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 prices closed higher on supply related worries in the North Sea and the Middle East region. Some support also came from the equity market as investors remain optimistic on US economy. However further crude price gains seem to be capped by the US Federal Reserve members dovish comments and speculations of reduction of their bond buying  program maybe as soon as September. The September WTI contract rose +$0.72 to close at $106.83/bbl and Brent closed at $109.82/bbl, up +$0.85.The US Energy department will release its inventory report later today and expectations are as follows: Crude -1.51 mbbl, Distillates +0.79 mbbl, Gasoline -0.82 mbbl. This morning, crude is trading-0,35%  lower.

Fueloil Specifics

The Northwest European bunker fuel oil markets reported one more quiet day. Prices rose following general market trend and were assessed app.$8/mt up in Rotterdam and nearly $11/mt up in Antwerp. Suppliers reported some delays for prompt HSFO product in Rotterdam, however it did not effect premiums that remain relatively low. The Singapore fuel oil markets saw a strong rally of more than +$9.0 during the Asian Platts window yesterday tracking the buoyant crude price movement. Delivered bunker premiums slipped to around +$5.0 as higher outright prices curbed buying interest. 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) 0,72 106,83 ↓ 105,66 104,34 102,95 102,96 99,31 95,90 ICE Brent Swap (1st month) 0,85 109,82 ↓ 107,74 107,00 106,32 106,34 104,60 102,44 ICE Gasoil Swap (1st month) 24,00 927,75 ↓ 926,08 924,67 920,75 921,11 909,83 891,20 3.5% Barges FOB Rtdm 10,25 597,50 ↓ 585,25 583,00 582,25 582,75 584,25 578,00 3.5% Cargoes FOB Med (1,00) 589,25 ↓ 580,75 578,50 577,75 576,25 574,75 573,25 1.0% Cargoes FOB NWE 8,50 604,75 ↓ 606,75 610,00 611,50 611,00 613,25 604,50 3% no. 6 USGC WB (0,06) 93,05 ↓ 91,50 91,25 90,75 90,75 90,25 90,25 380 CST Cargoes FOB S'pore 9,25 604,00 ↓ 603,50 603,75 603,25 603,25 600,50 598,25 0.1 % GO Barges FOB Rtdm 13,25 925,00 ↓ 927,25 926,25 922,25 922,25 912,25 892,25 Physical Rotterdam 380 CST 8,00 598,25 ↓ 590,50 588,25 587,50 587,50 588,50 582,25 Physical Singapore 380 CST 8,25 609,25 ↓ 608,75 609,00 608,50 608,00 604,75 602,50

Focus of the day: Singapore

According to the current Platts indications, RMG 380 prices dropped nearly $4.0, and we do foresee an increase in demand for bunkers here in Singapore following the weaker market. However, cargo terminals are currently facing congestions due to the overwhelming demand and causing huge demurrage claims for vessels. Earliest avails for bunkers is currently looking at 16-17th August onwards.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Treasury Budget Medium 12-Aug 2:00 PM Jul -$96.0B -$69.9B -$97.6B Retail Sales High 13-Aug 8:30 AM Jul -0.1% 0.4% 0.2% Business Inventories Medium 13-Aug 10:00 AM Jun 0.0% 0.1% 0.0% MBA Mortgage Index Medium 14-Aug 7:00 AM 10-aug NA 0.2% - Core PPI Medium 14-Aug 8:30 AM Jul 0.2% 0.2% - Initial Claims Medium 15-Aug 8:30 AM 10-aug 340K 333K - Core CPI High 15-Aug 8:30 AM Jul 0.2% 0.2% - Empire Manufacturing Medium 15-Aug 8:30 AM Aug 5.0 9.46 - Industrial Production Medium 15-Aug 9:15 AM Jul 1.0% 0.3% - Philadelphia Fed Medium 15-Aug 10:00 AM Aug 10.0 19.8 - Productivity- Prel Medium 16-Aug 8:30 AM Q2 0.0% 0.5% - Mich Sentiment High 16-Aug 9:55 AM Aug 85.1 85.1 -

Source: OW Risk Management