[OIL ]

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EUROPEAN MARKETSCAN
Volume 46 / Issue 243 / December 15, 2014

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) Jan AARIN00 554.50 Jan AAGL001 570.75
Naphtha* PAAAI00 442.75–443.25 443.000 -2.250 PAAAH00 464.00–464.50 464.250 -2.250 Feb AARIO00 571.00** Feb AAGL002 NA
Prem Unl 10ppm AAWZA00 535.00–535.50 535.250 -10.000 AAWZB00 551.25–551.75 551.500
-10.000
Mar AARIP00 573.25** Mar AAGL003 NA
Jet AAIDL00 597.50–598.00 597.750 -8.250 AAZBN00 628.00–628.50 628.250 -8.250
10ppm ULSD AAWYY00 558.25–558.75 558.500 -13.250 AAWYZ00 578.00–578.50 578.250
-13.250 Brent Brent NX
Gasoil 0.1% AAVJI00 540.00–540.50 540.250 -10.500 AAVJJ00 562.25–562.75 562.500
-10.500 Jan AAYES00 61.19 Feb AAXZL00 61.40
Fuel Oil 1.0% PUAAK00 314.50–315.00 314.750 -6.500 PUAAJ00 329.75–330.25 330.000 -6.500 Feb AAYET00 61.40 Mar AAXZM00 62.03
Fuel oil 3.5% PUAAZ00 297.25–297.75 297.500 -5.000 PUAAY00 312.50–313.00 312.750 -5.000 Mar AAXZY00 62.03 Apr AAXZN00 62.74
*Naphtha FOB Med is basis East Med Apr AAYAM00 62.74 May AAYAP00 63.44
Northwest Europe cargoes (PGA page 1110) *Platts ICE assessments reflect the closing value of the ICE contracts at
precisely 16:30 London time. **The Platts 16:30 ICE assessment denotes the
FOB NWE CIF NWE/Basis ARA Low Sulfur Gasoil Contract
Naphtha (Jan) PAAAJ00 478.25–478.75 478.500 -3.750
ICE gasoil settlements (PGA page 702)
Naphtha PAAAL00 480.00–480.50 480.250 -2.250
Gasoline 10ppm AAXFQ00 554.00–554.50 554.250 -4.000 Gasoil Low Sulfur Gasoil
Jet PJAAV00 613.75–614.25 614.000 -8.250 PJAAU00 629.50–630.00 629.750 -8.250 Jan AAQSG00 555.75 Jan AAGS001 571.75
ULSD 10 ppm AAVBF00 552.50–553.00 552.750 -15.750 AAVBG00 573.00–573.50 573.250
-15.750 Feb AAQSH00 572.25 Feb AAGS002 NA
Diesel 10ppm NWE AAWZD00 555.75–556.25 556.000 -15.750 AAWZC00 576.75–577.25 577.000
-15.750 Mar AAQSI00 574.50 Mar AAGS003 NA
Diesel 10 ppm UK AAVBH00 579.00–579.50 579.250
-15.750 Apr AAQSJ00 577.25 Apr AAGS004 NA
Gasoil 0.1% AAYWR00 540.25–540.75 540.500 -10.500 AAYWS00 563.00–563.50 563.250
-10.500 May AAQSK00 580.50
Fuel oil 1.0% PUAAM00 306.25–306.75 306.500 -7.250 PUAAL00 318.50–319.00 318.750 -7.000 Jun AAQSL00 583.75
Fuel oil 3.5% PUABB00 280.00–280.50 280.250 -7.500 PUABA00 294.50–295.00 294.750 -7.250 Expiry AAQSM00 NA*
Straight run 0.5-0.7% PKABA00 368.00–369.00 368.500 -6.500
*Value at 12:00 London time will only appear on day of expiry
VGO 0.5-0.6% AAHMX00 410.00–411.00 410.500 -7.000 AAHMZ00 418.00–419.00 418.500 -7.000
VGO 2% max AAHNB00 402.50–403.50 403.000 -7.000 AAHND00 410.50–411.50 411.000 -7.000 ICE gasoil GWAVE (Previous day’s values) (PGA page 702)
Jan PXAAJ00 568.75 Feb PXAAK00 583.00
Northwest Europe barges (PGA page 1112)
FOB Rotterdam
Naphtha PAAAM00 476.00–476.50 476.250 -2.250 Fuel oil hi-lo diff ($mt) NYMEX futures (16:30 London time)
Eurobob AAQZV00 537.00–537.50 537.250 -4.000
98 RON gasoline 10 ppm AAKOD00 597.00–597.50 597.250 -4.000
Premium gasoline 10 ppm PGABM00 544.50–545.00 544.750 -5.250 60 NYMEX WTI (PGA page 703)

