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

Yesterday Crude prices rally continued, this time lead by the US WTI on News that the southern leg of the keystone pipeline would begin carrying crude oil to Texas refineries next month. Also Oil supplies fell -12,3 mbbl  last week in the first decline since Sept. 20th, the American Petroleum Institute said. The Brent /WTI corrected $3 from the recent high at $18 to $15. The January WTI contract closed up +$2.22 at $96.04/bbl and January Brent extended its bull run by another +$1.17 to settle at $112.62/bbl. The US Energy department will release its Weekly Inventory Report later today and expectations are as follows: Crude +0.32 mbbl, Distillates -1.77 mbbl, Gasoline +1.52 mbbl. This morning, crude prices are trading higher for WTI (+1,27%)and lower for Brent(-0,27%).

Fueloil Specifics

The Northwest European bunker fuel oil prices edged up yesterday following higher crude. Delivered 380cst product in Rotterdam and Antwerp ports was assessed nearly $5/mt higher versus previous close. Even though suppliers reported subdued demand, premiums for prompt deliveries remained on the higher side, especially for lsfo products. The Singapore fuel oil markets were pretty flat yesterday, ranging between -$0.50 and +$0.25 during the Asian Platts window. There were strong sellers yesterday on the cargo market with aggressive offers as premiums slid to parity. The delivered bunker premiums were seen app. +$7.0 above cargo prices yesterday. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Jan Feb Mar Q114 Q214 2014 NYMEX WTI Swap (1st month) 2,22 96,04 ↑ 97,38 97,20 96,75 97,11 95,54 94,40 ICE Brent Swap (1st month) 1,17 112,62 ↓ 111,67 111,30 111,31 110,95 110,17 109,35 ICE Gasoil Swap (1st month) 3,00 945,75 ↓ 947,83 946,42 945,42 945,89 940,36 937,56 3.5% Barges FOB Rtdm 4,25 582,50 ↓ 584,50 586,50 587,75 586,25 590,00 589,50 3.5% Cargoes FOB Med 0,75 575,25 ↓ 580,75 582,75 584,00 582,50 586,25 588,00 1.0% Cargoes FOB NWE 4,75 628,00 ↓ 615,75 615,75 616,00 615,75 618,00 616,50 3% no. 6 USGC WB 0,01 91,48 ↓ 92,25 91,75 92,00 92,00 92,50 92,50 380 CST Cargoes FOB S'pore (0,75) 604,00 ↓ 604,75 605,50 606,00 605,50 608,25 609,00 0.1 % GO Barges FOB Rtdm 3,50 945,75 ↓ 949,25 947,25 944,25 947,25 939,25 936,25 Physical Rotterdam 380 CST 4,00 584,25 ↓ 589,75 591,75 593,00 591,50 595,25 594,75 Physical Singapore 380 CST 0,00 610,50 ↓ 610,00 610,75 611,25 610,75 613,50 614,25

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 2-Dec 10:00 AM Nov 55.0 56.4 57.3 Construction Spending Medium 2-Dec 10:00 AM Oct 0.3% NA 0.8% ADP Employment Change Medium 4-Dec 8:15 AM Nov 175K 130K - Trade Balance Medium 4-Dec 8:30 AM Oct -$40.5B -$41.8B - New Home Sales Medium 4-Dec 10:00 AM Oct 410K NA - ISM Services Medium 4-Dec 10:00 AM Nov 55.0 55.4 - Initial Claims Medium 5-Dec 8:30 AM 30-nov 335K 316K - GDP- 2nd Estimate High 5-Dec 8:30 AM Q3 3.1% 2.8% - Factory Orders Medium 5-Dec 10:00 AM Oct -1.0% 1.7% - Nonfarm Payrolls High 6-Dec 8:30 AM Nov 185K 204K - Unemployment Rate High 6-Dec 8:30 AM Nov 7.2% 7.3% - PCE Prices- Core Medium 6-Dec 8:30 AM Oct 0.1% 0.1% - Mich Sentiment High 6-Dec 9:55 AM Dec 77.0 75.1 - Consumer Credit Medium 6-Dec 3:00 PM Oct $15.0B $13.7B -

Source: OW Risk Management