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

Yesterday Crude Oil continued to keep its gains despite a lower geopolitical risk premium lately and growing Oil Inventories. The December WTI contract settled at $93.03/bbl down -$0.81 and January Brent slipped -$0.03 to close at $108.47/bbl. It pushed the spread between Brent and WTI to $15. Market is waiting for the API Oil Inventories tonight and the FOMC post meeting minutes tomorrow. This morning, crude is trading marginally lower.

Fueloil Specifics

The NWE bunker fuel oil markets reported mixed demand. Delivered 380cst product both in Rotterdam and Antwerp was assessed app. $3/mt higher compared to previous close. Antwerp suppliers still report tight avails due to refinery maintenance. Situation is expected to improve towards the end of the week. Barge congestions in Rotterdam resulted in premiums of $3-4/mt. The Singapore fuel oil prices managed increase between +$0.5 to +$4.5 during the Asian Platts window yesterday. Market saw a stronger buying interest in the physical cargo market lifting up premiums to around +$8.5 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,81) 93,03 ↓ 93,68 93,99 94,10 94,04 93,42 92,58 ICE Brent Swap (1st month) (0,03) 108,47 ↓ 108,16 107,73 107,32 106,96 106,19 105,34 ICE Gasoil Swap (1st month) (1,00) 910,25 ↓ 909,67 910,17 909,50 909,33 904,47 902,59 3.5% Barges FOB Rtdm 2,75 574,50 ↑ 572,00 575,50 576,00 576,00 576,25 575,25 3.5% Cargoes FOB Med 5,25 582,25 ↑ 34,00 571,75 571,50 571,00 571,25 571,25 1.0% Cargoes FOB NWE 0,75 593,50 ↑ 596,50 599,50 600,50 600,50 601,50 599,50 3% no. 6 USGC WB 0,31 89,11 ↑ 90,25 90,25 90,25 90,25 90,25 90,00 380 CST Cargoes FOB S'pore 0,75 601,00 ↑ 599,00 595,00 594,50 594,50 594,00 594,50 0.1 % GO Barges FOB Rtdm (2,25) 908,25 ↓ 911,25 911,25 909,25 910,25 905,25 903,25 Physical Rotterdam 380 CST 3,00 580,00 ↑ 577,25 580,75 581,25 581,25 581,50 580,50 Physical Singapore 380 CST 2,00 608,75 ↑ 604,25 600,25 599,75 599,75 599,25 599,75

Focus of the day: ARA

Demand seems to firm a little bit, whilst premiums remain strong. The loading problems song is still the most whistled one and that does not seem to be solved before the end of this month. It is reflected in high premiums being paid during the day, as well as ex-wharf offers which are high, especially on the low sulphur side. The RMK discounts remain strong for the moment and this most likely will be the case for a long period as suppliers simply have taken on less length. The crack being volatile has protected the fuel from a jumpy crude. The loading problems in low sulphur are slowly being reflected in the low sulphur premiums just hovering above 20 bucks. In the market on close hardly any low sulphur batches are being traded, so a short term rise would not be surprising. The discounts for gasoil are still low, but have climbed out of the deepest caverns . No worries here, it is expected that good deals are to be made at least till end of year. Notification periods for the different grades; five days for high sulphur enquiries and five working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-Nov 10:00 AM Nov 53 55 54 Employment Cost Index Medium 19-Nov 8:30 AM Q3 0.5% 0.5% - Retail Sales High 20-Nov 8:30 AM Oct 0.3% -0.1% - Core CPI High 20-Nov 8:30 AM Oct 0.1% 0.1% - Existing Home Sales Medium 20-Nov 10:00 AM Oct 4.95M 5.29M - Business Inventories Medium 20-Nov 10:00 AM Sep 0.0% 0.3% - Initial Claims Medium 21-Nov 8:30 AM 16-nov 335K 339K - Core PPI Medium 21-Nov 8:30 AM Oct 0.1% 0.1% - Philadelphia Fed Medium 21-Nov 10:00 AM Nov 5.0 19.8 - Leading Indicators Medium 21-Nov 10:00 AM Oct NA 0.7% -

Source: OW Risk Management