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

Volatility was the name on Crude Oil Yesterday despite a mixed close. The action is still on the Brent/WTI spread which narrowed to around $14.0. The January WTI contract rose +$1.16 to $97.20/bbl while Brent, after three days of gains, fell -$0.74 to $111.88/bbl. The weekly DOE crude inventory reported a -5,59 mbbl  draw vs +0.32 mbbl expected. This was interpreted as bullish at first by the market but the drop was due to a record high refinery utilization rate (+3.0%) for this time of the year (exports to Europe) rather than a strong domestic demand. Crude imports dropped vs last year. However,  crude prices strength were tempered by a decline in  US equities as positive economic data could trigger the US Federal Reserve to taper its Bond program in December. The ADP employment for November reported a solid figure at 215k vs 184k last month and US October New Home sales jumped. Today, the market will focus on the BOE and ECB rate decisions and later the weekly US jobless claims, the US 3rd Quarter GDP revision data and October Factory orders. This morning, crude prices are trading slightly higher.

Fueloil Specifics

The NWE bunker fuel oil prices firmed slightly yesterday. Suppliers reported weakening demand however still tight prompt product avails and expecting situation to improve at the end of next week. Delivered 380cst product in both Antwerp and Rotterdam was assessed some $2/mt higher versus previous close. Premiums for prompt deliveries remain on the higher side. The Singapore fuel oil market fell more than -$1.5 during the Asian window yesterday despite stronger crude values. The Asian fuel oil cracks came off significantly while the physical cargo markets continue to see another round of aggressive selling, pressuring the premiums to discount at more than -$1.5. The delivered bunker premiums were seen at $7.0- 8.0 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 2014 NYMEX WTI Swap (1st month) 1,16 97,20 ↑ 97,70 97,60 97,24 97,51 96,01 94,84 ICE Brent Swap (1st month) (0,74) 111,88 ↑ 111,28 110,95 110,95 110,61 109,87 108,98 ICE Gasoil Swap (1st month) 1,50 947,25 ↓ 945,92 944,58 942,67 944,72 936,08 932,56 3.5% Barges FOB Rtdm 1,50 584,00 ↓ 587,75 589,50 590,75 589,25 592,25 591,25 3.5% Cargoes FOB Med (2,00) 573,75 ↓ 584,00 585,75 587,00 585,50 588,75 589,25 1.0% Cargoes FOB NWE (1,50) 626,50 ↓ 616,25 617,00 617,75 617,00 618,75 616,75 3% no. 6 USGC WB (0,76) 90,47 ↑ 91,80 91,55 91,80 91,80 92,05 92,05 380 CST Cargoes FOB S'pore (1,75) 602,25 ↓ 607,75 608,50 609,25 608,50 610,75 611,25 0.1 % GO Barges FOB Rtdm 1,25 947,00 ↓ 947,25 946,25 942,25 945,25 936,25 933,25 Physical Rotterdam 380 CST 2,00 586,75 ↓ 593,00 594,75 596,00 594,50 597,50 596,50 Physical Singapore 380 CST (2,00) 609,50 ↓ 613,00 613,75 614,50 613,75 616,00 616,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 2-Dec 10:00 AM Nov 55.0 56.4 57.3 Construction Spending Medium 2-Dec 10:00 AM Oct 0.3% NA 0.8% ADP Employment Change Medium 4-Dec 8:15 AM Nov 175K 130K 215K Trade Balance Medium 4-Dec 8:30 AM Oct -$40.5B -$41.8B -$40.6B New Home Sales Medium 4-Dec 10:00 AM Oct 410K 354K 444K ISM Services Medium 4-Dec 10:00 AM Nov 55.0 55.4 53.9 Initial Claims Medium 5-Dec 8:30 AM 30-nov 335K 316K - GDP- 2nd Estimate High 5-Dec 8:30 AM Q3 3.1% 2.8% - Factory Orders Medium 5-Dec 10:00 AM Oct -1.0% 1.7% - Nonfarm Payrolls High 6-Dec 8:30 AM Nov 185K 204K - Unemployment Rate High 6-Dec 8:30 AM Nov 7.2% 7.3% - PCE Prices- Core Medium 6-Dec 8:30 AM Oct 0.1% 0.1% - Mich Sentiment High 6-Dec 9:55 AM Dec 77.0 75.1 - Consumer Credit Medium 6-Dec 3:00 PM Oct $15.0B $13.7B -

Source: OW Risk Management