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

US crude futures prices closed firm on Friday. The October WTI futures surged more than $2.0 to $110.53/bbl and Brent to $116.12, up +$0.86. US President Obama was attending the G-20 summit over the weekend and US faces increasing pressure from other members to follow the UN Security Council. The US congress is expected to vote before Mid-week on military strike over Syria. The US August Nonfarm Payroll last Friday came out at 169k marginally lower than market expectation of 173k, and the Unemployment rate at 7.3% down 0.1%. The slightly weaker NFP could mean that the US Federal Reserve may not scale down its Bond Buying program by September. The Chinese exports rose +7.2% in August against an expected 5.5% and benign inflation add to the idea that Chinese economy is recovering. Asian stocks jumped sharply with the Shanghai Composite over 3% and the Nikkei over 2% after Japan won the right to host the 2020 Olympic Games. This morning, crude prices are trading app. -0,30% lower.

Fueloil Specifics

The Northwest European bunker fuel oil prices rose following general market trend. Delivered 380cst product both in Rotterdam and Antwerp was assessed some $2/mt higher vs. previous close. Suppliers reported increased demand especially on the LSFO side mainly due to increasing prices following strong 1% cargo market. The Singapore fuel oil markets slipped about $3.0 during the Asian Platts window last Friday. The Singapore heavy residual stockpile saw a build of+1.21 mbbl to 23.44 mbbl. The delivered bunker premiums were around +$1.5 above cargo prices. This morning both markets are trading 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) 2,16 110,53 ↓ 108,63 106,94 106,96 102,18 98,47 97,64 ICE Brent Swap (1st month) 0,86 116,12 ↓ 113,36 111,86 111,93 110,62 108,53 105,33 ICE Gasoil Swap (1st month) 7,25 971,00 ↓ 962,50 957,58 957,61 938,67 916,14 913,12 3.5% Barges FOB Rtdm 2,50 599,50 ↓ 599,00 599,00 599,00 601,00 597,25 592,25 3.5% Cargoes FOB Med 3,75 601,75 ↓ 596,25 595,25 594,50 595,50 591,00 587,25 1.0% Cargoes FOB NWE 5,50 623,50 ↓ 623,50 625,75 625,50 628,75 625,00 618,50 3% no. 6 USGC WB 1,25 96,95 ↓ 94,35 94,10 94,10 93,85 93,30 92,35 380 CST Cargoes FOB S'pore (2,75) 603,00 ↓ 610,50 613,25 611,75 615,50 614,50 610,75 0.1 % GO Barges FOB Rtdm 6,50 968,25 ↓ 964,25 959,25 959,25 940,25 918,25 914,25 Physical Rotterdam 380 CST 2,00 603,00 ↓ 604,25 604,25 604,25 605,75 601,50 596,50 Physical Singapore 380 CST (4,50) 604,50 ↓ 615,75 618,50 618,00 621,50 619,75 616,00

Focus of the day: Gibraltar

All three ports at the Gibraltar Strait are running smoothly this morning, with most barges supplying within schedule and good avails of all products. Prompt requirements are possible to accommodate for most suppliers and bunker premiums remain quite competitive. CIF Med 3.5% is trading some 14 usd/mt above FOB Barges Rotterdam and the HILO spread keeps widening to 29 usd/mt in the Med, with the premium of CIF Med 1% over FOB NWE 1% at 18 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Consumer Credit Medium 9-Sep 3:00 PM Jul $13.0B $13.8B - Wholesale Inventories Medium 11-Sep 10:00 AM Jul 0.2% -0.2% - Initial Claims Medium 12-Sep 8:30 AM 07-sep 330K 323K - Continuing Claims Medium 12-Sep 8:30 AM 31-aug 2975K 2951K - Treasury Budget Medium 13-Sep 2:00 PM Aug NA -$190.5B - Retail Sales High 13-Sep 8:30 AM Aug 0.5% 0.2% - Core PPI Medium 13-Sep 8:30 AM Aug 0.1% 0.1% - Mich Sentiment High 13-Sep 9:55 AM Sep 81.0 82.1 - Business Inventories Medium 13-Sep 10:00 AM Jul 0.2% 0.0% -

Source: OW Risk Management