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 future prices dropped more than $3.0 yesterday as markets continued to view the situation in China and Europe. China’s nonmanufacturing PMI fell to 53.7 in September versus 56.3 in August, confirming the worries that one of the largest global consumer of energy is in a worse condition than thought six month ago. The US weekly inventory data by the US Energy Department reported a draw in crude of -0.5 mbbl against an expected build of +1.5 mbbl which should prove to be bullish and also supportive for the crude prices. However, markets are adopting a more risk adverse posture before the ECB interest rate announcement later today. Markets are also awaiting the US labor data starting with today’s US weekly jobless claims and also tomorrow’s nonfarm payroll and unemployment rate. The November WTI futures closed $88.14/bbl down $3.75 while Brent fell $3.40 to $108.17/bbl. This morning, crude is trading higher.

Fueloil Specifics

The Northwest European fuel oil prices posted double digit losses yesterday following a $3/bbl drop in crude. Both delivered 380cst product in Rotterdam and cargo prices were assessed app.$17/mt down. ARA hub reported thin trading with buyers hesitant to fix. The Singapore Fuel Oil markets fell more than $9.0 during the morning Platts window yesterday. The delivered bunker premiums extended loss to around $5.75 above cargo prices yesterday due to slowing demand and also strong incoming arbitrage data- around 5 million mt this month. Bunker fuel oil swaps lost more than $19/mt at the front of the forward curve both for Rotterdam and Singapore papers. Backend was slightly stronge, down by app.$16/mt. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Nov Dec Jan Q113 Q213 2013 NYMEX WTI Swap (1st month) (3.75) 88.14 ↑ 88.87 89.30 89.85 90.18 90.50 88.88 ICE Brent Swap (1st month) (3.40) 108.17 ↑ 107.67 107.07 106.61 106.16 104.67 107.70 ICE Gasoil Swap (1st month) (21.00) 958.75 ↑ 948.67 939.67 938.00 933.00 919.89 919.97 3.5% Barges FOB Rtdm (17.25) 611.50 ↑ 607.25 605.00 603.75 601.00 593.75 590.50 3.5% Cargoes FOB Med (18.25) 606.75 ↑ 602.00 599.00 597.25 596.00 589.75 586.50 1.0% Cargoes FOB NWE (26.00) 656.50 ↑ 647.25 643.25 641.00 637.50 629.00 625.50 3% no. 6 USGC WB (3.60) 94.83 ↑ 98.56 97.86 97.11 96.76 95.71 95.19 380 CST Cargoes FOB S'pore (9.75) 646.00 ↑ 631.75 629.75 640.75 625.25 618.00 614.75 0.1 % GO Barges FOB Rtdm (19.75) 956.00 ↑ 949.25 940.25 934.25 927.25 913.25 914.25 Physical Rotterdam 380 CST (17.00) 620.00 ↑ 617.50 615.25 614.00 611.25 604.00 600.75 Physical Singapore 380 CST (10.00) 652.50 ↑ 642.00 640.00 651.00 636.00 628.75 625.50

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 162K ISM Services Medium 03-Oct 10:00 AM Sep 52.0 53.7 55.1 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