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

Last Friday Crude prices closed the week higher for a sixth trading session in a row. The September WTI contract settled at $107.46/bbl, up marginally +$0.13 and October Brent closed at $110.40/bbl, up +$0.80. Crude Oil remains high on Egypt vows and speculation of possible supply disruption in the Suez Canal region if violence escalates. The situation in Egypt remains very tense despite a state of emergency declared, including a curfew. On the bearish side Crude Oil could be under pressure on Fed-Tapering speculation. Goldman raised its Brent forecast to $115 in a “very near term” on OPEC losses and lower stockpiles; and raised its three month forecast to $110. This morning, crude is trading slightly lower.

Fueloil Specifics

Bunker fuel oil prices closed last week lower in the main Northwest European ports. Delivered 380cst product in Rotterdam lost app.$4/mt and nearly $5/mt in Antwerp versus previous close. Suppliers reported relatively low demand in the area. The Singapore fuel oil market slipped around -$0.5 during the Asian Platts window last Friday. There were not much significant changes to the fundamentals. The delivered bunker premiums were seen between +$4.5 to +$5.0 above cargo prices. This morning both markets are trading slightly lower.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) 0,13 107,46 ↓ 106,71 105,80 104,42 104,40 100,63 96,77 ICE Brent Swap (1st month) 0,80 110,40 ↓ 109,91 108,91 108,03 107,24 105,91 103,69 ICE Gasoil Swap (1st month) 4,00 941,25 ↓ 943,00 940,25 935,25 935,61 923,28 903,76 3.5% Barges FOB Rtdm 1,25 601,50 ↓ 596,75 593,75 592,00 592,50 592,75 585,75 3.5% Cargoes FOB Med (2,50) 594,75 ↓ 591,75 589,50 587,00 586,50 584,50 581,00 1.0% Cargoes FOB NWE 1,50 615,00 ↓ 618,25 620,75 620,25 620,00 620,25 612,00 3% no. 6 USGC WB (0,06) 93,81 ↓ 93,30 93,05 92,55 92,30 92,00 91,80 380 CST Cargoes FOB S'pore 0,00 608,00 ↓ 614,00 614,25 612,25 612,25 609,50 605,75 0.1 % GO Barges FOB Rtdm 3,00 938,75 ↓ 944,25 941,25 936,25 937,25 923,25 904,25 Physical Rotterdam 380 CST (4,00) 602,25 ↓ 602,00 599,00 597,25 597,25 597,00 590,00 Physical Singapore 380 CST 0,00 612,50 ↓ 619,25 619,50 618,50 618,25 614,75 611,00

Focus of the day: Gibraltar

Fine weather conditions this morning in the Gibraltar Strait, where all suppliers except two have barges running smoothly. Barge schedules are rather tight for the next couple of days for most suppliers so that prompt requirements could be a challenge. Bunker premiums are narrowing today after some relatively high levels at the end of last week. CIF Med 3.5% is trading some 5 usd/mt above FOB Barges Rotterdam and the HILO spread keeps widening to 25 usd/mt in the Med, with the premium of CIF Med 1% over FOB NWE 1% at 7 usd/mt. The Med market is trading down this morning.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual MBA Mortgage Index Medium 21-Aug 7:00 AM 17-aug NA -4.7% - Existing Home Sales Medium 21-Aug 10:00 AM Jul 5.00M 5.08M - FOMC Minutes Medium 21-Aug 2:00 PM 31-jul - - - Initial Claims Medium 22-Aug 8:30 AM 17-aug 345K 320K - Leading Indicators Medium 22-Aug 10:00 AM Jul 0.5% 0.0% - New Home Sales Medium 23-Aug 10:00 AM Jul 475K 497K -

Source: OW Risk Management