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 rallied up on close last Friday boosted by a series of Middle East geopolitical unrests. Markets were lifted by the fresh tensions that could disrupt supply as new developments took place in Northern Lebanon and Syria. There were news of explosion in Lebanon, suspected chemical weapons attacks in Syria which could fuel renewed unrests and spread in the Middle East region. Last week, the supply situation seemed to have improved in Libya giving some price hike respite but doubts seem to creep back in to renewed concerns. This coupled together have aided price actions to stay elevated and erased previous losses. The US July New Home sales figures released last Friday were disappointing, reporting below market expectations. Markets have come to view that positively, led by expectations that QE tapering will be delayed on account of slow economic growth. The October WTI futures settled at $106.42/bbl, up by +$1.39 while the October Brent closed at $111.04/bbl, similarly rising by +$1.14. This week will be a heavy US economic calendar week and market mostly perceived them to be leaning positive. The July US Durable Goods orders will be reported later today. This morning crude is trading marginally lower. Please note that today is Summer Bank Holiday in the UK.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed last week without any major changes. Delivered 380cst product in Rotterdam was assessed app.$1/mt down while it was nearly $2/mt up in Antwerp. Demand remained weak. The Singapore fuel oil markets closed around parity, ranging between -$0.5 to $0.5 during the Asian Platts window last Friday. The Singapore heavy residual stockpile saw a slight decline of -0.32 mbbl to 20.67 mbbl. The delivered bunker premiums were weak at +$1.5 to $2.0 above cargo prices. Bunker fuel oil swap prices gained $1.0- 2.0/mt along the curve for 3.5% Rtdam FOB barges and Sing180 cst papers. Visco spread remains weak with September trading at app. $3/mt and cal14 at app.$7.5/mt. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) 1,39 106,42 ↓ 106,14 105,27 103,99 103,94 100,15 96,41 ICE Brent Swap (1st month) 1,14 111,04 ↓ 110,16 109,16 108,35 107,64 106,36 103,80 ICE Gasoil Swap (1st month) 5,50 941,75 ↓ 940,58 939,50 935,58 935,58 923,08 903,51 3.5% Barges FOB Rtdm (0,50) 594,25 ↓ 591,00 590,75 590,00 590,50 591,75 584,75 3.5% Cargoes FOB Med 2,50 590,25 ↓ 587,00 587,50 586,25 585,25 585,75 579,75 1.0% Cargoes FOB NWE (2,50) 609,50 ↓ 612,50 616,50 617,75 617,75 619,75 611,50 3% no. 6 USGC WB 0,32 93,65 ↓ 92,95 92,70 92,20 92,20 92,40 90,95 380 CST Cargoes FOB S'pore (0,50) 607,25 ↓ 608,25 609,25 608,75 609,00 609,50 604,00 0.1 % GO Barges FOB Rtdm 4,25 938,75 ↓ 942,25 941,25 937,25 937,25 925,25 905,25 Physical Rotterdam 380 CST (1,00) 595,25 ↓ 596,25 596,00 595,25 595,25 596,00 589,00 Physical Singapore 380 CST (0,50) 608,25 ↓ 613,50 614,50 615,00 615,00 614,75 609,25

Focus of the day: Gibraltar

CIF Med 3.5% followed Brent timidly last Friday, closing $2.5/mt higher than the previous day. CIF Med 1% index fell almost $10/mt with healthy demand and comments on LSFO coming from NWE to the Med. The spread between Spanish Mainland ports and the Gibraltar Strait has been narrowing lately so that a bunkers only call doesn’t necessarily always make that much sense if working cargo in the Spanish Med coast. Bunker premiums in the Gibraltar Strait remain quite low, there is good product avails and only a few suppliers are unable to accommodate prompt requirements.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 26-Aug 8:30 AM Jul -4.5% -3.9% - Case-Shiller 20-city Index Medium 27-Aug 9:00 AM Jun 12.0% 12.2% - Consumer Confidence High 27-Aug 10:00 AM Aug 77.0 80.3 - MBA Mortgage Index Medium 28-Aug 7:00 AM 28-aug NA -4.6% - Pending Home Sales Medium 28-Aug 10:00 AM Jul -1.0% -0.4% - Initial Claims Medium 29-Aug 8:30 AM 24-aug 335K 336K - GDP- Second Estimate Medium 29-Aug 8:30 AM Q2 2.1% 1.7% - Personal Income Medium 30-Aug 8:30 AM Jul -0.1% 0.3% - PCE Prices- Core Medium 30-Aug 8:30 AM Jul 0.2% 0.2% - Chicago PMI Medium 30-Aug 9:45 AM Aug 53.0 52.3 - Michigan Sentiment- Final Medium 30-Aug 9:55 AM Aug 78.0 80.0 -

Source: OW Risk Management