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

Brent crude lost its strength yesterday surprisingly in the wake of disrupted supply of the Libyan Oil. This can be some market positioning before the Federal Reserve tonight.  The January WTI future slipped -$0.26 to $97.22/bbl while the February Brent lost -$0.97 to settle at $108.44/bbl. Yesterday API Weekly stocks showed a draw of -2,5 mios bbl  in Crude and a surprisingly draw in Gasoline and Distillates close to 0,5 mios bbl. The US Energy department will release its Inventory Report later today and the expectations are as follows: Crude -2.30 mbbl, Distillates +0.44 mbbl, Gasoline +1.86 mbbl. Market focus is turned towards the FOMC meeting outcome and the main question is to taper or not to taper (the Bond buying programme). The majority of analysts believe that it is unlikely they will start in December. This morning, crude prices are trading marginally higher.

Fueloil Specifics

The NWE bunker fuel oil prices dipped yesterday following pressured Brent. Delivered 380cst product in Rotterdam posted app.$4/mt loss. It was nearly $2/m weaker in Antwerp. Spot prices however remained firm supported by increasing demand ahead of holidays and continuously tight avails. The Singapore fuel oil markets inched up more than +$1.0 during the Asian Platts window yesterday. The delivered bunker premiums remains around +$4.5 to +$5.0 above cargo prices with no significant changes in market fundamentals. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,26) 97,22 ↓ 97,36 97,12 96,70 97,06 95,34 94,19 ICE Brent Swap (1st month) (0,97) 108,44 ↓ 107,84 107,60 107,35 107,10 106,82 106,11 ICE Gasoil Swap (1st month) (12,00) 919,50 ↓ 916,08 914,92 913,00 914,67 908,75 907,56 3.5% Barges FOB Rtdm (6,50) 573,75 ↓ 576,25 577,00 577,00 576,75 577,00 575,75 3.5% Cargoes FOB Med (7,25) 567,00 ↓ 574,75 575,00 574,75 574,75 574,75 573,75 1.0% Cargoes FOB NWE (7,00) 597,00 ↓ 594,25 597,50 598,50 596,75 600,00 597,75 3% no. 6 USGC WB (0,74) 90,89 ↓ 90,45 90,45 90,45 90,45 90,20 90,20 380 CST Cargoes FOB S'pore 1,00 609,00 ↓ 601,25 599,00 597,00 599,25 596,75 596,75 0.1 % GO Barges FOB Rtdm (12,50) 919,25 ↓ 917,25 916,25 914,25 916,25 911,25 909,25 Physical Rotterdam 380 CST (4,00) 581,75 ↓ 581,50 582,25 582,25 582,00 582,25 581,00 Physical Singapore 380 CST 1,50 614,25 ↓ 606,50 604,25 602,25 604,50 602,00 602,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Empire Manufacturing Medium 16-Dec 8:30 AM Dec 5.0 -2.2 1.0 Industrial Production Medium 16-Dec 9:15 AM Nov 0.4% -0.1% 1.1% Core CPI High 17-Dec 8:30 AM Nov 0.1% 0.1% 0.2% Housing Starts Medium 18-Dec 8:30 AM Nov 2750K 2744K - Building Permits Medium 18-Dec 8:30 AM Nov 975K 1034K - FOMC Rate Decision High 18-Dec 2:00 PM Dec 0.25% 0.25% - Initial Claims Medium 19-Dec 8:30 AM 14-dec 335K 368K - Existing Home Sales Medium 19-Dec 10:00 AM Nov 4.98M 5.12M - Philadelphia Fed Medium 19-Dec 10:00 AM Dec 4.0 6.5 - Leading Indicators Medium 19-Dec 10:00 AM Nov 0.7% 0.2% - GDP (Annualized) High 20-Dec 8:30 AM Q3 3.6% 3.6% -

Source: OW Risk Management