]

www.platts.com EUROPEAN MARKETSCAN

[OIL ]

Volume 45 / Issue 19 / January 28, 2013

European products ($/mt) ICE futures

Code Mid Change Code Mid Change
Platts ICE 1630 London assessments* (PGA page 703)
Mediterranean cargoes (PGA page 1114)
Gasoil Low Sulfur Gasoil
FOB Med (Italy) CIF Med (Genova/Lavera)
Feb AARIN00 970.50 Feb AAGL001 981.50
Naphtha* PAAAI00 911.25–911.75 911.500 -3.250 PAAAH00 933.75–934.25 934.000 -2.750 Mar AARIO00 962.00 Mar AAGL002 982.25
Prem Unl 10ppm AAWZA00 1076.75–1077.25 1077.000 +19.250 AAWZB00 1091.75–1092.25 1092.000 +19.750
Apr AARIP00 953.75 Apr AAGL003 976.00
Jet AAIDL00 1022.50–1023.00 1022.750 +3.000 AAZBN00 1050.75–1051.25 1051.000 +3.750
10ppm ULSD AAWYY00 968.50–969.00 968.750 0.000 AAWYZ00 986.25–986.75 986.500 +0.500 Brent Brent NX
Gasoil 0.1% AAVJI00 955.50–956.00 955.750 +2.000 AAVJJ00 976.25–976.75 976.500 +2.750 Mar AAYES00 113.13 Mar AAXZL00 113.15
Fuel Oil 1.0% PUAAK00 650.50–651.00 650.750 -0.750 PUAAJ00 664.75–665.25 665.000 -1.250 Apr AAYET00 112.07 Apr AAXZM00 112.09
Fuel oil 3.5% PUAAZ00 607.50–608.00 607.750 +3.000 PUAAY00 621.75–622.25 622.000 +2.500
May AAXZY00 111.18 May AAXZN00 111.20
Jet FOB Med premium AAIDN00 9.75/10.25 10.000 0.000
Jun AAYAM00 110.40 Jun AAYAP00 110.42
*Naphtha FOB Med is basis East Med
*Platts ICE assessments reflect the closing value of the ICE contracts at
Northwest Europe cargoes (PGA page 1110) precisely 16:30 London time.

FOB NWE CIF NWE/Basis ARA ICE gasoil settlements (PGA page 702)
Naphtha (Feb) PAAAJ00 941.75–942.25 942.000 +1.500
Gasoil Low Sulfur Gasoil
Naphtha PAAAL00 946.00–946.50 946.250 -2.250
Gasoline 10ppm AAXFQ00 1060.75–1061.25 1061.000 +17.750 Feb AAQSG00 970.75 Feb AAGS001 978.75
Jet PJAAV00 1035.25–1035.75 1035.500 +3.750 PJAAU00 1052.25–1052.75 1052.500 +3.750 Mar AAQSH00 962.00 Mar AAGS002 981.00
ULSD 10 ppm AAVBF00 957.25–957.75 957.500 -0.250 AAVBG00 979.25–979.75 979.500 -0.250 Apr AAQSI00 953.75 Apr AAGS003 978.00
Diesel 10ppm NWE AAWZD00 960.75–961.25 961.000 -0.250 AAWZC00 983.25–983.75 983.500 -0.250 May AAQSJ00 946.00 May AAGS004 974.00
Diesel 10 ppm UK AAVBH00 985.50–986.00 985.750 -0.250 Jun AAQSK00 939.75 Jun AAGS005 968.00
Gasoil 0.1% AAYWR00 948.25–948.75 948.500 +2.000 AAYWS00 972.50–973.00 972.750 +2.000 Jul AAQSL00 936.00 Jul AAGS006 964.00
Fuel oil 1.0% PUAAM00 645.50–646.00 645.750 -1.750 PUAAL00 657.50–658.00 657.750 -1.750
Expiry AAQSM00 NA*
Fuel oil 3.5% PUABB00 594.75–595.25 595.000 -0.500 PUABA00 609.25–609.75 609.500 -0.500
Straight run 0.5-0.7% PKABA00 744.50–745.50 745.000 +1.500 *Value at 12:00 London time will only appear on day of expiry
VGO 0.5-0.6% AAHMX00 800.50–801.50 801.000 +1.500 AAHMZ00 803.50–804.50 804.000 +1.500 ICE gasoil GWAVE (Previous day’s values) (PGA page 702)
VGO 2% max AAHNB00 794.00–795.00 794.500 +1.000 AAHND00 797.00–798.00 797.500 +1.000
Feb PXAAJ00 971.75 Mar PXAAK00 964.50
Northwest Europe barges (PGA page 1112)

FOB Rotterdam Fuel oil hi-lo diff ($mt) NYMEX futures (16:30 London time)
Naphtha PAAAM00 942.00–942.50 942.250 -2.250
Eurobob AAQZV00 1046.75–1047.25 1047.000 +17.750 80 NYMEX WTI (PGA page 703)
98 RON gasoline 10 ppm AAKOD00 1092.75–1093.25 1093.000 +23.000
Premium gasoline 10 ppm PGABM00 1072.75–1073.25 1073.000 +23.000 $/barrel $/barrel
60
Jet PJABA00 1046.00–1046.50 1046.250 +1.250 Mar AASCR00 96.07 Apr AASCS00 96.53
Diesel 10 ppm AAJUS00 979.00–979.50 979.250 +2.000
NYMEX heating oil (PGA page 703)
Gasoil 50 ppm AAUQC00 976.50–977.00 976.750 +4.000 40
Gasoil 0.1% AAYWT00 970.00–970.50 970.250 +1.500 ¢/gal ¢/gal
Fuel oil 1.0% PUAAP00 646.00–646.50 646.250 +0.250 Feb AASCT00 305.06 Mar AASCU00 304.33
Fuel oil 3.5% PUABC00 613.50–614.00 613.750 -0.500 20
Rotterdam bunker 380 CST PUAYW00 620.00–621.00 620.500 +1.000 NYMEX RBOB (unleaded gasoline) (PGA page 703)
VGO 0.5-0.6% AAHNF00 800.50–801.50 801.000 +1.500 0 ¢/gal ¢/gal
VGO 2% max AAHNI00 794.00–795.00 794.500 +1.000 30-Jul 04-Sep 09-Oct 13-Nov 18-Dec 25-Jan
MTBE* PHALA00 1253.75–1254.25 1254.000 +10.000 Feb AASCV00 293.94 Mar AASCW00 294.94

