---

Market in Brief

US market was quiet last Friday -on post Thanksgiving US holiday- but Brent suddenly lost $2 towards going into the early close. The January WTI contract gained +$0.42 to close $92.72/bbl, erasing previous losses and Brent contract lost -$1.17 to close at $109.69/bbl. The Brent to WTI spread corrected to around $17. According to Reuters, OPEC November oil outputs have fallen to below 30 million bpd for the second straight month due to supply disruptions in Libya and lower production from Saudi Arabia. The lower OPEC figures negated the higher US and other non-OPEC production, which managed to keep prices supported above the OPEC- preferred target price at $100/bbl. The latest Chinese November PMI was reported at 51.4, higher than the expected of 50.8 signaling growth. This week the market will focus on the OPEC meeting on Wednesday and the US Unemployment on Friday. This morning, crude prices are trading slightly higher.

Fuel Oil Specifics

The Northwest European bunker fuel oil prices remained largely unchanged at the end of the week, supported by healthy demand and tight avails. Delivered 380cst product both in Rotterdam and Antwerp was assessed app.$1/mt lower compared to previous close. The Singapore fuel oil market slipped around -$1.50 during the Asian Platts window last Friday. The delivered bunker premiums were lower around +$5.5 to +$6.5 above cargo prices on slow demand. This morning both markets are trading down.

Forward Indications

Product	Dec	Jan	Feb	Q114	Q214	2014
NYMEX WTI Swap (1st month)	92,98	93,24	93,39	93,33	93,02	92,26
ICE Brent Swap (1st month)	109,72	109,41	109,15	108,90	108,34	107,63
ICE Gasoil Swap (1st month)	936,92	935,58	933,33	933,03	924,03	923,69
3.5% Barges FOB Rtdm	575,25	579,00	580,25	580,25	583,00	582,25
3.5% Cargoes FOB Med	572,00	575,50	576,50	576,50	579,25	578,50
1.0% Cargoes FOB NWE	614,25	609,00	608,75	609,00	610,50	608,75
3% no. 6 USGC WB	90,75	90,00	90,25	90,25	90,50	90,50
380 CST Cargoes FOB S'pore	602,25	599,75	599,25	599,25	601,00	601,75
0.1 % GO Barges FOB Rtdm	938,25	937,25	934,25	934,25	926,25	925,25
Physical Rotterdam 380 CST	580,50	584,25	585,50	585,50	588,25	587,50
Physical Singapore 380 CST	607,50	605,00	604,50	604,50	606,25	607,00

Focus of the day: Gibraltar

Smooth deliveries with fine weather conditions and most suppliers delivering within schedule at the three ports of the Strait this morning; with some still struggling for lack of product. Bunker premiums in the hub remain quite competitive this Monday. The Rdam-Med spread is slowly getting back to normal levels, so CIF Med 3.5% is trading some 13 usd/mt above FOB Barges Rotterdam at the moment. The HILO keeps widening, currently close to 50 usd/mt in the Med, with the CIF Med 1% premium over FOB NWE 1% at 14 usd/mt. The Med market is trading down this morning.

Economic fundamentals this week

Statistic	Importance	Date	Time	Period	Consensus	Last	Actual
ISM Index	High	2-Dec	10:00 AM	Nov	55	56.4	-
Construction Spending	Medium	2-Dec	10:00 AM	Oct	0.30%	NA	-
ADP Employment Change	Medium	4-Dec	8:15 AM	Nov	175K	130K	-
Trade Balance	Medium	4-Dec	8:30 AM	Oct	-$40.5B	-$41.8B	-
New Home Sales	Medium	4-Dec	10:00 AM	Oct	410K	NA	-
ISM Services	Medium	4-Dec	10:00 AM	Nov	55	55.4	-
Initial Claims	Medium	5-Dec	8:30 AM	30-nov	335K	316K	-
GDP- 2nd Estimate	High	5-Dec	8:30 AM	Q3	3.10%	2.80%	-
Factory Orders	Medium	5-Dec	10:00 AM	Oct	-1.00%	1.70%	-
Nonfarm Payrolls	High	6-Dec	8:30 AM	Nov	185K	204K	-
Unemployment Rate	High	6-Dec	8:30 AM	Nov	7.20%	7.30%	-
PCE Prices- Core	Medium	6-Dec	8:30 AM	Oct	0.10%	0.10%	-
Mich Sentiment	High	6-Dec	9:55 AM	Dec	77	75.1	-
Consumer Credit	Medium	6-Dec	3:00 PM	Oct	$15.0B	$13.7B	-