Oil Gram Price Report 101911

www.platts.
com
Oilgram Price Report
The McGraw Hill Companies
]
October 19, 2011
Prices effective October 18, 2011
Volume 89 / Number 202
SingaporeBuyers of Oman
crude in Asia have renewed 2012
term contracts at higher premi-
ums than 2011, with prices rising
as more refining capacity is set
to come on line in China and
India this year and next, industry
sources said October 18.
Recent record highs in spot
premiums, despite deteriorating
Oman crude quality, have also
underpinned the market, the
sources said.
Some of the new term deals
have been at premiums of 8-11
cents/bl to official selling prices,
up from OSP plus 6-9 cents/b
this year. Sellers are now offering
crude at OSP plus 12 cents/b.
Omans Ministry of Oil & Gas
(MOG) uses the monthly average
of the Dubai Mercantile
Exchanges Oman settlement
price for the front-month contract
to set its OSP.
Refiners are willing to pay
more for MOG cargoes than DME
clips, for the greater flexibility of
MOG contracts. Operational toler-
ance in an MOG contract is 5%,
which amounts to 25,000 barrels
in a standard 500,000-barrel clip.
In contrast, DME contracts oper-
ational tolerance is only 0.02%,
which is 1,000 barrels.
Refiners who take MOG car-
goes can pay a few pennies more
than for DME cargoes, a trader
said. The trader is now offering
MOG Oman term cargoes at OSP
plus 12 cents/b. He has a buyer
at OSP plus 10 cents/b, he said.
Declining Oman crude quality
has not eroded in value due to
strong demand for Middle East
sour grades amid a wide
Brent/Dubai Exchange of Futures
for Swaps (EFS), which makes
sour crudes much cheaper relative
to sweet crudes. There has also
been good demand from refiners
spurred by strong margins.
Differentials on Oman crude
soared to a record high last
month for November loadings. At
least one spot cargo was said to
have traded at November Dubai
swaps plus $3/b.
Last week December-loading
physical Oman was said to have
traded at December Dubai swaps
plus $2.50/b. On October 17 JP
Morgan bought an Oman partial
from Shell through the Platts Mar-
ket on Close assessment process
at $109.90/b, which translates to
a value of December Dubai swap
plus $2.66/b. JP Morgan also
bought another Oman partial from
Shell at $110.10/b.
A North Asian refiner who lifts
Oman crude regularly reported
seeing a steady rise in the sulfur
content of Oman and a fall in the
API value of the medium sour
crude since 2008 after Occiden-
tal Petroleums new Mukhaizna
stream was added into the blend.
Test samples showed the sul-
fur content has risen from an aver-
age of 1.15% in 2008 to at least
1.3% this year, while gravity has
dropped from 33.2 to 30.5-31.5
API this year, the refiner said.
New refining capacity to come
on stream late this year and early
next year, designed to process
sour crudes, is also boosting
Oman differentials.
China will bring on line at
least 360,000 b/d of new refin-
CFTC approves
federal position
limits rule
WashingtonThe US Commodity
Futures Trading Commission on
October 18 approved its long-
delayed commodity positions limits
rule, but commissioners said it will
do little to control energy, agricul-
ture or metals prices, could subject
commercial hedgers to millions of
dollars in new reporting costs and
will likely leave the agency vulnera-
ble to legal challenges.
Commissioner Michael Dunn,
a Democrat and the third vote
needed to pass the contentious
final rule, said he did not think
the limits were necessary since
these markets had nothing to do
with the 2008 financial crisis, nor
has the agency proven that exces-
sive speculation has caused
prices in these markets to sky-
rocket. In addition, Dunn said the
limits may do nothing to control
volatility in commodity markets,
claiming they could actually drive
up the price of some energy and
agriculture commodities.
Still, Dunn said the limits were
mandated by the Dodd-Frank Wall
Street and Consumer Protection
Act and the CFTC is required by
Congress to impose them. This
is the law, Dunn said. The law is
clear, and I will follow the law.
Dunn called the position lim-
its rule a sideshow of the need-
ed Dodd-Frank regulatory reforms
the CFTC is in the process of
finalizing.
CFTC officials have long
argued that position limits were
needed to curb market volatility,
but there was a clear shift in tone
October 18 as these same offi-
cials said the limits needed to be
imposed because Congress man-
dated them.
They seemed to try to quell
any expectations the limits might
have on markets and, in turn,
prices. During the October 18
Asian crude oil buyers ink 2012 Oman deals
Premiums rise as more China, India refining capacity on the way
Crude futures lifted
by rebound in equities
New YorkNew York Mercantile Exchange November crude futures set-
tled $1.96 higher at $88.34/barrel October 18, supported by a
rebound in equities and decline in the US dollar.
November heating oil settled 1.41 cents higher at $3.0277/gal,
and November RBOB settled 40 points higher at $2.7469/gal after
having dropped by more than 6 cents/gal earlier on news that Sunoco
returned to service a fluid catalytic cracker at its 175,000 b/d Marcus
Hook, Pennsylvania, refinery.
The US Dollar Index on ICE pared gains, and was about 12 points
lower at 77.026 in afternoon trade. The Dow Jones Industrial Average
was up 140 points by the NYMEX settle.
Analysts said the rebound in equities pulled the oil complex higher
after market players re-evaluated third quarter GDP data from China
that at first appeared uninspiring.
Chinas statistics bureau said the economy grew by 9.1% in the
third quarter, below the consensus forecast of an increase of 9.3%.
Phil Flynn, senior analyst at PFGBest, said at second glance the
Chinese data was not as bearish as first thought.
If you look at production and retail sales it doesnt suggest that
demand for oil will be that weak, Flynn said, adding that, seasonally,
oil futures typically bottom out during this time of the year.
Traders like to get long in October and ride that into the winter,
he said.
On ICE, December Brent futures settled 99 cents higher at
$111.15/b.
The price action led to a narrowing of the the front-month
Brent/WTI spread to $22.81/b, down from $23.54/b the prior day and
$27.88/b October 14.
Flynn said increasing crude supplies in the North Sea along with
(continued on page 17) (continued on page 18) (continued on page 16)
OILGRAM PRICE REPORT PRICES EFFECTIVE: OCTOBER 18, 2011
Copyright 2011, The McGraw Hill Companies 2
International crude: Forties slips
below Brent
Forties crude fell below the Dated Brent benchmark for the first time
in more than two months Tuesday, with an aggressive offer from Shell
seen in the Platts Market on Close assessment process.
Forties was assessed at a discount to Dated Brent of 7 cents/bar-
rel, down 30.5 cents from Monday and at its lowest level since August
9, according to Platts data.
In the MOC process, Shell offered Forties crude loading October
31-November 2 at Dated Brent minus 10 cents/b, or November 2-4
Forties at Dated Brent minus 5 cents/b.
Traders said that with increased supply and continued poor
demand from refineries situated in Northwest Europe, North Sea crude
differentials were likely to ease further in the short-term.
Forties doesnt make much sense given where the naphtha and
gasoline cracks are...the margin is to be found in the sour [crude]
grades, said one refiner.
Refining margins were said to have crept up from last week due to
the lower crude premiums, but remained low.
A BP Forties crude cargo was advanced to an earlier November
date, a crude trader at the company confirmed. The parcel, number
F1104, was advanced by three days to November 4-6, a sign that For-
ties crude output had increased in recent weeks. The Buzzard field
contribution to Forties crude output was stable at 36% in the week
ending Sunday, data on BPs website showed.
In other North Sea grades, Statoil offered an Ekofisk cargo loading
November 9 at Dated Brent plus $2.90/b and an Oseberg loading in
the first decade of November at Dated Brent plus $3.00/b.
An Ekofisk parcel loading November 10 was reportedly sold at
Dated Brent plus $2.70/b Monday, sources said Tuesday, but lifter
Total did not confirm this.
Finally, Statoil confirmed it had sold a Grane stem loading second
decade of November, but it declined to comment on the price.
Azeri more attractive to buyers
A recent fall in Azeri Light differentials have made the grade more
attractive for Mediterranean buyers as well as for end-users outside of
the region, sources said Tuesday.
In addition, crude traders reported that Azeri Light crude cargoes
loading from Supsa were clearing out, helping Ceyhan gain. But no
trades were confirmed.
Supsa cargoes have been moving...the program is not long and there
is some interest coming from the US for Azeri Light, said one trader.
Other sources reported that November Azeri Light barrels were not
moving fast, and the first decade still had some cargoes on offer.
In the CPC Blend market, smaller November volumes were also
providing support to the grades differentials, traders said.
CPC Blend is around Dated Brent plus 30 cents/b, it came down
quite a lot and the program is tight, said one trader in the Med.
According to some trading sources, a cargo of Tengiz crude oil had
traded as high as Dated Brent plus 75 cents/b. However, no details of
this trade were confirmed.
Urals on downtrend in Med
Urals crude differentials in the Mediterranean continued their down-
ward path Tuesday, falling by 55 cents on weaker demand for
prompt barrels.
Two to three cargoes remained unplaced in the October Urals pro-
gram in the Mediterranean, traders said.
The [Urals Med] market is struggling as you see offers in Novem-
ber now, there is more room for it to go down...the arb is closed from
the Med, commented one trading source.
In the Platts Market on Close assessment process, Eni offered an
80,000 mt Urals crude cargo loading ex-Novorossiisk/Yuzhny October
28-November 1 at Dated Brent minus $1.45/b. However, no buying inter-
est in this prompt load was shown and it remained live at the close.
Fading buying interest for prompt Urals cargoes had pushed the
sour crude market in contango across October 28-November 12
assessment dates.
In Northwest Europe, one cargo was heard to be unsold for end-Octo-
ber, reportedly belonging to Gazpromneft, however this was unconfirmed.
Trading sources reported Russias Surgutneftegaz sold a Novem-
ber 3-4, 100,000 mt Urals crude stem to Statoil in a tender, closing
Tuesday afternoon. According to market participants, the tender was
awarded around Dated Brent minus 30-50 cents/b, although this was
not confirmed.
Trading sources expected to see Urals weaken further as refining
margins were not justifying higher differentials, and there were talks of
bigger export volumes for November.
Polands PKN Orlen bought a November 1-3, 100,000 mt Urals
cargo for delivery into the Lithuanian port of Butinge from Total in a
tender, traders reported. The level was kept P&C.
In the Med, Turkeys Tupras issued a tender seeking 80,000 mt or
140,000 mt of Urals crude for November 1-15 delivery into Tutunciftlik
or Izmit. The tender closes Wednesday.
Petronas increases Tapis premium
Malaysias national oil company Petronas has increased the premium
used to calculate the official selling price for Tapis crude lifting in Octo-
ber by 65 cents to $6.90/barrel over Platts Dated Brent assessments,
a company source said Tuesday.
Earlier in September, the company set the September Tapis OSP differ-
ential or alpha, which is used to calculate the OSP for Tapis crude lifting in
September, at $6.25/b. This is the third consecutive increase in the Tapis
OSP premium, and the premium is now the same as was set in July.
Market sources noted that this year the Tapis OSP premium has
ranged from a high of $7.80/b in January to a low of $2.05/b in April.
In tenders, Malaysias Petco issued a sell tender for 600,000 bar-
rels Labuan crude for loading over December 15-21. The tender closes
October 19, with validity until October 20, and it was heard that Petco
last sold 600,000 barrels of Labuan crude for loading over November
15-24 at a premium of about $8/b to Platts Dated Brent assessments.
Market by Market
Spot Crude Spreads vs Dated Brent
Source: Platts
-1
0
1
2
3
4
5
17-Oct 27-Sep 07-Sep 18-Aug 29-Jul
($/barrel)
West African Bonny Light
Mediterranean Azeri Light
North Sea Forties
Americas crude: Syncrude jumps
The Canadian pipeline crude cash differentials were assessed higher
Tuesday, but market activity was slowing down, sources said, as
pipeline nominations are due Thursday.
The Syncrude differential was assessed 20 cents/b higher at the
NYMEX front calendar month average plus $9.25/b, where it was last
heard to trade.
After the Platts Market on Close assessment process, the Syn-
crude differential was heard to trade as high as plus $10.25/b. Mar-
ket sources attributed the rise to end of month buying, when a limited
supply of synthetic crude remains.
The Western Canadian Select differential was assessed 10 cents/b
higher at minus $10/b, where it was last heard to trade. The Conden-
sate differential was assessed 10 cents/b higher at plus $15.90/b.
The Light Sour Blend differential was assessed 90 cents/b higher at
minus 45 cents/b. The Mixed Sweet and Midale differentials were
assessed unchanged at plus $1.95/b and minus $4.20/b, respectively.
Colombian grades tapped out for November
The Latin American crude market was very quiet Tuesday as the
Colombian grades had all been sold for loading in November, said mar-
ket sources.
Ecopetrol recently said it had sold all of its cargoes of Vasconia,
Magdalena Castilla Blend and Cano Limon for loading in November
from the port of Covenas.
The prices of those cargoes were not disclosed.
Ecopetrol sells its cargoes versus Dated Brent and WTI. The total
number of cargoes for loading were not known. However, in October,
there were 24 cargoes or 11.3 million barrels of crude for export.
In October Colombia exported 4 million barrels of Castilla Blend,
2.1 million barrels of Magdalena, 4.5 million barrels of Vasconia and
760,000 barrels of Cano Limon.
Colombias Ecopetrol was heard to have sold three Afrmaxes of
Vasconia and three Panamaxes of Magdalena crude last week for load-
ing in November, but no additional details were disclosed.
Chiles state ENAP is not currently in the market to purchase vol-
umes of crude, said a source close to the company Tuesday. ENAP
was heard to have bought North Sea Forties crude last week through a
spot purchase and prior to that had bought two 1-million barrel car-
goes of Brazilian grades of crude through separate tenders. ENAP was
heard to have bought Frade from Chevron and Bijupira from Shell.
ENAP has also bought cargoes of Lula crude from Petrobras in the
past. Both Bijupira Lula are lighter grades, with gravities of between
28-29 and sulfur contents of between 0.35-0.48%. Frade has a gravity
of 18 API and 0.7% sulfur level.
ENAP also buys lighter grades from the North Sea, such Forties
and Ekofisk. Typical sellers include BP and Shell.
Gasoline: Down day for CARBOB
Los Angeles CARBOB remained volatile Tuesday, dropping 6.5 cents in
thin trading.
Platts assessed the gasoline grade at NYMEX November RBOB futures
plus 27.50 cents/gal, compared with plus 34 cents/gal on Monday.
Octobers differentials have ranged from plus 21.50 to plus 40
cents/gal, near a two-year high on refinery maintenance and other fac-
tors. Of the 12 trading days in the month, six have seen swings of
more than 5 cents/gal and two days were more than 10 cents/gal,
Platts data showed.
By comparison, August and September were also more volatile
than usual, but each had only five days of such 5-cent-plus swings for
the entire month.
Welcome to the world of the West Coast, one trader said. Thats
pretty common for us. We can move a dime without anything trading.
Sources said trades occurred at plus 29.50 cents/gal and then plus
27.50 cents/gal on Tuesday, but with little other activity in most West
Coast products, at least for October. Some deals were heard for November
and December delivery, though, as the October contract nears expiration.
The decline came despite data from the American Petroleum Insti-
tute late Tuesday that showed West Coast stocks dropped 211,000
barrels to 28.46 million barrels for the week ending October 14.
Regional production also came off, to 1.59 b/d from 1.66 million b/d
in the previous week.
San Francisco CARBOB was 6.25 cents under Los Angeles,
down a quarter-cent on the regrade, while Portland unleaded gaso-
line was assessed down 4.75 cents to where it was heard traded at
plus 38 cents/gal.
US retail demand slumps: MasterCard
US gasoline retail demand fell 3.1% from the year-ago period in the
survey week ended October 14, with all PADD regions posting declines
in gasoline consumption, according to MasterCard Advisors Tuesday.
A total 62.827 million barrels was consumed, a 1.324 million bar-
rels increase from the prior week, MasterCard Advisors said. Some
8.975 million b/d was consumed daily. On a rolling four-week basis,
61.794 million barrels was consumed, a 2.8% decrease from the year-
ago period, MasterCard Advisors said a statement.
Midway through the month of October, year-over-year declines in
gasoline consumption continue at a steady rate, MasterCard Advisors
gasoline analyst John Gamel said in weekly commentary.
