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

Brent futures opened low on Monday as worries over a military strike on Syria eased, but recovered and closed above $114/bbl as investors focused on prospects of a revival in demand growth with factory output across most of the world improving. Euro Manufacturing PMI survey’s showed an improvement up to 51.3 from 50.4 in August, confirming the upswing that we are seeing across the region (with exception of France just below the 50 mark). UK manufacturing PMI was the most impressive, at 57.2 in August up from 54.8 in July (upwardly revised) - new orders up to 61.8 in August, the highest number since 1994. The market is also waiting for details on the Fed's plan to cut back its stimulus. We expect Brent to trade between $113 and $115,50/bbl until the US Unemployment numbers are out on Friday, unless there is a sudden escalation in tensions in Syria. The uncertainty is likely to keep Brent supported. Asian stocks climbed the most in a week. In terms of data, after Labor Day yesterday the market will focus on the ISM Manufacturing. This morning Crude Oil is trading higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices fell on Monday following general market trend. Delivered 380cst in Rotterdam lost $3/mt and nearly $6/mt in Antwerp. Suppliers reported low trading activity and good avails in both ports. The Asian fuel oil’s crack for 180cst gained $2.16/mt to $10.69/bbl discount while that of for 380cst gained $1.92/bbl to $11.71/bbl discount, both to Dubai crude respectively on Monday. The Singapore bunker differential – the price spread between delivered marine fuel prices and HSFO cargo values – gained $6.68/mt to $0.94/mt in discount to 380cst quotes. For bunker prices, Singapore 380cst ex-wharf prices were transacted at $604/mt on Monday and delivered 380cst was seen in range 590.00/mt to 600.00/mt depending on stem size and vessel. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,00 107,65 ↑ 107,26 106,56 105,35 105,29 100,90 96,67 ICE Brent Swap (1st month) 0,32 114,33 ↑ 114,48 112,79 111,41 110,32 108,45 105,59 ICE Gasoil Swap (1st month) (11,00) 958,50 ↑ 966,92 964,08 958,75 958,97 940,22 916,17 3.5% Barges FOB Rtdm (5,75) 591,75 ↑ 593,00 594,75 595,00 595,50 598,00 589,00 3.5% Cargoes FOB Med (5,00) 590,50 ↑ 591,25 591,75 591,50 590,50 592,25 584,00 1.0% Cargoes FOB NWE (5,25) 611,50 ↑ 616,00 619,50 621,50 621,50 625,00 615,00 3% no. 6 USGC WB (0,56) 95,28 ↑ 94,45 94,20 93,70 93,70 93,65 91,95 380 CST Cargoes FOB S'pore (7,00) 603,00 ↑ 607,75 610,50 611,75 611,75 614,50 607,75 0.1 % GO Barges FOB Rtdm (10,50) 956,25 ↑ 968,25 965,25 960,25 960,25 944,25 919,25 Physical Rotterdam 380 CST (3,00) 596,25 ↑ 598,25 600,00 600,25 600,25 602,25 593,25 Physical Singapore 380 CST (5,50) 606,50 ↑ 613,00 615,75 618,00 617,75 619,75 613,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 3-Sep 10:00 AM Aug 53.0 55.4 - Construction Spending Medium 3-Sep 10:00 AM Jul 0.3% -0.6% - Trade Balance Medium 4-Sep 8:30 AM Jul -$41.5B -$34.2B - Fed's Beige Book Medium 4-Sep 2:00 PM Sep NA NA - Challanger Job Cuts Medium 5-Sep 7:30 AM Aug NA 2.3% - ADP Empoyment Cahnge Medium 5-Sep 8:15 AM Aug 210K 200K - Initial Claims Medium 5-Sep 8:30 AM 31-aug 335K 331K - Factory Orders Medium 5-Sep 10:00 AM Jul -4.0% 1.5% - ISM Services Medium 5-Sep 10:00 AM Aug 54.0 56.0 - Nonfarm Payrolls High 6-Sep 8:30 AM Aug 210K 162K - Unemployment Rate High 0-Jan 8:30 AM Aug 7.5% 7.4% -

Source: OW Risk Management