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 managed to post another higher close for a fifth day in a row. Oil continues to follow closely Egypt unrest. Market is already supported by a supply production drop in the North Sea and Middle East region. The US Weekly jobless claims fell to 320k vs 333k expected. Though it is  a positive news to see the job market improving, it raises the possibility  that the US Federal Reserve will taper its  stimulus program sooner than expected. The September WTI contract rose +$0.48 to $107.33/bbl and  September Brent futures expired  at $111.11/bbl, up +$0.91. The October Brent contract settled at $109.60/bbl, up +$0.78. Today, we will see the July US Housing Start, Building permits and also the August consumer sentiment index. This morning, crude is trading slightly lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported a relatively quiet day yesterday. Following general market trend delivered 380cst product in Rotterdam and Antwerp ports rose app.$7/mt versus previous days close. Due to low demand and too much product in the market some suppliers in Rotterdam were offering delivered barges below ex-wharf level. The Singapore fuel oil market rebounded more than $7.0 during the Asian Platts window yesterday. The Singapore heavy residual inventory reported a build of 0.72 mbbl to 21.0 mbbl. The delivered bunker premiums slipped to +$4.5 as outright bunker prices were higher. Bunker fuel oil swaps gained up to $6/mt at the front of the forward curve both for Rotterdam and Singapore papers. The backend of the curve was a few dollars weaker. Visco spread remains weak, bal Aug trading at app.$2.5/mt and app.$8/mt for 2014. Both markets are trading slightly lower this morning.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,45 107,33 ↓ 106,57 105,36 103,88 103,90 100,07 96,49 ICE Brent Swap (1st month) 0,78 109,60 ↓ 108,97 108,15 107,43 106,81 105,63 103,37 ICE Gasoil Swap (1st month) 11,25 937,25 ↓ 936,67 934,83 930,58 930,86 918,72 900,42 3.5% Barges FOB Rtdm 4,25 600,75 ↓ 593,75 591,25 589,75 590,25 591,25 584,75 3.5% Cargoes FOB Med 6,50 597,50 ↓ 588,75 586,50 584,75 584,25 582,25 580,00 1.0% Cargoes FOB NWE 6,75 613,75 ↓ 615,00 618,00 618,25 617,75 619,25 611,00 3% no. 6 USGC WB 0,55 93,87 ↑ 92,80 92,55 92,05 92,05 91,55 91,55 380 CST Cargoes FOB S'pore 7,00 608,25 ↓ 611,75 611,75 610,25 610,00 607,25 604,75 0.1 % GO Barges FOB Rtdm 11,75 935,50 ↓ 938,25 936,25 932,25 932,25 920,25 902,25 Physical Rotterdam 380 CST 7,00 606,25 ↓ 599,00 596,50 595,00 595,00 595,50 589,00 Physical Singapore 380 CST 6,50 612,75 ↓ 617,00 617,00 616,50 616,00 612,50 610,00

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 12-Aug 2:00 PM Jul -$96.0B -$69.9B -$97.6B Retail Sales High 13-Aug 8:30 AM Jul -0.1% 0.4% 0.2% Business Inventories Medium 13-Aug 10:00 AM Jun 0.0% 0.1% 0.0% MBA Mortgage Index Medium 14-Aug 7:00 AM 10-aug NA 0.2% -4.7% Core PPI Medium 14-Aug 8:30 AM Jul 0.2% 0.2% 0.1% Initial Claims Medium 15-Aug 8:30 AM 10-aug 340K 333K 320K Core CPI High 15-Aug 8:30 AM Jul 0.2% 0.2% 0.2% Empire Manufacturing Medium 15-Aug 8:30 AM Aug 5.0 9.46 8.6 Industrial Production Medium 15-Aug 9:15 AM Jul 1.0% 0.3% 0.0% Philadelphia Fed Medium 15-Aug 10:00 AM Aug 10.0 19.8 9.3 Productivity- Prel Medium 16-Aug 8:30 AM Q2 0.0% 0.5% - Mich Sentiment High 16-Aug 9:55 AM Aug 85.1 85.1 -

Source: OW Risk Management