Gamel noted that prices rose at the pump after decreasing for four
straight weeks.
The average retail price of a gallon of regular gasoline increased
$0.02 compared to the previous week, with the price of
gasoline...averaging $3.42/gal, he said. Gasoline prices are 21.3%
higher than one year ago, he said.
Observing gasoline demand on a regional level in year-over-year
terms, all the PADDs posted year-over-year declines at varied rates,
Gamel said.
Regions seeing bigger declines include the New England, Central
Atlantic, Lower Atlantic and the Midwest, in the 3%-5% range, Gamel
said. The Gulf Coast, Rocky Mountains and West Coast posted more
modest year-over-year declines of about 1%, he said.
Shell to resume E10 rollout in Germany
Oil major Shell is to resume the rollout of gasoline E10 in northern
and western parts of Germany to include all of its 2,200 filling sta-
tions around the country.
US Spot Gasoline Differentials to NYMEX RBOB
Source: Platts
-30
0
30
60
Oct-11 Aug-11 Jun-11 Apr-11 Feb-11 Dec-10 Oct-10
(cents/gal)
Chicago RBOB
LA CARBOB
Buckeye RBOB
Within the next few days well start introducing the fuel at those
stations in the north and west of Germany that havent yet been offer-
ing E10, Jorg Wienke, head of Shells filling station business in Ger-
many, Austria and Switzerland, said Monday.
The E10 blend, which boosts the permitted proportion of ethanol
in gasoline to 10% from 5%, was introduced at southern and eastern
parts of Germany at the start of 2011 as part of countrys commit-
ment to boost consumption of renewable fuels.
But the introduction of E10 suffered from consumer fears that the
higher ethanol content could damage car engines.
Lower-than-expected sales in the first and second quarters caused
logistical bottlenecks for refiners, blenders and distributors, putting
the expansion of E10 in other parts of the country on hold.
In recent weeks we have seen a stabilization in demand, which
has ultimately led us to introduce E10 in the rest of the country,
said Wienke.
BPs Aral chain of fuel stations, Shells main competitor in Ger-
many, expects to conclude the rollout of gasoline blend E10 at all of
its 2,500 filling stations by the end of the year, Platts reported earlier.
Shell said it would continue to offer E5 gasoline at all stations, giv-
ing consumers a choice between comparable fuel qualities and
prices, it said.
Germanys largest automobile club ADAC has welcomed Shells
decision to rollout E10 to its entire network, adding biofuels are an
important option to diversify the road transport fuel mix and reduce
greenhouse gas emissions.
Asian market reverses
The Asian gasoline market Tuesday reversed two consecutive days
of gains Tuesday, falling $3.91-4.16 on lower December ICE Brent
crude futures.
The Platts Market on Close assessment process saw four offers
against just one bid. There were two trades done, with BP Singapore
selling one 97 RON cargo to Sietco at $127.60/barrel for November
11-15 loading, and Vitol buying one 95 RON cargo from Glencore at
$123.80/b for November 13-17 loading.
One Singapore-based trader said the market looks a bit tight in the
short term, but saw some weakness ahead.
Traders are taking advantage of the backwardation by selling as
much as they can in the prompt, and buying paper cheap, he said.
Elsewhere, Pakistan State Oil bought six 35,000 mt cargoes of 87
RON gasoline at Mean of Platts Arab Gulf naphtha assessments plus
$88-93/mt, CFR, for delivery over November-December into Keamari
terminal, Karachi.
It bought two cargoes from Trafigura for November and two cargoes
each from Gunvor and Litasco for December.
PSO was seeking seven cargoes. A source at PSO said the compa-
ny had already bought a 35,000 mt cargo of 87 RON gasoline from
Total at a premium of $94/mt to MOPAG naphtha assessments for
November-December delivery, through Japanese International Co-opera-
tive System, before the tender was awarded.
Diesel: USAC down a penny
US Atlantic Coast ULSD differentials dropped 1 cent Tuesday to its
lowest point this month, ahead of data that showed a rise in regional
stocks and production.
Platts assessed USAC ULSD for New York Harbor barges and for
Buckeye Pipeline at NYMEX November heating oil contract plus 3.50
cents/gal, the lowest since September 19.
ULSD production among USAC refiners climbed 25,000 b/d dur-
ing the week ended October 14 to 253,000 b/d, according to the
American Petroleum Institutes weekly report released Tuesday. USAC
inventories of ULSD rose 269,000 barrels to 25.8 million barrels.
The return to operation this week of the fluid catalytic cracker at
the 175,000 b/d Marcus Hook, Pennsylvania, refinery helped to weak-
en most distillate grades, including jet fuel, which saw a 3 cent/gal
drop Monday. On Tuesday, jet remained unchanged at plus 1 cent/gal,
for pipeline and barges, tying a 10-month low.
During Platts Market On Close assessment process, Hess bid for a
25,000-barrel parcel on the Buckeye Pipeline, October 21-23, at plus
75 points/gal, but found no sellers.
The USAC jet market was described as well-supplied this week.
Poor resupply supporting Europe
Northwest European cargo diesel levels remained well supported due
to a lack of supply on the back of refinery run cuts, refinery mainte-
nance and poor resupply from Russia, sources said Tuesday.
The CIF NWE cargo premium was assessed at a $62.50/mt premi-
um to the front-month ICE gasoil futures contract, up 75 cents.
With arbitrage options limited in terms of prompt material, there
seemed little respite for the bears, sources said.
The [diesel] market is tracking the general fundamentals of tight-
ness bought on by runs cuts due to the poor refinery margins...and
Russian flows have been impacted by no resupply. Those regular tak-
ers are looking to normal supply sources of Russian material, but are
getting hardly any, one European cargo trader said.
There are a lack of smaller cargoes about; with a lot of refinery
capacity out either from maintenance or run cuts we are really feeling
it, another trader said.
We are looking to the US, but those barrels will take time to
arrive. Even though there are some cargoes coming they dont always
fit the market easily, they need to be broken down and then delivered,
another trader said.
In the barge market, premiums eased $5.25 to be assessed at
$47.75/mt.
Resid: Singapore spread narrows
The cash Singapore 180 CST/380 CST viscosity spread narrowed for
the seventh straight session to hit a two-week low Tuesday. The
spread was assessed down 27 cents at $4.78/mt.
The 380 CST grade is more supported as that is where the
demand is, said a market source.
Fundamentally, the Singapore residual market has been tight on
on-spec cargoes, which has been bullish for high sulfur fuel oil.
The cash 180 CST/Dubai spread gained 82 cents to minus 63
cents/b Tuesday, while the 380 CST/Dubai spread was up 87 cents/b
at minus $1.38/b.
However, there were little changes seen in the market structure.
The 180 CST November/December spread was down 25 cents to
$8.25/mt Tuesday, while the same spread for the 380 CST grade was
up 25 cents at $9.00/mt.
Kuwait Petroleum Corporation sold 80,000 mt of 380 CST cracked
fuel oil to BP from Shuaiba for loading over November 14-15. The pre-
mium was heard to be above $13.75/mt to Mean of Platts Arab Gulf
380 CST HSFO assessments, FOB.
This is the first fuel oil sale by state-owned KPC for loading in
November. This spot cargo will take total exports from Saudi Arabia
and Kuwait to 170,000 mt for November loadings, while October vol-
umes are currently at 357,000 mt, Platts data showed.
Gulf 3% demand tightens discount to USAC
The spread in the physical market between US Atlantic Coast 1% sul-
fur product and US Gulf Coast 3% sulfur residual fuel widened Tues-
day, as greater USGC 3%S demand helped strengthen the high sulfur
product relative to low sulfur, according to market sources.
In the swaps market the same spread, called the high-low, nar-
rowed as a rise in November USGC 3%S swap values outpaced gains
in the November USAC 1%S swap.
One trader attributed the strengthening of high sulfur to an
increase in bunker demand and a lack of arbitrage barrels coming
through to satisfy that demand.
The 3%S assessment is a proxy for higher sulfur bunker supply
and demand, while the 1%S is a proxy for utility demand. The lower
sulfur product is typically priced at a premium to 3%S.
The physical high-low widened $1.72 cents to minus $2.12/barrel,
as USGC 3%S was assessed $1.85/b higher at $102.80/b, while
USAC 1%S was assessed just 13 cents/b higher at $100.68/b.
In the derivatives market, the spread between the high sulfur and
low sulfur swaps narrowed 25 cents to $1.55/b, as high sulfur fuel oil
continues to outgain its low sulfur counterpart. The spread has narrowed
by 35 cents the past two trading days. Platts assessed the November
USGC 3%S swap at $99.15/b, $1.05 higher on the day, while the
November USAC 1%S swap was 80 cents higher to $100.70/b.
The Gulf Coast seems much stronger than the East Coast these
days, which should draw more oil that way, said a fuel oil trader on
Tuesday, regarding the strengthening of USGC 3%S.
Gasoil: Asia jumps on open arb
Cash premiums for 10 ppm sulfur gasoil jumped Tuesday in Sinaga-
pore amid strong buying interest to meet potential western demand as
the arbitrage window is open.
The prompt month November east/west spread was at around
$33/barrel. During Tuesdays Platts physical Market on Close assess-
ment process, Shell had the best bid at close for a 150,000 barrel
cargo of 10 ppm sulfur gasoil at Mean of Platts Singapore 0.5% sulfur
gasoil plus $3/b for loading November 2-6. The cash differential for
the grade was in turn assessed at $3.05/b.
On the other hand, cash premium for the benchmark 0.5% high sulfur
gasoil fell 13 cents to 11 cents/b on the back of stronger selling. Shell
sold into Hin Leongs bid at MOPS 0.5% sulfur gasoil plus 10 cents/b for
a 170,000 barrels cargo of 0.5% sulfur gasoil, loading over November 2-6.
Hin Leong then took out Chevrons offer at a similar premium of
MOPS 0.5% sulfur gasoil plus 10 cents/b and continued to bid on at
the same level until the close.
Gasoils backwardated market structure flattened further Tuesday,
with the November/December spread down to 39 cents/b, compared
with 56 cents/b in the previous session.
In tenders, Iraqs State Oil Marketing Organization, or SOMO, has
issued a H1 2012 term tender seeking a total of around 773,000 mt
of 0.1% sulfur gasoil. The gasoil cargoes are to be delivered into Khor
Al-Zubair terminal over January 1-June 30.
The tender closes October 29.
Iraqs last purchase of 0.1% sulfur gasoil was supplied by IPG,
Trafigura, Vitol and Litasco at a premium of around $9/barrel to the
MOPAG 0.5% sulfur gasoil assessments, CIF basis, according to a
trade source. The total volume was unknown.
Jet: Scheduling day
brings out Gulf buyers
The US Gulf Coast jet fuel differential partially reversed a 9.25-cent
slide in October with a 2.5-cent gain Tuesday on a Colonial Pipeline
scheduling day.
Platts assessed jet fuel at NYMEX November heating oil futures
plus 50 points/gal, the first premium over the underlying NYMEX since
October 6. It was assessed at plus 7.25 cents/gal on October 3 and
has mostly slid since then, including 1-cent declines in each of the
last two days, on worries of high production, slackening demand and a
rising NYMEX contract.
The rebound could be attributed to several macro factors, but was
most likely the result of a buyer needing to meet a deadline to sched-
ule barrels for the next shipping cycle on Colonial, which ships from
Houston to New York Harbor.
Deals were heard at minus 2 cents/gal and minus 1.75 cents/gal
ahead of the Platts Market on Close assessment process, when Noble
bought from Vitol at minus 1 cent/gal, sellers dropped out and then
Vitol bid up to plus 50 points/gal, where they bought two pieces of
25,000 barrels from Chevron and one from ConocoPhillips.
One source said a weaker NYMEX contract Tuesday could also help
explain some of the strength, but it cant explain a 250-point increase.
Data out late Tuesday from the American Petroleum Institute also
showed a nearly 1.2 million-barrel decline in US jet stocks to 45.7 mil-
lion barrels last week and an even more bullish decline in production,
to 1.47 million b/d for the week ending October 14 from 1.64 million
b/d in the previous week.
European outrights, spreads soften
A slip in European jet premiums Tuesday, combined with a fall in the
November ICE gasoil futures, resulted in an overall drop in jet prices.
CIF Northwest cargoes dropped $13.75 to be valued at $1,013.75/mt.
Jet cargoes dropped $1.25 to $77.25/mt above the front-month ICE
gasoil contract. Barges dropped 50 cents to a $73.25/mt premium.
Were looking at a lower stock environment with the market in
backwardation right now, a European jet trader said. That is going to
lead to more volatile price movements.
Another source said that while there was more jet fuel demand in
recent days, the market had yet to reach its winter-buying peak.
Were still in between the summer holiday demand season and
winter diesel blending, another European jet source said. There is
demand [for diesel and kerosene], but its not that large, yet.
Sources saw refinery maintenance and run cuts as supportive for
differentials.
The run cuts in the ARA region have started to take effect, and I
think that this will squeeze supply, another source said.
While jet cracks improved in the last week, sources said the
change was unlikely to be seen in refinery runs.
In theory, a refinery cuts runs, tightens supply, cracks improve
and they increase their runs again, a source said. But in practice,
you need to see two to four weeks of poorer margins before you
decide to cut runs, and youd expect the same level of deliberation
when cracks are improving.
Singapore follows crude lower
FOB Singapore jet fuel fell $3.20 Tuesday, in line with the sharp
decline in Western crude markers, leaving the jet fuel crack spread
against front month cash Dubai unchanged at plus $18.91/barrel.
European Jet Cargo Differentials vs ICE Gasoil
Source: Platts
20
40
60
80
100
Oct-11 Aug-11 Jun-11 Apr-11 Feb-11 Dec-10 Nov-10
($/mt)
Med FOB Northwest Europe FOB
During Platts Market on Close assessment process, BP had taken
out SPCs offer of Mean of Platts Singapore plus 20 cents/b for a
100,000-barrel cargo loading November 11-15. SPC did not offer
another cargo, but the trade did have a hand in pushing the cash dif-
ferential down 5 cents to plus 22 cents/b.
This is the sixth jet cargo BP has bought this month during the
MOC, bringing the oil majors total purchases to 750,000 barrels. BP
was the biggest buyer of jet fuel during the MOC in September, accu-
mulating a total of 900,000 barrels.
The physical jet/gasoil regrade spread continued to widen for the
second straight trading session to another seven-and-a-half month high
of $3.28/b.
Gasoil is losing ground, and coming into winter kerosene [pro-
duction] is being maxed out in South Korea and Japan, one market
source said.
Further, China is not expected to import a significant volume of
diesel like it did last year for winter power generation, as the country
has stockpiled more this year in light of the tsunami in Japan, which
had seen a sharp reduction in Japanese refining capacity.
In tenders, Iraqs SOMO has issued a half-year term buy tender for
292,000 mt of jet A-1 for delivery into Khor Al-Zubair terminal over Jan-
uary-June 2012. The tender closes October 29.
Blendstocks: T2 on the rise
Prices for T2 German specification ethanol prices rose to
Eur624.25/cu m FOB Rotterdam Tuesday, up Eur6.25/mt amid
increased buying interest for spot barges during the Platts Market on
Close (MOC) assessment process.
ABTs bid for a 1kt parcel at Eur625/cu m FOB Rotterdam October
21-November 2 did not attract sellers. STRs bid for a 1kt parcel at
Eur607/cu m FOB Rotterdam for full November also failed to attract
any sellers.
Standard specification ethanol barges rose to Eur612.75/cu m
FOB Rotterdam Tuesday, closing the session Eur3.5/cu m higher. BP
and STR sold 1kt each to ABT at Eur614/cu m FOB Rotterdam for
October 21-November 2. Subsequently, BP lifted STRs offer at
Eur615/cu m FOB Rotterdam for October 21-November 2.
T1 barges were assessed unchanged at $824/cu m FOB Rotterdam.
The market for European ethanol remained backwardated, with
October barges holding a Eur5-10/cu m premium to November.
Asian naphtha cracks limping
Asian naphtha cracks continued to limp lower Tuesday as a poor
demand persisted.
At the Asian close, the second-half December naphtha crack eased
$4.15 to $81.75/mt while the benchmark flat price naphtha assess-
ment shed $29.38 to finish at $902.13/mt.
The dip came even amid news of Taiwans Formosa Petrochemical
restarting its No. 3 naphtha-fed steam cracker at Mailiao. The compa-
ny is currently running its No. 3 cracker at 80% capacity after bringing
it back online from maintenance Monday, a company spokesman said
late Tuesday.