*FOB Amsterdam-Rotterdam-Antwerp

The McGraw Hill Companies

 EUROPEAN MARKETSCAN january 28, 2013

Market Update (PGA page 724) Euro-denominated assessments 16:30 London (€/mt)
NYMEX light sweet crude futures rebounded back Med cargoes (PGA page 1120) Northwest Europe barges (PGA page 1118)

above Friday’s settle heading into US afternoon trade FOB Med CIF Med FOB Rotterdam
(Italy) (Genova/Lavera) Naphtha ABWHF00 700.193
on Monday, bouncing upward from the session low Naphtha* ABWHE00 677.343 ABWHD00 694.063 Eurobob ABWGT00 778.034
of $95.47/b seen at 10:15 a.m. EST (1515 GMT). Prem Unl 10ppm ABWGV00 800.327 ABWGU00 811.474 98 RON gasoline 10 ppm ABWGX00 812.217
Jet ABWGZ00 760.013 AAZBO00 781.006 Premium gasoline 10 ppm AAQCH00 797.355
The NYMEX March crude contract was 30 cents 10ppm ULSD ABWHM00 719.886 ABWHH00 733.076 Jet ABWHC00 777.476
higher than Friday’s settle at $96.18/b, as the front- Gasoil 0.1% ABWGQ00 710.225 ABWGO00 725.645 Diesel 10 ppm AAQCI00 727.688
Fuel Oil 1.0% ABWGH00 483.577 ABWGF00 494.167 Gasoil 50 ppm AAUQF00 725.830
month contract’s discount to front-month Brent fell
Fuel oil 3.5% ABWGM00 451.624 ABWGK00 462.213 Gasoil 0.1% AAYWY00 721.000
below $17/b. ICE March Brent was down 11 cents at Jet FOB Med premium ABWHA00 7.431 Fuel oil 1.0% ABWGI00 480.233
$113.17/b. “WTI is building upon last week’s rebound *Naphtha FOB Med is basis East Med Fuel oil 3.5% AAQCK00 456.082
Rotterdam bunker 380 CST AAUHE00 461.098
from the Seaway Pipeline snag,” Mike Fitzpatrick, of the Northwest Europe cargoes (PGA page 1116)
Kilduff Report, said in a note. “Due to maintenance at FOB NWE CIF NWE/ New York Harbor cargoes 16:30 London (PGA pages 1350 & 1450)
the Phillips refinery at the end of the line, the storage Basis ARA FOB NY Harbor
Naphtha AAQCE00 703.166 (€ cent/gal)
tanks there are full... Last week’s inventory report gave Gasoline 10ppm ABWGS00 788.437 Unleaded 87 AAPYV00 220.47
a preview of the drainage the pipeline can inflict on Jet ABWHB00 769.488 AAQCF00 782.121 Unleaded 89 AAPYW00 228.87
Cushing inventories, but it seems the market forgot ULSD 10 ppm ABWHO00 714.126 ABWHI00 730.846 Unleaded 93 AAPYX00 241.48
Diesel 10ppm NWE ABWHP00 711.526 ABWHK00 727.874 No. 2 AAPYY00 227.96
about the rest of the story.” Last week, Enterprise Diesel 10 ppm UK ABWHJ00 732.518
Products Partners, which operates Seaway, said Gasoil 0.1% ABWGR00 704.838 ABWGP00 722.858
Fuel oil 1.0% AAQCG00 479.862 ABWGG00 488.779
Wednesday that it has reduced nominations on the Fuel oil 3.5% ABWGN00 442.149 ABWGL00 452.924
European clean product barge freight rates
pipeline to 175,000 b/d due to high inventory at the Straight run 0.5-0.7% ABWHG00 553.615
ARA ($/mt) (PGT page 1918)
Jones Creek terminal in Texas. Euro/US$ forex rate: 1.3457. Platts Euro denominated European & US product
Rotterdam — Rotterdam TCAEI00 2.00
assessments are based on market values and a Euro/US$ forex rate at 4:30
PM local London time. Rotterdam — Flushing TCAEJ00 3.00
Rotterdam — Ghent TCAEK00 3.50
Gasoline (PGA page 1399) Rotterdam — Antwerp TCAEL00 3.00
Foreign exchange rates (PGA page 1151) Germany ($/mt) (PGT page 1918)
Northwest Europe gasoline market crack swaps and January 28, 2013 London 16:30 Rotterdam — Duisburg TCAEM00 6.75
spreads surged after Hess announced plans to close Dollar/Swiss franc BCADC00 0.9271 Rotterdam — Cologne TCAEN00 10.00
GB pound/Dollar BCADB00 1.5691 Rotterdam — Karlsruhe TCAEO00 15.25
down its sole refinery at Port Reading, New Jersey, Antwerp — Duisburg TCAEP00 7.25
Dollar/Yen BCACW00 90.7400
market sources said Monday. “The rally today is from Euro/Dollar BCADD00 1.3457 Switzerland ($/mt) (PGT page 1918)
Hess closing its Port Reading New Jersey refinery,” Dollar/Ruble AAUJO00 30.1890 Rotterdam — Basel TCAEQ00 16.00
a trader said. At Monday’s European close, the
February FOB Rotterdam EBOB gasoline crack swap months, the first trader said. “The June-July spread Atlantic Coast, is pulling barrels out of Northwest
was assessed at $13.15/barrel, up from Friday’s is seen in $14.50/mt backwardation which is pretty Europe,” the trader said. So far, no barrels were
$10.75/b. The February-March FOB Rotterdam strong, even for summer.” Typically, the Eurobob confirmed as moving from NWE to the Mediterranean,
EBOB swap spread was assessed at $5.75/mt, up gasoline market is strongest in summer due to the but it made more sense to ship West African blends
from Friday’s $4/mt, Platts data showed. “The first US driving season. Now, with Hess closing down out of NWE than the more expensive Mediterranean
jump was last week with hedge funds entering the its Port Reading refinery, European traders were market, the third trader said.
[NYMEX] RBOB futures contract on the long side,” expecting a rise in exports from the region to the
a second trader said of the recent climb in cracks USAC this summer, the first trader said. In addition, Gasoline deals (PGA page 5)
swaps. “The rest is adjusting up along,” he added, the Eurobob market remained fundamentally strong,
referring to the boost to the FOB Rotterdam EBOB boosted by a bullish Mediterranean market, a third n GASOLINE: MOC SUMMARY: PREM UNL: Trafigura-
market structure last week. For instance, there trader said. “The Mediterranean is still strong. That, TOTSA at $1073/mt MW EBOB: Gunvor-STR at $1045/
was now steep backwardation between the summer in combination with the recent arbitrage to the US mt MW; Gunvor-Trafigura at $1045.25/mt MW; Gunvor-

