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 Oil price despite a bit of volatility ended quasi flat. The November WTI contract closed at $91.37/bbl, down -$0.56 and Brent settled $110.45/bbl, up +$0.64. US housing prices rose 1,20% in the 20 major cities and consumer confidence came higher than expected. Market reacted to one of the US Philadelphia Federal Reserve official expressing doubts on the effectiveness of stimulus measures on economic growth. API said crude supplies increased 335 000 barrels for a third weekly gains while Citigroup cut its global demand forecasts. The US DOE Inventory report will be released later today and the expectations are as follows: Crude +0.9, Distillates +0.8, Gas +0.2. This morning, crude is trading down.

Fueloil Specifics

The NWE bunker fuel oil prices recovered from previous day loss and closed higher on Tuesday. Delivered 380cst product in Rotterdam gained app.$7/mt following even stronger cargo prices, up by nearly $10/mt. Suppliers reported fairly good demand in the area while Rotterdam port continued to struggle with tight LSFO avails. The Singapore Fuel Oil markets were flattish; ranging -$0.5 to +$0.5 during the morning Platts window yesterday. The delivered bunker premiums lifted slightly higher to around $7.5 to $8.5 above cargo prices yesterday as crude values were higher after the window. Bunker fuel oil swaps gained app.$8/mt along the curve yesterday both for Rotterdam and Singapore papers. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Oct Nov Dec Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.56) 91.37 ↓ 90.62 90.93 91.32 91.87 92.24 90.96 ICE Brent Swap (1st month) 0.64 110.45 ↓ 109.30 108.62 108.05 106.93 105.41 108.66 ICE Gasoil Swap (1st month) 11.00 977.25 ↓ 964.08 956.50 949.42 937.14 918.81 919.63 3.5% Barges FOB Rtdm 9.75 635.25 ↓ 623.25 619.50 616.25 612.00 603.75 600.00 3.5% Cargoes FOB Med 10.75 626.25 ↓ 615.25 613.00 610.25 607.00 599.75 596.00 1.0% Cargoes FOB NWE 9.00 683.50 ↓ 670.75 662.00 657.25 650.75 640.75 636.50 3% no. 6 USGC WB 0.53 98.65 ↓ 97.46 96.63 95.80 95.40 94.25 93.67 380 CST Cargoes FOB S'pore 0.50 655.25 ↓ 648.00 644.25 641.25 636.50 628.25 624.00 0.1 % GO Barges FOB Rtdm 10.75 973.50 ↓ 964.25 957.25 950.25 938.25 920.25 921.25 Physical Rotterdam 380 CST 7.00 642.00 ↓ 633.50 629.75 626.50 622.25 614.00 610.25 Physical Singapore 380 CST 3.00 662.25 ↓ 658.25 654.50 651.50 647.25 639.00 634.75

Focus of the day: Singapore

Singapore's onshore fuel oil stocks have climbed for a fourth-week running. Players said arbitrage volumes from the West and the Middle East had remained high while demand from China had slowed. Figures released showed stocks rose by 1.044 million barrels. The 5.5% increase left stocks at a six-week high of 19.984 million barrels. Sources said high fuel-oil arbitrage volumes were expected to continue into the first half of October. Traders expect Asian fuel oil markets to soften on the back of a slow-down in Chinese demand, estimating that China's September fuel oil purchases totaled between 1.8 million to 2 million metric tones. They predicted that could drop by up to 40% in October. Marine fuel prices were down while supplies were fine among key Asian ports on Tuesday. In Singapore, the price of 380cst grade fell $2.50 to $657.50/mt while marine gas oil softened $0.50 to $968/mt. Demand was below average and avails fine. October 2 was the earliest date for bunker deliveries.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Case-Shiller 20-city Index Medium 25-Sep 9:00 AM Jul 1.5% 0.5% 1.2% Consumer Confidence High 25-Sep 10:00 AM Sep 62.0 60.6 70.3 New Home Sales Medium 26-Sep 10:00 AM Aug 390K 372K - Initial Claims Medium 27-Sep 8:30 AM 22-Sep 380K 382K - Durable Orders High 27-Sep 8:30 AM Aug -6.5% 4.1% - GDP-3rd estimate High 27-Sep 8:30 AM Q2 1.7% 1.7% - Pending Home Sales Medium 28-Sep 10:00 AM Aug 2.0% 2.4% - PCE Prices- Core High 28-Sep 8:30 AM Aug 0.1% 0.0% - Chicago PMI Medium 28-Sep 9:45 AM Sep 52.0 53.0 - Michigan Sentiment- Final Medium 28-Sep 9:55 AM Sep 79.0 79.2 -

Source: OW Risk Management