The cracker, which has a design capacity of 1.2 million mt/year
of ethylene and 600,000 mt/year of propylene, was shut mid-August
and was originally scheduled to resume operations by the end of
September. But its restart was postponed due to a delay in mainte-
nance work.
We plan to bring the cracker up to run at full rates, hopefully by
the end of this week, if operations at the cracker all go smoothly, the
company spokesman said Tuesday.
Formosas No. 1 and No. 2 steam crackers are both running at
100% capacity. The No. 1 cracker can produce 700,000 mt/year of
ethylene and 350,000 mt/year of propylene, while the No. 2 cracker
can produce 1.03 million mt/year of ethylene and 515,000 mt/year
of propylene.
Formosa is running its steam crackers at 100% capacity in an
effort to restock low petrochemical inventory levels following a long
Editor-in-Chief: Jeff Mower;
Global Director Oil: Dave Ernsberger;
Global Director Market Reporting: J. Montepeque;
Oil Manager, US: Esa Ramasamy;
Oil Manager, Singapore: Paul Young;
Houston Bureau Chief: Annette Hugh;
Oil Manager, London: Simon Thorne
Vice President, Editorial: Dan Tanz
Platts President: Larry Neal
Manager, Advertising Sales: Kacey Comstock
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]
Oilgram Price Report
Volume 89 / Number 202 / October 19, 2011
(ISSN: 0163-1292)
(continued on page 15)
Naphtha crack spread swaps (1-month)
Source: Platts
-12
-8
-4
0
4
Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11
($/barrel)
European Crack vs Brent Singapore Crack vs Dubai
US Wholesale Posted Prices
Unleaded Midgrade Premium Kerosene Diesel No.2 Low Sulfur Diesel ULSD
PAD1
Albany, NY 281.26-285.70 288.68-295.95 301.85-313.95 334.00-379.96 305.00-328.70 309.50-313.25
Allentown 282.65-307.37 292.30-294.40 309.18-329.21 - 304.03-306.50 - 309.97-311.86
Atlanta 277.10-293.38 284.70-298.98 300.10-314.82 338.75-338.75 - 302.40-304.69
Baltimore (a) 277.73-304.50 285.16-310.50 302.00-325.00 355.01-355.01 300.64-304.82 - 303.85-312.55
Binghamton 294.95-297.40 301.95-308.90 317.95-327.10 - 306.11-310.71 - 311.60-319.28
Boston (a) 282.20-285.51 290.15-294.35 303.35-310.62 345.50-345.50 305.20-308.86 - 308.80-313.75
Charleston 281.60-287.79 289.60-296.11 304.60-313.19 335.91-335.91 306.64-314.23
Charlotte 274.96-280.60 284.45-288.11 297.96-302.74 - 303.00-305.45
Fairfax (a) 278.28-281.50 286.28-291.95 303.14-308.90 - 302.00-310.33
Greensboro 275.11-282.50 282.50-288.53 297.50-304.26 350.00-350.00 - 302.50-305.64
Miami 277.79-288.54 284.72-292.15 301.00-314.82 305.55-307.25
New Haven (a) 282.05-287.54 289.56-294.84 303.70-312.50 350.81-385.65 303.00-307.15 307.55-311.40
New York City (a) 283.75-287.50 291.75-298.05 303.75-308.70 - 306.31-309.04 - 312.54-318.29
Newark (a) 279.00-290.86 288.59-296.31 301.90-309.67 327.54-327.54 300.47-307.36 - 306.58-310.37
Norfolk (a) 276.00-283.80 284.00-291.30 302.15-309.30 358.97-358.97 - 303.50-310.56
Orlando 277.86-282.75 287.85-291.75 302.75-306.86 306.80-308.30
Philadelphia (a) 283.24-287.79 289.62-300.57 303.24-323.73 365.61-365.61 300.65-305.37 - 307.20-310.67
Pittsburgh - - - 363.33-363.33 303.70-307.80 - 308.73-313.49
Providence 282.10-284.16 290.00-310.90 303.55-321.80 304.98-311.75 - 308.55-313.30
Portland 285.40-287.95 294.26-295.85 301.49-303.85 - 309.50-320.55 310.35-314.50
Raleigh 277.30-278.00 285.00-285.35 299.50-300.80 303.35-305.20
Richmond 278.28-287.75 284.85-296.85 300.50-313.75 - - 303.00-311.00
Savannah 279.90-279.90 287.90-287.90 302.90-302.90 - 307.34-307.45
Spartanburg 275.24-278.83 283.28-288.34 296.50-305.42 340.63-340.63 - 302.00-312.44
Tampa 277.60-287.40 285.60-291.51 299.60-316.50 - 304.45-313.24
PAD2
Cape Girardeau 275.80-283.31 288.75-288.75 296.25-306.79 - 305.80-308.00
Chattanooga 274.66-278.89 283.00-289.97 295.00-305.47 - 303.00-304.56
Chicago (a) 268.65-277.00 275.70-286.11 289.80-302.94 - - 299.75-307.00
Cleveland 267.20-280.37 275.20-292.76 292.20-308.60 - 303.93-315.38
Columbus 265.95-278.19 273.95-291.06 290.95-306.90 - 304.35-306.30
Duluth 283.73-291.26 284.18-297.89 293.80-312.89 - 320.17-326.10
Des Moines 280.57-294.03 294.68-296.61 302.75-321.07 - - 310.40-323.25
Detroit 267.20-271.61 275.20-283.49 292.20-300.32 - 302.20-312.96
Fargo 285.75-295.26 299.25-299.64 312.47-325.20 - 314.56-324.35
Green Bay 272.20-275.86 272.95-286.95 299.70-304.38 - - 305.25-309.62
Indianapolis 270.72-288.80 271.50-294.80 291.50-304.80 - 302.10-311.85
Kansas City 281.80-289.45 293.34-304.25 302.25-321.25 - - 309.00-313.91
Knoxville 275.41-278.40 283.25-289.15 291.75-303.97 335.05-335.05 - 302.95-305.35
Milwaukee 269.50-282.30 277.20-292.20 291.50-309.03 - 303.75-307.25
Minneapolis/St.Paul 277.80-292.96 279.30-291.85 294.80-308.51 - - 313.19-318.53
Oklahoma City 280.30-287.68 292.35-301.50 300.75-318.50 307.15-314.00
Omaha 282.25-296.90 295.24-311.90 302.25-328.90 - 310.00-323.25
Sioux Falls 282.75-296.01 294.50-296.89 306.35-327.69 - 307.32-323.50
St.Louis 277.03-305.50 287.63-311.50 303.44/330.50 304.52-310.27
PAD3
Albuquerque 268.00-287.50 276.50-296.50 286.00-314.10 294.75-320.05
Amarillo 285.95-286.70 295.70-301.70 - 308.30-311.36
Baton Rouge 273.80-276.05 280.80-289.70 297.80-300.05 - 300.71-302.15
Birmingham 275.52-280.60 282.50-286.01 294.00-307.43 360.43-360.43 - 302.60-305.80
Corpus Christi 276.61-276.75 284.25-284.63 294.75-296.60 - - 301.68-307.35
Dallas/Ft.Worth (a) 276.05-281.30 282.85-285.90 295.50-307.90 300.88-311.30
Houston (a) 274.50-280.35 282.50-284.40 294.50-303.96 337.25-337.25 - 301.50-312.00
Little Rock 274.55-282.74 280.55-290.68 288.02-304.27 - 303.85-312.66
New Orleans 274.60-276.25 281.98-284.30 299.30-304.25 - 300.29-302.60
San Antonio 276.58-280.10 284.00-286.10 297.20-300.60 311.90-314.25
PAD4
Aberdeen 286.75-290.32 306.16-306.16 313.24-322.00 - 314.35-322.00
Billings (b) 294.72-295.71 313.04-322.25 320.10-332.64
Casper (b) 292.10-292.10 311.90-311.90 332.15-334.50
Denver 297.74-315.80 306.65-314.60 317.54-327.39 318.65-326.80
Salt Lake City 280.60-290.25 290.60-299.00 299.60-312.25 - 327.50-329.37
PAD5
Anacortes 317.00-317.00 326.00-326.00 335.00-335.00 - 327.25-332.37
Las Vegas (e) 310.50-311.50 320.50-321.50 330.50-331.50 319.00-325.50
Los Angeles(e) 310.50-315.75 319.50-323.75 328.50-331.75 318.79-320.75
Phoenix 284.50-301.00 294.50-313.00 304.50-325.00 305.00-322.50
Portland 312.75-329.75 321.75-337.75 330.75-346.00 - 326.75-339.00
SanFran-EBay (e) 300.00-305.00 309.00-315.00 318.00-325.00 313.75-317.40
Seattle/Tacoma 313.75-317.75 322.75-326.75 331.75-335.75 - 329.75-336.60
Spokane 305.30-305.30 314.80-321.45 324.80-334.27 332.30-344.59
All prices are provided by DTN. Discounts or temporary allowances offered by individual companies are not included in posted prices. Prices are unbranded unless noted. Prices are conventional gasoline unless
noted. All prices in cts/gal. (a)=RFG. (b)=Branded postings (e)=CARB gasoline/No.2 oil
Five-Day Rolling Averages* *Five Days ending Oct 18
Naphtha $/Bbl c/Gal
Singapore 99.5399.57 236.97**237.07
$/MT c/Gal
Japan C/F 911.70914.25 241.19**241.87
Arab Gulf 881.90884.45 233.31**233.98
CIF NWE Physical 910.70911.20 240.93**246.27
Rotterdam Barge 906.70907.20 239.87**245.19
FOB Med 887.50888.00 234.79**240.00
CIF Genoa 904.25904.75 239.22**244.53
US Gulf W 951.79**952.15 268.11268.21
Carib Cargo 857.07857.42 236.11**236.20
Jet Kerosene $/MT c/Gal
CIF NWE Cargo 1011.151011.65 306.41**304.71
Rotterdam Barge 1009.001009.50 305.76**304.07
FOB Med 991.35991.85 300.41**298.75
US Gulf Water 997.61**997.95 300.49300.59
US Gulf Pipe 994.29**994.63 299.49299.59
Carib Cargo 1015.171015.51 314.29**314.40
NY Cargo 994.57**994.90 301.39301.49
LA Pipeline 980.88**981.20 307.49307.59
Group 3 1007.57**1007.91 303.49303.59
Chicago 999.27**999.61 300.99301.09
Low Sulfur Resid Fuel Oil $/Bbl $/Mt
Indonesia LSWR Mixed/Cracked 110.60110.64 741.02**741.29
CIF ARA 1% 101.65**101.73 660.75661.25
Rot Bar 1% 102.35**100.85 655.05655.55
NWE FOB 1% 101.70**100.21 650.85651.35
Med FOB 1% 102.25**100.75 654.40654.90
NY Cargo .3% HP 116.23116.32 778.74**779.34
NY Cargo .3% LP 117.96118.05 790.33**790.94
NY Cargo .7% Max 107.37107.46 697.91**698.49
NY Cargo 1% Max 101.54101.63 660.01**660.60
US Gulf 1% 103.86103.96 656.40**657.03
Hi Sulfur Resid Fuel Oil $/Bbl $/Mt
Singapore 180 103.41**103.42 672.17672.21
Singapore 380 104.20**104.21 666.90666.94
Arab Gulf 180 102.93**102.94 658.77658.81
CIF ARA 3.5% 100.20**99.49 631.25631.75
NWE FOB 3.5% 98.33**97.64 619.50620.00
Med FOB 3.5% 100.49**99.78 633.10633.60
CIF Med 3.5% 102.30**101.57 644.50645.00
NY Cargo 2.2% 100.74100.84 644.74**645.38
NY Cargo 3.0% 100.69100.79 644.42**645.06
US Gulf 3% 101.08101.18 646.91**647.55
Carib 2.0% 93.4993.59 598.34**598.98
Carib 2.8% 92.4492.54 591.62**592.26
Crude Oil, FOB Source $/Bbl
West Texas Int 86.4586.47
NYMEX Crude 85.76
Mars 109.93109.95
Brent (DTD) 112.08112.09
Brent (First Month) 111.94111.96
Dubai (First Month) 105.93105.95
Oman (First Month) 106.81106.83
Urals CIF Med 110.62110.68
WTI Posting Plus 3.11 3.13
Gasoil/Heating Oil $/Bbl c/Gal
Singapore 121.57121.61 289.46**289.56
Arab Gulf 119.28119.32 284.00**284.10
L.A. LS Diesel 130.57**130.61 310.89310.99
S.F. LS Diesel 131.22**131.27 312.44312.54
$/MT c/Gal
0.1 CIF ARA 946.90947.40 302.52**302.68
50 ppm Rotterdam Barge 983.85984.35 314.33**314.49
0.1 Rotterdam Barge 948.25948.75 302.96**303.12
0.1 FOB NWE 929.00929.50 296.81**296.96
0.1 CIF MED 949.00949.50 303.19**303.35
NY Cargo 940.14**940.45 298.46298.56
NY Barge 943.29**943.60 299.46299.56
US Gulf Water 914.35**914.66 296.87296.97
US Gulf Pipe 911.27**911.58 295.87295.97
Carib Cargo 913.98914.29 293.89**293.98
NYMEX NO. 2 937.41 297.59
Gasoline,Intl. Market c/Gal Prem $/Mt
R?dam Barge Prem Unl 278.59**278.73 977.85978.35
Gasoline, U.S. Market Unleaded Premium
NY Cargo 283.28283.38 300.14300.24
NY Barge 283.52283.62 300.34300.44
US Gulf Water 277.11277.21 291.41291.51
US Gulf Pipe 275.71275.81 290.16290.26
Group 281.04281.14 292.19292.29
LA Pipeline 203.72204.22 318.06318.16
SF Pipeline 297.01297.11 312.01312.11
Chicago 269.88269.98 284.23284.33
NYMEX Unl 158.13
Conversions either side of asterisks
Product Price Assessments ($/MT)
Cargoes Cargoes CIF Cargoes Barges Cargoes
FOB Med Basis Italy Med Basis Genoa/Lavera CIF NWE Basis ARA FOB Rotterdam FOB NWE
European Bulk
98 RON Unl -984.50-985.00-
Prem Unl -964.50-965.00-
Prem Unl Non Oxy -972.25-972.75-
Gasoline 10ppm -956.75-957.25-
Prem Unl 10 ppm -961.00-961.50- -971.75-972.25-
Eurobob -945.50-946.00-
Reg Unl Non Oxy -958.00-958.50-
MTBE (1) -1113.75-1114.25-
Naphtha Physical -876.00-876.50- -893.50-894.00- -900.25-900.75- -896.25-896.75-
Naphtha Swaps -896.00-896.50-
Jet Kerosene -1013.50-1014.00- -1009.50-1010.00- -1000.75-1001.25-
Jet Av. Fuel -992.75-993.25-
ULSD 10ppm -974.00-974.50- -987.25-987.75- -995.75-996.25- -979.75-980.25-
Diesel 10ppm NWE -998.75-999.25- -982.00-982.50-
Diesel 10ppm UK -999.75-1000.25-
Diesel 10ppm -984.00-984.50-
Gasoil 50 ppm -982.25-982.75-
Gasoil 0.1% -934.50-935.00- -950.25-950.75- -952.75-953.25- -949.50-950.00- -935.00-935.50-
Biodiesel FAME - 10 -1392.00-1397.00-
1% Fuel Oil -650.00-650.50- -662.25-662.75- -656.25-656.75- -650.25-650.75- -645.75-646.25-
3.5% Fuel Oil -623.50-624.00- -635.75-636.25- -625.25-625.75- -629.25-629.75- -612.50-613.00-
380 CST -642.00-643.00-
0.5%-0.7% Straight Run -747.50-748.50-
0.2 PCT Gasoil does not include -5 -15 spec. IPE gasoil GWAVE* (Nov ) 952.50. IPE gasoil GWAVE* (Dec ) 941.50. *The IPE gasoil average data refer to the previous days business
1) MTBE FOB Amsterdam-Rotterdam-Antwerp
Product Price Assessments
New York/Boston Cargo Cargo Ex-Duty Barge
13.5 RVP
Unl 87 +279.12-279.22+ +276.18-276.28+ +279.18-279.28+
Unl 89 +287.61-287.71+ +284.66-284.76+ +287.66-287.76+
Unl 93 +300.34-300.44+ +297.38-297.48+ +300.38-300.48+
12.9 RVP
CBOB +278.06-278.16+ +275.13-275.23+ +278.13-278.23+
Prem CBOB -300.14-300.24- -297.18-297.28- -300.43-300.53-
12.9 RVP
Unl RBOB +279.07-279.17+ +276.13-276.23+ +279.13-279.23+
Prem RBOB +300.84-300.94+ +297.88-297.98+ +300.88-300.98+
Unl RBOB (Boston) +279.57-279.67+
Ethanol NYH (OCT) -284.95-285.05-
Ethanol NYH (NOV) -279.95-280.05-
Duty+RINS*** 2.94
Jet Fuel +303.15-303.25+ +304.40-304.50+
LS Jet/Kero +311.90-312.00+ +312.90-313.00+
ULS Kero +319.65-319.75+ +320.65-320.75+
LS Jet/Kero(Boston) +313.90-314.00+
ULS Kero (Boston) +321.65-321.75+
No. 2 +301.65-301.75+ +302.65-302.75+
LS Diesel Off-road +303.90-304.00+ +304.90-305.00+
ULSD +305.90-306.00+ +306.90-307.00+
No. 2 (Boston) +303.65-304.25+
LS Diesel Off-road (Boston) +306.65-306.75+
ULSD (Boston) +308.65-308.75+
All RVP references are after ethanol;
$/Bbl 1S strip Differential vs 1S strip
No. 6 0.3%S HiPr +118.00-118.05+ 17.36 -17.41
No. 6 0.3%S LoPr +119.65-119.70+ 19.01 -19.06
No. 6 0.7%S Max +106.50-106.55+ 5.86 -5.91
No. 6 1%S Max +100.65-100.70+ 100.63 -100.65 0.01 -0.06
No. 6 2.2%S Max +101.35-101.45+ 0.71 -0.81
No. 6 2.2%S Max (Bstn) +101.45-101.55+
No. 6 3.0%S Max +101.30-101.40+ 0.66 -0.76
No.6.1S Max Pap. BAL M NA -NA
No. 6 1.0%S Pap. 1st M +100.69-100.71+
No. 6 1.0%S Pap. 2nd M +100.54-100.56+
No. 6 1.0%S Pap. Qtrly +100.09-100.11+
**This assessment reflects 150 max al+si.*These assessments reflect gasoline cargoes sold on a
delivered, ex-duty basis New York, excluding import duty, import taxes/fees, and Renewable Identifica-
tion Number (RINS) credits. ***This assessments reflects import duty, import fees, and the value of
RINS credits for a gasoline cargoes sold into New York Harbor. The RINS value is derived from Platts
assessments of prompt calendar-year RINS.
