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 prices firmed after US Federal Reserve announced their third round of quantitative easing (QE3) boosting market confidence. The October WTI futures rose +$1.30 to close at $98.58/bbl. and October Brent which expired yesterday gained +$0.94 to $116.90. The new front month contract November Brent, closed higher to $115.88/bbl, +$0.55. The US Federal Reserve will extend its purchase of long-term securities, with open-ended purchase of $40 billion of mortgage debt (MBS) a month and would probably hold the federal funds near zero “at least through mid-2015” as it seeks to boost growth and reduce unemployment. The US dollar continued to weaken after the announcement supporting crude prices and Equities that jumped to new highs. The geopolitical tension in Middle East especially in Yemen and Egypt also provide some support to Oil prices. Today, despite the fact that the market is digesting the news, we have a very busy day in terms of data from the US with the Retail Sales, Industrial Production, US CPI -although inflation is not yet a worry at this stage- Michigan Confidence and finally Business Inventories. This morning, crude is trading 1,40% higher.

Fueloil Specifics

Bunker fuel oil prices in the NWE area firmed again yesterday following stronger crude. Cargo prices were assessed app.$4/mt up while delivered 380cst product in Rotterdam was even stronger, gaining app.$5/mt. The Singapore fuel oil markets fell more than -$1.5 during the morning Platts window yesterday erasing previous day gains. The latest heavy residual inventory reported a slight build of +0.5 mbbl to 18.94 mbbl. The delivered bunker premiums were ranging from $7.0 to $8.5 above cargo prices. Bunker fuel oil prices were up app.$1.5/mt along the curve for Rotterdam papers. Singapore 380cst cargo FOB gained app.$2.5/mt at the front and a dollar less at the backend of the forward curve. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) 1.30 98.31 ↑ 100.28 100.60 100.95 101.09 100.34 100.61 ICE Brent Swap (1st month) 0.94 115.88 ↑ 117.13 116.64 116.17 114.93 113.06 116.65 ICE Gasoil Swap (1st month) 8.00 1004.50 ↑ 1013.75 1009.67 1005.83 993.19 974.44 973.64 3.5% Barges FOB Rtdm 4.00 658.50 ↑ 667.75 664.50 661.25 656.00 646.25 641.25 3.5% Cargoes FOB Med 2.25 657.75 ↑ 661.75 658.50 655.00 651.00 642.00 637.25 1.0% Cargoes FOB NWE 3.75 724.50 ↑ 722.25 713.50 706.75 696.50 683.75 678.50 3% no. 6 USGC WB (0.05) 104.48 ↑ 103.75 103.05 102.45 99.65 98.20 98.94 380 CST Cargoes FOB S'pore (2.50) 684.50 ↑ 690.75 687.00 683.75 679.00 669.50 664.25 0.1 % GO Barges FOB Rtdm (1.25) 1001.00 ↑ 1014.25 1010.25 1006.25 994.25 976.25 975.25 Physical Rotterdam 380 CST 5.00 667.25 ↑ 678.00 674.75 671.50 666.25 656.50 651.50 Physical Singapore 380 CST (2.00) 693.25 ↑ 701.00 697.25 694.00 689.75 680.25 675.00

Focus of the day: Piraeus

This was another busy week in the Greek ports. Crude market firmed again and average CIF MED 3.5% was higher by $ 5.00 compared to last week. Demand in Piraeus has increased a lot, after several months of subdued activity; the higher volume enquired can be easily accommodated by the port's barges though and no congestion has been reported. Very tight LSFO avails in nearby Malta has pushed a number of vessels towards Piraeus where LSFO avails are currently very good. Calm weather prevailed and supplies were carried out smoothly. Both refineries are working normally and although MOH is currently going through an export there have been no problems with the scheduled loadings.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 10-Sep 3:00 PM Jul $8.0B $6.5B -$3.3B Trade Balance Medium 11-Sep 8:30 AM Jul -$46.0B -$42.9B -$42.0B MBA Mortgage Index Medium 12-Sep 7:00 AM 08-Sep NA -2.5% 11.1% Wholes Inventories Medium 12-Sep 10:00 AM Jul 0.0% -0.2% 0.7% Initial Claims High 13-Sep 8:30 AM 08-Sep 370K 365K 382K Core PPI High 13-Sep 8:30 AM Aug 0.1% 0.4% 0.2% FOMC Rate Decision High 13-Sep 12:30 PM Sep 0.25% 0.25% 0.25% Retail Sales High 14-Sep 8:30 AM Aug 1.0% 0.8% - Core CPI High 14-Sep 8:30 AM Aug 0.1% 0.1% - Industrial Production Medium 14-Sep 9:15 AM Aug -0.3% 0.6% - Mich Sentiment High 14-Sep 9:55 AM Sep 73.0 74.3 - Business Inventories Medium 14-Sep 10:00 AM Jul 0.2% 0.1% -

Source: OW Risk Management