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

After stabilizing the previous day, Crude prices rebounded more than +$1.0 on close yesterday. Market rose on early support from the EIA September report indicating an upward revision demand forecast for 2014 although 2013 stays flat. The market remains skeptical about the possibility to enact the Russian offer to remove the Syrian chemical stocks. This uncertainty will continue to inject doubts and volatility into the market. Although News of Libya declaring force majeure on three more oil exporting ports continues to underscore the supply disruption worries. The weekly US jobless claims reported lower than expected figures while that may be skewed due to the Labor Day public holiday previously. The October WTI futures rose +$1.04 to close at $108.60/bbl and Brent which is expiring later today was similarly up by +$1.13 to $112.63. The November Brent contract settled at $111.53/bbl, up $0.78. Today, we will see a series of US economic data like Core PPI and August Retail Sales data. This morning, crude prices are trading around -0,60% down.

Fueloil Specifics

Bunker fuel oil prices rose in the main NWE ports yesterday following stronger crude. Delivered 380cst product in Antwerp gained app.$6/mt and nearly $8/mt in Rotterdam. Suppliers in Rotterdam reported increased premiums for prompt LSFO deliveries as avails remain tight. The Singapore fuel oil markets rose between +$3.0 to +$5.0 during the Asian Platts window yesterday erasing previous day’s loss. The most recent Singapore heavy residual inventory reported a slight build of+0.18 mbbl to 23.61 mbbl. The delivered bunker premiums were seen between +$1.50 to $3.25 above cargo prices. Bunker fuel oil swaps posted up to $7/mt gains at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly weaker, up by $3.5-4.0/mt. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) 1,04 108,60 ↓ 106,20 104,61 104,62 100,61 97,67 96,76 ICE Brent Swap (1st month) 1,13 112,63 ↓ 110,24 109,06 109,12 108,10 106,44 103,70 ICE Gasoil Swap (1st month) 0,00 951,50 ↓ 945,25 939,75 939,81 922,78 903,39 901,59 3.5% Barges FOB Rtdm 7,75 594,75 ↓ 592,00 591,75 591,75 593,50 589,75 585,75 3.5% Cargoes FOB Med 7,00 598,00 ↓ 590,25 588,50 587,75 588,00 583,75 580,75 1.0% Cargoes FOB NWE 7,00 619,00 ↓ 618,75 620,00 619,75 622,25 618,50 612,75 3% no. 6 USGC WB 0,59 93,38 ↓ 93,55 93,30 93,05 93,05 92,50 91,55 380 CST Cargoes FOB S'pore 3,25 599,25 ↓ 605,50 607,50 606,50 609,25 608,00 605,50 0.1 % GO Barges FOB Rtdm 6,75 950,50 ↓ 946,25 941,25 941,25 924,25 905,25 903,25 Physical Rotterdam 380 CST 8,00 596,00 ↓ 597,25 597,00 597,00 598,25 594,00 590,00 Physical Singapore 380 CST 3,75 601,75 ↓ 610,75 612,75 612,75 615,25 613,25 610,75

Focus of the day: Piraeus

This week was rather quiet in the East Med. Although crude market was dropping, demand did not increase as much as it was expected. Very good product availability is seen in Piraeus and Istanbul and physical suppliers can deal with prompt enquiries in both ports. Piraeus saw some very competitive levels this week; with the market coming off rapidly mid week buyers expected to get big discounts on quoted levels and premiums were squeezed down by physicals in order for some business to be put in the books. It was the same situation in Istanbul, where quoted levels for HSFO 380 were only $10 higher than those seen in Piraeus.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 9-Sep 3:00 PM Jul $13.0B $13.8B $10.4B Wholesale Inventories Medium 11-Sep 10:00 AM Jul 0.2% -0.2% 0.1% Initial Claims Medium 12-Sep 8:30 AM 07-sep 330K 323K 292K Continuing Claims Medium 12-Sep 8:30 AM 31-aug 2975K 2951K 2871K Treasury Budget Medium 13-Sep 2:00 PM Aug NA -$190.5B - Retail Sales High 13-Sep 8:30 AM Aug 0.5% 0.2% - Core PPI Medium 13-Sep 8:30 AM Aug 0.1% 0.1% - Mich Sentiment High 13-Sep 9:55 AM Sep 81.0 82.1 - Business Inventories Medium 13-Sep 10:00 AM Jul 0.2% 0.0% -

Source: OW Risk Management