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 traced higher on positive comments from the Republicans towards a solution to avoid a fiscal cliff. Market also was supported by decent US economic figures: the US weekly jobless claims fell while the US GDP came out at 2.7%. The US Senate is looking to tighten sanctions against Iran in its bid to stop its nuclear program. This could bring some volatility back in the market. The January WTI contract closed at $88.07/bbl, up +$1.58 and Brent settled at $110.76/bbl, up by +$1.25. In the US there is still a lot work to do to avoid the fiscal cliff as Republicans rejected Obama’s tax-and-spending proposals as he intends to sell it to the public today. We will close the month with the US Personal Income and Spending data and Chicago Purchaser Manager. This morning, crude prices are trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil prices firmed marginally. Delivered 380cst product in Rotterdam was assessed up by $3/mt following stronger cargo prices that gained app. $6/mt compared to previous day close. Higher prices however did not change much in trading activity in the area with buyers expecting prices to weaken further. The Singapore markets plummeted app. $9.0 during the morning Platts window. The delivered bunker premiums remained around +$3.0 above cargo prices as the lower outright prices attracted some demands. There were no significant changes to the market fundamentals as strong supply coupled with relatively soft demands. Bunker fuel oil swaps gained app. $5/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was significantly stronger, assessed up by more than $9/mt. This morning both markets are slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) 1.58 88.07 ↓ 88.07 88.65 89.22 89.21 90.44 90.37 ICE Brent Swap (1st month) 1.25 110.76 ↓ 110.19 109.42 108.82 108.86 107.51 106.85 ICE Gasoil Swap (1st month) 16.75 948.75 ↓ 948.08 947.83 944.75 944.19 931.69 930.31 3.5% Barges FOB Rtdm 6.00 579.50 ↑ 580.00 585.00 588.75 588.50 596.50 595.00 3.5% Cargoes FOB Med 6.00 566.75 ↑ 567.00 575.50 582.75 581.50 591.25 590.00 1.0% Cargoes FOB NWE 6.00 599.75 ↑ 602.00 608.50 612.75 612.50 622.00 620.75 3% no. 6 USGC WB 1.25 93.88 ↓ 92.07 92.10 92.35 92.95 93.20 92.83 380 CST Cargoes FOB S'pore (9.25) 598.00 ↑ 604.25 607.75 612.25 611.75 620.75 619.50 0.1 % GO Barges FOB Rtdm 16.50 949.00 ↓ 948.25 948.25 945.25 945.25 933.25 932.25 Physical Rotterdam 380 CST 3.00 586.00 ↑ 590.25 595.25 599.00 598.75 606.75 605.25 Physical Singapore 380 CST (7.00) 602.50 ↑ 614.50 618.00 622.50 622.50 631.50 630.25

Focus of the day: Piraeus

Demand in Piraeus decreased this week. Crude market dropped a bit, average CIF MED 3.5% was lower by $ 3.60 compared to last week and activity in the port was subdued. Product availability for both HSFO and LSFO grades is very good and loading conditions smooth as well. The main problem in the Mediterranean this week was the rough weather, which caused problems and suspensions in supplies in several ports. Piraeus saw a number of very prompt enquiries towards the end of the week, as many vessels were looking to shift to a port were supplies were the least affected by the weather.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 27-Nov 8:30 AM Oct -0.5% 9.8% 0.0% Case-Shiller 20-city Index Medium 27-Nov 9:00 AM Sep 2.5% 2.0% 3.0% Consumer Confidence High 27-Nov 10:00 AM Nov 73.0 72.2 73.7 New Home Sales Medium 28-Nov 10:00 AM Oct 395K 389K 368K Initial Claims Medium 29-Nov 8:30 AM 24-Nov 400K 410K 393K GDP- Second Estimate High 29-Nov 8:30 AM Q3 2.8% 2.0% 2.7% Pending Home Sales Medium 29-Nov 10:00 AM Oct 1.0% 0.3% 5.2% Personal Income Medium 30-Nov 8:30 AM Oct 0.0% 0.4% - PCE Prices- Core Medium 30-Nov 8:30 AM Oct 0.1% 0.1% - Chicago PMI Medium 30-Nov 9:45 AM Nov 50.0 49.9 -

Source: OW Risk Management