Reformate AAXPM00 567.250 -4.000 $/barrel $/barrel

Jet PJABA00 625.50–626.00 625.750 -8.250 40 Jan AASCR00 56.39 Feb AASCS00 56.74
Diesel 10 ppm AAJUS00 568.50–569.00 568.750 -14.250
Gasoil 50 ppm AAUQC00 559.25–559.75 559.500 -12.000 NYMEX NY ULSD (PGA page 703)
Gasoil 0.1% AAYWT00 551.75–552.25 552.000 -10.750 20
Fuel oil 1.0% PUAAP00 306.25–306.75 306.500 -7.750 ¢/gal ¢/gal
Fuel oil 3.5% PUABC00 300.50–301.00 300.750 -7.250 0 Jan AASCT00 202.04 Feb AASCU00 195.08
Fuel Oil 3.5% 500 CST PUAGN00 290.50–291.00 290.750 -6.250
Rotterdam bunker 380 CST PUAYW00 313.00–314.00 313.500 -5.000 NYMEX RBOB (unleaded gasoline) (PGA page 703)
VGO 0.5-0.6% AAHNF00 416.50–417.50 417.000 -7.000 -20
19-Jun 24-Jul 29-Aug 03-Oct 07-Nov 12-Dec ¢/gal ¢/gal
VGO 2% max AAHNI00 402.50–403.50 403.000 -7.000
Jan AASCV00 158.76 Feb AASCW00 159.82
MTBE* PHALA00 704.75–705.25 705.000 -8.000
*FOB Amsterdam-Rotterdam-Antwerp
 EUROPEAN MARKETSCAN December 15, 2014

Euro-denominated assessments 16:30 London (€/mt)

Market Update (PGA page 724)
Med cargoes (PGA page 1120) Northwest Europe barges (PGA page 1118)

Crude futures were trading lower Monday in the London FOB Med CIF Med FOB Rotterdam
(Italy) (Genova/Lavera) Naphtha ABWHF00 382.100
afternoon, despite the closure of two major oil ports in Naphtha* ABWHE00 355.424 ABWHD00 372.473 Eurobob ABWGT00 431.041
Libya and the start of an oil worker strike in Nigeria. At Prem Unl 10ppm ABWGV00 429.437 ABWGU00 442.474 98 RON gasoline 10 ppm ABWGX00 479.180
Jet ABWGZ00 479.581 AAZBO00 504.052 Premium gasoline 10 ppm AAQCH00 437.059
1557 GMT, ICE January Brent was down 88 cents at 10ppm ULSD ABWHM00 448.091 ABWHH00 463.936 Reformate AAXPN00 455.111
$60.97/barrel, while prompt NYMEX crude was $1.87 Gasoil 0.1% ABWGQ00 433.448 ABWGO00 451.300 Jet ABWHC00 502.046
Fuel Oil 1.0% ABWGH00 252.527 ABWGF00 264.763 Diesel 10 ppm AAQCI00 456.314
lower at $55.94/b. In refined products action, NYMEX
Fuel oil 3.5% ABWGM00 238.687 ABWGK00 250.923 Gasoil 50 ppm AAUQF00 448.893
January ULSD was down 6 points at $2.0154/gal. Front- *Naphtha FOB Med is basis East Med Gasoil 0.1% AAYWY00 442.875
month NYMEX RBOB was trading 1.52 cents lower at Fuel oil 1.0% ABWGI00 245.908
Northwest Europe cargoes (PGA page 1116) Fuel oil 3.5% AAQCK00 241.295
$.5821/gal. “The petroleum markets have tipped back Fuel Oil 3.5% 500 CST PUAGO00 233.272
FOB NWE CIF NWE/
to the downside after a price recovery supported by both Basis ARA Rotterdam bunker 380 CST AAUHE00 251.524
the closure of two Libyan export terminals and a Nigerian Naphtha AAQCE00 385.310
Gasoline 10ppm ABWGS00 444.681 New York Harbor cargoes 16:30 London (PGA pages 1350 & 1450)
strike threat that threaten to curtail production, at least Jet ABWHB00 492.619 AAQCF00 505.255 FOB NY Harbor
temporarily,” Citi Futures and OTC Clearing analyst Tim ULSD 10 ppm ABWHO00 446.085 ABWHI00 462.933 (€ cent/gal)
Evans said in a note. Libya’s state-owned NOC suspended Diesel 10ppm NWE ABWHP00 443.477 ABWHK00 459.925 Unleaded 87 AAPYV00 130.93
Diesel 10 ppm UK ABWHJ00 464.738 Unleaded 89 AAPYW00 140.67
exports from the eastern ports of Es Sider and Ras Lanuf Gasoil 0.1% ABWGR00 433.649 ABWGP00 451.901 Unleaded 93 AAPYX00 155.27
because of heavy fighting between armed groups in the Fuel oil 1.0% AAQCG00 245.908 ABWGG00 255.737 No. 2 AAPYY00 148.46
Fuel oil 3.5% ABWGN00 224.848 ABWGL00 236.481
area. The two ports have a combined capacity of 560,000 Straight run 0.5-0.7% ABWHG00 295.651 European clean product barge freight rates
b/d. Fellow OPEC member Nigeria saw oil workers
Euro/US$ forex rate: 1.2464. Platts Euro denominated European & US product
launch a three-day strike after talks broke down with the assessments are based on market values and a Euro/US$ forex rate at 4:30 PM
ARA ($/mt) (PGT page 1918)

government on addressing alleged anti-labor practices by local London time. Rotterdam — Rotterdam TCAEI00 2.05
Rotterdam — Flushing TCAEJ00 2.90
foreign oil companies. Nigerian crude exports have not yet Rotterdam — Ghent TCAEK00 3.45
been impacted by the strike, West African crude trading Rotterdam — Antwerp TCAEL00 2.65

