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 are trading sideways as investors adopt a cautious risk attitude before the FOMC meeting. The October WTI futures yesterday closed at $96.54/bbl, up slightly +$0.12 and October Brent rose $0.56 to settle at $114.81/bbl. The latest Chinese Oil imports data reported a decline of 12.5% y/y another sign the Chinese economy is on a weak spot. However, market is waiting for the US Federal Open Market Committee (FOMC) meeting outcome on Thursday. Market is speculating on the range of tools the Fed could use to ease its monetary policy from another round of quantitative easing or a change in guidance for how long it will keep the federal funds rate to zero, where it has been since December 2008. Market is also waiting for the German court ruling on the ESM constitutionality tomorrow. Today, in terms of data, will be published the UK and US Trade balances and later in the evening the Weekly API stocks. This morning, crude is trading slightly higher.

Fueloil Specifics

Fuel oil prices in the NWE markets firmed yesterday. 3.5% Rtdam FOB barges were up nearly $5/mt while delivered 380cst product in Rotterdam was even stronger, up by $6/mt. All ports in the area reported to be operating without any problems. The Singapore fuel oil markets were up more than $4.0 during the morning Platts window yesterday. Markets were expecting the regional demand to pick up especially from the China. The delivered bunker premiums were seen at $8.5- 9.5 above cargo prices. Bunker fuel oil swaps posted app.$4.5/mt gains at the front of the forward curve both for Rotterdam and Singapore papers. Backend was app.$1/mt weaker. This morning both markets are trading slightly 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) 0.12 96.54 ↑ 97.10 97.46 97.85 98.46 98.37 97.47 ICE Brent Swap (1st month) 0.56 114.81 ↑ 114.39 113.95 113.53 112.46 111.01 113.95 ICE Gasoil Swap (1st month) 2.75 988.25 ↑ 989.92 986.42 982.17 972.69 956.25 955.59 3.5% Barges FOB Rtdm 4.75 651.25 ↑ 655.25 651.50 648.00 642.75 633.25 629.00 3.5% Cargoes FOB Med 5.00 645.75 ↑ 648.50 645.25 642.00 637.50 628.75 624.75 1.0% Cargoes FOB NWE 5.00 718.25 ↑ 708.75 699.50 691.50 681.50 669.50 665.25 3% no. 6 USGC WB 0.30 102.50 ↑ 102.45 101.80 101.20 98.60 97.30 97.95 380 CST Cargoes FOB S'pore 5.00 682.25 ↑ 678.25 674.50 671.75 666.75 657.00 652.50 0.1 % GO Barges FOB Rtdm 1.75 984.25 ↑ 990.25 986.25 983.25 974.25 958.25 957.25 Physical Rotterdam 380 CST 6.00 659.00 ↑ 665.50 661.75 658.25 653.00 643.50 639.25 Physical Singapore 380 CST 5.00 690.00 ↑ 688.50 684.75 682.00 677.50 667.75 663.25

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 - MBA Mortgage Index Medium 12-Sep 7:00 AM 08-Sep NA -2.5% - Wholes Inventories Medium 12-Sep 10:00 AM Jul 0.0% -0.2% - Initial Claims High 13-Sep 8:30 AM 08-Sep 370K 365K - Core PPI High 13-Sep 8:30 AM Aug 0.1% 0.4% - FOMC Rate Decision High 13-Sep 12:30 PM Sep 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