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 jumped yesterday. The November WTI contract settled at $104.10/bb up +$2.01 and Brent closed at $109.19/bbl, up +$1.25. The US dollar is at a eight months low as the US shutdown is dragging on with no agreement in sight. The US Keystone Oil pipeline project is 95% completed despite rumors of delay to next year.  It should ease the glut at Cushing, Oklahoma, the physical delivery point of WTI Oil. The US inventory report was overall bearish with a massive crude and gasoline build of respectively +5.47 mbbl and +3.50 mbbl against an expected +2.27 mbbl and -0.6s mbbl. Distillates reported a draw of -1.68 mbbl vs -0.77 mbbl expected.  A weaker than expected US ADP Unemployment number showed that US companies could be struggling to pick up pace in September. This should comfort the Fed to keep its ultra low policy for a longer time. China’s service sector hit a six-month high at 54,0 in September up from 53,9 in August. Note that the US is overtaking Russia as the largest producer of Oil and natural gas.This morning, crude prices are trading -0,20% down.

Fueloil Specifics

The main Northwest European ports reported increasing prices following higher crude yesterday. Delivered 380cst product in Antwerp and Rotterdam was assessed nearly $8/mt up from previous close. Both ports reported good demand with Rotterdam suppliers continuously struggling with prompt product avails and premiums for delivered products remaining on the high side. The Singapore fuel oil markets inched up app. $0.5 during the Asian Platts window yesterday. The delivered bunker premiums strengthened further between +$3.5 to +$7.5 above cargo prices lifted by the stronger buying interest. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Q413 Q114 Q214 2014 NYMEX WTI Swap (1st month) 2,01 104,10 ↓ 103,58 102,98 102,84 99,88 97,10 96,24 ICE Brent Swap (1st month) 1,25 109,19 ↓ 108,65 107,71 106,89 106,12 105,42 103,09 ICE Gasoil Swap (1st month) 17,25 922,50 ↑ 925,75 921,75 921,61 910,44 897,39 896,55 3.5% Barges FOB Rtdm 11,50 596,25 ↑ 594,25 588,75 589,50 586,00 581,00 577,75 3.5% Cargoes FOB Med 2,50 588,25 ↑ 592,25 584,00 584,75 578,50 574,00 571,50 1.0% Cargoes FOB NWE 6,75 598,75 ↑ 602,25 605,00 605,00 610,00 607,00 602,25 3% no. 6 USGC WB 0,51 93,88 ↑ 93,40 92,40 92,65 91,65 90,85 90,35 380 CST Cargoes FOB S'pore 0,75 613,75 ↑ 618,75 611,25 612,50 604,25 599,75 597,50 0.1 % GO Barges FOB Rtdm 18,50 922,50 ↑ 927,25 923,25 923,25 909,25 897,25 896,25 Physical Rotterdam 380 CST 7,00 599,25 ↑ 599,50 594,00 594,75 590,75 585,25 582,00 Physical Singapore 380 CST 1,50 618,00 ↑ 624,00 615,50 616,75 608,50 604,00 601,75

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Chicago PMI Medium 30-Sep 9:45 AM Sep 52.0 53.0 55.7 ISM Index High 1-Oct 10:00 AM Sep 54.0 55.7 56.2 Construction Spending Medium 1-Oct 10:00 AM Aug 0.3% 0.6% - ADP Employment Change Medium 2-Oct 8:15 AM Sep 180K 176K 166K Initial Claims Medium 3-Oct 8:30 AM 28-sep 315K 305K - Factory Orders Medium 3-Oct 10:00 AM Aug 0.3% -2.4% - ISM Services High 3-Oct 10:00 AM Sep 58.0 58.6 - Nonfarm Payrolls High 4-Oct 8:30 AM Sep 165K 169K - Unemployment Rate High 4-Oct 8:30 AM Sep 7.3% 7.3% -

Source: OW Risk Management