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

Yesterday Crude prices dropped sharply, especially the Brent with a loss of -$2.40/bbl to settle at $113,72/bbl.. The October WTI futures closed at $109,52/bbl  down -$1,01/bbl. The sell off started after unexpected Russian diplomatic initiative to work with Syria to put its chemical weapons under international control. The US President said in this case he will halt attack. Asian stocks rose, extending their longest rally before Chinese factory output and retail sales data are expected to show growth in August. The market speculates that the US Federal Reserve will start its tightening measures as soon as this month and the announcement may be on Wednesday 18thSept at the monthly FOMC meeting. This morning, crude prices are trading around -0,61% down.

Fueloil Specifics

The NWE bunker fuel oil prices fell yesterday following general market trend. Delivered 380cst product in Rotterdam and Antwerp settled however only some $3/mt down vs previous close mainly due to strengthening cracks. Suppliers reported increased buying interest in the main ports. LSFO avails remain tight for prompt deliveries. The Singapore fuel oil markets fell more than $3.0 during the Asian Platts window yesterday. The delivered bunker premiums were between flat to +$2.0 above cargo prices amidst a quiet start of the week. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) (1,01) 109,52 ↓ 107,05 105,50 105,51 101,17 98,10 97,12 ICE Brent Swap (1st month) (2,40) 113,72 ↓ 111,21 110,08 110,13 109,15 107,52 104,43 ICE Gasoil Swap (1st month) (4,00) 960,00 ↓ 949,67 945,42 945,44 929,53 909,75 906,19 3.5% Barges FOB Rtdm (5,00) 595,25 ↓ 591,50 591,25 591,25 593,75 590,25 585,75 3.5% Cargoes FOB Med (4,75) 598,00 ↓ 589,25 587,75 587,00 588,25 584,00 580,75 1.0% Cargoes FOB NWE (5,25) 619,25 ↓ 616,00 618,00 617,75 621,50 618,25 612,00 3% no. 6 USGC WB (1,15) 96,55 ↓ 93,55 93,30 93,05 93,05 92,50 91,55 380 CST Cargoes FOB S'pore 2,75 604,75 ↓ 604,00 606,50 604,50 609,00 608,25 605,00 0.1 % GO Barges FOB Rtdm (9,25) 959,25 ↓ 951,25 946,25 946,25 931,25 912,25 907,25 Physical Rotterdam 380 CST (3,00) 599,25 ↓ 596,75 596,50 596,50 598,50 594,50 590,00 Physical Singapore 380 CST 1,50 605,25 ↓ 609,25 611,75 610,75 615,00 613,50 610,25

Focus of the day: ARA

Demand wise there is still not much going on, but on the supply side there is enough to tell. The world holds its breath while the Syria-crisis develops; as much as the G20 are divided, as jumpy as the Brent is. This all is making it a very tricky market to be in for both supplier and buyers. Different news flashes trigger a wave of demand only to be silenced if the geo-political threat deems to be averted. Supply on the high sulphur fuels is not a problem and even on short notice there is plenty avails to nourish an ocean liner’s thirst.  However for the SECA-sailors things are changing rapidly. Premiums are surging as all suppliers seem to be queuing for two majors in default on their low sulphur contracts. Add to that a cut-off on sweet feedstock and all ingredients for the low sulphur premium are there to be pushed up further. Buy your low sulphur well in advance in order to secure avails.  On the gasoil market, the gap between suppliers is widening. With a fairly good notice there is still good value for money to be found. Question is, if planned refinery maintenances will throw a spanner in the works.  Notification periods for the different grades; three days for high sulphur enquiries and five working days for low sulphur enquiries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 9-Sep 3:00 PM Jul $13.0B $13.8B $10.4B Wholesale Inventories Medium 11-Sep 10:00 AM Jul 0.2% -0.2% - Initial Claims Medium 12-Sep 8:30 AM 07-sep 330K 323K - Continuing Claims Medium 12-Sep 8:30 AM 31-aug 2975K 2951K - Treasury Budget Medium 13-Sep 2:00 PM Aug NA -$190.5B - Retail Sales High 13-Sep 8:30 AM Aug 0.5% 0.2% - Core PPI Medium 13-Sep 8:30 AM Aug 0.1% 0.1% - Mich Sentiment High 13-Sep 9:55 AM Sep 81.0 82.1 - Business Inventories Medium 13-Sep 10:00 AM Jul 0.2% 0.0% -

Source: OW Risk Management