sources said Monday. Also weighing on the market were Foreign exchange rates (PGA page 1151) Germany ($/mt) (PGT page 1918)

remarks made Sunday by United Arab Emirates oil minister December 15, 2014 London 16:30 Rotterdam — Duisburg TCAEM00 6.60
Dollar/Swiss franc BCADC00 0.9637 Rotterdam — Cologne TCAEN00 10.05
Suhail Mohamed al-Mazrouei, analysts said. Mazrouei said GB pound/Dollar BCADB00 1.5642 Rotterdam — Karlsruhe TCAEO00 18.45
at a conference in Dubai that OPEC would wait at least Dollar/Yen BCACW00 117.8200 Antwerp — Duisburg TCAEP00 6.60

three months before considering an emergency meeting Euro/Dollar BCADD00 1.2464 Switzerland ($/mt) (PGT page 1918)
Dollar/Ruble AAUJO00 63.3000 Rotterdam — Basel TCAEQ00 21.80
to discuss its output target, according to media reports.
The UAE minister’s comments pointed to the “underlying
theme of OPEC members holding their nerve in the face front-month swap. The January/February EBOB FOB Pengassan union and its junior counterpart Nupeng are
of falling prices,” Matt Smith, Schneider Electric analyst, barge swap spread was heard trading at an $8.50/ set for a three-day strike this week after talks broke
said in an email. In the United States, factory production mt contango, $1/mt wider on the day. However, some down with the government. The unions said workers
expanded 1.1% in November, its largest increase in nine sources said the arbitrage to the US Atlantic Coast would down tools at oil export terminals, refineries and
months, the Federal Reserve said Monday. looked more open. Availability of blending components fuel depots. Meanwhile lack of demand for European
had meanwhile improved as better margins saw cargoes in the Persian Gulf and Red Sea continued to
refineries run at good rates. “We’re starting to see put downward pressure on the Mediterranean gasoline
Gasoline
components at long last,” a source said. In other news market as available cargoes looked for homes. “The
Market analysis: (PGA page 1399) Sentiment was bearish a three day strike by Nigerian oil workers this week was market is coming back to long...there are more cargoes
in the Northwest European gasoline market Monday as expected to cause logistical delays. “It will affect the than shorts,” a source said. Cargoes from Greece
Eurobob barges remained at a discount to the equivalent congestion in Lagos,” a source said. The white collar and Turkey were heard to have been offered in the

Copyright © 2014, McGraw Hill Financial 2

 EUROPEAN MARKETSCAN December 15, 2014

market, according to sources. Expensive freight in the Subscriber notes (PGA page 1500)

