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 rebounded helped probably by some short covering by the market as the Brent futures and options expired. Despite a big build on US crude inventory figures at +8.92 mbbl against the expected +2.27 mbbl; market was inspired by a big draw in the gasoline stockpile at -4.00 mbbl against the expected -1.20 mbbl. The November WTI crude was trading as high as $84.83/bbl during the trading session but closed at $82.70/bbl, up +$0.92. The November Brent contract expired gaining +$0.69 to settle at $84.47/bbl while the next active contract December Brent rose +$1.70 to $85.82/bbl. Despite the strength in crude price seen yesterday, it is too early to call for a price reversal as the fundamentals are unchanged and the bearish sentiment prevails in the market. Today, we will have the US Federal Reserve chairperson, Ms Yellen, speech, the US September Housing Starts and October Consumer Confidence Index. This morning, crude is trading up around 1,20%.

Fueloil Specifics

The Northwest European bunker fuel oil prices continued its downwards trend yesterday loosing another double digit number. Delivered 380cst product both in Antwerp and Rotterdam was assessed app. $10/mt down. Suppliers reported low demand while hsfo loadings improved slightly. The Singapore fuel oil prices extended losses by more than -$4.0 during the Asian Platts window tracking weak crude. The Singapore physical market saw strong selling of the cargoes with delivered bunker premiums coming under pressure and weakening to $5.5-4.25 above cargo prices. This morning both markets are trading higher.

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) 0,92 82,70 ↑ 83,26 82,80 82,36 81,48 81,03 80,70 ICE Brent Swap (1st month) 1,70 85,82 ↑ 87,38 87,81 88,70 89,30 89,57 91,73 ICE Gasoil Swap (1st month) (6,50) 726,25 ↑ 744,08 746,58 759,33 - - - LS ICE Gasoil Swap (1st month) - - ↑ - - - 765,17 774,39 777,08 3.5% Barges FOB Rtdm (2,75) 444,00 ↑ 458,25 456,75 461,00 464,50 472,75 476,25 3.5% Cargoes FOB Med (1,50) 449,75 ↑ 457,00 454,25 459,00 462,50 470,75 474,00 1.0% Cargoes FOB NWE (1,75) 450,75 ↑ 463,75 463,00 466,75 470,75 480,50 484,50 3% no. 6 USGC WB 2,05 70,80 ↑ 71,00 71,05 71,35 71,85 72,91 73,86 380 CST Cargoes FOB S'pore (5,75) 460,50 ↑ 482,25 482,75 484,50 487,50 494,25 498,50 0.1 % GO Barges FOB Rtdm (8,00) 721,75 ↑ 743,25 746,25 758,25 754,25 763,25 766,25 Physical Rotterdam 380 CST (10,00) 445,50 ↑ 468,50 467,00 471,25 472,75 481,00 484,50 Physical Singapore 380 CST (7,25) 465,25 ↑ 492,50 493,00 494,75 495,75 502,50 506,75

Focus of the day: Piraeus

Crude rallied downwards all through this week and cargo prices were crushing in the MED. CIF MED 3.5% dropped $40 on average compared to last week. Physical suppliers with stock of old product are facing big difficulty in selling off, while those that can buy at the current levels are fully committed for the next few days. Demand in Piraeus was healthy, with sufficient spot volume and a high number of cruisers still calling the port. Both refineries are online and product avails are very good. We expect high demand next week; market is trading up today.

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 264K Industrial Production Medium 16-Oct 9:15 AM Sep 0.5% -0.1% 1.0% Philadelphia Fed Medium 16-Oct 10:00 AM Oct 15.0 22.5 20.7 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