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 corrected slightly after the previous day big gains. Supply disruption in Libya pushed the Brent sharply up and some weaker US economic data were somehow also bullish news as it delays further out the Fed decision to reduce its stimulus. In terms of economic data the September US Producer Price Index (PPI) came out at -0.1% while the Core PPI was within expectations. The September retail sales data were also slightly below expectations. The October consumer confidence index had a sharp drop not seen since 2011. Nevertheless US stock markets made new record highs yesterday. The December WTI futures closed at $98.20/bbl, down by -$0.48 and Brent slipped $0.60 to $109.01/bbl. The US Energy department will release its stock inventory report later today and the expectations are as follows: Crude +2.23 mbbl, Distillates -0.34 mbbl, Gasoline -0.14 mbbl but the main focus will be on the US FOMC announcement later today. This morning, crude is trading down.

Fueloil Specifics

The Northwest European bunker fuel oil prices remained largely unchanged during Tuesday. Suppliers in Rotterdam reported slight delays at loading installations. Players in Antwerp were also busy amid healthy demand and relatively tight supplies. The Singapore fuel oil markets moved higher assessed nearly $4.5 up during the Asian Platts window yesterday following the higher previous crude closing. The delivered bunker premiums were seen around +$10.0 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 Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,48) 98,20 ↓ 97,71 97,76 97,58 97,11 95,36 94,46 ICE Brent Swap (1st month) (0,60) 109,01 ↓ 108,88 108,34 107,77 107,22 105,73 104,94 ICE Gasoil Swap (1st month) 4,75 930,50 ↑ 930,83 925,08 921,00 921,11 911,94 909,12 3.5% Barges FOB Rtdm (0,50) 580,00 ↑ 580,75 578,25 580,75 580,75 579,25 577,50 3.5% Cargoes FOB Med 0,25 576,00 ↑ 575,75 572,75 574,50 573,50 572,25 571,25 1.0% Cargoes FOB NWE 2,50 591,75 ↑ 592,25 597,25 600,50 601,00 601,75 599,00 3% no. 6 USGC WB (0,65) 90,80 ↑ 92,90 92,40 92,15 92,15 91,65 91,40 380 CST Cargoes FOB S'pore 4,50 609,50 ↑ 605,75 599,00 597,25 598,00 596,75 596,00 0.1 % GO Barges FOB Rtdm 5,75 931,75 ↑ 932,25 926,25 922,25 919,25 910,25 906,25 Physical Rotterdam 380 CST 0,00 585,75 ↑ 586,00 583,50 586,00 585,50 583,50 581,75 Physical Singapore 380 CST 4,00 620,25 ↑ 609,25 604,25 602,50 603,25 602,00 601,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Industrial Production Medium 28-Oct 9:15 AM Sep 0.3% 0.4% 0.6% Pending Home Sales Medium 28-Oct 10:00 AM Sep -2.0% -1.6% -5.6% Retail Sales High 29-Oct 8:30 AM Sep -0.2% 0.2% -0.1% Core PPI Medium 29-Oct 8:30 AM Sep 0.1% 0.0% 0.1% Case-Shiller 20-city Index Medium 29-Oct 9:00 AM Aug 12.5% 12.0% 12.8% Business Inventories Medium 29-Oct 10:00 AM Aug 0.3% 0.4% 0.3% Consumer Confidence High 29-Oct 10:00 AM Oct 72.0 79.7 71.2 ADP Employment Change Medium 30-Oct 8:15 AM Oct 125K 166K - GDP- Adv. Medium 30-Oct 8:30 AM Q3 NA 2.5% - Core CPI High 30-Oct 8:30 AM Sep 0.1% 0.1% - FOMC Rate Decision High 30-Oct 2:15 PM Oct 0.25% 0.25% - Initial Claims Medium 31-Oct 8:30 AM 26-okt 335K 350K - Chicago PMI Medium 31-Oct 9:45 AM Oct 52.0 55.7 - ISM Index High 1-Nov 10:00 AM Oct 54.5 56.2 -

Source: OW Risk Management