Mediterranean had also discouraged moving cargoes,

Early European MOC close Dec 24 and 31, Jan 2 Platts 2015 European freight-based oil
sources said.
Due to upcoming public holidays in the UK, Platts assessments (update)
Market on Close assessment process will reflect an Platts has reviewed feedback to its subscriber note of
Gasoline Prem Unleaded 10ppmS FOB Rdam Barge earlier close of 12:30 London time, not the usual 16:30, October 21, 2014, where Platts clarified that its European
assessment rationale: (PGA page 1383) The Premium on December 24 and December 31, 2014, and January freight-based oil assessments in 2015 would not reflect
Unleaded 10 ppm barge value was assessed at $544.75/ 2, 2015. All European and African oil and oil product Worldscale fixed differentials based on the use of 0.1%
mt, down $5.25/mt over the day and assessed $7.50/ assessments that day will be time-stamped to 12:30 sulfur fuels in the Baltic and North Sea ECA. Following its
mt over the Eurobob barge value, down from an $8.75/mt London time. Platts Russian domestic assessments will review of that feedback Platts wishes to further clarify that
premium. There were two trades in the Platts Market on be time-stamped to 12:30 Moscow time. All Market this extends to all published freight-based oil assessments
Close assessment process. Totsa bid to $547/mt before on Close assessment process time cut-off guidelines in Europe, including: ULSD 10 ppm FOB NWE Cargo,
Shell Trading Rotterdam sold to them. STR then offered for physical and derivative oil and oil product markets ULSD 10 ppm FOB NWE Le Havre Cargo, ULSD 10 ppm
will be moved forward by four hours. Please send any CIF NWE Le Havre Cargo, Diesel 10 ppm UK CIF, Diesel 10
to $547/mt before Totsa brought from them. STR then
comments or questions to europe_products@platts.com ppm CIF NWE, Gasoil 0.1% FOB NWE Cargo, HSFO 3.5%
re-offered to $545/mt for mid-window dates. The barge
with a CC to pricegroup@platts.com. FOB NWE Cargo, CIF MED naphtha, FOB MED naphtha
value was assessed under the re-offer level.
and Jet FOB MED. Platts understands that Worldscale has
The above commentary applies to the following market data Europe barge MOC dates for Christmas, announced fixed differentials based on the use of 0.1%
code: PGABM00
New Year holidays sulfur fuels in the Baltic and North Sea ECA zones of $48.35
Effective December 22 and December 23, 2014, and in per mile of the voyage steamed within the zones for 2015.
Gasoline Eurobob FOB ARA Barge assessment line with the Christmas holiday, Platts will reflect refined Platts clarifies that for its freight-derived cargo assessments,
rationale: (PGA page 1383) The FOB Eurobob physical product barges that load 7-15 days forward, not the usual Platts will continue to calculate these freight derived
barge value was assessed at $537/mt, down $4/mt 3-15 days forward. On December 22, the first day that can assessments by using the $/mt Worldscale flat rates only,
over the day, to a $2.25/mt discount to the equivalent be bid or offered will be December 29 and the last day and will not apply these fixed differentials in 2015. This
January swap, up from a $8.25/mt discount. In the will be January 6, 2015. On December 23, the first day continues existing methodology, where Platts only uses the
will be December 30 and the last day will be January 7. $/mt Worldscale flat rates for these netback calculations
Platts Market on Close assessment process Trafigura
Effective December 24, Platts will reflect refined product and does not use Worldscale fixed rate differentials for
bid to $537/mt for front-window loading without before
barges that load 7-15 days forward, not the usual 5-15 1% sulfur fuel in the ECA zones. Platts also clarifies that
Totsa sold to them. The Eurobob barge value was
days forward. The first day will be December 31 and the for its LSFO 1% CIF NWE and CIF Med assessments that
assessed on this trade, however, taking into account last day will be January 8. Effective December 29 and are typically derived as freight netbacks from the LSFO
a fall in crude levels between the trade and the end December 30, and in line with the New Year holiday, FOB NWE assessment, the fixed rate differentials will
of the MOC. A contango market structure was applied Platts will reflect refined product barges that load 4-15 also not be applied. Platts Urals ex-Baltic Sea (FOB) and
to the rest of the assessed barge curve in line with a days forward, not the usual 3-15 days forward. On Urals ex-Primorsk (FOB) will also only take in to account
December/January paper spread of minus $7.50/mt. December 29, the first day that can be bid or offered the $/mt Worldscale rates in 2015, as it has previously
The above commentary applies to the following market data will be January 2 and the last day will be January 13. On done. Please send any further comments or questions by
code: AAQZV00 December 30, the first day will be January 3 and the last December 19, 2014 to europe_products@platts.com and
day will be January 14. Finally, effective December 31, pricegroup@platts.com. For written comments, please
Platts will reflect refined product barges that load 6-15 provide a clear indication if comments are not intended for
Gasoline 10ppmS CIF NWE Cargo assessment
days forward, not the usual 3-15 days forward. The first publication by Platts for public viewing. Platts will consider
rationale: (PGA page 1389) The CIF NWE gasoline cargo
day will be January 6 and the last day will be January all comments received and will make comments not
market was assessed at $551.25/mt, down $4/mt over
15. Following December 31, typical loading dates will marked as confidential available upon request.
the day and $17/mt over the FOB Eurobob barge market, be reflected. Platts will not publish any European oil
unchanged over the day. There were no indications in the assessments on December 25, December 26 and January Platts to update Europe gasoil,
Platts Market on Close assessment process. 1 in line with UK public holidays. Please send any diesel barge methodology
The above commentary applies to the following market data comments or questions to europe_products@platts.com After an extensive consultation period, Platts confirms
code: AAXFQ00 with a CC to pricegroup@platts.com. that with effect from January 2, 2015 it will update its

Copyright © 2014, McGraw Hill Financial 3

 EUROPEAN MARKETSCAN December 15, 2014

Gasoline Prem Unleaded 10ppmS FOB Med Cargo Subscriber notes (cont.) (PGA page 1500)

