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 prices traded soft and closed lower. Market remains weak and sentiments poor over the general oil fundamentals. The latest report shows that the Kurdish oil exports in Iraq were not impacted by the civil unrests. The various geopolitical tensions in Ukraine and Libya have for now failed to strike fears in the market as the supply are still unaffected. Despite positive showings from the US economic data yesterday, market failed to pick up as reflected in lower equities closing lower. The US June factory orders were up +1.1% beating estimates while the July ISM non-manufacturing data were also better than expected at 58.7%. The US dollar remains strong against the Euros on market speculation that the European Central Bank (ECB) may introduce further stimulus after a policy meeting. The WTI for the September contract fell to one of the lowest in recent times to settle at $97.38/bbl, down -$1.04 while September Brent settlement fell -$0.80 to $104.61/bbl. closing at a premium of $7.23 to the WTI futures. The US Energy department will be releasing the inventory report later and the expectations are as follows: Crude -1.53 mbbl, Gasoline +0.00 mbbl, Distillates +0.63 mbbl. This morning crude prices are trading marginally higher.

Fueloil Specifics

The Singapore fuel oil prices fell -$3.0 to -$1.5 during the Platts window tracking the weak crude values. The Singapore market remains firm with strong buying for bunker specification cargoes as premiums continue to be bid up on lower incoming arbitrages. Delivered bunker premiums were at +$9.5 to +$11.5 above cargo yesterday. Barges fell $3.5 in the window and delivered premiums is trading $2 to $4 above.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Aug Sep Oct Q414 Q115 Q215 NYMEX WTI Swap (1st month) (0,99) 97,38 ↑ 97,30 96,61 95,86 95,84 94,57 93,46 ICE Brent Swap (1st month) (0,80) 104,61 ↑ 105,13 105,65 106,13 106,11 105,51 105,04 ICE Gasoil Swap (1st month) (10,50) 869,50 ↑ 876,75 880,25 883,50 885,33 - - 3.5% Barges FOB Rtdm (3,50) 561,25 ↑ 561,00 561,50 560,75 560,50 563,50 562,50 3.5% Cargoes FOB Med (5,75) 564,25 ↑ 563,00 560,50 559,00 558,00 560,50 559,50 1.0% Cargoes FOB NWE (7,25) 566,50 ↑ 572,25 576,00 577,00 576,50 578,75 578,75 3% no. 6 USGC WB (0,70) 87,21 ↑ 87,75 87,60 87,40 88,19 88,28 88,08 380 CST Cargoes FOB S'pore (1,50) 592,50 ↑ 591,25 586,25 584,75 584,25 585,25 584,25 0.1 % GO Barges FOB Rtdm (10,50) 867,25 ↑ 876,25 879,25 883,25 884,25 - - Physical Rotterdam 380 CST (4,00) 563,00 ↓ 567,75 566,75 566,00 565,75 568,75 567,75 Physical Singapore 380 CST (3,50) 602,25 ↓ 594,50 591,50 591,00 590,50 591,50 590,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Nonfarm Payrolls High 1-Aug 8:30 AM Jul 250K 288K 209K Unemployment Rate High 1-Aug 8:30 AM Jul 6.1% 6.1% 6.2% PCE Prices- Core High 1-Aug 8:30 AM Jun 0.2% 0.2% 0.1% ISM Index Medium 1-Aug 10:00 AM Jul 56.0 55.3 57.1 Factory Orders Mediuim 5-Aug 10:00 AM Jun 0.4% -0.5% 1.1% ISM Services Medium 5-Aug 10:00 AM Jul 56.5 56.0 58.7 Trade Balance Medium 6-Aug 8:30 AM Jun -$45.1B $44.4B - Crude Inventories High 6-Aug 10.30 AM 02-aug -3.697M -   Intial Claims High 7-Aug 8:30 AM 02-aug 310K 302K - Continuing Claims High 7-Aug 8:30 AM 26-jul 2525K 2539K - Consumer Credit High 7-Aug 3:00 PM Jun $15.0B $19.6B - Wholesale -Inventories Medium 8-Aug 10:00 AM Jun 0.3% 0.5% -

Source: OW Risk Management