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 prices opened the week under pressure with more generally a drop in market risk appetite led by weaker equities and metals. Market is trying to find its footing as the 3rd quarter draws nears the end. The Chinese Manufacturing Purchasing Managers Index (PMI) reported a higher than expected figure at 51.2 vs 50.9 reflecting growth. In the US Preliminary September Markit flash PMI came out lower at 52.8 vs. 54.0 expected. The November WTI Oil contract closed down -$1.16 to $103.59/bbl and Brent futures fell -$1.06 to $108.16/bbl. Today we will look at House prices in the 20 major American cities, the Richmond Fed Manufacturing and the Consumer Confidence. This morning, crude prices are trading around -0,20% lower.

Fueloil Specifics

The NWE bunker fuel oil markets opened the week with lower prices and remaining weak sentiment. Delivered 380cst product in the main ports was assessed some $3/mt down versus previous close. Suppliers reported higher premiums for hsfo prompt deliveries in Rotterdam and lsfo in Antwerp. The Singapore fuel oil markets dropped more than -$1.0 during the Asian Platts window yesterday tracking crude movements. The delivered bunker premiums were around +1.0 above cargo prices. Bunker demand was mixed and supply at the moment still looks ample. This morning both markets are trading slightly higher.

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) (1,16) 103,59 ↓ 103,11 102,18 102,13 98,96 96,33 95,57 ICE Brent Swap (1st month) (1,06) 108,16 ↓ 107,65 106,80 106,05 105,34 104,69 102,43 ICE Gasoil Swap (1st month) (12,25) 913,00 ↓ 907,58 906,58 906,39 895,36 884,28 882,79 3.5% Barges FOB Rtdm (3,50) 584,25 ↑ 586,00 584,00 584,00 583,75 578,75 575,25 3.5% Cargoes FOB Med 1,00 586,50 ↑ 582,25 578,50 578,50 577,75 572,25 569,75 1.0% Cargoes FOB NWE (2,75) 598,75 ↑ 603,25 606,00 606,00 610,00 605,50 600,25 3% no. 6 USGC WB (0,94) 93,21 ↑ 92,30 92,05 91,80 91,30 90,75 89,80 380 CST Cargoes FOB S'pore (1,00) 608,25 ↑ 607,50 604,00 603,50 600,25 597,25 595,00 0.1 % GO Barges FOB Rtdm (12,00) 911,75 ↓ 909,25 908,25 907,25 898,25 890,25 887,25 Physical Rotterdam 380 CST (3,00) 589,00 ↑ 591,25 589,25 589,25 588,50 583,00 579,50 Physical Singapore 380 CST (2,50) 609,00 ↑ 612,75 609,25 609,75 606,25 602,50 600,25

Focus of the day: ARA

The market remains very slow. The cracks have hardly gained further strength and the crude has continued its journey South, resulting in somewhat lower fuel prices, but nothing spectacular. What is worth mentioning is the premium for high sulphur that is rising. Not a big surprise after cracks gaining, but still it took some time before it was being noticed in the market. This is mainly due to refineries being shut down for their autumn maintenance in order to prepare for winter demand. The low sulphur market has eased down a bit. Premiums coming off, mainly due to backwardated high sulphur providing strength to the underlying asset for the premium, just like we saw in August. Still it is to be advised to buy well in advance. The gasoil market remains more or less the same. With a little bit extra notification, a steal can be found. Notification periods for the different grades; five days for high sulphur enquiries and five working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case- Shiller 20-city Index Medium 24-Sep 9:00 AM Jul 10.0% 12.1% - Consumer Confidence High 24-Sep 10:00 AM Sep 83.0 81.5 - MBA Mortgage Index Medium 25-Sep 7:00 AM 21-sep NA 11.2% - Durable Orders High 25-Sep 8:30 AM Aug -1.5% -7.4% - New Home Sales Medium 25-Sep 10:00 AM Aug 390K 394K - Initial Claims Medium 26-Sep 8:30 AM 21-sep 335K 309K - GDP- Third Estimate Medium 26-Sep 8:30 AM Q2 2.5% 2.5% - Pending Home Sales Medium 26-Sep 10:00 AM Aug -2.5% -1.3% - Personal Income Medium 27-Sep 8:30 AM Aug 0.2% 0.1% - PCE Prices- Core Medium 27-Sep 8:30 AM Aug 0.1% 0.1% - Michigan Sentiment- Final Medium 27-Sep 9:55 AM Sep 77.0 76.8 -

Source: OW Risk Management