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 Oil rebounded strongly, largely on Brent, after the US Oil Inventories, taking back all the losses from the previous day. The US Federal Reserve showed no hints on when it could taper its bond buying program to the market only that it was likely in the “coming months”. While on the Iranian nuclear negotiation, despite recent market optimism, discussions as expected are dragging on. The US inventory report saw a marginal build in crude Oil stockpile, a massive draw on the distillates and a surprising slight draw in Gasoline vs an expected built. The December WTI contract expired at $93.33/bbl, down -$0.01 and the next most active, January WTI, closed  -$0.04 at  $93.85/bbl. The January Brent contract rebounded after previous loss by +$1.14 to close at $108.06/bbl. Today, we will see US weekly jobless claims data, October Producer Price Index (PPI) and Philadelphia Fed Business. This morning, crude is trading marginally lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets closed yesterday mixed. Delivered 380cst product in Rotterdam lost app.$2/mt and double as much in Antwerp. However, prompt deliveries where quoted at higher premiums supported by healthy demand and tight avails. Despite a much weaker crude closing the day before, Singapore fuel oil market eased only some -$2.5 during the Asian Platts window yesterday. The Asian Fuel Oil cracks strengthened as a result. The physical fuel oil market for December remains firm on healthy regional demand and a tapering of incoming barrels. The delivered bunker premiums were seen around +$8.0 to +$9.5 above cargo prices and demand was said to be slow yesterday. This morning both markets are trading slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q114 Q214 2014 NYMEX WTI Swap (1st month) (0,01) 93,85 ↓ 93,83 94,08 94,02 94,08 93,40 92,58 ICE Brent Swap (1st month) 1,14 108,06 ↓ 107,67 107,14 106,75 106,40 105,72 104,90 ICE Gasoil Swap (1st month) 0,25 911,00 ↑ 912,08 911,17 909,67 909,33 903,47 901,41 3.5% Barges FOB Rtdm (1,00) 574,00 ↑ 572,00 575,00 574,75 574,75 574,00 572,75 3.5% Cargoes FOB Med (2,00) 582,25 ↑ 569,25 571,50 570,75 570,25 569,50 569,25 1.0% Cargoes FOB NWE (1,50) 594,75 ↑ 599,00 601,25 600,75 600,75 600,00 597,75 3% no. 6 USGC WB 0,49 88,87 ↑ 89,75 89,50 89,50 89,50 89,50 89,25 380 CST Cargoes FOB S'pore (1,25) 600,00 ↑ 600,25 595,75 594,25 594,50 593,25 593,50 0.1 % GO Barges FOB Rtdm (0,25) 910,25 ↑ 913,25 912,25 908,25 910,25 904,25 902,25 Physical Rotterdam 380 CST (2,00) 577,25 ↑ 577,25 580,25 580,00 580,00 579,25 578,00 Physical Singapore 380 CST (1,50) 608,00 ↑ 605,00 601,00 599,50 599,75 598,50 598,75

Focus of the day: Houston

Residual fuel prices came up yesterday around $0.50/bbl following Brent even though US government data showed a growth on fuel imports and stocks. On Tuesday, it was completely the other way around, Brent futures fell around $1.50/bbl but then on fuel the crack spread opened up and absorbed much of this drop, seeing USG3% only coming down $0.70/bbl. Gasoil prices in Houston and New Orleans fell yesterday, probably because of the heavy competition between JAM and Martin Energy. Platts assessed MGO prices in Houston down $8/mt at $962/mt exwharf. On the contrary, HSFO prices moved higher in Houston and Nola, following Brent crude. The spread between Houston and New Orleans widened to $2/mt; normally around $5/mt. Platts assessed IFO380 in Houston up $3/mt at $582/mt exwharf, and in New Orleans up $4/mt at $584/mt exwharf.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-Nov 10:00 AM Nov 53 55 54 Employment Cost Index Medium 19-Nov 8:30 AM Q3 0.5% 0.5% 0.4% Retail Sales High 20-Nov 8:30 AM Oct 0.3% -0.1% 0.4% Core CPI High 20-Nov 8:30 AM Oct 0.1% 0.1% 0.1% Existing Home Sales Medium 20-Nov 10:00 AM Oct 4.95M 5.29M 5.12M Business Inventories Medium 20-Nov 10:00 AM Sep 0.0% 0.3% 0.6% Initial Claims Medium 21-Nov 8:30 AM 16-nov 335K 339K - Core PPI Medium 21-Nov 8:30 AM Oct 0.1% 0.1% - Philadelphia Fed Medium 21-Nov 10:00 AM Nov 5.0 19.8 - Leading Indicators Medium 21-Nov 10:00 AM Oct NA 0.7% -

Source: OW Risk Management