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 started weak but managed to stage a late rally. Market sentiment is so far positive ahead of this week US data (Retail Sales today) and encouraging numbers from Europe. Also  better than expected economic data from China provides some support. Recent geopolitical factors impacting the supply in Middle East and logistical supply disruption in the North Sea have lifted Brent futures higher. The September WTI contract managed to close in the black, inching up  +$0.14 at  $106.11/bbl and  Brent fared higher, closing at $108.97/bbl, up +$0.75. This morning, crude is trading around + 0,80%.

Fueloil Specifics

The Northwest European bunker fuel oil markets started the week with slightly increasing demand and some suppliers reporting tightening prompt avails. Delivered 380cst product in Rotterdam remained unchanged from previous close and lost some $2/mt in Antwerp. The Singapore fuel oil markets reopened yesterday after a long weekend. The fuel oil prices were mixed ranging between -$1.0 and $+0.50 during the Asian Platts window. The market remains weak with ample supply and demand lagging behind. The delivered bunker premiums were seen at $7.5-6.5/mt. This morning both markets are trading higher.

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) 0,14 106,11 ↑ 106,05 104,76 103,32 103,34 99,48 95,74 ICE Brent Swap (1st month) 0,75 108,97 ↑ 108,17 107,45 106,80 106,82 105,11 102,97 ICE Gasoil Swap (1st month) 21,25 914,25 ↑ 930,08 928,25 923,92 924,19 915,14 897,75 3.5% Barges FOB Rtdm 3,25 586,75 ↑ 586,75 584,50 583,50 584,00 585,25 579,50 3.5% Cargoes FOB Med 4,00 590,25 ↑ 581,25 579,00 578,25 576,75 575,25 574,75 1.0% Cargoes FOB NWE 2,50 595,25 ↑ 609,00 612,00 612,75 612,50 614,00 606,00 3% no. 6 USGC WB 0,55 93,11 ↑ 91,95 91,95 91,45 91,20 90,95 91,25 380 CST Cargoes FOB S'pore 0,50 595,75 ↑ 606,50 606,75 606,00 605,75 603,25 601,00 0.1 % GO Barges FOB Rtdm 9,25 912,75 ↑ 931,25 929,25 925,25 925,25 914,25 897,25 Physical Rotterdam 380 CST 0,00 590,00 ↑ 592,00 589,75 588,75 588,75 589,50 583,75 Physical Singapore 380 CST 0,00 601,75 ↑ 611,75 612,00 611,25 610,50 607,50 605,25

Focus of the day: ARA

Despite demand still being low, it for sure proved to be an unusual week: one of the world’s largest crude carriers pulling the market heavily in backwardation, giving a spread of several dollars within the week. There was quite a difference between the spot barges driven Antwerp market and the cargo/paper driven Rotterdam market, providing a wide range prices from various suppliers. Difficult market to call.    The low sulphur barges have reach their ultimate low and we’re back on the way to a more sane premium, even though 10 dollars is still a steal! No changes in the gasoil market worth mentioning. Notification periods for the different grades; four days for high sulphur enquiries and three working days for low sulphur enquiries.

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% - Business Inventories Medium 13-Aug 10:00 AM Jun 0.0% 0.1% - MBA Mortgage Index Medium 14-Aug 7:00 AM 10-aug NA 0.2% - Core PPI Medium 14-Aug 8:30 AM Jul 0.2% 0.2% - Initial Claims Medium 15-Aug 8:30 AM 10-aug 340K 333K - Core CPI High 15-Aug 8:30 AM Jul 0.2% 0.2% - Empire Manufacturing Medium 15-Aug 8:30 AM Aug 5.0 9.46 - Industrial Production Medium 15-Aug 9:15 AM Jul 1.0% 0.3% - Philadelphia Fed Medium 15-Aug 10:00 AM Aug 10.0 19.8 - 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