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

Despite a morning bullish mood Crude prices closed mixed after the Federal Reserve announcement yesterday.  In their statement the Fed said the US economy was expanding at a moderate pace suggesting a slowing of asset purchase in December or January is still under consideration. In this context The Unemployment number and particularly new jobs created in October will be closely  scrutinized: In previous speeches Mr Bernanke clearly stated that it was the main component of their decision lately. The US Department of Energy showed a mixed picture with a larger than expected Crude Oil  build of +4.1 mbbl and in Cushing stockpile as well +2.2 mbbl but a higher draw than expected in Distillates and Gasoline with respectively -3mbbl and -1,7 mbbl. Supply disruptions in Libya are not resolved so far which continue to support Brent prices. This resulted in a widening of the Brent/ WTI spread to around $13/bbl again. The December WTI closed at $96.77/bbl, -$1.43 and Brent erased its previous loss by gaining +$0.85 to $109.86/bbl. This morning crude prices are trading slightly lower.

Fueloil Specifics

The Singapore fuel oil markets were pretty flat, inching up marginally during the Platts window yesterday despite the higher crude prices. The delivered bunker premiums hovered around +$10.0 above cargo prices yesterday. Short term bunker markets are expected to be tight, hampered by recent active physical trading activities. ARA fuel prices edged a bit higher yesterday. In Rotterdam suppliers are delayed due to loading issues and LSFO gained $4/mt to $608.5 and HSFO gained $2/mt to 587.50. This morning prices are trading slightly higher.

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) (1,43) 96,77 ↓ 96,91 97,08 97,01 96,70 95,16 94,24 ICE Brent Swap (1st month) 0,85 109,86 ↑ 109,36 108,90 108,36 107,82 106,38 105,56 ICE Gasoil Swap (1st month) 6,75 937,25 ↑ 932,17 926,75 923,92 920,92 909,58 907,51 3.5% Barges FOB Rtdm 3,00 583,25 ↑ 583,50 581,50 584,25 584,50 583,25 581,50 3.5% Cargoes FOB Med 2,75 578,75 ↑ 579,00 576,25 578,00 577,25 576,25 575,50 1.0% Cargoes FOB NWE 2,75 594,75 ↑ 596,50 600,75 604,25 605,25 606,50 603,50 3% no. 6 USGC WB 1,12 91,67 ↑ 92,08 91,58 91,33 91,08 90,58 90,33 380 CST Cargoes FOB S'pore 0,50 610,25 ↑ 609,75 602,50 600,50 600,75 599,75 599,50 0.1 % GO Barges FOB Rtdm 6,00 938,75 ↑ 933,25 928,25 925,25 923,25 913,25 910,25 Physical Rotterdam 380 CST 2,00 587,25 ↑ 588,75 586,75 589,50 589,25 587,50 585,75 Physical Singapore 380 CST 0,00 621,00 ↑ 613,25 607,75 605,75 606,00 605,00 604,75

Economy fundamentals this week

Fundamental Indicators Fundamental Indicators               Statistic Importance Date Time Period Consensus Last Actual Industrial Production Medium 28-Oct 9:15 AM Sep 0.3% 0.4% 0.6% Pending Home Sales Medium 28-Oct 10:00 AM Sep -2.0% -1.6% -5.6% Retail Sales High 29-Oct 8:30 AM Sep -0.2% 0.2% -0.1% Core PPI Medium 29-Oct 8:30 AM Sep 0.1% 0.0% 0.1% Case-Shiller 20-city Index Medium 29-Oct 9:00 AM Aug 12.5% 12.0% 12.8% Business Inventories Medium 29-Oct 10:00 AM Aug 0.3% 0.4% 0.3% Consumer Confidence High 29-Oct 10:00 AM Oct 72.0 79.7 71.2 ADP Employment Change Medium 30-Oct 8:15 AM Oct 125K 166K 130K GDP- Adv. Medium 30-Oct 8:30 AM Q3 NA 2.5% - Core CPI High 30-Oct 8:30 AM Sep 0.1% 0.1% 0,1% FOMC Rate Decision High 30-Oct 2:15 PM Oct 0.25% 0.25% 0,25% Initial Claims Medium 31-Oct 8:30 AM 26-okt 335K 350K - Chicago PMI Medium 31-Oct 9:45 AM Oct 52.0 55.7 - ISM Index High 1-Nov 10:00 AM Oct 54.5 56.2 -

Source: OW Risk Management