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 extended their current weakness closing lower yesterday. The November WTI futures fell -$1.39 to settle at $89.98/bbl yesterday and November Brent closed at $110.04/bbl, slipping -$0.41. Crude Oil is under pressure with too much uncertainty surrounding Europe debts; particularly Spain and Greece. The Spanish ten year bond yield soared to 6% as confidence remains shaky. The Euro fell against the US dollar and equities generally also closed lower. The US weekly inventory data by the US Energy Department reported a bullish picture showing mostly draws from crude to product stockpiles which capped further crude losses yesterday. Today, the market will be looking at a series of US economic data like the weekly jobless claims figures, durable goods orders, pending home sales and also the revised and final US 2nd Quarter GDP figures. This morning, crude is slightly higher.

Fueloil Specifics

The Northwest European bunker fuel oil prices extended their weakness on Wednesday with delivered 380cst product in Rotterdam posting app.$16/mt losses versus previous day close. Cargo prices were even weaker, assessed down by nearly $19/mt. Despite lower prices in the area, suppliers did not see much demand. The Singapore fuel oil markets came off around -$7.5 during the morning window yesterday tracking crude movements. The demand was said to be slightly below average despite the lower outright prices and delivered bunker premiums remained around $7.5 above cargo prices. Bunker fuel oil swaps lost app.$8.50/mt at the front and nearly $5/mt at the back end of the forward curve for Singapore papers. Rotterdam FOB barges were app.$2/mt stronger along the curve. Viscosity spread between 180cst and 380cst papers shrank again, trading below $13/mt at the front of the forward curve. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) (1.39) 89.98 ↑ 90.20 90.61 91.09 91.67 91.94 90.63 ICE Brent Swap (1st month) (0.41) 110.04 ↑ 109.88 109.17 108.52 107.33 105.64 109.19 ICE Gasoil Swap (1st month) (15.00) 962.25 ↑ 965.92 958.25 951.50 936.92 920.75 921.17 3.5% Barges FOB Rtdm (19.00) 616.25 ↑ 619.50 616.00 613.00 608.50 601.00 597.25 3.5% Cargoes FOB Med (13.50) 612.25 ↑ 611.75 609.50 607.00 603.50 597.00 593.25 1.0% Cargoes FOB NWE (14.00) 670.00 ↑ 667.50 658.50 653.75 647.00 637.75 633.50 3% no. 6 USGC WB (1.35) 97.80 ↑ 97.40 96.60 95.80 95.43 94.40 93.87 380 CST Cargoes FOB S'pore (7.25) 647.25 ↑ 643.25 640.50 637.75 632.75 625.00 621.00 0.1 % GO Barges FOB Rtdm (13.00) 961.25 ↑ 966.25 958.25 952.25 938.25 922.25 923.25 Physical Rotterdam 380 CST (16.00) 626.25 ↑ 629.75 626.25 623.25 618.75 611.25 607.50 Physical Singapore 380 CST (7.50) 654.50 ↑ 653.50 650.75 648.00 643.50 635.75 631.75

Focus of the day: Houston

Focus US Gulf Coast The US Gulf Coast bunker market weakened yesterday, tracking Gulf Coast fuel oil cargo market. As the crude complex weakened Wednesday, market sources said bunker fuel oil activity in the Gulf Coast region was quiet as buyers sat back to see how much crude would fall. Houston 380 CST was heard in the mid- to high $630s/mt Wednesday morning and afternoon, and low-sulfur 380 CST was at a $90-100/mt premium to Houston 380 CST. New Orleans 380 CST was heard Wednesday morning in the mid- to high $640s/mt, and low-sulfur 380 CST was in the mid- to high $730s/mt. New Orleans 380 CST was assessed finally $9 lower at $647-651/mt, while low- sulfur 380 CST was at $742-746/mt. Houston marine gasoil weakened by $5 to $1,034-1,036/mt but MGO 0.1% seen in both NOLA and Houston markets was around $1045-1048/mt. RMG380 avails are ok with at least 3 suppliers able to do prompt deliveries (27-28th). RMK availability is quite tight with only one player with regular supply in Houston.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case-Shiller 20-city Index Medium 25-Sep 9:00 AM Jul 1.5% 0.5% 1.2% Consumer Confidence High 25-Sep 10:00 AM Sep 62.0 60.6 70.3 New Home Sales Medium 26-Sep 10:00 AM Aug 390K 372K 373K Initial Claims Medium 27-Sep 8:30 AM 22-Sep 380K 382K - Durable Orders High 27-Sep 8:30 AM Aug -6.5% 4.1% - GDP-3rd estimate High 27-Sep 8:30 AM Q2 1.7% 1.7% - Pending Home Sales Medium 28-Sep 10:00 AM Aug 2.0% 2.4% - PCE Prices- Core High 28-Sep 8:30 AM Aug 0.1% 0.0% - Chicago PMI Medium 28-Sep 9:45 AM Sep 52.0 53.0 - Michigan Sentiment- Final Medium 28-Sep 9:55 AM Sep 79.0 79.2 -

Source: OW Risk Management