U.S. Buckeye Pipeline
13.5 RVP
Unl 87 +279.18-279.28+
Unl 89 +287.66-287.76+
Unl 93 +300.38-300.48+
12.9 RVP Laurel 12.9 RVP
Unl RBOB +279.13-279.23+ Unl CBOB +280.13-280.23+
Prem RBOB +300.88-300.98+ Prem CBOB -302.43-302.53-
12.9 RVP
CBOB +278.13-278.23+
CBOB Prem -300.43-300.53-
No.2 +302.65-302.75+
ULSD +306.90-307.00+
Jet fuel +304.40-304.50+
LS Jet/kero +312.90-313.00+
All RVP references are after ethanol;
U.S. Gulf Coast Waterborne Pipeline
11.5 RVP
c/Gal Unl 87 +273.83-273.93+ +272.58-272.68+
Unl 89 +279.57-279.67+ +278.32-278.42+
Prem Unl 93 -288.18-288.28- -286.93-287.03-
13.5 RVP RBOB 83.7 +272.33-272.43+
13.5 RVP RBOB 91.4 -286.68-286.78-
11.5 RVP Atl.CBOB 87 +272.53-272.63+
11.5 RVP Atl.CBOB 93 -286.88-286.98-
11.5 RVP CBOB 87 +272.28-272.38+
11.5 RVP CBOB 93 +286.63-286.73+
Ethanol*** 286.50-286.60
MTBE -317.70-317.80-
Alkylate** 26.95-27.05
Naphtha +264.33-264.43+
Naphtha Barge +265.33-265.43+
Hvy Naphtha +265.33-265.43+
Hvy Naphtha Barge +266.33-266.43+
Paraffinic Naphtha (barge)($/mt)+898.18-898.55+
Paraffinic Naphtha diff.(a) 11.00
Naphtha differential** -9.50
Naphtha Barge differential** -8.50
Heavy Naphtha differential** -8.50
Heavy Naphtha Barge diff** -7.50
Jet/Kero 54 +304.90-305.00+ +303.90-304.00+
Jet/Kero 55 +309.90-310.00+ +308.90-309.00+
ULS Kero +312.90-313.00+ +311.90-312.00+
No. 2 +299.90-300.00+ +298.90-299.00+
LS Diesel +302.20-302.30+
LS Diesel off-road +302.20-302.30+ +301.20-301.30+
ULSD +303.40-303.50+ +302.40-302.50+
Biodiesel (99.9%)**** -466.95-467.05-
$/Bbl 3S strip Differential vs 3S strip
Slurry Oil +104.45-104.55+ 4.72 -4.82
No. 6 1.0%S 6 API +105.50-105.60+ 5.77 -5.87
No. 6 3.0%S +102.75-102.85+ 99.72 -99.74 3.02 -3.12
RMG 380 +104.60-104.70+ 4.87 -4.97
No. 6 3.0%S Pap Bal M NA- NA
No. 6 3.0%S Pap. 1st M +99.14-99.16+
No. 6 3.0%S Pap. 2nd M +98.19-98.21+
No. 6 3.0%S Pap. Qtrly +96.94-96.96+
**=Premium to Gulf Coast waterborne Unl 87. ***=FOB Tank Houston 5-15 days. ****=Truck or rail
delivered Houston. (a)=Differential to Mt.Belvieu Non-Targa Natural Gasoline.
U.S. Gulf Coast Pipeline Cycles
Gasoline 11.5 RVP Cycle Cycle
Unl-87 59 +272.58-272.68+ 62 +271.61-271.71+
Unl-87 60 +272.33-272.43+ 63 +271.36-271.46+
Unl-87 61 +271.86-271.96+ 64 +271.11-271.21+
Prem 93 59 -286.93-287.03- 62 +285.96-286.06+
Prem 93 60 -286.68-286.78- 63 +285.71-285.81+
Prem 93 61 -286.21-286.31- 64 +285.46-285.56+
Distillates
No. 2 59 +298.90-299.00+ 62 +298.88-298.98+
No. 2 60 +298.90-299.00+ 63 +298.88-298.98+
No. 2 61 +298.88-298.98+ 64 +298.88-298.98+
Jet Kero 58 +303.90-304.00+ 61 +303.88-303.98+
Jet Kero 59 +303.90-304.00+ 62 +303.88-303.98+
Jet Kero 60 +303.90-304.00+ 63 +303.88-303.98+
ULSD 58 +302.40-302.50+ 61 +302.78-302.88+
ULSD 59 +302.60-302.70+ 62 +302.78-302.88+
ULSD 60 +302.80-302.90+ 63 +302.78-302.88+
Chicago Pipeline
13.5 RVP
c/Gal Unleaded 87 +269.38-269.48+
Unleaded 89 +274.88-274.98+
Prem. Unl 93 +283.13-283.23+
CBOB +268.13-268.23+
PBOB +283.13-283.23+
RBOB +269.38-269.48+
Jet Fuel +304.35-304.45+
LS DIesel Off-road +302.40-302.50+
ULSD +302.65-302.75+
Ethanol (terminal) -276.50-276.60-
Biodiesel (99.9%) (truck/rail) -476.95-477.05-
ULS No. 1 +317.65-317.75+
Latin America, FOB
$/Bbl
Argentina Ecuador
Gasoline84 +106.61-106.65+ Naphtha +102.62-102.66+
Gasoil* +134.36-134.40+ FO2.2%S +93.47-93.57+
FO0.7%S +102.05-102.10+ Peru
Brazil Naphtha +103.11-103.15+
FO0.5-0.6%S +102.65-102.70+ FO2.0%S +95.07-95.12+
Ethanol (cts/gal) -335.74-335.84- FO1.6%S +94.57-94.62+
Colombia
FO1.75%S +92.57-92.62+
*Argentina gasoil is assessed CIF Buenos Aires
Atlantic Resid/Contract Cargoes Posted Prices
No. 2 Barge No. 4 Fuel No. 6 Fuel
Castle
New York 0.2%S (cents/gal) 326.00
New York 0.3% ($/barrel) 139.85 137.35
Global
Albany 1.5% 119.35
Boston 0.5% 146.40 140.10
Boston 1.0% 139.20 126.60
Boston 2.2% 114.85
Portland 1.5% 139.20 118.60
Providence 1.0% 139.20 126.60
Caribbean Cargoes, FOB $/MT c/Gal
Naphtha +843.69-844.04+ +238.33-238.43+
Jet Kerosene +1029.96-1030.29+ +307.45-307.55+
Gasoil +923.24-923.54+ +302.70-302.80+
$/Bbl No.6 2.0%S +94.35-94.45+
No.6 2.8%S +93.30-93.40+
Group Three
11.5 RVP
c/Gal Unleaded +280.28-280.38+
Prem. Unleaded +291.03-291.13+
ULSD +307.35 -307.45+
Jet Fuel +306.85-306.95+
ULS No. 1 +322.35-322.45+
Spot Tanker Rates
DIRTY
Route Size WS Rate Route Size WS Rate
(MT) ($/MT) (MT) ($/MT)
Carib/USAC 70k +113 +9.29 AG/Asia 80k +105 +19.34
Carib/USGC 50k 120 9.38 AG/USGC 270k +33 +13.13
Med/Med 80k +145 +7.93 AG/Asia 260k +47 +8.66
Med/USGC 80k 95 18.90 UKC/UKC 80k +120 +7.63
Med/USGC 135k 85 16.91 UKC/USGC 135k 88 15.66
WAF/USGC 130k -98 -20.37 UKC/USAC 80k 111 14.63
CLEAN
Route Size WS Rate Route Size WS Rate
(MT) ($/MT) (MT) ($/MT)
Carib/USAC 30k 196 14.88 AG/India 30k -190 -13.22
Carib/USGC 30k 196 15.84 AG/Japan 30k -160 -36.46
Carib/UKC 30k +165 +25.92 AG/Japan 55k -111 -25.30
Med/UKC 30k +170 +19.38 AG/Japan 75k -113 -25.75
Med/USAC 33k -160 -25.34 UKC/UKC 22k 218 12.69
Med/Med 30k +165 +8.96 UKC/USAC 37k -142 -19.04
Sing/HK 30k -365 -12.17 UKC/USGC 37k -142 -26.53
Sing/Japan 30k 152 17.12 BSea/Med 30k +175 +19.02
Caribbean Product Postings (cts/Gal)
Exxon Shell
Curacao West Petrotrin Chevron
Effective Date 10/14 10/14 10/14
Avgas 100/130 413.00 463.00 600.00 W
98 Oct. Unl 306.00 310.00
95 Oct. Unl 301.00 304.00 307.00 W
92 Oct Unl 273.50
87 Oct. Unl 292.00 294.00 W
83 Oct Unl 269.50
Dpk/Jet 316.00 317.00 320.00 W
45 Cet 0.5%S Gasoil 311.00 316.00 316.00 W
LS Gasoil 319.00
ULS Gasoil 322.00
Heavy Fuel Oil ($/BBL) 107.00 107.00 110.00 W
W=withdrawn effective July 1, 2010
PLATTS Index
Jet Kerosene* 349.22 -1.89
Gasoline 392.51 0.06
Gasoil 565.44 -0.51
Naphtha 605.49 -10.01
Resid 772.72 -5.06
Atlantic Sweet Crude 690.23 -15.01
Mediterranean Sour Crude 731.82 -16.31
PG/Asia Crude 737.15 -23.13
U.S.Pipeline Crude 566.16 12.38
Platts Indexes reflect the value of baskets of various grades of crude and oil products with reference
to a base period equal to 100, using average prices for the period Jul 1987-Dec 1988. Indexes have
been published since July 1990. No adjustment is made for inflation. *=Jet Fuel Index based on Index
value 2000 = 100%.
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]
API Weekly Summary
14OCT11 07OCT11 15OCT10 16OCT09
District 1 Stocks (million barrels)
Crude 12.142 12.441 11.436 13.510
Total Mogas 53.448 55.041 56.136 56.398
Conventional Mogas 10.247 9.311 11.205 18.834
Blending Components 43.089 45.677 44.853 37.464
Kero Jet 11.689 12.342 11.982 11.814
Dist < 15 ppm 25.751 25.482 26.214 23.413
Dist >15<500 ppm 3.442 3.373 4.961 7.543
Dist >500 ppm 30.666 30.982 43.261 42.681
Dist >500 ppm New England 9.403 9.253 10.799 11.927
Distillate 59.859 59.837 74.436 73.637
Resid 10.653 11.213 16.501 13.480
Crude 93.614 94.279 91.426 78.235
Crude Cushing, Oklahoma 31.091 30.519 34.069 26.104
Total Mogas 49.150 48.674 54.912 49.505
Kero Jet 8.448 8.526 7.808 8.227
Dist < 15 ppm 24.563 25.486 23.781 27.272
Dist >15<500 ppm 1.304 1.335 1.275 3.039
Dist >500 pp 1.401 1.318 3.094 1.650
Distillate 27.268 28.139 28.150 31.961
Resid 1.408 1.437 1.068 1.038
Crude 166.556 168.464 188.145 181.933
Total Mogas 71.995 72.302 77.537 70.108
Kero Jet 14.911 15.087 17.848 15.159
Dist <15 ppm 37.330 39.042 38.499 33.118
Dist >15<500 ppm 3.913 3.863 3.670 7.122
Dist <500 ppm 5.427 5.738 5.108 5.830
Distillate 46.670 48.643 47.277 46.070
Resid 15.822 16.486 17.116 14.645
Crude 16.346 16.582 16.861 15.336
Total Mogas 6.507 6.514 6.859 5.968
Kero Jet 0.774 0.713 1.017 0.539
Dist < 15 ppm 2.620 2.556 2.826 2.991
Dist >15<500 ppm 0.162 0.145 0.225 0.203
Dist >500 pp 2.782 2.701 3.051 3.194
Distillate 2.983 2.893 3.189 3.305
Resid 0.263 0.259 0.174 0.172
Crude 48.640 48.658 56.949 54.027
Total Mogas 28.464 28.675 29.302 27.849
Kero Jet 9.886 10.212 8.118 9.407
Dist < 15 ppm 11.068 10.478 9.870 9.566
Dist >15<500 ppm 0.872 0.922 1.144 1.135
Dist >500 pp 0.986 0.988 1.249 1.337
Distillate 12.926 12.388 12.263 12.038
Resid 5.595 5.826 4.714 3.896
Total US Stocks (million barrels)
Crude 337.298 340.424 364.817 343.041
Total Mogas 209.564 211.206 224.746 209.828
Kero Jet 45.708 46.880 46.773 45.146
Dist < 15 ppm 101.332 103.044 101.190 96.360
Dist>15<500 ppm 9.693 9.638 11.275 19.042
Dist >500 ppm 38.681 39.218 52.850 51.609
Distillate 149.706 151.900 165.315 167.011
Resid 33.741 35.221 39.573 33.231
Total US Inputs, Imports, Production (million b/d)
Crude Inputs 14.238 14.243 13.781 14.187
Crude Imports 8.935 9.272 8.605 8.545
Mogas Imports 0.054 0.052 0.069 0.143
Distilate Imports 0.153 0.193 0.148 0.136
Mogas Production 9.235 9.227 9.165 8.808
Distilate Production 4.536 4.485 4.079 4.003
West Coast Pipeline
California Los Angeles(a) San Francisco(b)
c/Gal Unl 87/84 -299.68-299.78- -293.43-293.53-
Prem Unl 91 -314.68-314.78- -308.43-308.53-
CARBOB Unl -303.93-304.03- -297.68-297.78-
CARBOB Prem -311.93-312.03- -305.68-305.78-
Jet Fuel +308.65-308.75+ +308.65-308.75+
ULS (EPA) Diesel +316.15-316.25+ +315.40-315.50+
CARB Diesel +317.15-317.25+ +316.40-316.50+
$/MT 180 cst -692.00-697.00- -695.00-700.00-
380 cst -662.00-667.00- -665.00-670.00-
Differential to NYMEX
CARBOB 27.45-27.55
CARBOB Paper 1-mo 12.75-13.25
CARBOB Paper 2-mo 9.50-10.00
Jet Fuel 5.20-5.30
ULS (EPA) Diesel 12.70-12.80
CARB Diesel 13.70-13.80
Other West
Phoenix(j)
RBOB Unl -302.18-302.28-
RBOB Prem -310.18-310.28-
Southern California Rail Car Assessments
Ethanol Prompt 7-14 days +292.95-293.05+
Ethanol Forward 15-30 days +290.95-291.05+
North California Rail Car Assessments
Ethanol Prompt 7-14 days +292.95-293.05+
Ethanol Forward 15-30 days +290.95-291.05+
Northwest Portland (c) Seattle (d)
c/Gal Unl 87 -314.43-314.53- -313.28-313.38-
Prem Unl 91 -325.43-325.53- -324.28-324.38-
Jet Fuel +308.65-308.75+
LS (EPA) Diesel +332.15-332.25+ +331.00-331.10+
ULS (EPA) Diesel 333.15-333.25 332.00-332.10
$/MT 180 cst +713.00-715.00+ +677.00-679.00+
380 cst +683.00-685.00+ +647.00-649.00+
WEST COAST PIPELINE NOTES:(a)=84/91 octane RVP is 10.0; CARBOB RVP is 6.0; Clear reflects Ari-
zona/Las Vegas specs. (b)= 87/91 octane RVP 10.5; CARBOB RVP is 6.0; Clear reflects Nevada specs.
