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 were mostly trading sideways in a directionless market yesterday. The November WTI futures closed at $91.89/bbl down $0.59 and November Brent settled at $111.57/bbl, down $0.62. The general macroeconomic picture is still looking weak and governments are looking for quick solutions to stimulate growth. The September Chinese non-manufacturing sectors grew at a slower rate than expected confirming the idea of a weaker China economic growth. The latest US API inventory report showed build in the crude stockpile while the gasoline stockpile reported a draw. The US Energy Department will release its weekly report later today. The expectations are as follows: Crude +1.5, Distillates -0.4, Gas -0.6. This morning, crude is trading down.

Fueloil Specifics

The NWE fuel oil prices remained mostly unchanged yesterday. Delivered 380cst product in Rotterdam lost app.$2/mt while cargo prices dipped $1/mt. Demand in the area was average and suppliers reported good product avails. The Singapore Fuel Oil markets were mostly flat during the morning window yesterday. The delivered bunker premiums softened to around $6.0 above cargo prices yesterday as quiet bunker demand was reported amidst holidays break for China. Bunker fuel oil swaps lost a few cents at the front of the forward curve both for Rotterdam and Singapore papers. Backend remained unchanged in Rotterdam while Singapore papers added a few cents. This morning both markets are trading down.

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) (0.59) 91.89 ↓ 91.95 92.33 92.71 92.99 93.45 91.95 ICE Brent Swap (1st month) (0.62) 111.57 ↓ 109.81 109.21 108.64 108.14 106.70 109.82 ICE Gasoil Swap (1st month) (2.75) 979.75 ↓ 960.33 953.58 947.33 940.39 926.14 925.33 3.5% Barges FOB Rtdm (1.00) 628.75 ↓ 619.75 617.00 615.50 613.00 606.25 602.50 3.5% Cargoes FOB Med (0.75) 625.25 ↓ 614.50 612.00 610.00 608.25 601.25 597.50 1.0% Cargoes FOB NWE (7.25) 682.75 ↓ 665.75 660.25 656.25 652.75 642.50 638.25 3% no. 6 USGC WB (0.88) 97.68 ↓ 97.93 97.23 96.48 96.13 95.08 94.56 380 CST Cargoes FOB S'pore 0.25 656.50 ↓ 644.50 642.00 652.50 638.00 632.00 627.75 0.1 % GO Barges FOB Rtdm (2.75) 975.75 ↓ 960.25 954.25 948.25 941.25 927.25 927.25 Physical Rotterdam 380 CST (2.00) 637.00 ↓ 630.00 627.25 625.75 623.25 615.50 611.75 Physical Singapore 380 CST (1.00) 662.25 ↓ 654.75 652.25 662.75 648.25 642.75 638.50

Focus of the day: Singapore

In Singapore, a four-week run of swelling fuel oil inventories has come to an end. Onshore fuel oil stocks fell by 1.452 million barrels to a 3-week low of 18.532 barrels. The week before, stocks had been at a six-week high. Sources said demand had picked-up on the back of falling prices however market sentiment was likely to remain depressed due to lackluster demand from Chinese buyers. An anticipated heavy flow of western arbitrage cargoes was also expected to weigh on the market as demand from China's small and medium sized refiners remained thin. An estimated five million tones of fuel will end up in Asia, according to traders, with approximately four million tones expected to land in markets in Southeast Asia and North Asia. Bunker prices were moving in opposite directions at key Asian ports on Tuesday. Singapore's price for benchmark 380cst bunker fuel was down a dollar to average at $657.50/mt on Tuesday. Marine gas oil was pegged $3 higher at $962.50/mt, data showed. Demand levels varied, local traders said. Supplies were ample and earliest deliveries were available from October 5-8 onwards, depending on the supplier.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 01-Oct 10:00 AM Sep 49.2 49.6 51.5 Construction Spending Medium 01-Oct 10:00 AM Aug 0.1% -0.9% -0.6% ADP Employment Change Medium 03-Oct 8:15 AM Sep 100K 201K - ISM Services Medium 03-Oct 10:00 AM Sep 52.0 53.7 - FOMC Minutes High 03-Oct 2:00 PM 12-Sep - - - Challenger Job Cuts Medium 04-Oct 7:30 AM Sep NA -36.9% - Initial Claims Medium 04-Oct 8:30 AM 29-Sep 370K 359K - Factory Orders Medium 04-Oct 10:00 AM Aug -5.5% 2.8% - Nonfarm Payrolls High 05-Oct 8:30 AM Sep 120K 96K - Unemployment Rate High 05-Oct 8:30 AM Sep 8.2% 8.1% - Consumer Credit Medium 05-Oct 3:00 PM Aug $5.0B -$3.3B -

Source: OW Risk Management