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

US market was quiet last Friday -on post Thanksgiving US holiday- but Brent suddenly lost $2 towards going into the early close. The January WTI contract gained +$0.42 to close $92.72/bbl, erasing previous losses and Brent contract lost -$1.17 to close at $109.69/bbl. The Brent to WTI spread corrected to around $17. According to Reuters, OPEC November oil outputs have fallen to below 30 million bpd for the second straight month due to supply disruptions in Libya and lower production from Saudi Arabia. The lower OPEC figures negated the higher US and other non-OPEC production which managed to keep prices supported above the OPEC- preferred target price at $100/bbl. The latest Chinese November PMI was reported at 51.4, higher than the expected of 50.8 signaling growth. This week the market will focus on the OPEC meeting on Wednesday and the US Unemployment on Friday. This morning, crude prices are trading slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices remained largely unchanged at the end of the week supported by healthy demand and tight avails. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$1/mt lower compared to previous close. The Singapore fuel oil market slipped around -$1.50 during the Asian Platts window last Friday. The delivered bunker premiums were lower around +$5.5 to +$6.5 above cargo prices on slow demand. This morning both markets are trading down.

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) 0,42 92,72 ↑ 92,98 93,24 93,39 93,33 93,02 92,26 ICE Brent Swap (1st month) (1,17) 109,69 ↑ 109,72 109,41 109,15 108,90 108,34 107,63 ICE Gasoil Swap (1st month) 1,00 943,00 ↓ 936,92 935,58 933,33 933,03 924,03 923,69 3.5% Barges FOB Rtdm 0,50 574,00 ↓ 575,25 579,00 580,25 580,25 583,00 582,25 3.5% Cargoes FOB Med (2,00) 576,25 ↓ 572,00 575,50 576,50 576,50 579,25 578,50 1.0% Cargoes FOB NWE 5,25 617,50 ↓ 614,25 609,00 608,75 609,00 610,50 608,75 3% no. 6 USGC WB (0,10) 90,80 ↑ 90,75 90,00 90,25 90,25 90,50 90,50 380 CST Cargoes FOB S'pore (1,75) 605,50 ↓ 602,25 599,75 599,25 599,25 601,00 601,75 0.1 % GO Barges FOB Rtdm 1,75 942,50 ↑ 938,25 937,25 934,25 934,25 926,25 925,25 Physical Rotterdam 380 CST (1,00) 581,25 ↓ 580,50 584,25 585,50 585,50 588,25 587,50 Physical Singapore 380 CST (1,75) 611,75 ↓ 607,50 605,00 604,50 604,50 606,25 607,00

Focus of the day: Gibraltar

Smooth deliveries with fine weather conditions and most suppliers delivering within schedule at the three ports of the Strait this morning; with some still struggling for lack of product. Bunker premiums in the hub remain quite competitive this Monday. The Rdam-Med spread is slowly getting back to normal levels, so CIF Med 3.5% is trading some 13 usd/mt above FOB Barges Rotterdam at the moment. The HILO keeps widening, currently close to 50 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% at 14 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 2-Dec 10:00 AM Nov 55.0 56.4 - Construction Spending Medium 2-Dec 10:00 AM Oct 0.3% NA - ADP Employment Change Medium 4-Dec 8:15 AM Nov 175K 130K - Trade Balance Medium 4-Dec 8:30 AM Oct -$40.5B -$41.8B - New Home Sales Medium 4-Dec 10:00 AM Oct 410K NA - ISM Services Medium 4-Dec 10:00 AM Nov 55.0 55.4 - Initial Claims Medium 5-Dec 8:30 AM 30-nov 335K 316K - GDP- 2nd Estimate High 5-Dec 8:30 AM Q3 3.1% 2.8% - Factory Orders Medium 5-Dec 10:00 AM Oct -1.0% 1.7% - Nonfarm Payrolls High 6-Dec 8:30 AM Nov 185K 204K - Unemployment Rate High 6-Dec 8:30 AM Nov 7.2% 7.3% - PCE Prices- Core Medium 6-Dec 8:30 AM Oct 0.1% 0.1% - Mich Sentiment High 6-Dec 9:55 AM Dec 77.0 75.1 - Consumer Credit Medium 6-Dec 3:00 PM Oct $15.0B $13.7B -

Source: OW Risk Management