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 Oil sell-off continued accelerating after the US inventory report release. The US Crude Oil stockpiles build a big +5.25 mbbl vs +2.94 mbbl exp., so did Distillates +1.54 mbbl vs a -1.78 mbbl expected. The gasoline stockpile- despite a slight draw- was above expectation. There was also active trading in the Brent/WTI spread which saw some profit taking from a high at +$13.0/bbl to $10.5/bbl. The December WTI futures closed at $96.86/bbl, down -$1.44 and December Brent settled at $107.80/bbl, plummeting -$2.17. Today in terms of data we will focus on the US Trade Balance and Weekly jobless claims. The preliminary Chinese Manufacturing Purchasing Managers Index rose to 50,9 in October above September’s final reading at 50,2 at a seven –year high. Note also that China’s money market rates shot up on Thursday after the Chinese Central Bank withdrew cash from the financial system reminding the market of a replay of a liquidity squeeze. But analysts say the concerns of a cash crunch could be premature. This morning, crude is trading app.0,30% higher.

Fueloil Specifics

Despite weakening crude values, the NWE bunker fuel oil markets remained on the higher side yesterday. Delivered 380cst product both in Antwerp and Rotterdam was assessed app.$1/mt down from previous close. Suppliers in both ports reported tight lsfo avails especially for prompt deliveries, holding premiums on the higher side. Singapore market extended losses, falling more than $3.5 during the Asian Platts window yesterday tracking the weaker crude values. The delivered bunker premiums remained at $9.5-8.5 above cargo prices. There seems to be some rebalancing of fundamentals moving forward as incoming supplies are lower than average while physical cargo buying interest remains intact. 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 Q114 Q214 2014 NYMEX WTI Swap (1st month) (1,44) 96,86 ↑ 97,46 97,46 97,14 96,50 94,75 93,85 ICE Brent Swap (1st month) (2,17) 107,80 ↑ 107,70 107,18 106,64 106,15 104,83 104,00 ICE Gasoil Swap (1st month) (16,50) 920,00 ↓ 913,58 910,33 908,83 907,17 898,42 897,03 3.5% Barges FOB Rtdm (0,75) 581,75 ↑ 580,00 577,75 580,25 580,50 579,75 578,25 3.5% Cargoes FOB Med (5,00) 577,00 ↑ 576,50 572,50 574,50 585,00 573,00 572,25 1.0% Cargoes FOB NWE (4,75) 591,00 ↑ 595,00 598,00 600,25 601,00 602,50 599,75 3% no. 6 USGC WB (2,10) 90,65 ↑ 91,85 91,30 90,80 90,55 90,25 90,00 380 CST Cargoes FOB S'pore (4,50) 608,50 ↑ 602,75 598,00 596,00 596,50 597,50 597,50 0.1 % GO Barges FOB Rtdm (16,25) 921,25 ↓ 915,25 911,25 910,25 908,25 902,25 899,25 Physical Rotterdam 380 CST (1,00) 586,25 ↑ 585,25 583,00 585,50 585,25 584,00 582,50 Physical Singapore 380 CST (4,25) 617,25 ↑ 608,00 603,25 602,25 602,50 602,75 602,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 21-Oct 10:00 AM Sep 5.15M 5.48M 5.29M Nonfarm Payrolls High 22-Oct 8:30 AM Sep 165K 169K 148K Unemployment Rate High 22-Oct 8:30 AM Sep 7.3% 7.3% 7.2% Initial Claims Medium 24-Oct 8:30 AM 19-Oct 330K 358K - Continuing Claims Medium 24-Oct 8:30 AM 12-Oct 2900K 2859K - New Home Sales Medium 24-Oct 10:00 AM Sep 410K 421K - Durable Orders High 24-Oct 8:30 AM Sep 4.2% 0.1% - Michigan Sentiment- Final Medium 25-Oct 9:55 AM Oct 73.0 75.2 -

Source: OW Risk Management