Copyright © 2013, The McGraw-Hill Companies 2

 EUROPEAN MARKETSCAN january 28, 2013

Cargill at $1046/mt MW; Gunvor-Vitol at $1047/mt MW; Subscriber notes (PGA page 1500)

Gunvor-Vitol at $1048/mt MW.

■■ Effective January 1, 2013, Platts has removed a range with effect from January 2, 2013. Platts proposed to dis-
of biofuel assessments from European Marketscan. The continue the assessment because the quality reflected in
n GASOLINE CARGO: MOC SUMMARY: BB Energy-
Platts MTBE assessment (code PHALA00) will continue the two assessments no longer reflects an actively traded
Trafigura at $1081/mt for February 12-16
to be published in European Marketscan. From 2013 or supplied grade in northwest Europe. Please send ques-
forward, the only Platts publication to carry biofuels is tions and feedback to europe_products@platts.com with a
Naphtha (PGA page 1398) Platts Biofuelscan. The codes affected are: Fuel grade eth- CC to pricegroup@platts.com.
anol codes AAWUQ00, AAYDT00, AAVLD00, AAYDS00;
The naphtha complex remained steady Monday as it ■■ Effective January 2, 2013, Platts is reflecting an updat-
Biodiesel FAME -10 codes AAWGY00, AAWGH00; FAME
ed specification in all European cracked LSFO cargoes
was pulled up by the soaring price of gasoline, said 0 codes AAXQL00, AAWGI00; Soy Methyl Ester (SME)
in response to changes in supply and demand patterns
market sources. The February naphtha CIF NWE crack codes AAUCB00, AAWGJ00; Rapeseed Methyl Ester
in the European low sulfur fuel oil market. Under its
was broadly unchanged at minus $6.65/b versus (RME) codes AAUCA00, AAWGK00.
revised specifications, Platts assessments will reflect the
minus $6.7/b Friday. Platts assessed CIF Northwest ■■ ICE has released a document covering Frequently following qualities: EU-qualified, 1.00% sulfur, 0.991 kg/l
European cargoes at $946.25/mt, down slightly Asked Questions regarding the transition from swaps density, 380 CST viscosity, 60 ppm aluminium/silicon,
from $948.5/mt January 25. Three trades took to futures effective October 15, 2012. The document is 7% asphaltenes, 30 degrees Celsius pour point, 65 degrees
place during the Platts Market on Close assessment available at www.theice.com/publicdocs/Platts_Swaps_ Celsius flash point, 15% CCR, 0.1% ash, 0.5% water, 150
process, with Glencore buying two cargoes from to_Futures_FAQ.pdf. The move by ICE to convert swaps ppm vanadium, 9650 kcal/kg NCV, 0.1% TSP. This repre-
Stasco at $946/mt and Gunvor selling one cargo to into futures has raised questions over whether the sents a change from the previous Platts assessment speci-
BP at $947/mt. Meanwhile, the gasoline/naphtha change has also affected the nomenclature of Platts fications of 0.995 kg/l density, 420 CST viscosity, 80 ppm
spread for February widened to $104/mt from assessments. The nomenclature of Platts assessments in aluminium/silicon, 6% asphaltenes and 120 ppm vana-
all its publications remains the same and there are no dium. All other specifications remain unchanged from
$85.25/mt. An open arbitrage to Asia and the US
changes envisioned as a result of the ICE move. Platts the current specification reflected. Platts will continue to
was also underpinning the naphtha market. “We
methodologies are also unaffected by ICE changes. For consider other merchantable LSFO specifications in its
see less and less availability in Europe as most more information about our methodology please access assessment process, and normalize to the updated specifi-
Med naphtha moves to the East,” said a trader. Platts.com or contact the various commodity sectors cations. Please send comments to europe_products@platts.
Two cargoes from the Med and one cargo from West including oil@platts.com and pricegroup@platts.com. com with a cc to pricegroup@platts.com.
Africa were reportedly placed to the US, while four
■■ Effective January 2, 2014 and following industry feed- ■■ In preparation for a change to the benchmark
new LR2’s are said to be on subs for a Med/East
back to a previous subscriber note, Platts will calculate the Singapore FOB gasoil assessment, the Gasoil Reg 0.5%
route, due to load in the first half of February. In the
CIF Mediterranean naphtha assessment by only applying assessment was renamed Gasoil on January 3, 2012. The
meantime, the Ras Lanuf refinery in Libya had to the freight value between Alexandria and Lavera to the renamed Gasoil assessment will continue to reflect the
be shut down due to a power failure. According to a FOB Med naphtha assessment. This freight value will be same underlying methodology and quality specifications,
trading source, the facility was producing circa 4,000 calculated using the Platts cross Med clean tanker assess- including a sulfur content of 0.5% sulfur, all through
mt of naphtha per day. There was also talk about ment for 27,500 mt naphtha cargoes only. Currently the calendar year 2012. The specification will change to 500
loading delays on the North African coast, which CIF Med naphtha assessment is calculated by applying the ppm sulfur on January 2, 2013. This name change has
could be due to jetties not being protected from the freight value between Alexandria and Lavera plus an allow- now also been made in the Platts European Marketscan.
bad weather, including near Skikda. ance of $3/mt for port costs. Platts proposes to remove the
port costs from the calculation of this assessment. Please Correction
send feedback and questions to europe_products@platts.com
Naphtha deals (PGA page 5) with a cc to pricegroup@platts.com ■■ Please note that the midpoint for the Platts’ October
15 and October 18 2012 assessment for physical 0.1%
Naphtha MOC deal: Gunvor-BP 12,500 mt February ■■ Following feedback to its proposal published on June gasoil barges should read $1010.75/mt, and $1010.25/mt
11-15 $947/mt; Stasco-Glencore 12,500 mt February 27, 2012, Platts has discontinued its FOB NWE Premium respectively. This assessment appears in Platts European
18-22 $946/mt; Stasco-Glencore 12,500 mt February Gasoline Non-Oxy and Regular Unleaded Non-Oxy assess- Marketscan, Platts Global Alert page 1499, and in the
18-22 $946/mt. ments as planned. The assessments will be suspended Platts price database under code AAYWT00.

