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

Last Friday Crude market managed –despite low volume session -to close higher boosted by renewed market confidence on Eurozone leaders’ clearing aid payment to Greece by today. The geopolitical instability in the Middle East have been supporting Oil price recently but Oil is retreating a bit this morning with the Hamas-Israel cease fire holding. The US markets will reopen after last week’s Thanksgiving holiday and volume should pick up. The US retail sales with the traditional Black Friday sales -the day and weekend after Thanksgiving- saw a record number of shoppers. Little progress has been made on US fiscal cliff talks since the election as the House and Congress were gone for Thanksgiving. The January WTI futures closed at $88.28/bbl, up +$0.90 and Brent closed at $111.38/bbl, up +$0.83. This morning, crude is trading down.

Fueloil Specifics

The Northwest European bunker fuel oil prices rebounded slightly at the close of the last week. Cargo prices were assessed up by app. $2/mt while delivered 380cst product in Rotterdam was up by $3/mt. Liquidity levels in main ports was fairly low and both Antwerp and Rotterdam ports reported continuous operational delays for prompt deliveries. The Singapore markets were around flat during the morning Platts window last Friday. The Singapore heavy residual inventory saw a build of 0.97mbbl to 22.22mbbl. The delivered bunker premiums remained weak, seen around $2.25 above cargo prices. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) 0.90 88.28 ↓ 87.87 88.53 89.22 89.21 90.84 90.80 ICE Brent Swap (1st month) 0.83 111.38 ↓ 110.41 109.67 109.09 109.13 107.83 107.18 ICE Gasoil Swap (1st month) 4.25 951.75 ↑ 953.33 952.50 949.42 949.06 938.08 936.64 3.5% Barges FOB Rtdm 2.00 589.00 ↑ 592.75 596.25 599.00 599.00 604.25 602.00 3.5% Cargoes FOB Med 1.75 574.00 ↑ 579.75 587.75 587.50 592.50 599.25 597.25 1.0% Cargoes FOB NWE (2.75) 614.25 ↑ 619.00 622.75 625.50 625.50 631.00 628.75 3% no. 6 USGC WB 0.72 92.69 ↓ 92.83 93.23 93.46 93.99 94.00 93.74 380 CST Cargoes FOB S'pore 0.00 610.75 ↑ 616.50 619.25 622.50 622.25 628.75 626.75 0.1 % GO Barges FOB Rtdm 5.00 950.50 ↓ 953.25 953.25 950.25 950.25 939.25 938.25 Physical Rotterdam 380 CST 3.00 598.00 ↑ 603.00 606.50 609.25 609.25 614.50 612.25 Physical Singapore 380 CST 0.50 613.00 ↑ 626.75 629.50 632.75 633.00 639.50 637.50

Focus of the day: Gibraltar

The Gibraltar Strait starts this week free of congestion, with a good weather forecast that will support smooth operations and good avails of all products, with still some room to accommodate prompt requirements in the hub. The market is picking up on activity after a rather quiet second half of last week. CIF Med 3.5% is trading only 50 cents above FOB barges Rotterdam this morning and the HILO spread is narrowing to $27. Bunker premiums today in Gibraltar are slightly lower than last week. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 27-Nov 8:30 AM Oct -0.5% 9.8% - Case-Shiller 20-city Index Medium 27-Nov 9:00 AM Sep 2.5% 2.0% - Consumer Confidence High 27-Nov 10:00 AM Nov 73.0 72.2 - New Home Sales Medium 28-Nov 10:00 AM Oct 395K 389K - Initial Claims Medium 29-Nov 8:30 AM 24-Nov 400K 410K - GDP- Second Estimate High 29-Nov 8:30 AM Q3 2.8% 2.0% - Pending Home Sales Medium 29-Nov 10:00 AM Oct 1.0% 0.3% - Personal Income Medium 30-Nov 8:30 AM Oct 0.0% 0.4% - PCE Prices- Core Medium 30-Nov 8:30 AM Oct 0.1% 0.1% - Chicago PMI Medium 30-Nov 9:45 AM Nov 50.0 49.9 -

Source: OW Risk Management