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

Oil Crude prices surged more than 1.5% for the last day of the month. The US Federal Reserve Chairman speech last Friday did not mention any concrete measures; it did manage to keep hopes to the market. Also the Euro was lifted on expectation that the ECB would soon announce a bonds buying program although it seems they are trying to avoid Long Term buying which is not in their mandate. Crude prices were also supported by a better than expected US July factory orders data and stronger US consumer sentiment data. The October WTI futures closed $96.47/bbl, up+$1.85 and October Brent contract similarly +$1.92 at $114.57/bbl. The latest Chinese manufacturing number fell to 49,2 from 50,1 in July indicating that China’s economy is showing mounting signs of deterioration. This week the market will look forward to the ECB Rate decision on Thursday and any announcement of a Bond Buying program as well as the US Unemployment Friday. Today the US market is closed due to Labor Day. This morning, crude is trading slightly down.

Fueloil Specifics

The Northwest European fuel oil prices closed the week higher. Cargo prices were assessed up by app.$6/mt while delivered 380cst product in Rotterdam was a dollar stronger, up by $7/mt. There was reported good product availability in major ports. The Singapore fuel oil markets ranged mixed between -$1.0 to +$1.0 during the morning Platts window last Friday. There were strong buying interests in the 380cst cargoes which saw its premium strengthen to more than $5/mt. The delivered bunker premiums strengthened to $8.5 to $9.5 above the cargo prices. Bunker fuel oil swaps posted up to $9/mt gains at the front and a few dollars less in the backend of the forward curve both for Rotterdam and Singapore papers. This morning both markets are trading slightly higher.

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) 1.85 96.47 ↓ 96.74 97.06 97.51 98.05 97.90 97.10 ICE Brent Swap (1st month) 1.92 114.57 ↓ 113.94 113.51 113.04 111.94 110.57 113.50 ICE Gasoil Swap (1st month) 10.75 995.00 ↓ 991.33 986.75 982.58 970.58 953.50 953.06 3.5% Barges FOB Rtdm 6.25 651.50 ↑ 650.00 646.50 643.50 638.50 629.75 625.75 3.5% Cargoes FOB Med 7.00 645.50 ↑ 644.50 641.25 638.50 633.75 625.25 621.50 1.0% Cargoes FOB NWE 7.75 714.50 ↑ 701.75 693.00 685.50 676.00 666.00 661.50 3% no. 6 USGC WB 1.65 101.65 ↓ 101.50 101.25 100.75 98.25 97.25 97.75 380 CST Cargoes FOB S'pore 1.25 673.75 ↑ 672.25 668.50 665.50 661.25 652.50 648.25 0.1 % GO Barges FOB Rtdm 11.50 992.50 ↓ 991.25 987.25 983.25 972.25 955.25 955.25 Physical Rotterdam 380 CST 7.00 657.00 ↑ 660.25 656.75 653.75 648.75 640.00 636.00 Physical Singapore 380 CST 2.00 683.00 ↑ 682.50 678.75 675.75 672.00 663.25 659.00

Focus of the day: Gibraltar

The port of Gibraltar is slightly congested this morning, while Algeciras and Ceuta are running smoothly. Avails are good at the three ports for all products. Once again the HILO spread keeps widening to the current $65/mt and CIF Med 3.5% is trading today only some 6 usd above FOB Barges Rotterdam. The Med market is trading up this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 04-Sep 10:00 AM Aug 49.0 49.8 - Construction Spending Medium 04-Sep 10:00 AM Jul 0.5% 0.4% - MBA Mortgage Index Medium 05-Sep 7:00 AM 01-Sep NA -4.3% - Productivity- Rev. Medium 05-Sep 8:30 AM Q2 1.8% 1.6% - Challanger Job Cuts Medium 06-Sep 7:30 AM Aug NA -44.5% - ADP Employment Change Medium 06-Sep 8:15 AM Aug 150K 163K - Initial Claims Medium 06-Sep 8:30 AM 01-Sep 375K 374K - ISM Services Medium 06-Sep 10:00 AM Aug 51.0 52.6 - Nonfarm Payrolls High 07-Sep 8:30 AM Aug 140K 163K - Unemployment Rate High 07-Sep 8:30 AM Aug 8.2% 8.3% -

Source: OW Risk Management