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 extended losses. The January WTI contract closed at $86.26/bbl, down -$1.62 and Brent settled at $107.03,l -$1.78 lower. The bearish market sentiment prevails on Eurozone worries and no progress in talks to avoid US fiscal cliffs. The ECB revised downward its economic forecast for next year for the entire Eurozone which added pressure on the market. The Eur/Usd lost nearly 2 figures the last 2 days trading now at 1,2938 adding pressure on commodities. The US jobless weekly claims figures released yesterday were better than expected reporting a drop but the most important number of the week-Non Farm Payroll/ Unemployment will ne published later today and will give the tone for next days. Market is looking for a 90k new jobs creation -which is weak- but the number is impacted by Hurricane Sandy effect. This morning, crude prices are trading down.

Fueloil Specifics

The NWE fuel oil prices fell sharply yesterday following lower crude. Cargo prices were assessed down more than $5/mt while delivered 380cst product in Rotterdam was even weaker, down by app.$8/mt. There was reported low demand as most of the buyers held off the market, expecting better prices today. The Singapore markets dipped more than $2.0 during the morning Platts window yesterday. The latest Singapore heavy residual inventory reported a build of 0.5 mbbl to 23.0 mbbl; rose for the fifth straight week. The delivered bunker premiums were seen at $2.5- 5.0 above cargo prices. Bunker fuel oil swaps lost app.$8/mt at the front and a dollar more at the backend of the forward curve both for Rotterdam and Singapore papers. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Dec Jan Feb Q113 Q213 2013 NYMEX WTI Swap (1st month) (1.62) 86.26 ↓ 86.35 86.97 87.59 87.58 89.05 89.04 ICE Brent Swap (1st month) (1.78) 107.03 ↓ 106.75 106.05 105.49 105.53 104.22 103.75 ICE Gasoil Swap (1st month) (14.50) 913.50 ↓ 914.50 916.00 915.58 914.83 905.06 903.65 3.5% Barges FOB Rtdm (5.75) 573.00 ↑ 573.75 578.00 580.50 580.25 584.75 583.00 3.5% Cargoes FOB Med (9.25) 561.75 ↑ 563.25 569.75 574.25 573.50 579.00 577.50 1.0% Cargoes FOB NWE (8.25) 585.25 ↑ 591.25 599.50 603.00 602.75 609.25 607.75 3% no. 6 USGC WB (1.21) 91.70 ↑ 91.39 91.39 91.31 91.31 91.74 91.61 380 CST Cargoes FOB S'pore (2.75) 600.25 ↑ 596.25 600.25 603.00 602.75 608.50 607.00 0.1 % GO Barges FOB Rtdm (14.25) 913.00 ↓ 915.25 916.25 916.25 916.25 906.25 905.25 Physical Rotterdam 380 CST (8.00) 577.25 ↑ 584.00 588.25 590.75 590.50 595.00 593.25 Physical Singapore 380 CST (3.00) 604.75 ↑ 606.50 610.50 613.25 613.50 619.25 617.75

Focus of the day: Piraeus

This week demand was a bit slower in Piraeus. Crude market was flat all through the week and cargo prices remained relatively stable. Bad weather had an impact on supplies in many ports in the Mediterranean and a number of vessels chose to deviate and bunker in Piraeus because of its sheltered anchorage. Despite these prompt enquiries there was no congestion reported and loadings and supplies were carried out efficiently. Product availability was very good and operations at the port are running smoothly.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual ISM Index High 03-Dec 10:00 AM Nov 50.0 51.7 49.5 Construction Spending Medium 03-Dec 10:00 AM Oct 0.3% 0.6% 1.4% MBA Mortgage Index Medium 05-Dec 7:00 AM 01-Dec NA -0.9% 4.5% ADP Employment Change Medium 05-Dec 8:15 AM Nov 125K 158K 118K Productiivity- Rev. Medium 05-Dec 8:30 AM Q3 2.4% 1.9% 2.9% Factory Orders Medium 05-Dec 10:00 AM Oct -0.5% 4.8% 0.8% ISM Services Medium 05-Dec 10:00 AM Nov 53.0 54.2 54.7 Initial Claims Medium 06-Dec 8:30 AM 01-Dec 385K 393K 370K Nonfarm Payrolls High 07-Dec 8:30 AM Nov 80K 171K - Unemployment Rate High 07-Dec 8:30 AM Nov 8.1% 7.9% - Mich Sentiment High 07-Dec 9:55 AM Dec 82.0 82.7 - Consumer Credit Medium 07-Dec 3:00 PM Oct $8.0B $11.4B -

Source: OW Risk Management