assessment rationale: (PGA page 1389) The premium

unleaded 10 ppm FOB Mediterranean gasoline cargo middle distillate barge assessment methodology to further Platts to amend European VGO specifications from
was assessed at $535.25/mt, down $10/mt over the
standardize bids and offers published in the Market on January 2
Close Assessment process. These changes follow feedback Effective January 2, 2015, Platts will amend and update
day, and $9.25/mt under the equivalent front-month
to proposals to amend the bids, offers and transactions the specifications it reflects in its European high and low
swap, unchanged over the day. The previous relationship that are reflected in the MOC process for European sulfur VGO assessments, following feedback received to its
between the physical market and the front-month swap for ultra low sulfur diesel and gasoil barges, published proposal process to update these specifications, which was
was maintained with neither of the offers in the Platts on May 15, 2014, and updated on October 22, 2014. ongoing throughout the second half of 2014. Platts will
Market on Close assessment process by Socar and VOLUMES: In diesel and 0.1% gasoil, Platts will reflect reflect the following specifications in its high sulfur VGO
Trafigura indicating a larger discount. The FOB Med cargo bids and offers of 1,000-3,000 mt, amended from the assessments from January 2: Sulfur: 2% max; Density:
value was assessed at a $2/mt discount to physical current 1,000-5,000 mt range. Following this change, 0.92 g/ml max; Metals: Iron 2 ppm max, Sodium 2 ppm
Eurobob barges, from a $4/mt premium. the only size range considered for assessment purposes max, Nickel 1 ppm max, Copper 1 ppm max, Vanadium
The above commentary applies to the following market data would be 1,000-3,000 mt. Fixed volume bids and offers 1ppm max; CCR: 0.5% max; Nitrogen: 1700ppm max;
code: AAWZA00 would no longer be reflected. Buyers will retain the right Pour point: 45 degrees C max; Flashpoint: 100 degrees C
to nominate a volume when expressing an intention to min; Aniline: 75 degrees C min; Asphaltenes: 700 ppm
lift such an offer, and likewise when a seller expresses max; Tan: 0.5 mg KOH/g max. Platts current HSVGO
Gasoline Prem Unleaded 10ppmS CIF Med Cargo
interest in a published bid. In 50 ppm gasoil, Platts’ specifications read: 2% maximum sulfur, specific gravity
assessment rationale: (PGA page 1389) The Premium assessments already reflect 1,000-3,000 mt. LOADING 0.900-0.920 g/ml. Also from January 2, Platts will reflect
Unleaded CIF Mediterranean cargo assessment was DATES: In diesel and 0.1% gasoil, Platts will publish bids the following specifications in its LSVGO assessment:
derived as a freight netback from the Premium Unleaded and offers for fixed laycans of five days each -- the front, Sulfur: 0.6% max; Density: 0.92 g/ml max; Metals: Iron
FOB Mediterranean cargo assessment, using the middle and back end dates reflected in its assessments. 2 ppm max, Sodium 2 ppm max, Nickel 1 ppm max,
following assessments; FOB MED Cargoes: $535-535.5/ Currently, any laycan within the 3-15 days (Monday- Copper 1 ppm max, Vanadium 1ppm max; CCR: 0.5%
mt. Code AAWZA00; Med-Med 30,000 mt clean freight Tuesday) or 5-15 days (Wednesday-Friday) assessment max; Nitrogen: 1500ppm max; Pour point: 45 degrees C
rate spot Worldscale assessment w210; The average of period can be bid or offered. Following this change, a max; Flashpoint: 100 degrees C min; Aniline: 80 degrees
the basket of Worldscale flat rates, calculated for 2014 buyer will retain the right to nominate a barge loading C min; Asphaltenes: 700 ppm max; Tan: 0.5 mg KOH/g
at: $7.76/mt; The Premium Unleaded CIF Mediterranean on one specific day within the five-day laycan agreed max. Platts current LSVGO specifications read: 0.5-0.6%
at time of trade, following the end of the MOC process. sulfur, specific gravity 0.900-0.920 g/ml. Platts will
cargo assessment was derived as a freight netback
Platts’ 50 ppm gasoil barge assessment already reflects continue to consider other merchantable HSVGO and
from the Premium Unleaded FOB Mediterranean cargo
fixed loading periods of five days each -- front, middle LSVGO specifications in its assessment process, and may
assessment, using the following calculation; Premium and back end dates. LOADING PORTS: Platts will not normalize to the updated specifications. Please send any
Unleaded FOB Mediterranean cargoes plus $16.25/mt modify the loading ports reflected in its 0.1% gasoil and comments or questions to europe_products@platts.com
(cross Mediterranean freight). diesel barge assessments. These ports include Flushing, and pricegroup@platts.com. For written comments, please
The above commentary applies to the following market data Amsterdam, Rotterdam, Antwerp and Ghent. However, provide a clear indication if comments are not intended
code: AAWZB00 for 0.1% gasoil and diesel barges, Platts will publish bids for publication by Platts for public viewing. Platts will
and offers for Amsterdam-Rotterdam-Antwerp and also consider all comments received and will make comments
Gasoline Barge bids/offers/trades: (PGA page 1384) Flushing-Ghent. The assessment will then be normalized not marked as confidential available upon request.
■■Gasoline Premium Unleaded 10ppm Barges: MOC back to Amsterdam-Rotterdam-Antwerp. Platts welcomes
Deal Summary: 1) STR-TOTSA at $547/mt, for mid- any further comments and queries to europe_products@ Platts CIF NWE naphtha to reflect cargoes from
platts.com and pricegroup@platts.com. Please send 12,500-36,000 mt
window dates for 1,000 mt; 2) STR-TOTSA at $547/
comments and queries by December 17, 2014. For written Platts will update its CIF NWE naphtha cargo assessment
mt, for mid-window dates for 1,000 mt.
comments, please provide a clear indication if comments to include larger sizes alongside its existing 12,500
■■Gasoline Premium Unleaded 10ppm Barges:
are not intended for publication by Platts for public mt delivery volume with effect from January 2, 2015.
Outstanding Interest: Bids: No bids. viewing. Platts will consider all comments received and Following a comprehensive review of feedback, Platts
■■Offers: 1)STR offer at $545/mt for mid-window dates will make comments not marked as confidential available reconsidered its initial proposal where the assessment
for 1,000 mt. upon request. was going to reflect the value of naphtha delivered in

Copyright © 2014, McGraw Hill Financial 4

 EUROPEAN MARKETSCAN December 15, 2014

■■Gasoline Eurobob Barges MOC Deal Summary: 1) Subscriber notes (cont.) (PGA page 1500)

