdam and the HILO is currently around 17 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% at 19 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 7-Oct 3:00 PM Aug $12.0B $10.4B - Non-farm Payrolls High 8-Oct Sep 180K 169K -   Unemployment Rate High 8-Oct Sep 7.3% 7.3% -   Trade Balance Medium 8-Oct 8:30 AM Aug -$40.0B -$39.1B - Wholesale Inventories Medium 9-Oct 7:00 AM Aug 0.2% 0.1% - Initial Claims Medium 10-Oct 8:30 AM 5-Oct 315K 308K - Treasury Budget Medium 10-Oct 2:00 PM Sep NA $75.18B - Retail Sales Medium 11-Oct 8:30 AM Sep -0.1% 0.2% - Core PPI Medium 11-Oct 8:30 AM Sep 0.1% 0.0% - Mich Sentiment High 11-Oct 9:55 AM Oct 73.0 77.5 - Business Inventories Medium 11-Oct 10:00 AM Aug 0.2% 0.4% -

Source: OW Risk Management