Copyright © 2013, The McGraw-Hill Companies 3

 EUROPEAN MARKETSCAN january 28, 2013

Jet (PGA page 1497) Jet deals (PGA page 5)

barge value was assessed $0.25/mt under the front
Sellers in Northwest Europe are holding on to limited Jet Cargo MOC Deals: None reported. Jet Barge MOC month ICE 0.1% gasoil futures contract, this is from a
supplies of jet fuel, in spite of unfavorable storage Deals: None reported. $0.75/mt premium last assessed Friday, Platts data
economics, wary a supply shock or demand spike would showed. The German heating oil market continues to
expose low underlying stocks in the region, according to Jet Index (PGA page 115) experience limited demand. In the 50 ppm gasoil barge
trading sources. Less-than-stellar demand for aviation January 25, 2013 Index $/mt Platts MOC, assessment process Glencore hit a bid by
Europe & CIS PJECI00 357.94 PJECI09 1046.88
fuel and weak interest for dual-purpose kerosene meant Morgan Stanley at February plus $6/mt for front window
MidEast & Africa PJMEA00 383.30 PJMEA09 1012.71
many sellers were also left with little choice but to face Global PJGLO00 361.35 PJGLO09 1041.79 loading, MS then rebid at the same level. In other news,
down pressure from persisting backwardation in the the Ras Lanuf 220,000 b/d capacity refinery in Libya
benchmark ICE 0.1% gasoil futures to offload product had a power outage that shut the refinery, said Ahmed
at higher prompt prices. Reflecting the overall bullish
Gasoil (PGA page 1499)
Shawki, the head of crude oil marketing at the National
jet complex, the CIF NWE cargoes were assessed Oil Company said. The refinery is owned by Libyan
by Platts at a premium of $82/mt to gasoil Monday, A spokesman for pipeline operator Transnefteprodukt, Emirates Oil Refining Company LERCO, which is a joint
gaining $1.25/mt against the assessment Friday. Ilya Arkhipov, announced Monday that Russia’s products venture between the NOC and TRASTA Energy Limited
The February-March gasoil spread was in $8.50/mt pipeline is switching from 500 ppm diesel to 350 ppm of the United Arab Emirates, according to the company
backwardation at 1630 GMT, against $7.25/mt the diesel as of February 1. However traders said that this website. Shawki added that the refinery is not expected
same time Friday, Platts data showed. “Those with jet is not expected to have an impact on the European to remain offline for long. The refinery exports around
fuel are limited. There is very little jet available on the gasoil market. “It will have no real impact, as it will four cargoes of 0.1% gasoil a month, however if the
next two weeks and we are at low stocks,” said one go into the same pool... the sulfur is still too high for refinery comes back on-line soon there is not expected
trader. He suggested that people are cautious of going the 50 ppm or 10 ppm [sulfur] pools,” a trader said, to be any impact on the Mediterranean 0.1% gasoil
“too low on stocks as we could get to a similar situation referring to the fact that the sulfur is still to high to be market, traders said. The Mediterranean 0.1% gasoil
we did in September and October, where we got delays realistically blended into the diesel market. “The market CIF cargo premium to the front month ICE 0.1% gasoil
in the AG [Arabian Gulf] and Suez.” Local jet production has already moved, if you look at the specifications for futures was assessed at $6/mt, an increase of $0.25/
in Northwest Europe has been boosted in recent weeks the cargoes you are already there,” a second trader mt form assessed Friday, Platts data showed.
as refiners maximized jet production over diesel. The said, referring to the lower 350 sulfur cap. The trader
FOB Rotterdam jet barge premium to gasoil fell $1.25/ added that 350 ppm gasoil can be blended with some of Gasoil deals (PGA page 5)
mt to $75.75/mt. It’s “fair” to say that despite good the higher sulfur streams to create 0.1% gasoil for the
local supply, low stocks will continue to support the European market. Meanwhile in the gasoil spot market n Gasoil 0.1% barge MOC deals: Gunvor- VSA , 0.1 fob
premiums from falling too far, said a second trader. there were some cargoes headed to the Amsterdam- ara 2kt lifting 31-4 at Feb minus 0; Gunvor- VSA , 0.1
Meanwhile, jet fuel was offered out of Poland, and Rotterdam-Antwerp region, and expected to arrive before fob ara 2kt lifting 31-4 at Feb minus 0; Gunvor- VSA, 0.1
Neste was heard to have availability later in February, the expiry of the February 0.1% gasoil futures contract fob ara 2kt lifting 31-4 at Feb minus 0; Gunvor - VSA,
said another source. Trading sources said there was which is on February 12. On exports to West Africa, a 2KT FOB ARA 31-4 at Feb plus 0/MT (0.845).
some demand for jet-A1 into the UK and the Baltic, with typical export location for gasoil, one trader said that
limited DPK buying. In the Mediterranean, it was unclear while “it looks good in numbers but there is lack of n Gasoil 50ppm barge MOC deals: Glencore - MS ,
whether an unscheduled shutdown at Libya’s Ras Lanuf some WAF grades around.” In the Platts Market on 2.3kt GO 50ppm fob ARA, FW [2-6] at Feb plus 6.
would impact on jet exports. Libya exports at least two Close assessment process, Gunvor hit a 0.1% gasoil Gasoil 0.1% cargo MOC deals: No trades reported
jet cargoes a month from the 220,000 b/d plant, the barge bid by Vitol at February ICE 0.1% gasoil futures
country’s largest. Demand in the region remained weak, flat three times, for loading January 31 to February 4 Diesel (PGA page 1498)
with the market balanced-to-long, sources said. “There FOB ARA. Gunvor then offered down to February flat,
should be some availability [in February], but it won’t be a rebid by Vitol at the point then matched the Gunvor Ultra low sulfur diesel cargo premiums hit their lowest
digested within the region, buying hasn’t come in yet,” offer, triggering a trade. Gunvor did not re-offer and Vitol level in more than three years Monday, weighed by
said a fourth source. did not rebid after this. The FOB Rotterdam 0.1% gasoil strong exports from Russia forecast over February and