TOTSA-TRAFIGURA at $537/mt Eurobob for front-

window dates for 1,000 mt; three larger cargo sizes. From January 2, 2015, the four of the Platts naphtha CIF NWE cargo assessment five
cargo sizes reflected in the assessment will be 12,500 mt, working days after completion of discharge (COD), plus or
■■Gasoline Eurobob Barges: Outstanding Interest: Bids:
24,000-28,000 mt, 28,000-32,000 mt and 32,000-36,000 minus a differential. OPERATIONAL TOLERANCE (12,500
No bids
mt. The most competitive of the four cargo sizes will be MT CARGOES): Platts will continue to review pricing
■■Offers: No offers.
reflected in the final published CIF NWE naphtha cargo terms reflected in the 12,500 mt transactional activity
assessment. By reflecting four commonly traded cargo considered in the assessment process, but proposes no
Gasoline Barge exclusions: (PGA page 1384) No market sizes, Platts seeks to ensure that its assessment reflects a immediate change to these standards.Platts welcomes all
data was excluded from the December 15 assessment broader cross-section of Europe’s evolving spot market. further feedback and questions to europe_products@platts.
process. This change reflects the evolution of the market, as com, with a cc to pricegroup@platts.com. For written
demand is increasingly supplied by larger cargoes. As comments, please provide a clear indication if comments
Gasoline Cargo bids/offers/trades: (PGA page 1390) trade in these cargoes has become more commonplace are not intended for publication by Platts for public
■■Gasoline Cargo: MOC Deal Summary: CIF NWE: No deals across the market as a whole, so trading in smaller cargoes, viewing. Platts will consider all comments received and
■■FOB MED: No deals. generally produced by local Western European refineries, will make comments not marked as confidential available
has become relatively less common. Platts reviewed upon request.
■■Gasoline Cargo: Outstanding Interest: CIF NWE: None.
extensive feedback shared during its formal review process,
■■FOB MED: 1) Trafigura offers $536 /mt fixed for 27Kt
which began when Platts published its proposal to reflect Platts to raise cargo sizes in CIF ARA diesel
and 0-6Kt buyers option at Platts Mean Fob Med minus larger cargoes on August 18, 2014. Further feedback assessment
1, pricing 3 quotes after bl (where bl=0) of EN228 EU was shared during an open technical workshop held in Platts will extend the range of cargo sizes reflected in its
qualified min 95/85 Ron/Mon, 10 ppm S max, 80 Kpa London on October 10. Respondents expressed a range of CIF ARA diesel assessment from 10,000-35,000 mt plus/
rvp max, reach compliant, 0.755 escalate/de-escalate. views including support for the principle to include larger minus 10% to 10,000-40,000 mt plus/minus 10% with
Loading 28th dec - 1st jan 15 FOB basis one safe port/ cargo sizes in the Platts assessment methodology. Broad effect from January 2, 2015. The announcement follows
berth Aspropyrgos. There will be a premium if port of sale support for the continued inclusion of the current, 12,500 a middle distillates technical workshop hosted by Platts
means freight saving to buyer, there will be a discount if mt cargo size was also received. CARGO SIZES: Platts will on April 28 in London and a formal proposal made on
port of sale means freight cost to buyer; 2) Socar offer continue to consider bids, offers and trades for the cargo May 21. The basis of the assessment will remain 20,000
$541 /mt fixed price for 27kt and 0-6kt at fob med plus size currently reflected in its CIF Northwest European mt plus/minus 10%, but cargoes across the entire size
naphtha cargo assessment: cargoes of 12,500 mt, plus or range of 10,000-40,000 mt plus/minus 10% will also
2 pricing 3 quoted days after bl(b/l =0) cargo of en228
minus 10%. In addition, Platts will publish bids, offers and be considered. The current approach of normalizing
EU qualified min 95/85 ron/mon, 10ppm S max, 80kpa
expressions of interest to trade in cargo sizes of 24,000- price data for different cargo sizes back to the value of
rvp max reach compliant, 0.755 escalate/de-escalate. 28,000 mt, 28,000-32,000 mt and 32,000-36,000 mt. The a 20,000 mt plus/minus 10% cargo will be maintained.
Loading basis Sarroch loading 27-31 December 2014, most competitive of the four cargo sizes will form the Platts will continue to monitor market developments to
c/p freight to be adjusted by applicable freight differential, basis of the final published assessment. OPERATIONAL ensure the assessment process reflects flows that become
load locations exclude black sea and Israel. TOLERANCE (LARGER CARGOES): For 24,000-28,000 mt, more prevalent and relevant in the European market.
28,000-32,000 mt and 32,000-36,000 mt cargoes, Platts The following assessments will be affected by today’s
will reflect European naphtha cargo bids, offers and trades announcement: CIF ARA diesel cargoes (AAVBG00), CIF
that limit a counterparty’s price exposure to operational NWE (Le Havre) diesel cargoes (AAWZC00), CIF UK diesel
PLATTS OIL IS ON TWITTER tolerance. Platts will reflect CIF cargo bids, offers and cargoes (AAVBH00), FOB ARA diesel cargoes (AAVBF00),
trades that value the operational tolerance volume after FOB NWE (Le Havre) diesel cargoes (AAWZD00). Please
FOR UP-TO-THE-MINUTE OIL NEWS discharge on a floating price basis, on the mean of the send any comments and queries to europe_products@
AND INFORMATION FROM PLATTS Platts naphtha CIF NWE cargo assessment over five platts.com and pricegroup@platts.com. For written
working days after completion of discharge (COD), plus comments, please provide a clear indication if comments
Follow us on twitter.com/PlattsOil or minus a differential. For example, in a bid for 24,000- are not intended for publication by Platts for public
28,000 mt, Platts would typically publish a bid of 24,000 viewing. Platts will consider all comments received and
mt on a fixed price basis, with an operational tolerance will make comments not marked as confidential available
of 0-4,000 mt pricing as a floating price on the mean upon request.

