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

The US January WTI contract slumped yesterday by -$1.38 to close $92.30/bbl after the US inventory report showed another big build (+2.95 mbbl vs+0.61 mbbl exp.) - the ninth time in a row - and so did Gasoline inventories (+1,75mbb) although Distillate fuels dropped by 1,67mbbl. The production supplies uncertainties about Libya, Iraq continue to support Brent. The Brent/WTI trades 19usd closing to the 24usd record seen in February. The January Brent contract rose marginally higher +$0.43 to close at $111.31/bbl. The US markets are closed today on Thanksgiving holiday and it is likely volume will be light on Friday as well. This morning crude is trading flat.

Fueloil Specifics

The NWE bunker fuel oil markets closed higher yesterday following stronger Brent values and continuously tight product avails. Delivered 380cst hsfo product gained some $2/mt while lsfo was assessed up by nearly $5/mt. Delivered product premiums remain high while suppliers expect the situation to improve from the start of December. The Singapore fuel oil market rose app. $4.0 during the morning Platts window. The delivered bunker premiums were around +$6.50 above cargo prices. Bunker demand was said to be slow on higher outright prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,41) 92,30 ↓ 92,41 92,71 92,94 92,85 92,64 91,87 ICE Brent Swap (1st month) (0,12) 111,31 ↓ 110,89 110,47 110,14 109,84 109,20 108,33 ICE Gasoil Swap (1st month) 9,75 941,00 ↑ 943,83 942,00 939,42 939,53 930,31 928,08 3.5% Barges FOB Rtdm (3,00) 572,50 ↑ 578,25 582,00 583,25 583,25 585,50 584,50 3.5% Cargoes FOB Med (4,50) 579,25 ↑ 575,25 578,25 579,50 579,50 581,75 580,75 1.0% Cargoes FOB NWE (1,75) 611,25 ↑ 614,25 611,25 612,00 612,00 612,75 611,00 3% no. 6 USGC WB (0,10) 90,55 ↑ 91,50 90,75 91,00 91,00 91,25 91,25 380 CST Cargoes FOB S'pore 4,25 605,75 ↑ 604,75 602,00 602,25 602,25 603,50 604,00 0.1 % GO Barges FOB Rtdm (2,50) 941,00 ↓ 945,25 943,25 940,25 941,25 932,25 929,25 Physical Rotterdam 380 CST 2,00 583,25 ↑ 583,50 587,25 588,50 588,50 590,75 589,75 Physical Singapore 380 CST 4,00 612,00 ↑ 610,00 607,25 607,50 607,50 608,75 609,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Pending Home Sales Medium 25-Nov 10:00 AM Oct 1.0% -5.6% -0.6% Housing Starts Medium 26-Nov 8:30 AM Oct 915K NA - Building Permits Medium 26-Nov 8:30 AM Oct 930K NA 1034K Case-Shiller 20- city Index Medium 26-Nov 9:00 AM Sep 13.0% 12.8% 13.3% Consumer Confidence High 26-Nov 10:00 AM Nov 74.0 71.2 70.4 Initial Claims Medium 27-Nov 8:30 AM 23-nov 335K 323K 316K Durable Orders High 27-Nov 8:30 AM Oct -3.0% 3.8% -2.0% Chicago PMI Medium 27-Nov 9:45 AM Nov 58.0 65.9 63.0 Michigan Sentiment- Final Medium 27-Nov 9:55 AM Nov 73.5 72.0 75.1 Leading Indicators Medium 27-Nov 10:00 AM Oct -0.1% 0.7% 0.2%

Source: OW Risk Management