(c)=RVP is 13.5; (d)=RVP is 13.5; (e)=87 octane;(f)=84 octane; (g)=91 octane; (h)=92 octane; (j)=RVP
is 8.0;
West Coast Waterborne
c/Gal Unl 87 -298.68-298.78-
Jet Fuel +307.65-307.75+
$/Bbl Gasoil 0.05%S +132.37-132.39+
No. 6 0.5%S -107.64-107.66-
No. 6 1.0%S -107.14-107.16-
No. 6 2.0%S -104.64-104.66-
Gas Liquids (c/Gal)
Mont Belvieu Conway Other Hubs
Ethane/Propane +92.950-93.050+ -37.950-38.050-
Ethane Purity +96.200-96.300+
Propane -149.750-149.850- -136.950-137.050-
Propane LST -149.900-150.000-
Normal Butane +187.500-187.600+ +153.700-153.800+
Butane LST +183.500-183.600+
Isobutane +212.500-212.600+ +189.700-189.800+
Isobutane LST +213.500-213.600+
Natural Gasoline +202.000-202.100+
Natural Gasoline LST +240.700-240.800+
Natural Non-Targa +233.200-233.300+
Natural Targa +238.200-238.300+
Bushton Propane -137.100-137.200-
Hattiesburg Propane -152.900-153.000-
River Natural Gasoline +235.200-235.300+
US Renewable Identification Number
Calendar-Year 2010 0.30-0.40
RIN Calendar-Year 2011 2.00-2.10
Arab Gulf, FOB
$/M T $/Bbl
Naphtha -871.84-874.09- Kerosene -122.52-122.56-
Naphtha LR2 -872.66-874.91- Kerosene LR2 -122.49-122.53-
HSFO 180 cst -653.55-653.59- Gasoil 0.05%S -120.92-120.96-
HSFO 380 cst -648.77-648.81- Gasoil 0.25%S -120.02-120.06-
95 RON Unleaded -121.30-121.34- Gasoil -119.12-119.16-
Gasoil LR2 -119.08-119.12-
Asia Product Premium/Discount Assessments
MOP* MOP* MOP*
Singapore Arab Gulf Japan
Jet -0.200.24- 1.78- 1.82
Gasoil 0.25%S +1.151.19+ 2.38- 2.42
Gasoil Reg 0.5% -0.09-0.13- 1.48- 1.52
380 CST +13.42-13.46+ +-4.80-4.76+**
Naphtha 0.95- 1.05 2.75- 3.25
HSFO 180 CST 12.25- 12.75
HSFO 380 CST 12.25- 12.75
MOP* West India MOP* West India
($/mt) ($/barrel)
Gasoline (92 RON) 1023.71 120.44
Gasoline (95 RON) 1026.61 122.22
Naphtha 873.54 97.06
Jet kero 970.07 122.79
Gasoil (10ppm) 932.57 122.39
Gasoil (500ppm) 902.72 121.17
Gasoil (2500ppm) 897.43 120.46
*Mean of Platts. **=Differential to FOB Arab Gulf HSFO 180 CST.
Asia C&F Japan Singapore* C+F Australia
$/Bbl Mogas Unl -124.54-124.58-
Mogas 92 Unl -122.16-122.20- -126.56-126.60-
Mogas 95 Unl -123.96-124.00- -128.36-128.40-
Mogas 97 Unl -127.61-127.65-
$/MT MTBE -1149.00-1151.00-
Naphtha -901.00-903.25- -98.33-98.37-
Naphtha 30-45 -904.50-905.00-
Naphtha 45-60 -902.75-903.25-
Naphtha 60-75 -901.00-901.50-
$/Bbl Jet Kerosene -125.60-125.64- -124.65-124.69- -129.38-129.42-
Gasoil -125.26-125.30-
Gasoil 0.05%S -123.14-123.18-
Gasoil 0.25%S -122.43-122.47-
Gasoil 0.5%S -121.37-121.41-
Gasoil 10ppm -124.31-124.35- -129.33-129.37-
Gasoil 50ppm -123.95-123.99-
Gasoil 50ppm 0.5% +2.67-2.71+
Naphtha Pap. (Bal Month) NA-NA
Naphtha Pap.(NOV ) -97.83-97.87-
Naphtha Pap.(DEC ) -97.48-97.52-
Kerosene Pap.(Bal Month) NA-NA
Kerosene Pap.(NOV ) -124.38-124.42-
Kerosene Pap.(DEC ) -124.08-124.12-
Gasoil 0.5% Pap.(Bal Month) NA-NA
Gasoil Pap.(NOV ) -121.19-121.23-
Gasoil Pap.(DEC ) -120.80-120.84-
$/MT FO 180 cst 2% -695.07-695.11-
HSFO 180cst -680.51-680.55- -667.57-667.61-
180cst Disc/Premium -11.03-11.07-
HSFO 380cst -662.79-662.83-
HSFO 180cst Pap (Bal Month) NA-NA
HSFO 180cst Pap.(NOV ) -655.03-655.07-
HSFO 180cst Pap.(DEC ) -646.78-646.82-
Biodiesel FOB Southeast Asia**-1071.49-1071.59-
*Singapore Naphtha priced in $/Bbl; **Loadings in Southeast Asia normalized to Singapore, Pasir
Gudang and Dumai
Indonesia FOB Indonesia Spot prem/disc
$/Bbl LSWR Mixed/Cracked -110.13-110.17- +11.73-11.77+
China
$/MT South China FOB South China, C&F Hong Kong
Unl 90 RON -1031.00-1035.00-
Unl 93 RON -1051.00-1055.00-
Jet Kerosene -990.75-994.75-
Gasoil 0.2% -919.75-923.75-
Gasoil L/P 0.5%S -911.50-915.50-
Fuel Oil 180 cst -692.00-693.00-
Fuel Oil 380 cst -663.18-663.38- -686.00-687.00-
Marine Diesel -929.50-930.50-
Platts Euro denominated product assessments
Cargoes CIF NWE/Basis ARA (Euro/mt) Barges FOB Rotterdam (Euro/mt)
Nap Phy 657.74 - 658.11 Prem Unl 704.68 - 705.05
Jet 740.48 - 740.85 10 PPM 718.93 - 719.30
Gasoil 0.1% 693.72 - 694.09
3.5% 459.74 - 460.11
Cargoes FOB NWE(Euro/mt)
1% 471.80 - 472.16
Conventional cargoes NY harbor (Euro/gallon)
Unleaded 87 198.91 - 198.98
Unleaded 89 203.90 - 203.97
Unleaded 93 211.38 - 211.46
No. 2 217.45 - 217.53
Euro/US$ forex rate: 1.3687 .Platts Euro denominated European & US product assessments are
based on market values and a Euro/US$ forex rate at 4:30 PM local London time.
WTI (NOV) +88.78-88.80+
WTI (DEC) +88.97-88.99+
WTI (JAN) +89.11-89.13+
Dated Brent 112.69/112.71
WTI EFP (NOV) -0.01/ 0.01
WTI EFP (DEC) -0.01/ 0.01
WTI EFP (JAN) -0.01/ 0.01
Mars (NOV) +109.68-109.70+
Mars (DEC) +109.82-109.84+
Mars (JAN) +109.76-109.78+
Mars/WTI (NOV) 20.89-20.91
Mars/WTI (DEC) 20.84-20.86
Mars/WTI (JAN) 20.64-20.66
P-Plus WTI +3.13-3.15+
P-5 WTI 84.89
WTI-Delta +-0.250.23+
Kern River -108.14-108.16-
Thums -109.94-109.96-
Line 63 +117.94-117.98+
P-Plus Line 63 1.39-1.41
United States $/Bbl
Spread vs WTI
WTI Midland +88.28-88.30+ -0.510.49
LLS (1st month) +114.28-114.30+ 25.4925.51
LLS (2nd month) +112.72-112.74+ 23.7423.76
HLS(1st month) +114.18-114.20+ 25.3925.41
HLS(2nd month) +112.62-112.64+ 23.6423.66
Spread vs WTI
WTS(1st month) +88.06-88.08+ -0.73-0.71
WTS(2nd month) +87.95-87.97+ -1.03-1.01
Poseidon +108.03-108.05+ 19.2419.26
Eugene Island +113.18-113.20+ 24.3924.41
Thunder Horse Bld+111.68-111.70+ 22.8922.91
Wyo.Sweet +85.28-85.30+ -3.51-3.49
Spread vs WTI
ANS (Cal) +112.91-112.95+ 23.9223.94
Basrah Lt +109.82-109.84+ 20.8420.86
Bonito +112.68-112.70+ 23.8923.91
SGC +108.43-108.45+ 19.6419.66
Oman/Dubai Swap (NOV)* 0.38- 0.42
Oman/Dubai Swap (DEC)* 0.41- 0.45
Oman/Dubai Swap (JAN)* +0.50-0.54+
Oman cash/OSP (DEC) -2.21-2.25-
North Sea Spread vs fwd DTD Brent
NS DTD Strip -110.34-110.35-
BNB -110.83-110.86- 0.49 -0.51
Forties -110.26-110.29- -0.080.06
Ekofisk -112.98-113.01- 2.64-2.66
Statfjord -112.37-112.40- 2.03-2.05
Oseberg -113.03-113.06- 2.69-2.71
Statfjord(CIF) -113.38-113.41- 3.04-3.06
Gullfaks (CIF) -114.33-114.36- 3.99-4.01
Flotta -109.53-109.56- -0.81-0.79
London Brent CFD Dated Swap
1wk (DEC) 0.98-1.00- 110.50-110.54
2wk (DEC) 0.98-1.00- 110.50-110.54
3wk (DEC) 0.84-0.86- 110.36-110.40
4wk (DEC) 0.59-0.61- 110.11-110.15
5wk (DEC) 0.26-0.28- 109.78-109.82
6wk (DEC) -0.040.02- 109.48-109.52
7wk (DEC) -0.340.32 109.18-109.22
8wk (DEC) -0.64-0.62 108.88-108.92
West Africa Spread vs fwd DTD Brent
WAF DTD Strip -109.63-109.64-
Brass River -112.48-112.54- 2.85 -2.90
Forcados -113.38-113.44- 3.75 -3.80
Agbami -111.08-111.14- 1.45-1.50
Escravos -112.13-112.19- 2.50 -2.55
Qua Ibo -112.93-112.99- 3.30 -3.35
Bonny Light -112.43-112.49- 2.80 -2.85
Girassol -111.35-111.42- -1.601.65-
Hungo -108.05-108.12- 1.70-1.65-
Kissanje -109.20-109.27- 0.55-0.50-
Angola DTD Strip -109.75-109.77-
Cabinda -109.90-109.97- 0.15 0.20
Nemba -109.90-109.97- 0.150.20
Dalia -107.65-107.72- -2.10-2.05
Canada Spread vs fwd DTD Brent
Can DTD Strip -109.41-109.42-
Terra Nova -111.41-111.52- 2.00 -2.10
Hibernia -111.47-111.52- +2.06- 2.10-
White Rose -112.26-112.37- 2.85 -2.95
Mediterranean Spread vs fwd DTD Brent
MED DTD Strip -110.16-110.17-
BTC DTD Strip -110.05-110.07-
Urals (Rdam) -109.51-109.56- -0.65-0.61
Urals (Med) -108.69-108.74- -1.47-1.43
Urals FOB Ven -108.38-108.43- -1.78-1.74
Urals FOB Novo -106.51-106.56- 3.65-3.61-
Urals FOB Novo 80KT-106.49-106.54- 3.67-3.63-
Urals (Primorsk) -108.33-108.38- -1.83-1.79
Urals (RCMB) -108.80-108.85-
Iran Lt (Sidi) -108.47-108.54- -1.69-1.63
Iran Hvy(Sidi) -106.77-106.84- -3.39-3.33
Es Sider -109.93-109.98- -0.23-0.19
Siberian Lt -111.06-111.12- -0.90-0.95-
Saharan Bld -111.66-111.72- 1.50 1.55
Azeri Lt -113.48-113.54- 3.43- 3.47
Azeri Lt FOB -111.61-111.67- -1.561.60-
Azeri Lt FOB 80KT -111.64-111.71- -1.591.64-
BTC FOB Ceyhan -112.04-112.10- -1.992.03-
Suez Blend -105.47-105.52- -4.69-4.65
Kirkuk -107.19-107.24- -2.97-2.93
Kumkol -112.14-112.19- 1.98- 2.02
Zarzaitaine -111.81-111.87- 1.65- 1.70
Syrian Hvy -106.29-106.34- 3.87-3.83-
Syrian Lt -110.09-110.14- 0.07-0.03-
CPC Blend CIF -110.34-110.39- 0.18 0.22
CPC Blend FOB -108.35-108.40- 1.81-1.77-
CPC FOB 80KT -108.34-108.39- 1.82-1.78-
Urals CFD Dtd Brent Swap
1mo(Nov) -109.38/109.43- 0.89/-0.85-
2mo(Dec) -109.38/109.43- +-0.89/-0.85+
Brent (NOV) -110.82-110.84-
Brent (DEC) -109.52-109.54-
Brent (JAN) -108.28-108.30-
Brent (DTD) -110.27-110.28-
NS Basket -111.78-111.81-
DTD NSL -110.27-110.28-
Dubai (DEC) -105.75-105.77-
Dubai (JAN) -104.96-104.98-
Dubai (FEB) -104.15-104.17-
MEC (DEC) -105.75-105.77-
MEC (JAN) -104.96-104.98-
MEC (FEB) -104.15-104.17-
Brent EFP (NOV) NA- NA
Brent EFP (DEC) 0.31-0.33+
Brent EFP (JAN) 0.31-0.33+
Dubai (NOV)* -104.95-104.99-
Dubai (DEC)* -104.14-104.18-
Dubai (JAN)* -103.34-103.38-
BRENT/WTI 1st -24.1524.17-
BRENT/WTI 2nd -22.6622.68-
BRENT/WTI 3rd -21.2521.27-
Oman (DEC) -106.99-107.01-
Oman (JAN) -105.36-105.38-
Oman (FEB) -104.58-104.60-
MOG (NOV)* -105.35-105.39-
MOG (DEC)* -104.57-104.61-
MOG (JAN)* -103.86-103.90-
Asia $/Bbl
Brent (NOV) -111.28-111.32-
Brent (DEC) -109.68-109.72-
Brent (JAN) -108.30-108.34-
Brent(DTD) -111.27
Brent/Dubai -3.93-3.95-
WTI(NOV) -85.94-85.98-
WTI(DEC) -86.14-86.18-
WTI(JAN) -86.30-86.34-
Crude price assessments ($/bbl)
International *Swaps
Diff to
Assessment Diffs Dated Brent Assessment
(Asian MOC) (Asian MOC) (Asian MOC) (London MOC)
Condensate
NW Shelf 107.28-107.32 -3.97 106.31
Ras Gas 106.74-106.78 2.55/2.65*** -4.51 105.77
Qatar LSC 105.34-105.38 1.15/1.25*** -5.91 104.37
South Pars -103.74-103.78- -0.45/-0.35*** -7.51 102.77
Senipah 108.80-108.84 0.30/0.40** -2.45 107.83
Light
Cossack 113.65-113.69 2.40 112.68
Gippsland 113.57-113.61 2.32 112.60
Tapis 117.23-117.27 5.98 116.26
Belida 114.59-114.63 3.27/3.37** 3.34 113.62
Kutubu 115.32-115.36 4.07 114.35
Handil Mix 114.49-114.53 2.41/2.51** 3.24 113.52
Attaka 115.48-115.52 2.93/3.03** 4.23 114.51
Vityaz Blend -109.87-109.91- 5.68/5.78 -1.38 108.90
Ardjuna 111.82-111.86 1.36/1.46** 0.57 110.85
Sokol 112.45-112.49 8.45/8.55^ 1.20 111.48
Kikeh 119.64-119.68 8.39 118.67
Miri Light 118.54-118.58 7.29 117.57
Labuan 118.98-119.02 7.73 118.01
** Differential to ICP, *** Differential to Dubai, ^ Differential to Oman/Dubai
Diff to ICP
Medium
Nanhai 110.65-110.69 -0.60 109.68
Su Tu Den -110.89-110.93- 1.73/1.83 * -0.36 109.92
Minas 111.01-111.05 1.22/1.32 -0.24 110.04
Nile Blend 106.91-106.95 -2.88/-2.78 -4.34 105.94
Bach Ho 112.55-112.59 2.41/2.51* 1.30 111.58
Widuri 110.28-110.32 1.50/1.60 -0.97 109.31
Daqing 107.90-107.94 -3.35 106.93
Cinta 110.35-110.39 1.57/1.67 -0.90 109.38
* Differential to Bach Ho OSP
Heavy
Dar Blend -101.51-101.55- -9.74 100.54
Shengli 107.78-107.82 -3.47 106.81
Stybarrow -118.25 6.98 117.26
Enfield -119.51 8.24 118.52
Duri 108.45-108.49 3.22/3.32 -2.80 107.48
Vincent -114.35 3.08 113.36
Spread vs OSP
Murban 109.23-109.27 0.20/0.30
Lower Zakum 108.93-108.97 0.20/0.30
Upper Zakum 105.74-105.78 0.40/0.50
Umm Shaif 108.48-108.52 0.20/0.30
Qatar Land 108.39-108.43 0.30/0.40
Qatar Marine 106.49-106.53 0.45/0.55
Banoco Arab Medium 105.91-105.95 0.15/0.25
Al Shaheen 106.69-106.73 2.50/2.60*
* Differential to Dubai
Asia-Pacific / Middle East spot crude assessments ($/barrel)
Diff to Diff to
Assessment ICP Dated Brent Assessment
(Asian MOC) (Asian MOC) (Asian MOC) (London MOC)
Medium (cont.)