Copyright © 2014, McGraw Hill Financial 5

 EUROPEAN MARKETSCAN December 15, 2014

Gasoline Cargo exclusions: (PGA page 1390) No market Subscriber notes (cont.) (PGA page 1500)

data was excluded from the December 15 assessment

process. Platts will clarify NWE gasoline barge basis labeling No Platts Americas oil assessments on December 26
Following a formal feedback period, Platts confirms it will Platts confirms it will amend its publication schedule
clarify the basis labeling of its three Northwest Europe for Friday, December 26 and not publish any oil
Naphtha gasoline barge assessments in its market price assessment assessments from its offices in the US on that day
database with effect from January 2, 2015. The three in observance of the Christmas holiday. Platts had
Market analysis: (PGA page 1398) The European naphtha assessments are Gasoline Eurobob FOB ARA Barges, proposed waiting for feedback until December 3 before
market continued its incremental recovery, as fundamentals Gasoline Premium Unleaded 10 ppmS FOB Rotterdam publishing a decision on this proposal. However, in
found some support from the recent short-covering from Barges, and Gasoline Regular Unleaded 98 FOB ARA response to widespread feedback favoring a decision
domestic olefin producers. Incremental demand remained Barges. With effect from January 2, Platts will rename the before the start of the new trading month, Platts is
visible this week, despite active buying observed last three assessments “FOB AR” to reflect the basis assessed. publishing its decision before the start of December.
week, sources said. Spot buying from cracker operators These assessments, which reflect barges typically loading Platts will maintain its current publication schedule
was mostly due to high cracker utilization rates propped basis Amsterdam/Rotterdam (AR), will continue to be for Wednesday, December 24; Wednesday, December
by very attractive margins, sources said. “Demand has assessed as they are currently. The way they are presented 31; and Friday, January 2, on which days its assessment
in European Marketscan and on Platts Global Alert will processes will close early. All assessments and Market On
been much stronger than anticipated, the petchem margins
also be unchanged. The three assessments are currently Close assessment processes will be basis 1:30 pm Eastern
have been great...crackers are running hard,” a trader
published in the Platts price assessment database under time on those days. Please submit any comments to
said. Additionally, some ongoing cracker outages also
codes ABWGT00 (Gasoline Eurobob FOB ARA Barge), oilgroup@platts.com and PriceGroup@platts.com. For
allowed the functioning assets to run even harder. Signs of ABWGX00 (Gasoline Premium Unleaded 10 ppmS FOB full details of Platts publishing schedule and services
cautious inventory management and year-end destocking Rotterdam Barge), and AAQCH00 (Gasoline Regular affected, refer to http://www.platts.com/holiday
were not prevalent in the naphtha market this year, as Unleaded 98 FOB ARA Barges). Platts welcomes all further
a pronounced naphtha contango and healthy cracker feedback and questions to europe_products@platts.com,
economics negated the traditional year-end impact, sources with a cc to pricegroup@platts.com.
said. Healthy storage economics and adequate re-supply
flows into the region discouraged stock clearance, sources Naphtha CIF NWE Cargo assessment rationale: (PGA January 5-9 delivery dates. However, it was Morgan
said. Selling interest has receded recently and those with page 1386) The CIF Northwest European naphtha Stanley’s outstanding bid at $480/mt for December
volume in tanks wanted a bigger incentive to part with cargo value was assessed at $480.25/mt, down 31-January 4 delivery dates which was competitive
product, sources said. “I think the bid/offer spread is a $2.25/mt on Friday’s assessment, and assessed and was used to reflect value on January 2 at
long way apart at the moment. The offers are there but $1.75/mt over the front-month swap, up from a $480.25/mt. A shallow daily contango of $0.021/mt
only at a level that reflects the additional demand we premium of 25 cents. There was one trade in the was applied to the rest of the curve.
have seen of late. If not there is space in tank again and Platts Market on Close assessment process. Gunvor The above commentary applies to the following market data
contango structure so there are no distressed sellers,” a sold into Morgan Stanley’s bid of $480/mt for code: PAAAL00
second trader said. Heavy arbitrage flows east continued,
buoyed by healthy netbacks, sources said. The East/West
spread — the premium of CFR Japan naphtha swap over
EUROPEAN MARKETSCAN Volume 46 / Issue 243 / December 15, 2014
the CIF NWE naphtha cargo swap — was heard around
$32.50/mt for January. Elsewhere, gasoline blending Editorial: Naphtha: +44-20-7176-6122 Gasoline: +44-20-7176-6205 Jet: +44-20-7176-3709 Diesel: +44-20-7176-1294 Gasoil: +44-20-7176-6683
HS Fuel Oil: +44-20-7176-6512 LS Fuel Oil: +44-20-7176-6104 North Sea crude: +44-20-7176-6059 Urals and Med crudes: +44-20-7176-6112
demand has subsided recently. Some LVN naphtha grades WAF crudes: +44-20-7176-6230

were heard to be better available than open spec grades, Client services information: North America: 800-PLATTS8 (800-752-8878); direct: +1 212-904-3070, Europe & Middle East: +44-20-7176-6111,
Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: support@platts.com
and commanded only marginal premiums, sources said. Copyright © 2014 McGraw Hill Financial. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer
In production news, Repsol’s Tarragona cracker is back system or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of McGraw Hill Financial. Information has been obtained from
sources believed reliable. However, because of the possibility of human or mechanical error by sources, McGraw Hill Financial or others, McGraw Hill Financial does
running after a short shutdown last week, a spokeswoman 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 such information. See back of publication invoice for complete terms and conditions.
said Monday.

