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Market in Brief

Despite a technical rebound after the bullish Weekly Department of Energy numbers, Crude Oil sold off heavily towards the close for a second day in a row. The November WTI contract lost -$0.43 to settle at $90.73/bbl and Brent fell -$0.51 to $94.16/bbl. Market sentiment remains unchanged with weak fundamentals and demand from the Eurozone and China and better US economic numbers. The US dollar continues to be strong and pressure the US dollar denominated crude futures. Yesterday, the September US Manufacturing data came lower at 56,6 vs 58,5 expected but is still showing good strength well over the 50 level. With a general bleak short term demand and stable production, oil products remain much under pressure. Today, we will see the US weekly Jobless Claims and August Factory orders data. This morning, crude prices are trading around -1,00% lower.

Fuel oil Specifics

The NWE bunker fuel oil prices closed another day with gains yesterday. Despite continuously weakening Brent, delivered 380cst product both in Antwerp and Rotterdam was assessed more than $6/mt higher vs previous close. Prices found support again in product shortages in the area with basically no prompt HSFO avails and very tight RMK. The Singapore fuel oil prices, on the other hand, lost more than -$8.5 during the Asian Platts window yesterday tracking the massive loss of crude values. The delivered bunker premiums maintained at $10.0-8.0 above cargo prices. This morning both markets are trading significantly lower.

Forward Indications

Product	Oct	Nov	Dec	Q115	Q215	2015
NYMEX WTI Swap (1st month)	89,32	88,43	87,44	87,09	86,35	86,53
ICE Brent Swap (1st month)	93,36	93,93	94,82	95,46	95,98	95,22
ICE Gasoil Swap (1st month)	790,67	793,75	797,25	-	-	-
LS ICE Gasoil Swap (1st month)	-	-	-	815,14	823,25	825,44
3.5% Barges FOB Rtdm	525,75	516,50	513,25	518,25	520,25	520,25
3.5% Cargoes FOB Med	522,25	514,50	511,00	516,25	518,25	518,00
1.0% Cargoes FOB NWE	531,75	525,00	522,00	526,75	529,75	530,25
3% no. 6 USGC WB	81,75	81,10	80,67	81,86	82,03	82,03
380 CST Cargoes FOB S'pore	545,00	541,00	538,75	540,00	541,00	541,50
0.1 % GO Barges FOB Rtdm	790,25	793,25	796,25	-	-	-
Physical Rotterdam 380 CST	531,00	521,75	518,50	522,50	524,50	524,50
Physical Singapore 380 CST	550,25	546,25	544,00	545,25	546,25	546,75

Focus of the day: Houston

Bunker markets at US and Canadian ports fell sharply Wednesday as the ICE Brent crude contract fell to its lowest point in 27 months. On the physical side, “light” demand continued for high sulfur bunkers; while markets were well supplied. On the US Gulf Coast, high sulfur bunker fuel prices edged down in line with a weakening Brent. IFO 380cst in Houston was offered at $537/mt, down $13.50/mt from Monday- the lowest since January 28, 2011, when it was assessed at $525/mt. In the marine gasoil segment, Houston MGO was assessed $16/mt down at $873 MTW, following a decline on NYMEX November ULSD futures contract.

Economic fundamentals this week

Statistic	Importance	Date	Time	Period	Consensus	Last	Actual
PCE Prices- Core	Medium	29-Sep	8:30 AM	Aug	0.00%	0.10%	0.10%
Case- Shiller 20-city Index	Medium	30-Sep	9:00 AM	Jul	7.00%	8.10%	6.70%
Chicago PMI	Medium	30-Sep	9:45 AM	Sep	59	64.3	60.5
Consumer Confidence	High	30-Sep	10:00 AM	Sep	93	92.4	86
ADP Employment Change	High	1-Oct	8:15 AM	Sep	225K	204K	213K
ISM Index	High	1-Oct	10:00 AM	Sep	60	59	56.6
Construction Spending	Medium	1-Oct	10:00 AM	Aug	0.50%	1.80%	-0.80%
Initial Claims	Medium	2-Oct	8:30 AM	27-sep	300K	293K	-
Factory Orders	Medium	2-Oct	10:00 AM	Aug	-9.50%	10.50%	-
Nonfarm Payrolls	High	3-Oct	8:30 AM	Sep	245K	142K	-
Unemployment Rate	High	3-Oct	8:30 AM	Sep	6.10%	6.10%	-
ISM Services	Medium	3-Oct	10:00 AM	Sep	59	59.6	-