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 have been trying to recover for the last two days. The October Brent futures rose +$0.72 to $102.28/bbl and WTI closed at $93.45/bbl, up +$0.59. The US crude stockpile figures came out with a big draw of -4.47 mbbl against -1.25 mbbl expected. The product stockpiles were mostly below expectation while Cushing crude stockpile rose +1.76 mbbl negating the bullish effect. The US dollar strengthened after the US Federal Reserve minutes release saying they will provide greater details about the normalization of monetary policy well before interest rate rise. US Federal Reserve chairperson Mrs Yellen will address global bankers this week at Jackson Hole. The latest Chinese Preliminary PMI Index compiled by HSBC- which is weighted towards smaller manufacturers- showed a reading at 50.3, the lowest in three months and below analyst expectation of 51.5, also a fall from previous month at 51.7. Although a figure above 50 indicates growth, it is still suggesting the economic recovery’s momentum has slowed.  It is the same picture in Europe with the Manufacturing and Services Sector slowing down with the PMI falling to 52,8 from 53,8 in July probably reflecting sanctions effect towards Russia. This morning, crude prices are trading more than half dollar lower.

Fueloil Specifics

The NWE bunker fuel oil markets saw a relatively busy day Wednesday. Delivered 380cst product both in Antwerp and Rotterdam gained up to $3/mt vs previous close. Suppliers reported increased buying interest as buyers were eager to fix at recent low levels. The Singapore fuel oil prices rebounded yesterday more than +$1.5 during the Asian Platts window tracking the firmer crude values. The delivered bunker premiums were around +$8.5 to +$9.0 above cargo prices. This morning both markets are slightly higher.

Settlement & Indications (mid values)

Product Yesterday's Values   Forward Indications Product Change Last Dir. Sep Oct Nov Q414 Q115 Q215 NYMEX WTI Swap (1st month) 0,59 93,45 ↓ 92,58 92,13 91,73 91,91 91,38 91,01 ICE Brent Swap (1st month) 0,72 102,28 ↓ 101,95 102,58 103,34 102,98 103,60 103,18 ICE Gasoil Swap (1st month) 1,75 857,50 ↓ 858,17 862,00 865,25 864,97 - - 3.5% Barges FOB Rtdm 1,25 558,50 ↑ 556,25 554,25 553,50 553,75 558,25 560,25 3.5% Cargoes FOB Med 2,25 557,75 ↑ 555,00 552,75 551,75 552,00 556,00 557,75 1.0% Cargoes FOB NWE (1,00) 564,00 ↑ 565,25 566,25 566,00 566,25 570,75 573,75 3% no. 6 USGC WB 0,70 87,63 ↓ 87,20 86,88 86,70 86,72 86,88 87,13 380 CST Cargoes FOB S'pore 1,75 586,00 ↑ 580,75 578,75 577,75 578,00 580,25 581,75 0.1 % GO Barges FOB Rtdm 2,50 856,75 ↓ 857,25 861,25 864,25 864,25 - - Physical Rotterdam 380 CST 3,00 562,00 ↑ 561,50 559,50 558,75 559,00 563,50 565,50 Physical Singapore 380 CST 1,50 593,75 ↑ 586,00 584,00 583,00 583,25 585,50 587,00

Focus of the day: Houston

Bunker prices in Houston were mixed Wednesday, amid ample supplies and low demand. HSFO380 was offered at $575/mt ex-wharf and at $625/mt ex-wharf for low sulfur grades. It is very clear that buying interest is very slow, with few inquiries seen in the market. Based on price indications, Houston IFO 380 CST was $3/mt higher at the end of the day, which narrowed the spread between Houston high sulfur bunker fuel and the same product in Panama to $11/mt. That is the lowest level in the last four trading sessions.

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual NAHB Housing Market Index Medium 18-Aug 10:00 AM Aug 50.0 53.0 55.0 Core CPI High 19-aug 8:30 AM Jul 0.1% 0.1% 0.1% Housing Starts Medium 19-Aug 8:30 AM Jul 925K 893K 1093K Building Permits Medium 19-aug 8:30 AM Jul 975K 963K 1052K FOMC Minutes High 20-Aug 2:00 PM 30-jul - - - Initial Claims Medium 21-aug 8:30 AM 16-aug 315K 311K - Continuing Claims Medium 21-Aug 8:30 AM 09-aug 2530K 2544K - Existing Home Sales Medium 21-aug 10:00 AM Jul 4.9M 5.04M - Philadelphia Fed Medium 21-Aug 10:00 AM Aug 15.0 23.9 - Leading Indicators Medium 21-aug 10:00 AM Jul 0.6% 0.3% -

Source: OW Risk Management