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 were supported by better Manufacturing data from China and Europe. The WTI /Brent spread narrowed as the Libyan authorities reopened some ports to oil export, restoring around +90k bpd. The October WTI futures settled at $105.03/bbl/bbl, up by +$1.18 and Brent closed at $109.90/bbl, marginally up by +$0.09. Chinese refiners reduced their purchases of West African crude for loading in September to the lowest in at least two years. Today, in terms of economic data we will see the July US New Home Sales result. Note that Monday is Summer Bank Holiday in the UK. This morning, crude prices are trading slightly higher.

Fueloil Specifics

The NWE bunker fuel oil prices remained largely unchanged yesterday. Delivered 380cst product in Rotterdam and Antwerp was assessed app.$1/mt up from previous days close. The Singapore fuel oil market rose more than +$2.0 during the Asian Platts window yesterday. The delivered bunker premiums collapsed to +$1.5 to $2.0 above cargo prices as demand was said to be extremely weak and fragile. This morning both markets are trading a few dollars up.

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) 1,18 105,03 ↑ 104,84 104,04 102,91 102,83 99,29 95,90 ICE Brent Swap (1st month) 0,09 109,90 ↑ 109,38 108,41 107,62 107,04 105,97 103,63 ICE Gasoil Swap (1st month) (2,50) 936,25 ↑ 936,25 934,67 930,75 931,17 919,42 900,87 3.5% Barges FOB Rtdm 0,50 594,25 ↑ 593,50 592,75 591,50 592,00 593,00 586,00 3.5% Cargoes FOB Med (1,25) 587,50 ↑ 589,50 589,50 587,75 586,75 587,00 581,00 1.0% Cargoes FOB NWE (1,00) 611,25 ↑ 617,50 620,25 620,50 620,50 621,75 613,00 3% no. 6 USGC WB (0,17) 92,58 ↑ 92,85 92,60 92,10 92,35 92,30 91,10 380 CST Cargoes FOB S'pore 3,00 607,00 ↑ 611,75 612,25 611,00 611,25 611,25 606,00 0.1 % GO Barges FOB Rtdm (3,50) 934,50 ↑ 937,25 936,25 932,25 932,25 921,25 902,25 Physical Rotterdam 380 CST 1,00 596,00 ↑ 598,75 598,00 596,75 596,75 597,25 590,25 Physical Singapore 380 CST 0,50 609,00 ↑ 617,00 617,50 617,25 617,25 616,50 611,25

Focus of the day: Piraeus

This week has been uneventful in the East Med. Crude was relatively flat and CIF MED 3.5% averaged only $1.5 higher compared to last week. Demand in Piraeus was rather weak, with cruisers being the only large volume enquiries brought in the market. Barge availability in Piraeus is very good, following a very tight couple of days towards the end of the previous week, when a number of suppliers had reported to be fully committed. LSFO 380 was once again available in Hellenic Petroleum Refinery starting from the 19th. Istanbul is seeing good product and barge availability and, following last week's subdued activity, suppliers are squeezing premiums down in order to boost up demand, resulting to HSFO levels being around $ 10 higher than those seen in Piraeus.

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% -4.6$ Existing Home Sales Medium 21-Aug 10:00 AM Jul 5.00M 5.08M 5.39M FOMC Minutes Medium 21-Aug 2:00 PM 31-jul - - - Initial Claims Medium 22-Aug 8:30 AM 17-aug 345K 320K 336K Leading Indicators Medium 22-Aug 10:00 AM Jul 0.5% 0.0% 0.6% New Home Sales Medium 23-Aug 10:00 AM Jul 475K 497K -

Source: OW Risk Management