Copyright © 2013, The McGraw-Hill Companies 4

 EUROPEAN MARKETSCAN january 28, 2013

Diesel deals (PGA page 5)

poor end-user demand, said traders. The Northwest MOC assessment process, in which OW offered a FOB
European cargo premium was assessed at February ICE n ULSD MOC barge deal summary: BP-Vitol SA, Feb Antwerp LSFO cargo, of worse quality than standard
0.1% gasoil plus $9/mt CIF ARA, down $2.75 on-day +$9/mt, 10 ppm ger win spec, fob ara, 08 - 12 feb, Platts specification, but pricing on February FOB NWE
and at its lowest level since November 2009. In the 3kt; BP-Vitol SA, Feb +$9/mt, 10 ppm ger win spec, fob 1% cargo assessments minus $5/mt. With barges
Platts Market on Close assessment process, Shell ara, 04 - 08 feb, 3kt; Glencore-Vitol SA at Feb +$9/mt, bid well by Shell Trading Rotterdam, as on Friday, this
offered a vessel loading February 7-13 at an implied 3kt 10ppm FOB ARA, 31/1 - 4/2; JPMC-Vitol SA, at Feb led to barges reaching a premium of $0.50/mt above
February ICE 0.1% gasoil plus $10/mt CIF ARA, but it +$9/mt, 3kt ULSD 10ppm FOB A/R 1-5/02; BP-Vitol SA, cargoes, the first positive barge/cargo spread since
did not find a buyer. The cargo premium was a mere 25 Feb +$9/mt, 10 ppm ger win spec, fob ara, 08 - 12 feb, January 16. The often negative barge/cargo this year
cents above Northwest European barges, which were 3kt; BP-Vitol SA, Feb +$9/mt, 10 ppm ger win spec, fob has puzzled some traders, with part of the weaker barge
assessed at February ICE 0.1% gasoil plus $8.75/mt ara, 04 - 08 feb, 3kt. premium attributed to Platts asssessing a better quality
FOB Rotterdam, down 50 cents on the day, with offers cargo specification from February 2. Also on Monday,
from Glencore and BP in the MOC process, and bids n ULSD MOC barge deal summary: No deals reported. Gunvor offered a CIF Malta LSFO cargo with low metals,
from Vitol, Mocoh, Mercuria and Omneo. “Demand is pricing on the first half of February FOB NWE 1% cargo
poor...even though the arbs are shut, there is healthy Fuel oil (PGA page 1599)
assessments plus $15/mt, without finding buying
[supply] form the Baltics and local production with interest, proving value lower than on Friday. In the
ARA refining margins okay,” said one trader. Around High sulfur fuel oil barges in Northwest Europe Mediterranean, Israel Electric Corporation stopped using
800,000 mt of ultra low sulfur diesel is expected to weakened Monday amid a lack of VLCC fixtures, gasoil and fuel oil at its power plants as of the weekend,
load from Russia’s Primorsk to export destinations in but despite recovering Singapore premiums. FOB the company said on Monday, following the unloading of
February and traders said even more material could be Rotterdam 3.5% sulfur barges were assessed flat to the the first LNG cargo at the floating LNG terminal located
exported from other Russian ports such as Vysotsk, comparable February swap, down from Friday’s $1.50/ off the Israeli coast. Traders were unsure of the impact
with total export volumes up to 1.2 million mt for the mt premium and at a $1.50/mt premium to the March on LSFO demand, but the IEC had been a significant
month. In addition, the Gonfreville refinery in France swap, down from a previous $3/mt premium. There buyer in 2012, especially during peak summer demand.
is now running at full speed, resulting in higher diesel were no new VLCC fixtures heard on the Rotterdam- The total fuel mix the state-owned utility is currently
supplies available to customers situated in Northwest Singapore route Monday following last week’s Dimitris P consuming, 32% is natural gas and 68% coal, an IEC
Europe, said traders. Despite the weakness, not Vitol-fixed VLCC. Platts ship tracking software, C-Track, spokesman said Monday. In recent weeks, gasoil and
everyone was convinced prices would stay this low. shows that there is currently only one VLCC, the DS fuel oil accounted for 16% of the utility’s fuel mix.
“For February, supplies aren’t going to change much Crown, moored in Rotterdam ahead of picking up crude Israel has experienced a severe shortage of natural gas
but demand will pick up, so the market will be a bit at Hound Point for delivery to South Korea. “The market since February 2011, due to the halting of Egyptian gas
tighter, we’ve reached the bottom on premiums,” has some strength, but don’t see any arbs open,” a supplies and faster-than-expected depletion of the Mary
said a second trader. “Runs in Northwest Europe trader said. In the Mediterranean, sources continued B reservoir off Israel’s southern Mediterranean coast.
should be back to 100% on paper, but I haven’t seen to describe the market as balanced. “On the prompt
any evidence of that.” Mediterranean cargoes were we seem covered, but further forward we might see Fuel Oil deals (PGA page 5)
assessed at February ICE 0.1% gasoil plus $16/ some demand,” a trader said, adding that refiners may
mt CIF Lavera, down $2/mt from Friday. In the MOC also have to cut runs soon since gasoil cracks had n LSFO barge MOC deal summary: 1) Mercuria-Vitol
process, there were two offers from Shell in Northwest narrowed. In the Platts Market on Close assesssment $646/mt, 1kt, FOB Rdam, FE.
Europe, two from Gunvor and one from ERG in the process, Cepsa found selling interest from Lia for its
Mediterranean basin. Gunvor’s second offer showed HSFO cargo bid basis Algeciras with a February 7-11 n HSFO barge MOC deal summary: 1) Litasco-Wiljo
the price to be lower on-day. “Prices have to pick up... laycan, pricing full month February at a plus $4/mt $613/mt, 2kt, FOB Rdam, FE; 2) Litasco-Vitol $613.5/
the question is when,” said one Mediterranean one price differential. In Monday’s Northwest European mt, 2kt, FOB Rdam, BE; 3) Litasco-Vitol $613.5/
trader. “In the Mediterranean it’s quite difficult to find low sulfur fuel oil market FOB NWE 1% cargoes fell to mt, 2kt, FOB Rdam, MW; 4) Litasco-Vitol $613.5/mt,
a diesel cargo. Refiners are not reacting in full to the minus $2.25/mt against front-month swaps, from minus 2kt, FOB Rdam, BE; 5) Litasco-Vitol $613.5/mt, 2kt,
better margins.” $0.50/mt Friday. This was based activity in the Platts FOB Rdam, MW; 6) Gunvor-BP $613.5/mt, 2kt, FOB

