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 moved lower yesterday as concerns of the US falling into recession, given the lack of process to avoid steep tax increases and spending cuts, failed to provide support. Equities closed lower yesterday as well, giving up the previous day’s gains. The January WTI futures settled at $85.89/bbl down -$0.88 and January Brent which is expiring later today fell -$1.59 to $107.91/bbl. The next active contract, February Brent futures closed at $106.46/bbl. Today, market’s focus will be on the US November CPI and Industrial Production figures to provide further guidance. This morning, crude is trading higher on the back of better than expected December Chinese flash PMI showing fastest paced expansion in 14 months. Editor's Note Dear readers, please note that it is the last Market Update for 2012 and the publication will start again Wednesday January 3rd, 2012. We would like to take this opportunity to wish you all a Merry Christmas and Happy and Prosperous New Year!

Fueloil Specifics

The Northwest European bunker fuel oil markets slipped lower yesterday following weakening crude. Delivered 380cst product in Rotterdam lost app.$1/mt while cargo prices were assessed more than $4/mt down from previous day’s close. Buyers in the main hubs remained reluctant to place their orders. Rotterdam port reported continuously tight avails for HSFO prompt deliveries. The Singapore markets were flat during the morning Platts window yesterday despite previous stronger crude values. The Asian fuel oil crack suffered a big drop as European market saw strong selling interest. The delivered bunker premiums softened to around $2.0 to $4.0 above cargo prices yesterday. Bunker fuel oil swaps lost $2.5-3.0/mt along the curve both for Rotterdam and Singapore papers. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jan Feb Mar Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.88) 85.89 ↑ 87.49 88.03 88.48 88.00 89.02 88.78 ICE Brent Swap (1st month) (1.59) 107.91 ↑ 106.78 106.03 105.43 106.08 104.52 103.98 ICE Gasoil Swap (1st month) - 920.50 ↓ 919.75 918.08 914.58 917.47 909.13 906.75 3.5% Barges FOB Rtdm (4.25) 569.75 ↓ 578.25 580.75 582.25 580.50 583.25 582.25 3.5% Cargoes FOB Med (3.75) 561.00 ↓ 570.50 574.00 576.50 573.75 577.75 577.00 1.0% Cargoes FOB NWE (4.50) 592.50 ↓ 604.75 608.50 609.75 607.75 611.75 611.00 3% no. 6 USGC WB (1.34) 92.45 ↑ 91.96 91.51 91.31 91.60 91.11 90.97 380 CST Cargoes FOB S'pore (0.50) 600.00 ↓ 601.75 604.25 606.00 604.00 607.50 606.75 0.1 % GO Barges FOB Rtdm (2.00) 917.00 ↓ 920.25 918.25 915.25 918.25 908.25 906.25 Physical Rotterdam 380 CST (1.00) 578.25 ↓ 588.50 591.00 592.50 590.75 593.50 592.50 Physical Singapore 380 CST (2.00) 603.50 ↓ 611.50 614.00 615.75 614.25 617.75 617.50

Focus of the day: Piraeus

Piraeus had another busy week. Average CIF MED 3.5% was lower by $6.40 compared to last week and the soft market sparked buying interest. There was an increased number of enquiries for Piraeus, both because of the port's competitive prices and the bad weather that troubled other Mediterranean ports. A few suppliers have reported to be fully committed until the 15th of December but deliveries are at the moment carried out without any problems and prompt enquiries are still quoted for. Wednesday was a local holiday in Piraeus and customs offices were not working, however loadings and supplies were carried out smoothly.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Trade Balance Medium 11-Dec 8:30 AM Oct -$43.0B -$41.5B -$42.2B Wholesale Inventories Medium 11-Dec 10:00 AM Oct 0.3% 1.1% 0.6% MBA Mortgage Index Medium 12-Dec 7:00 AM 08-Dec NA 4.5% 6.2% FOMC Rate Decision High 12-Dec 12:30 PM Dec 0.25% 0.25% 0.25% Treasury Budget Medium 12-Dec 2:00 PM Nov -$113.0B -$137.3B $172.1B Initial Claims Medium 13-Dec 8:30 AM 08-Dec 375K 370K 343K Retail Sales High 13-Dec 8:30 AM Nov 0.6% -0.3% 0.3% Core PPI Medium 13-Dec 8:30 AM Nov 0.1% -0.2% 0.1% Business Inventories Medium 13-Dec 10:00 AM Oct 0.3% 0.7% 0.4% Core CPI High 14-Dec 8:30 AM Nov 0.1% 0.2% - Industrial Production High 14-Dec 9:15 AM Nov 0.5% -0.4% - Capacity Utilization Medium 14-Dec 9:15 AM Nov 78.0% 77.8% -

Source: OW Risk Management