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 traded in volatile swings and closed lower yesterday. The November WTI futures slipped -$0.02 to close at $92.10/bbl while December Brent settled at $112.42/bbl, down -$0.80. Markets for another day were dragged between decreasing oil demand growth and supply concerns. The weekly US job claims report yesterday showed larger than expected increase, raising worries about sluggish economic recovery. Goldman Sachs lowered its Brent price forecast for 2013 from $130/bbl to $110/bbl following the signs that supplies from the US and other regions are helping to balance the oil market. The Euro leaders today will seek to agree on a legal framework for ECB to supervise the banks in the Eurozone to battle the sovereign debt issues. Later this afternoon we will probably receive a conclusion of EU Summit and also US existing home sales data will be published. This morning crude is trading mixed with Brent up 0,3%.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed mixed yesterday. Delivered 380cst product in Rotterdam posted app.$2/mt loss while cargo prices were on positive side, up by app.$1/mt. Suppliers in the area reported relatively good demand. High and low sulphur fuel oil avails for prompt deliveries remained hindered by operational delays in Rotterdam while Antwerp reported good avails and smooth operations. The Singapore fuel oil markets remained more or less unchanged from previous day close during the morning window yesterday tracking the sluggish crude values. The delivered bunker premiums were ranging around $4.5-5.5 above cargo prices. Market was quiet as most bunker players were attending Singapore bunker conference. 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) (0.02) 92.10 ↓ 92.62 93.11 93.59 94.00 94.61 94.33 ICE Brent Swap (1st month) (0.80) 112.42 ↑ 112.38 111.73 111.07 110.57 109.26 108.50 ICE Gasoil Swap (1st month) (0.25) 996.50 ↑ 990.42 978.75 971.00 966.36 952.46 950.12 3.5% Barges FOB Rtdm 1.00 615.00 ↑ 618.50 619.50 621.25 621.00 618.50 614.75 3.5% Cargoes FOB Med (3.50) 612.00 ↑ 612.50 613.50 613.25 616.00 614.25 610.75 1.0% Cargoes FOB NWE (1.50) 640.75 ↑ 645.75 648.25 651.00 651.00 649.00 645.25 3% no. 6 USGC WB 0.18 96.43 ↑ 96.78 96.58 96.78 96.25 95.65 95.87 380 CST Cargoes FOB S'pore 0.00 642.00 ↑ 642.00 642.00 643.00 643.00 641.00 637.25 0.1 % GO Barges FOB Rtdm 0.50 1009.75 ↑ 990.25 979.25 972.25 966.25 952.25 950.25 Physical Rotterdam 380 CST (2.00) 621.75 ↑ 628.75 629.75 631.50 631.25 628.75 625.00 Physical Singapore 380 CST 0.25 646.50 ↑ 652.25 652.25 653.25 653.75 651.75 648.00

Focus of the day: Piraeus

Piraeus was fairly busy this week. Crude market was relatively flat and average CIF MED 3.5% was only slightly higher than the previous week - just by $ 0.6. Product availability for HSFO is very good in Piraeus, however both Hellenic Petroleum and MOH refinery are faced with very tight LSFO 1% avails and at the moment suppliers are unable to quote for prompt enquiries. The situation is expected to be resolved next week, when a replenishment cargo will arrive in Piraeus. Customs officers participated in the general public sector strike that took place on Thursday; therefore bunker permits could not be issued. All loadings were rescheduled accordingly and supplies were carried out smoothly without any delays. Customs officers have resumed duties this morning.

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% 0.1% Net Long-Term TIC Flows Medium 16-Oct 9:00 AM Aug NA $67.0B $90.0B Industrial Production Medium 16-Oct 9:15 AM Sep 0.0% -1.2% 0.4% Capacity Utilization Medium 16-Oct 9:15 AM Sep 78.2% 78.2% 78.3% Housing Starts Medium 17-Oct 8:30 AM Sep 765K 750K 872K Biulding Permits Medium 17-Oct 8:30 AM Sep 815K 803K 894K Initial Claims Medium 18-Oct 8:30 AM Oct-13 370K 339K 388K Philadelphia Fed Medium 18-Oct 10:00 AM Sep 0.1% -0.1% 5.7 Existing Home Sales Medium 19-Oct 10:00 AM Sep 4.90M 4.82M -

Source: OW Risk Management