Copyright © 2013, The McGraw-Hill Companies 5

 EUROPEAN MARKETSCAN january 28, 2013

Rdam, FE; 7) Litasco-Vitol $613.5/mt, 2kt, FOB Rdam, into LSVGO demand expectations. A rising gasoline the same level seen on Friday, the Forties differential
MW; 8) Totsa-Aegean $613.5/mt, 6kt, FOB Rdam, crack is “always supportive of course,” for LSVGO, said remained under pressure from margins. With the sour
FE; 9) Litasco-Vitol $613.75/mt, 2kt, FOB Rdam, BE; one trader. European gasoline fundamentals are largely market staging a slight recovery, some traders saw Urals
10) Litasco-Vitol $613.5/mt, 2kt, FOB Rdam, MW; bullish according to traders. Strong Mediterranean helping to support the Forties market. “Urals certainly
11) Gunvor-Totsa $613.75/mt, 2kt, FOB Rdam, FE; demand, and a recent arbitrage to the US Atlantic provided some support last week,” one trader said.
12) Litasco-Vitol $613.75/mt, 2kt, FOB Rdam, BE; Coast (now closed) took volumes out of the market, “It will always provide a floor, it just depends where
13) Litasco-Vitol $613.5/mt, 2kt, FOB Rdam, MW; and traders said it looked increasingly profitable to that floor is... If it stays at current levels, I wouldn’t be
14) Litasco-Vitol $613.75/mt, 2kt, FOB Rdam, BE; ship volumes to West Africa from NWE. There was also surprised to see some usual buyers looking at Forties
15) Litasco-Vitol $613.75/mt, 2kt, FOB Rdam, BE; an uptick in the number of hedge funds going long this week.” The Buzzard oilfield is scheduled to undergo
16) Litasco-Vitol $613.5/mt, 2kt, FOB Rdam, MW; on RBOB, said traders, adding to bullish sentiment. a week of planned maintenance in early March, several
17) Litasco-Totsa $613.75/mt, 2kt, FOB Rdam, FE; However on the US demand front for feeds, Hess North Sea traders said. Although the reason for the
18) Litasco-Vitol $613.75/mt, 2kt, FOB Rdam, BE; announced Monday it was closing its New Jersey possible maintenance was unclear, several traders said
19) Gunvor-BP $613.25/mt, 2kt, FOB Rdam, FE; 20) refinery, which buys about 250,000 mt of feedstocks that it could be due to pigging. However, one North
Gunvor-Cargill $613.75/mt, 2kt, FOB Rdam, FE; 21) per month consisting of both high quality LSSR (less Sea trader noted that, with no official comment from
Litasco-Vitol $613.75/mt, 2kt, FOB Rdam, BE; 22) than 0.5% sulfur) and LSVGO, according to trade Nexen, the currently-talked about March date could well
Litasco-ArgosBunk $613.75/mt, 2kt, FOB Rdam, FE; sources. The reaction was mixed from European traders; be pushed back -- indeed, the current March date was
23) Gunvor-Vitol $613.75/mt, 2kt, FOB Rdam, BE; some saw a sizeable impact on the European market deferred from January. One trader said that the move
24) Litasco-Vitol $613.5/mt, 2kt, FOB Rdam, MW; 25) from reduced demand pull from the US. “It’s not so would be unusual, given the large-scale maintenance
Litasco-Vitol $613.75/mt, 2kt, FOB Rdam, BE. bullish is it,” said one. However another trader said the in September and October 2012. “More Buzzard
impact was not significant. maintenance seems a bit weird,” a trader said. “They
n HSFO cargo MOC deal summary: Lia-Cepsa, Platts had maintenance very recently. I can see them doing
HSFO Med Crg CIF bss Algeciras 10-25, February VGO deals (PGA page 5)
something again in August, but I would think that after
7-February 11 100% 3.5% CIF Med cargoes at $4.00 last year’s monster turnaround, that would be all for
for 27000-27000, Terminal: Berth B, Main volume No deals now.” Trafigura also came to the MOC, offering a cargo
pricing: 27kt pricing 1-28 February 2013, 3.5% HIGH of Brent-Ninian Blend loading February 14-16 at Dated
CIF Med cargoes Optol: 0-6kt: pricing 10 days after North Sea crude (PGA page 1299)
Brent plus $1.25/b. The parcel, number B0203, has
COD, same as main volume differential, Spec: RMG been deferred by a day from February 13-16, making
380; 2010 RMG 380 CST bunker fuel, CP: Full med The Forties crude differential to Dated Brent continued it the first February Brent cargo to move dates. Three
(Excl. israel/syria/libia/albania/yugo former yugo) and to fall Monday, losing ground from a two week high cargoes were deferred in the January program, with
the Canary Islands, Vessel acceptable to: CEPSA/ reached Thursday. Total returned to the Platts Market one dropping into February. Elsewhere, other North Sea
Repsol/ENI on Close assessment process bidding for a Forties grades were heard largely stable, with little remaining
cargo loading on February 9-11. Although the bid was on offer for February loading following active trading
VGO (PGA page 1597)

