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 crude prices came off yesterday pressured by a weaker US Nonfarm Payroll (148k vs 180k exp.). However, the September US Unemployment fell by -0.1% to 7.2%. With a disappointing number of new jobs created the US Federal will likely continue its loose monetary policy for some time. However, some economists still see a chance of a tapering of the Bond buying programme by December depending on the upcoming data. The US dollar remains weak which should be supportive for the US dollar denominated crude on the longer term. The Brent to WTI spread widened to close to $12/bbl in the light of a building inventory situation in the US. The December WTI future contract closed at $98.30/bbl, down -$1.38 and Brent settled at $109.97/bbl, up marginally by +$0.33. The US inventory report by the Energy Department will be released later today and expectations are as follows: Crude +2.94 mbbl, Distillates -1.78 mbbl, Gasoline -0.25 mbbl. This morning, crude is trading app. 0,70% down.

Fueloil Specifics

The NWE bunker fuel oil markets reported mixed demand and largely unchanged prices yesterday. Rotterdam suppliers reported tight lsfo avails for prompt deliveries leading to increasing premiums. Antwerp suppliers were struggling with prompt product avails due to congestions at loading installations. The Singapore fuel oil markets fell more than $2.0 during the Asian Platts window yesterday. The delivered bunker premiums were seen app. $10.0-8.5 above cargo prices yesterday. Bunker fuel oil swaps lost app.$2.5/mt at the front of the forward curve for Rtdam and a dollar more for Sing papers. The backend was slightly stronger. Visco spread remained weak and closed at $2.89/mt yesterday. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Nov Dec Jan Q114 Q214 2014 NYMEX WTI Swap (1st month) (1,38) 98,30 ↓ 97,47 97,57 97,39 96,97 95,51 94,69 ICE Brent Swap (1st month) 0,33 109,97 ↓ 109,01 108,43 107,80 107,21 105,83 104,90 ICE Gasoil Swap (1st month) (5,00) 936,50 ↓ 926,42 922,00 919,25 916,72 903,47 901,48 3.5% Barges FOB Rtdm (1,50) 582,25 ↓ 581,50 579,25 582,00 582,00 580,75 579,00 3.5% Cargoes FOB Med (3,00) 582,50 ↓ 577,25 574,50 576,50 582,50 574,00 573,00 1.0% Cargoes FOB NWE (2,25) 596,25 ↓ 597,25 600,25 603,00 603,25 604,00 601,00 3% no. 6 USGC WB (0,88) 92,00 ↓ 92,00 91,50 91,00 90,75 90,45 90,20 380 CST Cargoes FOB S'pore (2,25) 614,00 ↓ 603,50 598,00 596,50 597,00 598,00 597,50 0.1 % GO Barges FOB Rtdm (5,00) 938,00 ↓ 927,25 923,25 920,25 918,25 909,25 905,25 Physical Rotterdam 380 CST 0,00 588,00 ↓ 586,75 584,50 587,25 586,75 585,00 583,25 Physical Singapore 380 CST (2,50) 621,50 ↓ 608,75 603,25 602,75 603,00 603,25 602,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Existing Home Sales Medium 21-Oct 10:00 AM Sep 5.15M 5.48M 5.29M Nonfarm Payrolls High 22-Oct 8:30 AM Sep 165K 169K 148K Unemployment Rate High 22-Oct 8:30 AM Sep 7.3% 7.3% 7.2% Initial Claims Medium 24-Oct 8:30 AM 19-Oct 330K 358K - Continuing Claims Medium 24-Oct 8:30 AM 12-Oct 2900K 2859K - New Home Sales Medium 24-Oct 10:00 AM Sep 410K 421K - Durable Orders High 24-Oct 8:30 AM Sep 4.2% 0.1% - Michigan Sentiment- Final Medium 25-Oct 9:55 AM Oct 73.0 75.2 -

Source: OW Risk Management