Crude price assessments cont. ($/bbl)
Spread vs 1st line WTI CMA
Bakken ex-Guernsey 90.17-90.19 1.141.16
Bakken ex-Clearbrook 91.57-91.59 2.542.56
Americas Crude Marker (NOV) 108.03-108.05
ACM (DEC) 108.17-108.19
ACM (JAN) 108.11-108.13
Americas Crude Marker assessed at the Americas market close at 3:15pm Eastern Time.
US domestic crude assessments London close ($/bbl)
spread
WTI (NOV) 86.66-86.68 -0.01/0.01*
WTI (DEC) 86.85-86.87 -0.01/0.01*
WTI (JAN) 87.02-87.04 -0.01/0.01*
LLS (NOV) 112.00-112.04 25.34/25.36**
LLS (DEC) 110.49-110.53 23.64/23.66**
MARS (NOV) 107.25-107.29 20.59/20.61**
MARS (DEC) 106.94-106.98 20.09/20.11**
WTI, LLS, and Mars assessments reflect value at 16:30 London Close.
*=Differential value at 16:30 London close. WTI EFP versus NYMEX light sweet crude futures.
**=LLS and Mars differentials versus same-month cash WTI.
Platts Futures Assessments Singapore MOC
NYMEX RBOB (cts/gal)
Nov 273.23
Dec 269.62
Jan 267.46
NYMEX Heating Oil (cts/gal)
Nov 299.82
Dec 299.55
Jan 298.58
Latin America Crude ($/bbl)
Spread vs WTI
Oriente +106.82-106.94+ -17.85/17.95-
Vasconia +110.82-110.94+ -21.85/21.95-
Roncador +109.82-109.94+ -20.85/20.95-
Escalante +109.62-109.74+ -20.65/20.75-
Loreto +106.32-106.44+ -17.35/17.45-
CanoLimon +111.82-111.94+ -22.85/22.95-
Mesa30 +111.32-111.44+ -22.35/22.45-
SantaBarbara +111.67-111.79+ -22.70/22.80-
Marlim +106.12-106.24+ -17.15/17.25-
Napo +102.82-102.94+ -13.85/13.95-
Castilla Blend +107.32-107.44+ -18.35/18.45-
Canadian Spot Crude Assessments
CD$/CM US$/bbl Spread vs Canada Basis
Lloyd Blend +503.24-503.88+ +78.73-78.83+ +-10.3010.20+
Mixed Sweet +581.23-581.87+ +90.93-91.03+ 1.90-2.00
Light Sour Blend +566.21-566.85+ +88.58-88.68+ +-0.450.35+
Midale +541.92-542.56+ +84.78-84.88+ -4.25/-4.15
Condensates +670.40-671.04+ +104.88-104.98+ +15.85-15.95+
Syncrude Sweet Blend +627.89-628.53+ +98.23-98.33+ +9.20-9.30+
WCS +504.84-505.48+ +78.98-79.08+ +-10.05/-9.95+
Cold Lake +492.06-492.70+ +76.98-77.08+ +-12.05/-11.95+
*Canada Basis: See explanation at http://www.platts.com/
Daily OPEC basket price ($/Bbl)
17Oct 110.13 +1.12
Effective June 16, 2005, the daily OPEC basket price represents an index of the following 11 grades: Algerias Saha-
ran Blend, Indonesias Minas, Iranian Heavy, Iraqs Basra Light, Kuwaits Export, Libyas Es Sider, Nigerias Bonny
Light,Qatars Marine, Saudi Arabias Arab Light, Murban of the UAE and Venezuelas BCF 17.
Daily Canadian Crude Posting Averages.
CD$/CM US$/bbl
Par Crude -599.75-601.75- -93.83-94.14-
Mixed Lt. Sr 511.00-513.00 -79.94-80.26-
Bow River/Hardisty -482.50-484.50- -75.48-75.80-
Lt/Sr Cromer -565.00-567.00- -88.39-88.70-
Sr. Edmonton -565.00-567.00- -88.39-88.70-
Middale Cromer -549.67-551.67- -85.99-86.31-
Platts Euro denominated crude oil assessments (Euro/bbl)
Dated Brent 80.57-80.57 WTI (NOV) 63.32-63.33
Urals (Mediterranean) 79.41-79.45 Mars (NOV) 78.36-78.39
Euro/US$ forex rate: 1.3687 .Platts Euro denominated crude oil assessments are based on
market values and a Euro/US$ forex rate at 4:30 PM local London time.
Futures Settlements
Settlement Low High Change Volume* Open Interest
NYMEX Light Sweet Crude ($/Bbl)
NOV 88.34 85.55 89.03 1.96 227298 69568
DEC 88.53 85.75 89.23 1.91 167203 354298
JAN 88.68 85.95 89.35 1.88 46615 171323
FEB 88.85 86.15 89.50 1.85 24215 64013
Total volume 557972; PNT 28407
NYMEX No.2 Oil (cts/gal)
NOV 302.77 297.00 304.17 1.41 47294 55402
DEC 302.71 296.88 304.10 1.69 38290 65079
JAN 301.97 296.25 303.20 2.01 19260 45454
FEB 300.45 294.99 300.77 2.25 11351 22210
Total volume 143663 ; PNT 16005
NYMEX RBOB unleaded gasoline (cts/gal)
NOV 274.69 268.22 276.90 0.40 46239 49235
DEC 271.73 265.41 273.79 0.82 41235 72267
JAN 269.99 263.90 271.90 1.17 14143 39874
FEB 269.15 263.15 270.85 1.56 6947 16750
NYMEX Natural Gas ($/MMBtu)
NOV 3.553 3.532 3.698 -0.14 149912 101155
DEC 3.788 3.775 3.914 -0.12 91840 134140
JAN 3.927 3.919 4.047 -0.11 47167 234005
FEB 3.946 3.939 4.060 -0.11 13539 69054
Total volume 462412
DME Oman Crude ($/bbl), **
DEC Asia 107.22 -2.81 1763
DEC 108.90 106.50 108.90 1.65 1578 6786
JAN 107.40 105.43 107.40 1.65 0 7
FEB 106.50 106.50 106.50 1.65 0 8
MAR 105.70 105.70 105.70 1.60 0 6
Total volume 1578; PNT 100
ICE Brent ($/Bbl)
DEC 111.15 108.45 111.89 0.99 203733 227237
JAN 109.90 107.22 110.68 1.27 86727 130461
FEB 108.99 106.33 109.60 1.42 39312 82178
MAR 108.21 105.62 108.81 1.52 25995 67209
ICE BWAVE (Brent Weighted Futures Average) ($/Bbl)
DEC (1) 111.51
JAN (1) 110.04
BWAVE data refer to the previous business day.
ICE WTI ($/Bbl)
NOV 88.34 85.57 89.01 1.96 40081 22667
DEC 88.53 85.77 89.22 1.91 52888 113133
JAN 88.68 85.95 89.32 1.88 14670 44617
FEB 88.85 86.21 89.30 1.85 7980 20622
Total volume: 203215
ICE Gasoil ($/Mt)
NOV 936.50 929.00 946.50 -11.25 80502 96281
DEC 927.00 920.25 937.50 -10.25 107798 103793
JAN 947.25 914.25 930.75 17.75 49835 59835
FEB 943.50 909.50 923.25 -8.00 21899 38654
ICE Low Sulphur Gasoil ($/Mt)
JAN 947.25 947.25 947.25 -9.25 50 2382
FEB 943.25 943.25 943.25 -8.25 50 1174
MAR 940.00 940.00 940.00 -7.50 50 1337
APR 936.25 936.25 936.25 -7.00 0 0
Total volume 150
*Volume and open interest reflect prior trading day. PNT reflect volume for Privately Negotiated Trades
or off-exchange; **Oman settlements are Post Close settlements
Platts Futures Assessments 3:15 pm ET
ICE Brent (NOV) US Close 111.63
ICE Brent (DEC) US Close 110.41
CME 2:30 PM ET Platts 3:15 PM ET 2:30 PM vs 3:15 PM
Settlement Futures Assessment Spread
NYMEX Light Sweet Crude ($/barrel)*
Nov 88.34 88.79 0.45
Dec 88.53 88.98 0.45
NA 89.12
NYMEX RBOB (cts/gal)*
Nov 274.69 276.48 1.79
Dec 271.73 273.41 1.68
NA 271.68
NYMEX Heating Oil (cts/gal)*
Nov 302.77 303.45 0.68
Dec 302.71 303.38 0.67
NA 302.56
*These assessments reflect prevailing futures value exactly at 3:15 pm ET
Copyright 2011, The McGraw Hill Companies
14
0
10
20
30
40
Midwest WTI
USGC Mars
USAC Cabinda
USWC ANS
($/barrel)
US Coking Margins 30-day Rolling Average
0
10
20
30
40
Midwest WTI
USGC LLS
USAC Bonny Light
USWC ANS
($/barrel)
US Cracking Margins 30-day Rolling Average
($/barrel)
0
10
20
30
40
30.58
6.61
7.28
13.94
33.34
9.72
8.83
10.71
30.25
3.15
2.89
1.56
31.03
7.71
6.18
4.52
USWC ANS USAC Bonny Light USGC LLS Midwest WTI
23-Sep
30-Sep
07-Oct
14-Oct
US Weekly Average Cracking Margins
-10
0
10
20
30
40
32.05
2.73
7.04
16.65
35.17
5.62
9.09
12.97
31.70
-0.06
3.46
2.73
32.73
3.40
6.43
5.96
USWC ANS USAC Cabinda USGC Mars Midwest WTS
($/barrel)
23-Sep
30-Sep
07-Oct
14-Oct
US Weekly Average Coking Margins
0
1
2
3
4
5
6
ARA Brent
Italy Urals
Singapore Dubai
($/barrel)
International Cracking Margins 30-day Average
-1
0
1
2
3
4
5
6
7
8
2.56
0.01
6.21
2.96
1.61
7.65
-0.17 -0.06
4.26
1.59
1.90
5.06
Singapore Dubai Italy Urals ARA Brent
23-Sep
30-Sep
07-Oct
14-Oct
($/barrel)
International Weekly Average Cracking Margins
Source: Platts and Turner, Mason & Company. Refinery margins are derived from Platts daily spot assessments, and daily coking and cracking netbacks. For additional details,
please contact Jeff Mower at jeff_mower@platts.com.
shutdown of the No. 1 naphtha-fed steam cracker, which was taken
offline on May 12 after a fire broke out at an LPG pipeline.
The No. 1 cracker was finally restarted on September 21. With the
restart of the No. 3 cracker this week, this marks the first time that all
three crackers are up and running together since May 12.
Even so, some traders said naphtha demand from Formosa might
fall short of expectations.
Asia doesnt look good eitherFormosa bought LPG for November
delivery and Japan as a whole has lowered cracker run-rates to 86%,
from 88-90%, one source said. Propylene margins are coming off,
and butadiene as well ... unless they [Formosa] comes out to buy
spot, its hard to see market any stronger.
Market attention turned to ongoing FOB Middle East term discussions.
KPC started its term supply naphtha talks Monday in Singapore, but trade
sources said Tuesday that no price levels have yet been reached.
Market sources said KPC might aim for premiums at around
$25/mt to MOPAG naphtha assessments for the term supply of light
and full range naphtha over its December 2011-November 2012 cycle.
Tankers: Indonesian Aframaxes
hit w100
East of Suez Aframax rates in the Indonesian market hit the World-
scale 100 level Tuesday, after languishing at double-digit levels for
months because of an oversupply of tonnage.
The rate on the Indonesia-Australia route had last hit w100 on May
19, while the Indonesia-Japan/South Korea route was assessed at
w100 on August 11.
The w100 mark was touched when Chevron was reported to have
placed a KLine-owned Aframax vessel for an Indonesia-Australia voy-
age, for an 80,000 mt cargo loading October 26.
Sentiment was bullish in the Southeast Asian Aframax market on
the back of increased inquiries, one broker said. But while the market
was looking firm, there was ample tonnage available for end-October
loading dates, a chartering source said.
Many cargoes that are to be lifted for end October [dates] are
appearing at the same time, the chartering source said, adding that
the current situation will not remain because of the large supply of
tonnage available.
The VLCC market out of the Persian Gulf was steady as owners
continued to put up resistance by targeting the w50 level.
Among fixtures, S-Oil was reported to have taken the Amphitrite for
a Persian Gulf-Onsan voyage, loading October 27-28, at w44.75 basis
273,000 mt.
Japan Energy had the Maersk Hirado on subjects for a Persian
Gulf-Japan voyage, loading October 27-29, at w45 basis 272,500 mt.
The benchmark Persian Gulf-Japan voyage on the VLCC was
assessed at w47, an increase of 1 point.
Freight rates for 30,000 mt fuel oil cargoes from the Black Sea to
the Mediterranean have risen sharply this week on delays through the
Turkish Straits coupled with tight tonnage and an ample availability of
cargoes, sources said Tuesday.
The rise in rates have coincided with more fuel oil cargoes in the
region, and increased delays for tankers passing the Turkish Straits have
pushed rates up by more almost 20 Worldscale point since last week.
Spot freight rates for 30,000 mt fuel oil cargoes from the Black
Sea to the Mediterranean were seen at around w180-185 Tuesday
afternoon, with a few vessels fixed at these levels.
