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

European market opened with firm crude prices on the back of bullish vibes but crude futures lost steam going into the latter trading session. The uncertainty surrounding US fiscal cliff has formed a large backdrop while we saw strong advances in the equities and Euros after surprisingly strong German investor sentiment data. The US inventory report from API showed higher than expected crude and product builds and capped further gains in the crude prices. The January WTI futures closed at $85.79/bbl, inched up only +$0.23 while the January Brent contracts settled $108.01/bbl managing to gain $0.68. The US Energy department will be releasing the inventory report later today and the expectations are as follows: Crude -2.3 mbbl, Distillates +1.4 mbbl, Gasoline +2.2 mbbl. Markets now are awaiting the outcome of OPEC oil ministers meeting where they are expected to hold production limits steady at 30 million bbl/day despite forecasted fall in demand in the first half of 2013. The outcome of a US Federal Reserve policy meeting will be closely watched later today. This morning, crude prices are trading higher.

Fueloil Specifics

The Northwest European fuel oil prices weakened slightly yesterday. Delivered 380cst product in Rotterdam slipped app.$2/mt while cargo prices were assessed more than $4/mt down versus previous day. ARA ports saw higher demand as buyers were keen to fix their inquiries. Rotterdam hub still reports some delays for prompt deliveries. The Singapore markets managed to gain more than $2.5 during the morning Platts window yesterday. The delivered bunker premiums were ranging between $4.0- 5.5 above cargo prices. This morning both markets are trading higher.

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) 0.23 85.79 ↑ 86.96 87.57 88.15 87.56 88.80 88.70 ICE Brent Swap (1st month) 0.68 108.01 ↑ 106.80 106.02 105.43 106.08 104.51 104.04 ICE Gasoil Swap (1st month) (0.25) 903.50 ↑ 916.17 915.67 913.25 915.03 907.38 905.64 3.5% Barges FOB Rtdm (4.25) 567.25 ↑ 581.00 583.00 584.25 582.75 585.25 584.25 3.5% Cargoes FOB Med (4.50) 561.75 ↑ 573.75 576.50 578.50 576.25 580.25 579.50 1.0% Cargoes FOB NWE (1.00) 592.00 ↑ 606.00 609.50 611.25 609.00 612.75 611.75 3% no. 6 USGC WB 0.78 91.95 ↑ 91.54 91.29 91.16 91.33 91.07 90.96 380 CST Cargoes FOB S'pore 3.00 597.00 ↑ 604.75 606.75 608.25 606.50 609.50 608.25 0.1 % GO Barges FOB Rtdm 0.00 903.25 ↑ 916.25 916.25 914.25 916.25 909.25 907.25 Physical Rotterdam 380 CST (2.00) 578.00 ↑ 591.25 593.25 594.50 593.00 595.50 594.50 Physical Singapore 380 CST 3.50 601.75 ↑ 614.50 616.50 618.00 616.75 619.75 619.00

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% - FOMC Rate Decision High 12-Dec 12:30 PM Dec 0.25% 0.25% - Treasury Budget Medium 12-Dec 2:00 PM Nov -$113.0B -$137.3B - Initial Claims Medium 13-Dec 8:30 AM 08-Dec 375K 370K - Retail Sales High 13-Dec 8:30 AM Nov 0.6% -0.3% - Core PPI Medium 13-Dec 8:30 AM Nov 0.1% -0.2% - Business Inventories Medium 13-Dec 10:00 AM Oct 0.3% 0.7% - 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