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 opened the week trading range bound. Despite a weak European start it recovered during the US session. The November WTI contract fell by -$1.59 to expire below the $100 mark at $99.22/bbl. The December WTI futures closed at $99.68/bbl and Brent at $109.64/bbl, marginally lower by -$0.30. The US DOE Inventory report for last week was only released yesterday due to delay caused by the US shutdown. The crude inventory stockpile reported a 4.0 mbbl build, more than the 2.2 mbbl expected. Gasoline and Distillates drew more than expected at -2.6 mbbl and -1.8 mbbl respectively. This week DOE US inventory report will resume its usual schedule on Wednesday. New home prices in China climbed in 69 of the 71 cities in September showing efforts by the government to cool down prices have yet to show some tangible results. This morning, crude is trading mixed with Brent app. 0.2% up.

Fueloil Specifics

The NWE bunker fuel oil markets started the week with low trading activity and flat prices. Antwerp suppliers reported slightly improved avails though continuous delays at loading installations causing difficulties for prompt deliveries. The Singapore fuel oil markets rose some $3.5-2.0 during the Asian Platts window yesterday. The delivered bunker premiums remained in a range of $9.5-8.0 above cargo prices. The strong buying interest in the physical HSFO 380 cst cargo markets lifted the ex-wharf premiums while bunker demand lagged. 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) (1,59) 99,22 ↓ 99,45 99,45 99,32 98,62 96,73 95,82 ICE Brent Swap (1st month) (0,30) 109,64 ↑ 109,62 109,03 108,39 107,79 106,20 105,44 ICE Gasoil Swap (1st month) 2,25 941,50 ↓ 935,67 930,67 926,25 923,28 912,58 909,80 3.5% Barges FOB Rtdm 0,50 584,00 ↓ 584,00 581,75 584,50 584,50 582,75 580,75 3.5% Cargoes FOB Med 0,00 584,75 ↓ 579,50 577,75 579,25 582,50 576,00 574,75 1.0% Cargoes FOB NWE 0,50 598,75 ↓ 599,50 602,25 605,00 605,50 606,25 602,75 3% no. 6 USGC WB (0,87) 93,38 ↑ 93,15 92,65 91,90 91,65 91,10 90,65 380 CST Cargoes FOB S'pore 2,25 616,00 ↓ 607,25 601,25 599,00 599,25 599,25 598,75 0.1 % GO Barges FOB Rtdm 2,50 943,25 ↓ 937,25 932,25 927,25 924,25 914,25 911,25 Physical Rotterdam 380 CST 0,00 587,00 ↓ 589,25 587,00 589,75 589,25 587,00 585,00 Physical Singapore 380 CST 3,00 624,75 ↓ 612,50 606,50 605,25 605,25 604,50 604,00

Focus of the day: ARA

It has been a very slow week with market mainly trading sideways and low demand as ever. The congestions seem to have vanished and a slight contango has been reported. Good news for suppliers as they don’t get penalized with end of month stock so much. However, there is still pressure to sell to keep the supplier system running. The low sulphur premium hovers around 15-20 dollars and no change foreseen on the short term. All in all a slow market with little price opportunities for either buyer or supplier side. With the arrival of a new player in the gasoil market, there is an abundance of supply, which is being reflected in very competitive prices. Notification periods for the different grades; four days for high sulphur enquiries and four working days for low sulphur enquiries.

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 - Unemployment Rate High 22-Oct 8:30 AM Sep 7.3% 7.3% - 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