On Monday, this route was assessed at w165.
Fuel oil vessels are taking up to three to four days each way to cross
through the Bosporus and Dardanelles straits because of congestion.
Position lists are every tight, said a shipbroker. Activity is very
firm. At the moment Black Sea is around w185, but could easily grow.
Turkish Straits delays and tight tonnage amid more cargoes are push-
ing freight rates up.
Some of the recent fixtures include the Greenstar, fixed by Mercu-
ria on the Black Sea to Mediterranean at w182.50 on a 30,000 mt
basis. The Kuldiga and Torm Trinity were also heard fixed at w182.5
for end-October loading dates.
Mediterranean fuel oil traders put the increase in freight rates
down to a pick up in activity.
Shipping increased a lot since last week, said one trader.
In the winter months, high sulfur fuel oil exports out of Russia in
the Black Sea increased by around 400,000 mt/month as the winter
navigation period begins and the Volga River freezes over, sources said.
This trend is taking place since last week and the Torm Trinity
was put on subjects from Black Sea at these levels, said another
Med fuel oil trader. Shipping is going a little crazy in the Med now
with very little availability.
West of Suez cleans active
The West of Suez clean tanker market again saw more activity in the
Black Sea, Mediterranean and Caribbean regions Tuesday.
Cross-Mediterranean freight rates continued their upward trend,
assessed up 2 points at Worldscale 165, while the Black Sea to Med
route rose by 3 points to w175.
Continued delays for vessels crossing the Turkish Straits kept
rates on the high side.
Rates for 37,000 mt cargoes traveling from the UKC to US
Atlantic Coast were down by 5 points at w142, with few cargoes for
end-of-October dates. Sources said Statoil put a vessel on subjects
Tuesday morning.
A vessel was put on subjects at w142.5, but I feel the market is even
[lower], said a charterer. There are not many cargoes, and even if the
arbitrage is open there are not many stems. So tonnage is piling up...
The Caribbean-UKC route was up by 5 points at w165 on a 30,000
mt basis, while the Caribbean to the US Atlantic Coast was at w155
for a 38,000 mt cargo.
In the USGC we are seeing good activity, firm freight rates and
tight ship positions, said a source.
There are more cargoes than ships up to the end of the month,
said a shipowner.
The East of Suez LR fell again Tuesday as tonnage availability
remained high.
There were reports of Vitol having an FR8 LR1 vessel on subjects at
Worldscale 110 for a Persian Gulf-Japan voyage, loading end-October.
The benchmark Persian Gulf-Japan LR1 rate was assessed at
(Continued from page 6)
Cross Mediterranean Dirty Tanker Rates
Source: Platts
3
6
9
12
15
Oct-11 Aug-11 Jun-11 Apr-11 Feb-11 Dec-10 Nov-10
($/mt)
Dirty Cross-Med 80kt Prior year
w111, a fall of 1 point.
The LR1 list is horrifying, an LR1 market source said.
But with LR1s seeing an increase in jet cargoes slated for Western
discharge, one source thought the Asian-bound route could get a boost.
Looking at the rush on the Persian Gulf-UK Continent, I am getting
a feeling that the Persian Gulf-Japan [route] is going to pick up, a
broker said.
A few India-to-Europe voyages were reported on the LR2 vessels
for moving gasoil. ST Shipping was heard to have taken an LR2 Pool
ship for a West Coast India-UK Continent voyage, loading November 1,
at $2.125 million to move a 90,000 mt gasoil cargo.
BP had the Belmar on subjects for a similar voyage, loading
November 7, at $2.15 million.
NEWS
Iraq oil output set to hit
3 million b/d by end-October
IstanbulIraqs oil output, now running at some 2.9 million b/d, is at
its highest level since the 2003 ouster of former strongman Saddam
Hussein and is set to hit a new monthly record in October, a top advis-
er to the Iraqi prime minister said October 18.
Iraq could reach 3 million b/d by the end of October, Thamir
Ghadhban, the chairman of the Advisory Commission to the Iraqi Prime
Minister, told the CWC Iraq Mega-Projects conference in Istanbul.
Iraqs output averaged more than 2.9 million b/d in September, a
first since the fall of the previous regime, said Ghadhban, who has
twice served as head of the countrys oil sector since 2003.
Ghadhban added Iraq would produce a further 500,000 b/d of
new oil in 2012.
Iraq has signed 11 technical services contracts for oilfield devel-
opment with international oil companies, including most of the worlds
largest. The contracts were awarded in two bid rounds in 2009 with
the aim of boosting oil production, both short- and long-term.
On paper at least, Iraq has a target of reaching 13.5 million b/d of
production capacity in seven years. But analysts are skeptical the goal
is attainable given the poor state of Iraqs energy infrastructure, its
dicey security situation and many other potential hurdles.
Nonetheless, the Rumaila oil field, Iraqs largest, is pumping
crude at a record rate of 1.3 million b/d, a BP official told Platts
earlier in October. Output from Rumaila is projected to hit 2.85 mil-
lion b/d in six years under a contract the oil ministry signed with BP
and Chinas CNPC.
Ghadhban also said the operators of the Rumaila, West Qurna 1
and Zubair oil fields would drill 300 new wells in a three-year reha-
bilitation period from 2010 to 2013. The operators are to drill 650
new wells in West Qurna 1 alone over the projected 20-year devel-
opment project.
West Qurna 1 is being developed by a consortium led by ExxonMo-
bil, with Shell as the junior partner. Zubairs development is led by
Italys Eni in partnership with South Koreas Kogas and US producer
Occidental Petroleum.Ben Lando
IEA sees oil investment
needs of $10 trillion
ParisGlobal oil investment of $10 trillion will be needed between
now and 2035 to ensure future supply keeps pace with demand, the
International Energy Agencys chief economist, Fatih Birol, said October
18 as other energy officials warned revolutions sweeping the Arab
world could prompt producer country governments to divert funds from
crucial energy projects.
The latest oil investment projection is $2 trillion higher than the
agencys previous projection a year ago and will be among a range
of forecasts in the 2011 World Energy Outlook to be published early
next month.
Birol told a press conference on the sidelines of the IEAs ministe-
rial meeting in Paris that there was a need for total energy investment
of $38 trillion over the period to 2035, around half of which will be
needed for oil and natural gas.
The IEA is forecasting investment requirements of $9.5 trillion for
natural gas, $16.9 trillion for power, $1.1 trillion for coal and $0.3 tril-
lion for biofuels.
This means an annual investment requirement of around $1.5 tril-
lion over the period, Birol said.
Energy security is a key theme for the Paris talks, in which a num-
ber of energy company chiefs are participating as well as all IEA mem-
ber governments and nine partner countries. These include China,
India, Russia and Brazil. The IEAs deputy executive director, Richard
Jones, said the Paris talks represent 75% of world energy consump-
tion and 65% of production.
Oil and gas are the key areas for investment, Birol said. A key
issue we have discussed...is how governments will provide the right
investment framework.
Also among the topics on the table has been the implications of
the so-called Arab Spring for investment, he said.
Key to meeting future demand will be investment in the Middle
East and North Africa (MENA), because about 90% of [production]
growth in the next 10 years needs to come from MENA, Birol said.
And if it doesnt come through it will have major implications for
oil prices, he said.
We shouldnt forget that in many producing countries produc-
tion is declining, Birol said, stressing the need to compensate for
these declines.
But Birol also said there were some signs of reluctance to carry
out the necessary investment, which could mean much higher prices
than we see today. He declined, however, to say how high prices might
rise if there was not enough investment to meet future needs.
The IEAs next World Energy Outlook will take into account this
anticipated decline in investment in OPEC countries to meet demand
needs, he said, adding that should the investment be jeopardized,
then targets would not be met.
Shell, according to its chairman, Jorma Ollila, believes that the
world will need to produce 40 million b/d in 2020 from new fields that
have not been developed yet. That is about four times what Saudi Ara-
bia produces today or 10 times combined UK and Norwegian produc-
tion from the North Sea.
US Energy Secretary Steven Chu told the meeting that the rising
ing capacity before the first quarter of 2012 and India is expected to
have at least 300,000 b/d capacity coming on stream by the end of
the year, a trader said.
Essar Oil is in the process of expanding its Vadinar refinery from
the current 10 million mt/year (200,000 b/d) to 18 million mt/year.
Oman oil production now stands at 870,000 to 880,000 b/d.
Asian crude oil buyers
(continued from page 1)
Some is used domestically at Omans two refineries; the rest is
exported. China is the biggest importer of Oman crude in Asia, fol-
lowed by Japan and Thailand.
Petroleum Development Oman, which has more than 90% of the
countrys crude production, is owned by the Oman government (60%),
Royal Dutch Shell (34%), Total (4%) and Middle Eastern oil and gas
company Partex (2%).
Oman crude prices are used as a benchmark to price crude pro-
duced in the Middle East and Russia.Wendy Cheong
costs of producing oil from less accessible areas and the fact that
oil resources were increasingly controlled by national oil corpora-
tions in producer countries meant that oil prices were set to rise
over coming decades.
Given that the multinationals are going to [the] deep offshore, the
Arctic, given the fact that we see more and more of the oil resources
being controlled by the national (companies)...the price of oil is likely
to rise in the coming decades, he said.
Paolo Scaroni, chief executive of Italys Eni, said he did not see a
problem with security of global oil supply but said there was an issue
with natural gas, and that Europe needed to take steps to address
market imbalances. Necessary steps include improving relations with
key suppliers, particularly with Russia, which provides much of Euro-
pean gas supply, and ensuring that Europes pipeline networks are suf-
ficiently linked to each other.
Scaroni said Europe must also develop shale gas deposits
because of declining conventional resources in such areas as the
North Sea, and should try to avoid being overly dependent on transit
countries, an apparent reference to the recent dispute between Russia
and Ukraine over gas transit.
If some European countries were determined to move away from
nuclear power in the wake of the Fukushima nuclear disaster in Japan,
there would be additional demand for gas in Europe, which relies on
Russia for 25% of its gas supplies.
The IEAs Jones said that scrapping nuclear power would make it
difficult for some countries to meet their emissions targets for 2035
and succeed in curbing global temperature rises to a targeted two
degrees Celsius from six degrees.
In Germany, we estimate that the decision to stop the use of
nuclear coupled with the commitment they have to the European tar-
gets on emissions, we see an increase in demand for imports of natu-
ral gas, Jones said.
Birol said that to limit to two degrees Celsius is becoming much
more difficult.
Fulvio Conti, chief executive of Italian utility Enel, said energy secu-
rity meant access to different energy sources in order to withstand
the impact of geopolitics on a particular commodity and also regulato-
ry clarity and stability for their investments. Diversifying risk will be of
paramount importance, he said.
Energy efficiency as a path toward achieving better security was
also among the topics discussed by the ministers and 35 CEOs of
major oil companies and related industries gathered at the Organi-
zation for Economic Cooperation and Development building in the
French capital.
Russia, the worlds biggest conventional oil and gas producer,
could save up to 30% of its energy use if it matched OECD energy
standards, an important savings for an exporting nation, Jones said,
adding that the IEA hoped to convey this message to Moscow through
cooperation.Kate Dourian, Margaret McQuaile
Group formed to fund
E85 fuel subsidy lobby
WashingtonWith the US tax credit for ethanol due to expire at the
end of the year, ethanol backers have formed a new coalition to
raise funds for a lobbying campaign to amend the federal tax law,
but only for E85.
The group, the Coalition for E85, is not looking to extend the life of
the tax credit for E10 fuel (a 10% ethanol-gasoline mix), which is now
widely distributed throughout the US. It says it is prepared to sacrifice
that subsidy in order to get taxpayer underwriting for the development
of E85, a blend of 85% ethanol and 15% gasoline.
weakening demand and the continued resumption of Libyan oil produc-
tion led to a liquidation of the spread.
Also, he said traders who perceived the Chinese GDP data as bear-
ish took it as a sign to get out of the Brent/WTI spread.
In early trade, the moves of the spread, in particular Brent futures,
were also influenced by comments made by German Finance Minister
Wolfgang Schauble on October 17, who said that although he expects
EU leaders to agree on measures to deal with market uncertainty, it
would be ill advised to expect any material resolution to Europes prob-
lems at next weeks meeting.
Following his comments, the Brent/WTI spread collapsed and
Brent itself went into free fall, said analyst Dennis Gartman of the
Gartman Letter.
Crude futures lifted
US crude stocks fall 3.126 million barrels
US crude inventories fell 3.126 million barrels to 337.298 million bar-
rels the week ending October 14, as imports dropped and refinery
runs increased, data released by the American Petroleum Institute
showed late October 18.
Imports were down 337,000 b/d at 8.935 million b/d, with slight
increases on the US Atlantic Coast and Midwest outweighed by
declines in the rest of the country.
The biggest drop was on the US Gulf Coast, which fell 263,000
b/d to 5.355 million b/d. As a result, USGC crude stocks fell 1.908
million barrels to 166.556 million barrels, the API data showed.
Midwest crude stocks were down 665,000 barrels at 93.614 mil-
lion barrels, although stocks at the NYMEX crude contract delivery
point of Cushing, Oklahoma, were up 572,000 barrels at 31.091 mil-
lion barrels. That was the second weekly increase in a row, and fol-
lowed steady declines since early May.
US inputs into crude distillation rose 44,000 b/d to 14.799 mil-
lion b/d last week, the API data showed. That left refiners operating at
83.4% of capacity, unchanged on the week as the API increased its
operable capacity by 38,000 b/d to 17.737 million b/d.
The US crude stock draw could be bullish for NYMEX crude prices,
as analysts polled by Platts were expecting a crude stock build of 1.75
million barrels. But the market will likely wait for confirmation from the
US Energy Information Administration data due out October 19.
While the two sets of data tend to agree over the long termboth
have shown a general downtrend in US stocks since late Mayon a
weekly basis, the API and EIA data do not always agree.
The crude stock draw put the APIs total US figure very close to the
EIAs 337.628 million barrel number for the week ending October 7.
US gasoline stocks fell by 1.642 million barrels last week to
209.564 million barrels, API data showed, with the bulk of the draw
seen in the USAC, where stocks declined 1.593 million barrels to
53.448 million barrels.
With refinery operating rates basically flat, gasoline stocks were
expected to decline by 1.25 million barrels, according to a Platts poll.
Stocks declined as gasoline imports rose only marginally, gaining
15,000 b/d, to 469,000 b/d, with the majority registering in the
USAC, which rose by 20,000 b/d, to 450,000 b/d, although offset
slightly by a decline in the Midwest, the USGC and the Rockies.
US demand for gasoline fell by 400,000 b/d, to 8.648 million b/d,
API data showed.
In distillates, US stocks fell 2.194 million barrels to 149.706 million
barrels, outpacing analyst expectations of a 1.1 million-barrel decline.
Stocks declined the most in the USGC, which fell by 1.973 million
barrels to 46.670 million barrels. The only other draw was seen in the
Midwest, where distillate stocks dropped by 871,000 barrels to
ULSD stocks in the US fell by 1.712 million barrels, to 101.332
million barrels, and heating oil stocks declined by 537,000 barrels to
US demand for distillates also declined, falling 93,000 b/d to
4.470 million b/d.Alison Ciaccio, Jeff Mower
Currently, fuel blenders receive a 4.5 cents/gal tax credit for E10
and a 38.25 cents/gal credit for E85 under the Volumetric Ethanol
Excise Tax Credit (VEETC), which expires in December.
Under the VEETC, the 14 billion gallons of ethanol used in E10
cost approximately $6.3 billion a year, while the subsidy for the 120
million gallons in E85 costs about $54 million a year.
The Energy Policy Act of 1992 defines E85 as an alternative fuel,
but the blend does not qualify for the alternative fuel credit under the
Internal Revenue Code. It was excluded to avoid any instance where
ethanol would receive both the VEETC and the Alternative Fuel Credit.
However, with the expiration of the VEETC, the question of ethanol
double-dipping should no longer be an issue, the coalition contends. It
wants E85 to be eligible for the 50 cents/gal alternative fuel tax credit
(or 42.5 cents/gal for E85), which it said should be extended into
2012 and then for another five years.
The coalition says it represents retailers, ethanol producers, and
equipment and automobile manufacturers. It is fronted by veteran
ethanol advocate Phil Lampert.