In Monday’s Northwest European vacuum gasoil market,

high sulfur VGO barge and cargoes rose $0.05/barrel
against the ICE March Brent crude futures contract to
reach a $3.00/b premium, while FOB NWE low sulfur
] EUROPEAN MARKETSCAN Volume 45 / Issue 19 / January 28, 2013
Editorial: Gasoil: +44-20-7176-6166 Diesel: +44-20-7176-6684 Gasoline: +44-20-7176-6120 Jet: +44-20-7176-6206 Naphtha: +44-20-7176-3144
Crude: +44-20-7176-6114 Fuel Oil: +44-20-7176-6104 Feedstocks: +44-20-7176-6112
Client services information: North America: 800-PLATTS8 (800-752-8878); direct: +1 212-904-3070, Europe & Middle East: +44-20-7176-6111,
VGO cargoes and barges were assessed up $0.10/b Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: support@platts.com
Copyright © 2013 The McGraw-Hill Companies. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a compu-
against March Brent to reach plus $3.95/b. The ter system or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of The McGraw-Hill Companies Inc.Information has been
arbitrage to the US remained closed on both grades, obtained from sources believed reliable. However, because of the possibility of human or mechanical error by sources, McGraw-Hill or others, McGraw-Hill does not
guarantee the accuracy, adequacy or completeness of any such information and is not responsible for any errors or omissions or for results obtained from use of
said traders, but improving gasoline cracks were playing such information. See back of publication invoice for complete terms and conditions.

Copyright © 2013, The McGraw-Hill Companies 6

 EUROPEAN MARKETSCAN january 28, 2013

the previous week. “The market dipped a bit in the Asia products
second decade,” a trader said, “but overall it’s ending Code Mid Change Code Mid Change
at about the same level it started at. The weakness Singapore (PGA page 2002)

before was due to very strong bidding in Dated Brent, FOB Singpore ($/barrel)
Naphtha PAAAP00 107.09–107.13 107.110 -0.050
which sent the margins very low. The market reverted Gasoline 92 unleaded PGAEY00 121.27–121.31 121.290 -0.670
to higher levels because of the fundamental supply- Gasoline 95 unleaded PGAEZ00 124.48–124.52 124.500 -0.620
demand [balance].” Meanwhile, Shell entered the Forties Gasoline 97 unleaded PGAMS00 126.13–126.17 126.150 -0.600
Kerosene PJABF00 128.37–128.41 128.390 -0.960
parcel F0216, loading February 22-24 into the 10-25 Gasoil 0.05% sulfur AAFEX00 127.09–127.13 127.110 -0.740
day nomination procedure. The cargo, which was also Gasoil 0.25% sulfur AACUE00 126.09–126.13 126.110 -0.790
Gasoil POABC00 127.09–127.13 127.110 -0.740
Shell equity, was kept by Vitol. Shell did not immediately
Fuel oil 180 CST 2% ($/mt) PUAXS00 647.22–647.26 647.240 -2.880
respond to a request for comment on why the cargo had HSFO 180 CST ($/mt) PUADV00 634.46–634.50 634.480 -2.010
been advanced from its original dates of February 23-25. HSFO 380 CST ($/mt) PPXDK00 630.82–630.86 630.840 -3.900
Indonesia (PGA page 2516)
FOB Indonesia ($/barrel)
LSSR (PGA page 1598) LSWR Mixed/Cracked PPAPU00 111.81–111.85 111.830 -0.440
Gasoline components (PBF page 2010)
In Monday’s Northwest European low sulfur straight
FOB Singapore ($/mt)
run market, FOB NWE LSSR cargoes were assessed MTBE PHALF00 1169.00–1171.00 1170.000 -9.000
up $0.10/barrel at a discount of $3.10/b to March Singapore Swaps (PPA page 2654)
ICE Brent crude futures, with continued good draw from February ($/barrel) March ($/barrel)
European refineries, as improved crude margins took time Naphtha Japan ($/mt) AAXFE00 958.25–958.75 958.500 -1.000 AAXFF00 944.25–944.75 944.500 -1.250
Naphtha PAAAQ00 105.83–105.87 105.850 -0.050 PAAAR00 104.28–104.32 104.300 -0.050
to translate into reduced demand for straight run, and
Gasoline 92 unleaded AAXEL00 120.98–121.02 121.000 -0.400 AAXEM00 119.98–120.02 120.000 -0.350
with higher floor provided by an increased low sulfur fuel Reforming Spread AAXEO00 15.13/15.17 15.150 -0.350 AAXEP00 15.68/15.72 15.700 -0.300
oil crack this month. In the Mediterranean, the Ras lanuf Kerosene PJABS00 128.02–128.06 128.040 -0.880 PJABT00 127.41–127.45 127.430 -0.850
Gasoil POAFC00 127.22–127.26 127.240 -0.710 POAFG00 127.21–127.25 127.230 -0.630
refinery in Libya was temporarily shut Monday due to a HSFO 180 CST ($/mt) PUAXZ00 638.73–638.77 638.750 -3.050 PUAYF00 641.38–641.42 641.400 -4.150
power failure, a manager confirmed to Platts. However, Middle East (PGA page 2004)
traders underplayed any impact on the LSSR market. FOB Arab Gulf ($/barrel)
“Seems like its just a one-day issue, I don’t think it will Naphtha ($/mt) PAAAA00 933.85–944.35 939.100 -0.250
Naphtha LR2 ($/mt) AAIDA00 941.01–951.51 946.260 -0.500
affect anything apart from demurrage,” said one trader.
Kerosene PJAAA00 125.95–125.99 125.970 -0.940
Regarding the news that Hess was closing its New Jersey Gasoil 0.005% sulfur AASGJ00 125.02–125.06 125.040 -0.730
refinery, which buys only feedstocks, European traders Gasoil 0.05% sulfur AAFEZ00 124.52–124.56 124.540 -0.730
Gasoil 0.25% sulfur AACUA00 123.12–123.16 123.140 -0.730
tended to underplay any impact on European LSSR Gasoil POAAT00 124.52–124.56 124.540 -0.730
prices. “It’s not a great deal, as a percentage of the HSFO 180 CST ($/mt) PUABE00 619.70–619.74 619.720 -1.920
total market,” said one trader. Traders said the refinery Japan (PGA page 2006)
had bought about 250,000 mt of feedstocks per month, C+F Japan ($/mt) Premium/Discount
consisting of both high quality Algerian LSSR of less than Naphtha PAAAD00 967.00–977.50 972.250 -0.500
Naphtha MOPJ Strip AAXFH00 938.25–938.75 938.500 -1.500 AAXFI00 33.50/34.00 33.750 +1.000
0.5% sulfur, and LSVGO. The Algerian LSSR from Skikda Naphtha 2nd 1/2 Mar PAAAE00 986.75–987.25 987.000 -0.500
they used to buy would not have trouble finding a home, Naphtha 1st 1/2 Mar PAAAF00 977.00–977.50 977.250 -0.500
Naphtha 2nd 1/2 Apr PAAAG00 967.00–967.50 967.250 -0.500
according to one trader. “It’ll get swallowed up,” he said.
Gasoline unleaded ($/barrel) PGACW00 123.93–123.97 123.950 -0.670
Kerosene ($/barrel) PJAAN00 130.28–130.32 130.300 -0.990
Gasoil ($/barrel) POABF00 130.10–130.14 130.120 -0.580
LSSR deals (PGA page 5) HSFO 180 CST PUACJ00 647.19–647.23 647.210 -2.090

