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 managed to rebound slightly on close. The December WTI futures settled at $85.09/bbl, up +$0.64 and December Brent contract inched up +$0.43 to close at $107.25/bbl. The US weekly jobless claims fell surprisingly; however, there were talks that this was due to a post Hurricane Sandy impact where all claims were not able to be processed due to power outages. The release date of the last tranche of the Greek bailout fund remains uncertain as the European Union awaits the full report of the country’s compliance with the terms of its bailout. The market was also looking at the latest Chinese economic figures which suggest some level of economic recovery. Today we will have Michigan Sentiment and Wholesale Inventories from the US. This morning, crude prices are trading up.

Fueloil Specifics

The Northwest European fuel oil markets softened again yesterday with delivered 380cst product in Rotterdam loosing app.$8/mt compared to previous day’s close. Cargo prices were even weaker, down by $9/mt. There was reported improved demand in the area while prompt HSFO avails remained tight. The Singapore fuel oil markets erased the previous day’s gains losing more than $17.0 during the Platts window yesterday. The Singapore heavy residual inventory saw a slight build of +0.5 mbbl to 20.9 mbbl. The delivered bunker premiums were ranging between $3.0 and $6.0 above cargo prices yesterday. Bunker fuel oil swaps lost nearly $10/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was a few dollars stronger, assessed app.$7/mt down. This morning both markets are trading slightly up.

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) 0.65 85.09 ↑ 85.70 86.28 86.87 86.87 88.38 88.29 ICE Brent Swap (1st month) 0.43 107.25 ↑ 106.15 105.59 105.12 105.14 103.89 103.34 ICE Gasoil Swap (1st month) (10.50) 920.50 ↑ 924.08 922.92 920.08 921.15 911.25 909.25 3.5% Barges FOB Rtdm (9.00) 571.75 ↑ 572.25 575.50 578.50 578.25 580.00 579.25 3.5% Cargoes FOB Med (9.00) 564.75 ↑ 564.50 569.75 570.50 573.50 576.00 575.25 1.0% Cargoes FOB NWE (14.50) 597.50 ↑ 600.00 602.75 605.25 605.25 607.25 607.00 3% no. 6 USGC WB 0.22 91.30 ↓ 90.43 89.83 90.13 90.58 90.40 90.33 380 CST Cargoes FOB S'pore (18.25) 591.75 ↑ 596.00 598.00 601.25 601.00 603.50 602.75 0.1 % GO Barges FOB Rtdm (9.00) 919.50 ↑ 924.25 923.25 921.25 921.25 911.25 909.25 Physical Rotterdam 380 CST (8.00) 582.00 ↑ 582.50 585.75 588.75 588.50 590.25 589.50 Physical Singapore 380 CST (17.50) 598.75 ↑ 606.25 608.25 611.50 611.75 614.25 613.50

Focus of the day: Piraeus

Piraeus was busy this week. Crude market was dropping and average CIF MED 3.5% was lower by almost $18.00 compared to last week. Product availability is very good for HSFO, but once again Piraeus is getting tight on LSFO 1%; Hellenic Petroleum Refinery has reported lack of avails until the 17th and only MOH Refinery is still able to supply. Customs officers joined the public sector strike on the 6th and 7th but all loadings and supplies took place as scheduled, as bunker permits had been issued in advance. Despite the rough weather that prevailed in the East Med and subsequent suspension of bunkering operations in nearby ports, supplies in Piraeus anchorage were carried out without any problems.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Service Medium 05-Nov 10:00 AM Oct 54.5 55.1 54.2 MBA Mortgage Index Medium 07-Nov 7:00 AM 03-Nov NA -4.8% -5.0% Consumer Credit Medium 07-Nov 3:00 PM Sep $10.0B $18.1B $11.4B Initial Claims Medium 08-Nov 8:30 AM 03-Nov 370K 363K 355K Trade Balance Medium 08-Nov 8:30 AM Sep -$45.4B -$44.2B -$41.5B Michigan Sentiment Medium 09-Nov 9:55 AM Nov 83.5 82.6 - Wholesale Inventories Medium 09-Nov 10:00 AM Sep 0.7% 0.5% -

Source: OW Risk Management