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 closed the week falling more than $2 after the outcome of the 2 day Euro Summit failed to inspire the market. Friday, volatility was high with Crude Oil trading up more than $1 during the European morning session and tumbling into the close. The November WTI futures settled at $90.05/bbl, down -$2.05 and the December Brent futures closed at $110.14/bbl , down -$2.28. The Euro Summit did come out with a legal framework to supervise the Eurozone banks but yet have to calm the market with a more durable decision on Greece and Spain. Also the poorer than expected earning reports from US corporations have put pressure on equities. A slow start in terms of economic data for this week with figures only from tomorrow on. This morning, crude is trading up.

Fueloil Specifics

The Northwest European bunker fuel oil prices softened at the end of last week with cargo prices posting app.$3/mt losses while delivered 380cst product remained on the positive side- up by app.$1/mt. ARA hub reported sluggish demand while Hamburg port was quite busy. Rotterdam continuously struggles with operational delays both for hsfo and lsfo loadings. The Singapore fuel oil markets rose app. $1.0 during the morning window last Friday. The latest Singapore residual inventory reported a draw of 0.28 mbbl to 19.32 mbbl. The delivered bunker premiums weakened to around $3.75 above cargo prices last Friday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Jan Q113 Q213 2013 NYMEX WTI Swap (1st month) (2.05) 90.05 ↑ 91.30 91.77 92.26 92.58 92.88 92.65 ICE Brent Swap (1st month) (2.28) 110.14 ↑ 110.51 109.82 109.24 108.75 107.27 106.62 ICE Gasoil Swap (1st month) 0.00 996.50 ↓ 978.58 967.00 958.92 951.92 936.42 934.08 3.5% Barges FOB Rtdm (3.25) 612.25 ↑ 613.50 613.75 615.00 613.50 610.00 606.25 3.5% Cargoes FOB Med 0.25 612.75 ↑ 607.00 607.75 607.50 608.50 605.75 602.25 1.0% Cargoes FOB NWE (3.50) 636.25 ↑ 639.75 642.00 644.25 643.25 640.25 636.25 3% no. 6 USGC WB (1.23) 95.95 ↑ 96.03 95.78 95.88 95.13 94.38 94.71 380 CST Cargoes FOB S'pore 1.25 643.25 ↑ 638.00 637.25 637.75 636.00 633.00 629.00 0.1 % GO Barges FOB Rtdm (1.50) 1009.00 ↓ 979.25 967.25 959.25 953.25 938.25 936.25 Physical Rotterdam 380 CST 1.00 622.00 ↑ 623.75 624.00 625.25 623.75 620.25 616.50 Physical Singapore 380 CST 0.50 647.25 ↑ 648.25 647.50 648.00 646.75 643.75 639.75

Focus of the day: Gibraltar

The Gibraltar Strait is seeing a good start of the week with fine weather conditions and operations running smoothly in both Algeciras and Ceuta but some 4 vessels queuing outside Gibraltar, which are expected to be called in shortly. Weather forecast for the rest of the week is good so no major congestion problems are expected for the next few days. There are good avails of all products, including LSFO which had been a bit tight the previous week and some new cargoes expected to arrive within the next couple of days. CIF Med 3.5% is trading some $17 above FOB barges Rotterdam this morning and the HILO spread remains quite low at around $25. The Med market is trading slightly higher this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 24-Oct 7:00 AM 20-Oct NA -4.2% - New Home Sales Medium 24-Oct 10:00 AM Sep 385K 373K - FOMC Rate Decision High 24-Oct 2:15 PM Oct 0.25% 0.25% - Initial Claims Medium 25-Oct 8:30 AM 20-Oct 375K 388K - Continuing Claims Medium 25-Oct 8:30 AM 13-Oct 3275K 3252K - Durable Orders High 25-Oct 8:30 AM Sep 12.0% -13.2% - Pending Home Sales Medium 25-Oct 10:00 AM Sep 1.0% -2.6% - GDP-Adv. High 26-Oct 8:30 AM Q3 0.9% 1.3% - Chain Deflator- Adv. Medium 26-Oct 8:30 AM Q3 2.6% 1.6% - Michigan Sentiment- Final High 26-Oct 9:55 AM Oct 82.5 83.1 -

Source: OW Risk Management