No deals

Copyright © 2013, The McGraw-Hill Companies 7

 EUROPEAN MARKETSCAN january 28, 2013

US Products: January 25, 2013

Code Mid Change Code Mid Change Code Mid Change
New York harbor (PGA page 152)
CIF cargoes (¢/gal) RVP
Unleaded 87 0.3% AAMHG00 290.66–290.76 290.710 +1.850 AAMHGRV 15.0
Unleaded-89 0.3% AAMIW00 301.97–302.07 302.020 +1.940 AAMIWRV 15.0
Unleaded-93 0.3% AAMIZ00 318.94–319.04 318.990 +2.090 AAMIZRV 15.0
Jet PJAAX00 322.09–322.19 322.140 -2.330
Low sulfur jet PJABK00 331.84–331.94 331.890 -3.330
ULS Kero AAVTH00 344.84–344.94 344.890 -2.330
No. 2 POAEH00 307.04–307.14 307.090 -2.380
$/barrel 1% strip NYH cargo vs 1% strip
No. 6 0.3% HP PUAAE00 116.65–116.75 116.700 +3.120 AAUGA00 12.72/12.82 12.770 +2.830
No. 6 0.3% LP PUAAB00 122.32–122.42 122.370 +0.290 AAUGB00 18.39/18.49 18.440 0.000
No. 6 0.7% PUAAH00 109.92–110.02 109.970 +1.450 AAUGC00 5.99/6.09 6.040 +1.160
No. 6 1.0%** PUAAO00 104.42–104.52 104.470 +0.090 AAUGG00 103.92–103.94 103.930 +0.290 AAUGD00 0.49/0.59 0.540 -0.200
No. 6 2.2% PUAAU00 100.30–100.40 100.350 +1.310 AAUGE00 -3.63/-3.53 -3.580 +1.020
No. 6 3.0% PUAAX00 97.35–97.45 97.400 +0.140 AAUGF00 -6.58/-6.48 -6.530 -0.150
Residual swaps ($/barrel)
No. 6 1.0% paper Bal M AARZS00 NA–NA NA NANA
No. 6 1.0% paper 1st month PUAXD00 103.80–103.90 103.850 +0.300
No. 6 1.0% paper 2nd month PUAXF00 103.15–103.25 103.200 +0.250
No. 6 1.0% paper next quarter PUAXG00 102.07–102.17 102.120 +0.170
Boston cargoes (PGA pages 152)
¢/gal
Low sulfur jet PJABL00 333.84–333.94 333.890 -3.330
ULS Kero AAVTJ00 346.84–346.94 346.890 -2.330
No. 2 POAEA00 309.54–309.64 309.590 -2.380
No. 6 2.2% ($/barrel) PUAWN00 102.66–102.76 102.710 +2.250
NY/Boston numbers include duty. **This assessment reflects 150 max al+si
FOB Gulf Coast (PGA page 156 & 338)
¢/gal RVP
Unleaded 87 PGACT00 268.67–268.77 268.720 +0.840 PGACTRV 13.5
Unleaded 89 PGAAY00 280.87–280.97 280.920 +1.040 PGAAYRV 13.5
Unleaded 93 PGAJB00 299.17–299.27 299.220 +1.340 PGAJBRV 13.5
MTBE PHAKX00 354.35–354.45 354.400 -1.700
Alkylate* AAFIE00 41.95/42.05 42.000 +0.250
Naphtha PAAAC00 286.67–286.77 286.720 +0.590
Jet 54 PJABM00 311.84–311.94 311.890 -2.580
Jet 55 PJABN00 316.84–316.94 316.890 -2.580
ULS Kero AAVTK00 326.84–326.94 326.890 -2.580
No. 2 POAEE00 302.34–302.44 302.390 -2.080
Low sulfur No. 2 POAES00 304.84–304.94 304.890 -2.330
*Premium to US Gulf Coast pipeline gasoline
$/barrel 3% strip vs 1% strip
Slurry Oil PPAPW00 97.45–97.47 97.460 +0.310 AAUGS00 0.12/0.14 0.130 +0.260
No. 6 1.0% 6 API PUAAI00 104.40–104.42 104.410 +0.310 AAUGT00 7.07/7.09 7.080 +0.260
No. 6 3.0% PUAFZ00 97.30–97.32 97.310 +0.310 AAUGW00 97.32–97.34 97.330 +0.050 AAUGU00 -0.03/-0.01 -0.020 +0.260
RMG 380 PUBDM00 99.00–99.02 99.010 +0.310 AAUGV00 1.67/1.69 1.680 +0.260
Residual swaps ($/barrel)
No. 6 3.0% paper 1st month PUAXJ00 97.10–97.20 97.150 +0.050
No. 6 3.0% paper 2nd month PUAXL00 96.55–96.65 96.600 0.000
No. 6 3.0% paper next quarter PUAXN00 95.92–96.02 95.970 -0.080

Copyright © 2013, The McGraw-Hill Companies 8

London Oil Forum 2013
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