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 is still  trading in same range, waiting for the US decision on Syria. The October WTI contract closed at $107.23/bbl, down -$1.31 and  Brent settled at $114.91, down -$0.77. Yesterday the US Senate Foreign relations Committee approved a resolution authorizing limited US military intervention in the US, a necessary step before the US Congress on Monday. Note that Libya Oil production has fallen further to around 150 k bbbl/pd from around 1,4 Mios bbl in April. The Federal Reserve’s beige book survey of regional economic conditions in the US economy grew at a “modest to moderate” pace in July and August led by consumer spending on cars and housing. The US inventory report by the Energy Department was delayed by one day due to the public holiday on Monday and the expectations are as follows: Crude -1.26 mbbl, Distillates +0.60 mbbl, Gasoline -0.31 mbbl. Today, we will get plenty of data with the weekly jobless claims, the August ADP employment data and also July Factory orders sales and August ISM non- Manufacturing data.  Meanwhile investors are already looking at tomorrow’s government’s Job Report as it is a key driver for the Federal Reserve to begin to wind down its $85 billion –a month bond-buying program as early as the 17th Sept. FOMC meeting. This morning, crude prices are trading around 0,40% up.

Fueloil Specifics

The Northwest European bunker fuel oil prices firmed slightly yesterday. Delivered 380cst product in Rotterdam gained app.$3/mt while it was assessed only $1/mt up in Antwerp. Even though demand picked up in Rotterdam, suppliers were offering delivered product $4-5/mt below 3.5% Rtdam fob barges. The Singapore fuel oil markets rose more than $5.0 during the morning Platts window yesterday tracking crude values. The Singapore fuel oil is still weak on soft demand with ample supply. The delivered bunker premiums were seen between flat to +$1.0 above cargo prices. This morning both markets are trading slightly lower.

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) (1,31) 107,23 ↑ 106,75 105,41 105,36 100,91 97,72 96,84 ICE Brent Swap (1st month) (0,77) 114,91 ↑ 113,00 111,63 111,69 110,51 108,59 105,48 ICE Gasoil Swap (1st month) 0,50 960,75 ↑ 961,08 956,67 956,92 940,56 918,67 914,64 3.5% Barges FOB Rtdm 1,75 597,75 ↓ 599,00 599,00 599,00 601,00 596,50 591,25 3.5% Cargoes FOB Med 3,50 598,00 ↓ 596,00 595,25 594,50 595,50 590,25 586,25 1.0% Cargoes FOB NWE 1,00 618,75 ↓ 622,25 625,25 625,00 628,50 624,00 617,25 3% no. 6 USGC WB (0,19) 95,63 ↑ 94,05 94,05 93,80 93,80 93,50 92,30 380 CST Cargoes FOB S'pore 5,50 607,75 ↓ 613,75 615,75 614,25 616,75 614,25 610,25 0.1 % GO Barges FOB Rtdm (0,25) 959,25 ↑ 962,25 958,25 958,25 942,25 920,25 916,25 Physical Rotterdam 380 CST 3,00 600,00 ↓ 604,25 604,25 604,25 605,75 600,75 595,50 Physical Singapore 380 CST 2,00 609,00 ↓ 619,00 621,00 620,50 622,75 619,50 615,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 3-Sep 10:00 AM Aug 53.0 55.4 55.7 Construction Spending Medium 3-Sep 10:00 AM Jul 0.3% -0.6% 0.6% Trade Balance Medium 4-Sep 8:30 AM Jul -$41.5B -$34.2B -$39.1B Fed's Beige Book Medium 4-Sep 2:00 PM Sep NA NA - Challanger Job Cuts Medium 5-Sep 7:30 AM Aug NA 2.3% - ADP Empoyment Cahnge Medium 5-Sep 8:15 AM Aug 210K 200K - Initial Claims Medium 5-Sep 8:30 AM 31-aug 335K 331K - Factory Orders Medium 5-Sep 10:00 AM Jul -4.0% 1.5% - ISM Services Medium 5-Sep 10:00 AM Aug 54.0 56.0 - Nonfarm Payrolls High 6-Sep 8:30 AM Aug 210K 162K - Unemployment Rate High 0-Jan 8:30 AM Aug 7.5% 7.4% -

Source: OW Risk Management