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 rebounded strongly to erase the previous day plunge. The November WTI futures settled at $91.71/bbl, +$3.57 and Brent surged +$4.41 to close at $112.58/bbl. The rally came on the back of comments from the ECB Chairman to buy back Spanish bond via OMT (Outright Monetary Transactions) which lifted the Euro/USD. The comments also aid the market to recover confidence as borrowing costs for south countries fell (temporarily?). The ECB left the interest rate at a historical low of 0.75% yesterday. The last crude prices volatility shows the market nervousness and lack of direction. Today, the market will focus on the US September Nonfarm and private payroll and also the September unemployment rate to provide further guidance. This morning, crude is trading down.

Fueloil Specifics

The Northwest European fuel oil markets posted a few dollars gains during European window close. Both delivered 380cst product in Rotterdam and cargo prices were assessed app.$2/mt up from previous day close. Demand in the area remained sluggish with suppliers reporting firm prices for prompt deliveries both for HSFO and LSFO due to current arbitrage to Asia. The Singapore Fuel Oil markets extended losses by around $11.0 during the morning window yesterday tracking crude values. The latest Singapore heavy residual inventory reported a draw of -0.6 mbbl to 17.91 mbbl. The delivered bunker premiums maintained at around $6.0 above cargo prices. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Jan Q113 Q213 2013 NYMEX WTI Swap (1st month) 3.57 91.71 ↓ 91.49 91.87 92.29 92.57 92.94 91.49 ICE Brent Swap (1st month) 4.41 112.58 ↓ 110.62 109.93 109.32 108.76 107.20 110.67 ICE Gasoil Swap (1st month) 20.25 979.00 ↑ 970.75 961.00 951.08 943.28 929.83 929.16 3.5% Barges FOB Rtdm 2.75 613.50 ↑ 617.75 615.50 614.00 611.75 604.50 601.00 3.5% Cargoes FOB Med 3.00 610.00 ↑ 612.50 609.25 607.50 606.75 600.50 597.00 1.0% Cargoes FOB NWE (7.25) 649.50 ↑ 653.25 650.25 648.25 645.75 638.50 635.00 3% no. 6 USGC WB 3.55 98.13 ↓ 97.75 97.18 96.50 96.10 95.08 94.51 380 CST Cargoes FOB S'pore (11.00) 635.00 ↑ 642.75 640.50 638.75 636.00 628.50 625.00 0.1 % GO Barges FOB Rtdm 21.25 978.00 ↓ 971.25 961.25 954.25 947.25 931.25 931.25 Physical Rotterdam 380 CST 2.00 622.00 ↑ 628.00 625.75 624.25 622.00 614.75 611.25 Physical Singapore 380 CST (10.50) 641.75 ↑ 653.00 650.75 649.00 646.75 639.25 635.75

Focus of the day: Piraeus

This week Piraeus was fairly busy. Crude market was still very volatile and bunker price differences were impressive on a day to day basis, affecting demand. Average CIF MED 3.5% for the week though was only $ 0.35 lower than last week. A customs officers’ strike, which had taken place the last 2 working days of the previous week, ended as expected last Friday and officers resumed duties Monday morning. Loadings and supplies have been running smoothly since then and product availability is very good in both Hellenic Petroleum and MOH Refinery. We expect increased demand today as a result of the market's rapid upward movement last night.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 01-Oct 10:00 AM Sep 49.2 49.6 51.5 Construction Spending Medium 01-Oct 10:00 AM Aug 0.1% -0.9% -0.6% ADP Employment Change Medium 03-Oct 8:15 AM Sep 100K 201K 162K ISM Services Medium 03-Oct 10:00 AM Sep 52.0 53.7 55.1 FOMC Minutes High 03-Oct 2:00 PM 12-Sep - - - Challenger Job Cuts Medium 04-Oct 7:30 AM Sep NA -36.9% -70.8% Initial Claims Medium 04-Oct 8:30 AM 29-Sep 370K 359K 367K Factory Orders Medium 04-Oct 10:00 AM Aug -5.5% 2.8% -5.2% Nonfarm Payrolls High 05-Oct 8:30 AM Sep 120K 96K - Unemployment Rate High 05-Oct 8:30 AM Sep 8.2% 8.1% - Consumer Credit Medium 05-Oct 3:00 PM Aug $5.0B -$3.3B -

Source: OW Risk Management