Its goal is to raise an initial $75,000 to pay well-known Washing-
ton lobbying firm Van Scoyoc Associates to advance its agenda in Con-
gress, according to a letter soliciting funds. The coalition says
$75,000 is the minimum level needed to pay for the government rela-
tions effort, according to the letter. For the money, Van Scoyoc has
agreed to mount an intensive three-month campaign.
In October, it will develop a unified message, draft a policy paper
and communications materials, and meet with members of Congress
and their staffers. In November, it will draft language for a bill and
request a revenue estimate. It hopes to get the measure included in
any tax extenders package that Congress approves by December, the
letter says.
More than 60 different tax extenders are due to expire at the end
of 2011. The coalition believes Congress will try to deal with the issue
in late 2011 or early 2012. Even if Congress allows most of the key
extenders to expire, the coalition believes its lobbying campaign will
lay the groundwork for Congress to retroactively extend the ethanol
credit, the letter says.
The ethanol industry has reached a consensus that the sale of
E10 will continue absent the existing incentive, according to the coali-
tion. However, sales of E85 will be dramatically impacted with the
loss of the VEETC, as E85 requires the incentive to allow motorists to
achieve a competitive price of a gasoline gallon equivalency to regular
unleaded gasoline.
Failure to preserve the E85 option may negatively impact the
future sale of other mid-level ethanol blends, such as E30, the coali-
tion claims in its letter.
Meanwhile, the Petroleum Marketers Association of America, a
trade group representing gasoline wholesalers and retailers, has decid-
ed to join the coalition.
According to a report by the Energy Information Administration,
E85 was being sold at only 2,454 stations as of September 30. That
would put the cost of the $54 million incentive for the fuel at roughly
$22,000 per dispenser, assuming one pump per station.
While $54 million seems like a lot for 2,500 dispensers, the
greater concern probably has to be the entire Flex Fuel Vehicle pro-
gram, said PMAA President Dan Gilligan. Ford, GM and Chrysler have
been manufacturing millions of [flex-fuel vehicles or FFVs] in coopera-
tion with the US government with the specific policy goal of having E85
as an alternative to gasoline. If the ethanol tax credit is not extended
for E85 blending, the entire FFV program might die. Auto manufactur-
ers might simply quit making FFVs.
FFVs can burn E85 as well as gasoline.
In a legislative white paper, the coalition acknowledges that only
1% of ethanol is sold as E85 in the US, but said it believes the fuel
will play an increasing role under the volume requirements of the fed-
eral Renewable Fuel Standard.
If the tax credit is not extended, 9 million drivers of FFVs will pay
as much as 38 cents/gal more and small businesses could be forced
to close their pumps, according to a press release drafted by Van
Scoyoc Associates.
Most of the E85 stations are concentrated in the Midwest. The
largest number is in Minnesota, with 362 outlets. Thirteen states have
between 1 and 10 sites, while six states have none.
Other members of the Coalition include E85 supporters Propel
Fuels, Protec Fuel, Bosselman Biofuels, the Nebraska Ethanol Board,
Clean Fuels Development Coalition and the Nebraska Ethanol Industry
Association.Carole Donoghue
meeting, for example, Dan Berkovitz, CFTC general counsel, said the
agency does not have a definition of excessive speculation, and
Andrei Kirilenko, the agencys chief economist, said the CFTC does not
have a study that proves excess speculation causes price spikes.
Dunn pointed out that of the 52 market studies he has examined,
each one seemed to arrive at a different conclusion.
Congress mandated these position limits and, finally and belated-
ly, we are putting them in place, said Commissioner Bart Chilton, a
Democrat and the CFTCs most vocal proponent of federal position lim-
its in commodity markets.
In a statement, House Agriculture Chairman Frank Lucas, an Okla-
homa Republican, said the position limits rule is not what Congress
intended, and it is not in the best interests of commercial entities nor
consumers of the products they grow and produce. The CFTC still
has not identified the market problems the rule is intended to
address, nor have they demonstrated that this rule is responsive to
those problems, Lucas said.
The final rule was approved by a 3-2 vote, with Commissioners
Scott OMalia and Jill Sommers, the agencys two Republicans, voting
against it. Both claimed these limits were unnecessary and would only
harm US derivatives markets.
The final rule includes limits on New York Mercantile Exchange
contracts for natural gas, crude oil, gasoline and heating oil, as well as
five metals contracts. But energy and metals market participants may
not face any new limits until 2013, several types of commercial energy
transactions will be exempt from the new limits and financially settled
gas contracts would be subject to a different set of limits, according to
a fact sheet on the final rule.
The rule is similar to the proposed rule unveiled in January, since it
will set limits on 28 core physical commodity contracts as well as eco-
nomically equivalent futures and swaps, in two phases.
But under the final rule, financially settled NYMEX Henry Hub gas
contracts will be subject to both a cash-settled spot-month limit and
an aggregate limit, which would each be set at five times the limit that
applies to the size of the physically settled gas contracts position
limit. The gas market will be subject to these different limits because
of the large level of open interest in financially settled gas contracts,
CFTC Chairman Gary Gensler said.
The CFTC had originally proposed extending the conditional limits
for all financially settled commodities, but decided to apply them only
to gas. Another commodity could face the limits later if open interest
reaches a high level.
OMalia said the CFTC has not provided a legally sound, compre-
hensible rationale base on empirical evidence, in order to impose
these limits. He said this lack of legal rationale leaves the rule vulner-
able to a court challenge.
According to OMalia, legitimate hedgers will have to pay one-third
of the estimated $100 million cost of the rule for reporting alone.
These are the market participants to which Congress extended
specific protection, yet this rulemaking will increase the cost of hedg-
ing and managing, OMalia said.
In a 16-page formal dissent of the position limits rule, OMalia
argued that the CFTC has yet to justify whether these limits will do
CFTC approves position limits rule
Wide range of suitors seen
for El Paso E&P assets
HoustonKinder Morgans $21 billion purchase of El Paso will give the
buyer some of the most valuable exploration and production properties
in North America and could net as much as $9 billion when they are
placed on the market, analysts said this week.
El Paso owns high-quality Eagle Ford, Haynesville, Altamont and
Wolfcamp acreage that many players in each basin would covet, Tudor
Pickering Holt analysts said. We love the transition and remaking of
El Pasos upstream business that occurred over the last several
years.
TPH pegged the gross E&P asset value at $9.2 billion. About
45% of that, or $4.7 billion, is derived from El Pasos net reserve
value; 23%, or $1.8 billion, from the companys Eagle Ford Shale
assets; 16%, or $1.3 billion, from the Altamont play in Utah; 11%, or
$1 billion, from the Wolfcamp play in the Permian Basin; and 5%, or
$400 million, from the Haynesville Shale.
In announcing the giant deal October 16 in which Kinder Morgan
would acquire tens of thousands of miles of El Pasos gas pipelines,
the company said it would first try to sell El Pasos upstream proper-
tieswhich El Paso had planned to spin off into a stand-alone compa-
nyin a single package. Failing that, Kinder Morgan would seek to sell
the E&P asset portfolio in pieces, company officials said.
TPH analyst Bradley Olsen said in an interview October 18 that
the field of potential bidders for the El Paso E&P assets includes
large, overseas-based integrated energy companies such as BHP
Billiton, which in July announced plans to buy Houston-based Petro-
hawk Energy for $12.1 billion. There certainly is a wide range of
possibilities, Olsen said.
Other potential bidders might include one or more of the large
domestic oil companies in search of a foothold in the rapidly growing
liquids-rich shale plays where El Paso has built an expertise, he said.
El Pasos holdings in shale formations are weighted toward the liq-
uids-rich portions of those plays and thus would appeal to someone
who wants a position in shale plays but who does not want much
exposure to natural gas prices, Olsen said.
He added that he does not think the proposed merger will encounter
much opposition from regulatory agencies over market power issues
because the two companies interstate pipeline systems are geographi-
cally separate in every region of the US except the Rocky Mountains.
The only potential antitrust issue relates to the Rockies
pipelines, where both Kinder Morgan and El Paso have some long-
haul assets, he said.
Yves Siegel, an analyst with Credit Suisse, agreed that the lack of
overlapping assets between the two companies systems represents a
positive sign for the completion of the proposed merger. These
assets are so complementary, he said October 18. I think thats why
this is such good deal.
Siegel said the planned merger also represents a validation for El
Paso CEO Doug Foshee, who took the reins eight years ago when the
company was at a low point and rebuilt the El Paso brand to where it
had become an attractive takeover target. From his perspective, he
can say mission accomplished, Siegel said.Jim Magill
Refinery updates
Refinery: Scotford, Alberta
Owner: Shell Canada
Overall capacity (b/d): 100,000
Units affected: Unidentified
Duration: Maintenance began on October 18
Notes: Shell Canada is conducting planned maintenance at a unit
serving its 100,000 b/d Scotford refinery in northern Alberta, the
company said Tuesday. We will be flaring intermittently for the next
24 hours and there will also be increased noise levels, Shell said in a
message posted on the Edmonton community update line at 1:30 pm
MDT (1930 GMT). There will be no material or production impact
associated with the activity, the company said. The Scotford refinery,
located at Fort Saskatchewan, produces gasoline, jet fuel, diesel,
propane, butane and extracted sulfur.
Source: Shell Canada
Refinery: Tyler, Texas
Owner: Delek
Unit affected: N/A
Unit capacity (b/d): N/A
Duration: Associated emissions window began Monday at 3:05 a.m.
CDT (0805 GMT) and is to scheduled to continue until 3:05 p.m. CDT
on Friday.
Notes: Delek reported excess emissions at its Tyler refinery due to
unplanned maintenance, according to a filing to state regulators. Non-
routine maintenance will be conducted as quickly as practicable, it
anything to curb market volatility nor has it proven that excessive spec-
ulation exists in these markets.
Under the first phase of the final rule, spot-month limits will be set
at levels that are 25% of a commoditys deliverable supply, limits
which are currently in place for spot-month contracts at designated
contract markets, including NYMEX. These federal spot-month limits
will become effective 60 days after the CFTC finalizes the definition of
a swap under the new regulatory regime it is developing.
Gensler has scheduled this definition to be finalized before the
end of this year, but it may not be completed until next year. Under the
rule, spot-month limits would be adjusted each year for energy and
metals contracts and every two for agricultural contracts.
The rule can be changed by the CFTC chairman if it causes unin-
tended consequences, such as market liquidity drying up or US market
participants fleeing to Asian or European markets, Dunn said on the
sidelines of the meeting. This condition, Dunn said, was why he
agreed to vote for the limits.
The CFTC estimates that 85 traders in the energy markets and 12
traders in the metals markets may hold positions that could exceed
these spot-month limits, according to the fact sheet.
Under the second phase of the final rule, non-spot-month limits
would be set at levels using a formula that would be based on 10% of
open interest in the first 25,000 contracts and 2.5% of the open inter-
est beyond 25,000 contracts. Open interest for these non-spot-month
limits would be based on a combination of open interest in futures
and cleared and uncleared swaps.
But since the CFTC lacks much of this data, these limits would not
go into place, at least for energy and metals contracts, until the agency
has received one year of open interest data on cleared and uncleared
swaps. This data will be from September 2011 to August 2012.
Once the CFTC has two years of open interest data it will begin
adjusting these non-spot-month limits twice a year. The CFTC esti-
mates there are 10 traders in energy markets and 25 in metals that
may hold positions that could exceed these non-spot-month limits.
These estimates do not take into account traders that may be exempt
from these new limits.
The agency will give exemptions for all position limits for bona fide
hedge exemptions and, as expected, the final rule will broaden the types
of transactions that will be classified as bona fide hedge transactions
These exemptions have been broadened to include certain antici-
pated merchandising transactions, royalties and service contracts in
the final rulemaking to reflect concerns by commercial firms, the fact
sheet stated.Brian Scheid
said. It did not give specifics as to what unit or units were undergoing
maintenance. The filing said that the excess emissions came from the
No. 9 boiler.
Source: Texas Commission on Environmental Quality
Refinery: Moin refinery, Costa Rica
Owner: Recope
Overall capacity (b/d): 25,000 b/d
Units affected: entire refinery
Duration: August 30, 2011-May 2012
Notes: The Moin refinery startup has been delayed at least until May
2012 due to safety concerns after a fire, said a source close to
Recope. Recope was initially scheduled to have the refinery opera-
tional by September 16 after a fire occurred August 30 at the
reformer unit at the refinery. The refinery had restarted on August 17
after being down for three months due to high crude prices and to
allow the owners to perform maintenance.
Source: a source close to Recope
Refinery: Esmeraldas refinery, Ecuador
Owner: Petroecuador
Overall capacity (b/d): 110,000 b/d
Units affected: Various, see notes
Duration: Turnaround to start August 2012; several phases through
April 2013
Notes: A new gasoline regenerator due to arrive at Ecuadors Esmer-
aldas refinery during the second week of November will increase
gasoline output, reducing the countrys dependence on imports,
state-owned oil company Petroecuador said Tuesday. The unit, made
by Tapco-Enpro, will increase total gasoline output to 20,000 b/d
from the current 18,000 b/d, according to a statement released by
Petroecuador. Petroecuador is planning on shutting Esmeraldas
FCC unit from August 2012 to March 2013, at which time the new
gasoline regenerator and a new reactor will be installed, the compa-
ny said. The FCC shutdown differs slightly from a time line dis-
cussed by officials earlier this summer the company has been
planning a major turnaround at the circa-1978 plant for some time,
but the exact schedule has seen a few changes as the year has
progressed. The company is now also planning on shutting all non-
FCC units between October 2012 and April 2013 for maintenance.
In addition, all units at the refinery will be shut in January 2013 for
30 days, the company said.
Source: Petroecuador
Refinery: SAPREF, Durban, South Africa
Owner: Shell and BP
Units affected: Major maintenance
Duration: Maintenance started on August 17 for six weeks, but refin-
ery only restarted in early October.
Notes: A visbreaker is scheduled to restart Thursday, a trader said.
The refinery is in the process of starting up and is gradually resuming
full operations, trading sources said. The process of starting up the
refinery was expected to start at the end of September. The company
said though that the turnaround has taken slightly longer than
SAPREF anticipated due to additional work identified during the inspec-
tion phase. The facility was then expected to begin its start-up on or
around October 5 and reach full capacity around 10 days later.
Sources: Trading sources
YOU CANNOT AFFORD TO MISS THIS EVENT
REGISTER TODAY TO RESERVE YOUR SEAT!
FORUM DETAILS
Hear the Latest On:
Major Developments Global Oil Market - Cu|e ao||et t|erJs, octu|s t|ot
iruerce wu|lJ uil ao||et orJ u|ice Je.eluuaert
Recent Trends in U.S. Crudes Risir 0uaestic C|uJe ||uJuctiur, Eole |u|J
S|ole, Bo||er BlerJ, uS Cul u Mericu u|uJuctiur
Market on Close ,M0C w|] it ao|es serse
Whats new in U.S. Gasoline T|e Mississiuui uuJs, Jistillote eruu|ts |ua t|e
uSCC, o rew |erc|ao|| osulire |oJe u| t|e uS
U.S. Diesel Market in Review u|S0 ir t|e uS, aiJJle Jistillotes orJ JeaorJ
ir |otir /ae|ico
Bio Fuel and Ethanol Update |istu|] u t|e Rerewo|le |uels StorJo|J, iauu|t
orJ eruu|t ir |otir /ae|ico, E15, t|e Coliu|rio's luw co||ur uels storJo|J,
+5certlol |lerJe|s' tor c|eJit, 5+certlol iauu|t Jut]
Network with Industry Peers from
IMPORTANT NOTE: Seats are available on a first-come-first-served basis. Registration is required.
When:
Time:
Where:
Cost:
Thursday,
October 20, 2011
9:00 a.m. - 12:30 a.m.
(Presentation starts at 9 a.m.
Registration and breakfast
starts at 8:30 a.m.)
The Westin New York
at Times Square
270 West 43rd Street
New York, NY 10036
Complimentary
Platts Panel:
Dave Ernsberger
Global Editorial Director, Oil
Esa Ramasamy
Editorial Director, Americas Oil
Matt Cook
Editor Domestic Crude, Americas Oil
David Ruisard
Light Ends Team Leader, Americas Oil
Robert Sharp
Manager Downstream Market Development,
Americas Oil
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For a complete agenda and more information, or
to register, please visit us online or email Wendy
Montalvo at wendy_montalvo@platts.com

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