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 dipped lower in the morning and stabilized after the previous day strong sell off. With ample Oil supply - US stocks should be rising for the seventh week - prices are under pressure. This translates in Dec –Jan Brent backwardation to collapse which has not been seen since June. This change towards contango comes from a combination of weak demand and increased supplies from Iraq and the North Sea. The December WTI contract managed to close +$0.01 higher to $94.62/bbl and Brent saw a marginal uptick of +$0.32 to settle at $106.23/bbl. Today in terms of data we will have the US October Non-Manufacturing ISM index. This morning Crude prices are trading flat.

Fueloil Specifics

The Singapore fuel oil markets fell more than -$8.5 during the Platts window yesterday tracking the previous massive drop in crude values. The delivered bunker premiums strengthened between +$10.0 to +$11.5 above cargo prices lifted by tightness heard among some sellers. Premiums for Bunker deliveries are still high in Rotterdam. HSFO closed at $576.5 down $2 and LSFO at $600.50.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) 0,01 94,62 ↑ 94,92 95,02 94,92 94,87 93,78 92,83 ICE Brent Swap (1st month) 0,32 106,23 ↑ 105,96 105,61 105,60 105,23 103,99 103,30 ICE Gasoil Swap (1st month) (11,00) 904,00 ↓ 899,00 897,58 896,42 896,28 890,53 888,56 3.5% Barges FOB Rtdm (4,00) 568,75 ↓ 565,50 568,50 568,25 568,75 568,25 566,75 3.5% Cargoes FOB Med (4,00) 568,00 ↓ 560,50 563,00 562,25 561,75 561,50 561,00 1.0% Cargoes FOB NWE (5,75) 578,75 ↓ 583,75 587,75 589,00 589,00 590,75 588,25 3% no. 6 USGC WB (0,06) 89,65 ↓ 89,40 89,60 88,85 89,10 88,60 88,35 380 CST Cargoes FOB S'pore (9,25) 601,25 ↓ 591,00 587,40 586,90 585,15 586,15 585,90 0.1 % GO Barges FOB Rtdm (12,50) 902,75 ↓ 900,25 899,25 897,25 897,25 892,25 890,25 Physical Rotterdam 380 CST (2,00) 576,00 ↓ 570,75 573,75 573,50 573,50 572,50 571,00 Physical Singapore 380 CST (7,00) 611,75 ↓ 593,40 591,40 590,90 590,40 590,15 589,90

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Factory Orders Medium 4-Nov 10:00 AM Sep 1.5% -0.1% 1.7% ISM Services High 5-Nov 10:00 AM Oct 55.0 54.4 - Challenger Job Cuts Medium 7-Nov 10:30 AM Oct - 19.1% - Initial Claims Medium 7-Nov 8:30 AM 02-nov 335K 340K - GDP- Adv. High 7-Nov 8:30 AM Q3 1.9% 2.5% - Nonfarm Payrolls High 8-Nov 8:30 AM Oct 85K 148K - Unemployment Rate High 8-Nov 8:30 AM Oct 7.4% 7.2% - PCE Prices- Core Medium 8-Nov 8:30 AM Sep 0.1 0.2% - Mich Sentiment High 8-Nov 9:55 AM Nov 75.0 73.2 -

Source: OW Risk Management