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 Oil price despite a bit of volatility, closed the day mainly unchanged. The November WTI contract closed at $91.85/bbl, slipping $0.01 while November Brent rose $1.18 to $115.80/bbl and expires later today. The December Brent closed at $114.40/bbl yesterday. The continual development of geopolitical tensions between Iran and the West escalated yesterday as German magazine Der Spiegel pointed out that Iran could create a massive oil spill by disrupting shipping through the Strait of Hormuz which is a route for the crude export from that area. Market is widely watching the Chinese GDP releasing this coming Thursday. Today we will see the ZEW survey on German business confidence, Eurozone September inflation which is expected to remain at 2.7%, Italian trade and British consumer and retail price data as well as US industrial production figures and consumer price index later in the afternoon. This morning crude is trading slightly down.

Fueloil Specifics

The Northwest European fuel oil markets started the week with muted trading activity. Delivered 380cst product in Rotterdam was assessed down by app.$6/mt following lower crude values and cargo prices that posted app.$3/mt losses. Product avails in Rotterdam are expected to improve during the week, however suppliers currently are said to be fully booked until the end of this week. The Singapore fuel oil markets came off marginally between -$1.75 to -$0.25 during the Platts window on the start of the week. Market seems to be pretty uncertain as market flips between contango and backwardation. The delivered bunker premiums edged up slightly, seen at $7.0-5.5 above cargo prices yesterday. Bunker fuel oil swaps lost app.$3/mt at the front of the forward curve while backend was slightly stronger, loosing only a few cents both for Rotterdam and Singapore papers. This morning both markets are trading 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) (0.01) 91.85 ↓ 92.41 92.93 93.41 93.76 94.54 92.42 ICE Brent Swap (1st month) 1.18 115.80 ↓ 114.03 113.28 112.68 112.17 110.57 114.12 ICE Gasoil Swap (1st month) (3.25) 997.75 ↑ 995.33 986.08 979.67 973.58 958.03 954.60 3.5% Barges FOB Rtdm (3.00) 616.00 ↑ 624.75 625.50 626.50 626.00 623.50 621.50 3.5% Cargoes FOB Med (4.25) 616.00 ↑ 619.50 619.50 619.25 621.00 619.25 617.50 1.0% Cargoes FOB NWE (12.50) 641.75 ↑ 654.75 656.25 657.75 657.25 654.75 652.75 3% no. 6 USGC WB 0.40 98.90 ↑ 98.30 98.10 98.10 98.08 97.57 97.15 380 CST Cargoes FOB S'pore (1.50) 647.75 ↑ 648.00 648.00 648.25 648.00 646.50 644.25 0.1 % GO Barges FOB Rtdm (3.25) 1011.00 ↑ 995.25 986.25 980.25 975.25 959.25 956.25 Physical Rotterdam 380 CST (6.00) 624.00 ↑ 635.00 635.75 636.75 636.25 633.75 631.75 Physical Singapore 380 CST (0.50) 653.75 ↑ 658.25 658.25 658.50 658.75 657.25 655.00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 15-Oct 8:30 AM Sep 1.0% 0.9% 1.1% Empire Manufacturing Medium 15-Oct 8:30 AM Sep -2.0 -10.4 -6.2 Business Inventories Medium 15-Oct 10:00 AM Aug 0.5% 0.8% 0.6% Core CPI High 16-Oct 8:30 AM Sep 0.1% 0.1% - Net Long-Term TIC Flows Medium 16-Oct 9:00 AM Aug NA $67.0B - Industrial Production Medium 16-Oct 9:15 AM Sep 0.0% -1.2% - Capacity Utilization Medium 16-Oct 9:15 AM Sep 78.2% 78.2% - Housing Starts Medium 17-Oct 8:30 AM Sep 765K 750K - Biulding Permits Medium 17-Oct 8:30 AM Sep 815K 803K - Initial Claims Medium 18-Oct 8:30 AM Oct-13 370K 339K - Philadelphia Fed Medium 18-Oct 10:00 AM Sep 0.1% -0.1% - Existing Home Sales Medium 19-Oct 10:00 AM Sep 4.90M 4.82M -

Source: OW Risk Management