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 prices extended their relentless fall closing down for the 10th time in 12 sessions. Despite some technical rebounds, any rally is sold off and new lows are made, typical pattern of a bear market. The US WTI crude was better supported yesterday resulting in a narrowing WTI/Brent spread to $2.0. The November WTI contract managed to slip only -$0.06 to settle at $81.78/bbl while November Brent, which expires later today, fell -$1.26 to $83.78/bbl. The next active December Brent contract lost -$1.29 to $84.12/bbl. The equity market rout spread to Asia, driving Japanese stocks to their lowest level in six months. The US 10-year Treasury yields fell below 2% for the first time since May 2013 sending the USD lower after disappointing Retail Sales making investors readjust their rate hike expectations further out in time.The US Energy Department will release their Inventory Report later today – delayed due to the Monday public holiday- and expectations are as follows: Crude +2.78 mbbl, Gasoline -1.20 mbbl, Distillates -1.51 mbbl. This morning, crude is trading around 0.8% lower.

Fueloil Specifics

The NWE bunker fuel oil prices posted another double digit loss yesterday. Delivered 380cst product both in Antwerp and Rotterdam was assessed nearly $18/mt down vs previous close. There was reported subdued demand as buyers were holding off for better price directions. Suppliers, on the other hand, continue to struggle loading delays. The Singapore fuel oil prices dove a massive -$33.0 during the Asian Platts window yesterday following the huge crude values drop. The delivered bunker premiums weakened as well to +$7.5-6.5 above cargo prices. The demand was healthy due to the big downward move in outright prices. This morning both markets continue trading down.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q115 Q215 2015 NYMEX WTI Swap (1st month) (0,06) 81,78 ↓ 79,70 79,23 78,81 78,53 78,09 78,49 ICE Brent Swap (1st month) (1,26) 83,78 ↓ 83,58 84,07 84,55 85,44 86,62 89,22 ICE Gasoil Swap (1st month) (13,50) 732,75 ↓ 721,08 723,00 735,08 - - - LS ICE Gasoil Swap (1st month) - - ↓ - - - 740,69 750,03 754,29 3.5% Barges FOB Rtdm (16,50) 446,50 ↓ 437,25 436,50 441,00 444,75 453,25 457,00 3.5% Cargoes FOB Med (17,00) 451,25 ↓ 435,50 434,00 439,00 442,75 451,25 454,75 1.0% Cargoes FOB NWE (17,50) 452,75 ↓ 442,75 443,00 447,00 451,25 460,75 465,00 3% no. 6 USGC WB (1,55) 68,75 ↓ 68,65 68,62 68,92 69,45 70,56 71,54 380 CST Cargoes FOB S'pore (32,75) 465,25 ↓ 461,50 462,50 464,75 467,75 474,75 479,00 0.1 % GO Barges FOB Rtdm (13,75) 730,25 ↓ 720,25 722,25 734,25 730,25 739,25 743,25 Physical Rotterdam 380 CST (18,00) 455,50 ↓ 447,50 446,75 451,25 453,00 461,50 465,25 Physical Singapore 380 CST (33,50) 472,50 ↓ 471,75 472,75 475,00 476,00 483,00 487,25

Focus of the day: Houston

US Gulf Coast bunker fuel prices continued falling for the sixth consecutive trading session due to the weakening Brent crude and fuel oil, ample supplies and weak demand. Houston IFO 380cst and IFO 380cst 1% were down $10 from Monday. The movement widened the hi-lo spread in Houston to $91/mt, the lowest since July, 2013.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 15-Oct 8:30 AM Sep 0.2% 0.6% -0.3% Core PPI Medium 15-Oct 8:30 AM Sep 0.1% 0.1% 0.0% Empire Manufacturing Medium 15-Oct 8:30 AM Oct 20.0 27.5 6.2 Business Inventories Medium 15-Oct 10:00 AM Aug 0.5% 0.4% 0.2% Intial Claims Medium 16-Oct 8:30 AM 11-Oct 295K 287K - Industrial Production Medium 16-Oct 9:15 AM Sep 0.5% -0.1% - Philadelphia Fed Medium 16-Oct 10:00 AM Oct 15.0 22.5 - Housing Starts Medium 17-Oct 8:30 AM Sep 975K 956K - Building Permits Medium 17-Oct 8:30 AM Sep 1000K 998K - Michigan Sentiment High 17-Oct 9:55 AM Oct 83.5 84.6 -

Source: OW Risk Management