Copyright © 2014, McGraw Hill Financial 6

 EUROPEAN MARKETSCAN December 15, 2014

Naphtha FOB Med Cargo assessment rationale: Asia products

(PGA page 1376) The naphtha FOB Mediterranean cargo Code Mid Change Code Mid Change
assessment was derived as a freight netback from Singapore (PGA page 2002)

the naphtha CIF Northwest Europe cargo assessment, FOB Singpore ($/barrel)
Naphtha PAAAP00 54.95–54.99 54.970 +0.370
using the following assessments; CIF NWE cargoes: Gasoline 92 unleaded PGAEY00 68.11–68.15 68.130 -0.210
$480-480.5/mt, code PAAAL00; Med-UKC 27,500 Gasoline 95 unleaded PGAEZ00 70.42–70.46 70.440 -0.210
mt clean freight rate spot Worldscale assessment Gasoline 97 unleaded PGAMS00 71.94–71.98 71.960 -0.210
Kerosene PJABF00 77.10–77.14 77.120 -0.110
w240; Alexandria-Rotterdam Worldscale flat rate Gasoil 0.05% sulfur AAFEX00 76.20–76.24 76.220 -0.200
plus Rotterdam port fees, calculated for 2014 at: Gasoil 0.25% sulfur AACUE00 75.68–75.72 75.700 -0.200
Gasoil POABC00 76.20–76.24 76.220 -0.200
$15.57/mt. The naphtha FOB Mediterranean cargo
Fuel oil 180 CST 2% ($/mt) PUAXS00 349.36–349.40 349.380 -4.000
assessment was derived as a freight netback from HSFO 180 CST ($/mt) PUADV00 341.67–341.71 341.690 -3.910
the naphtha CIF NWE cargo assessment, using the HSFO 380 CST ($/mt) PPXDK00 338.04–338.08 338.060 -5.700

following calculation; Naphtha CIF NWE cargoes minus Indonesia (PGA page 2516)

$37.25/mt. FOB Indonesia ($/barrel)

LSWR Mixed/Cracked PPAPU00 58.72–58.76 58.740 -0.630
The above commentary applies to the following market data
Gasoline components (PBF page 2010)
code: PAAAI00
FOB Singapore ($/mt)
MTBE PHALF00 699.00–701.00 700.000 -3.000
Naphtha Cargo bids/offers/trades: (PGA page 1387) Singapore Swaps (PPA page 2654)
■■NAPHTHA CARGO CIF NWE MOC deals: GUNVOR- January ($/barrel) February ($/barrel)
MS 12,500 mt CIF NWE naphtha cargo January 5-9 Naphtha Japan ($/mt) AAXFE00 519.50–520.00 519.750 +3.750 AAXFF00 522.50–523.00 522.750
+3.500
Naphtha PAAAQ00 55.03–55.07 55.050 +0.350 PAAAR00 55.13–55.17 55.150 +0.350
delivery $480/mt.
Gasoline 92 unleaded AAXEL00 68.28–68.32 68.300 -0.300 AAXEM00 68.73–68.77 68.750 -0.300
■■NAPHTHA MOC: OUTSTANDING INTEREST: Reforming Spread AAXEO00 13.23/13.27 13.250 -0.650 AAXEP00 13.58/13.62 13.600 -0.650
■■BIDS: BP BIDS 12,500 mt CIF NWE naphtha cargo Kerosene PJABS00 77.40–77.44 77.420 -0.200 PJABT00 77.70–77.74 77.720 -0.180
Gasoil POAFC00 76.23–76.27 76.250 -0.150 POAFG00 76.43–76.47 76.450 -0.170
December 27-31 delivery $477/mt; MS BIDS 12,500 HSFO 180 CST ($/mt) PUAXZ00 340.98–341.02 341.000 -4.250 PUAYF00 340.78–340.82 340.800 -4.300
mt CIF NWE naphtha cargo December 31-January 4 Middle East (PGA page 2004)
delivery $480/mt; LITASCO BIDS 12,500 mt CIF NWE FOB Arab Gulf ($/barrel)
naphtha cargo January 5-9 delivery $478/mt. Naphtha ($/mt) PAAAA00 478.88–480.38 479.630 +3.190
Naphtha LR2 ($/mt) AAIDA00 484.88–486.38 485.630 +3.500
■■OFFERS: GUNVOR OFFERS 12,500 mt CIF NWE
Kerosene PJAAA00 74.49–74.53 74.510 -0.130
naphtha cargo December 29-January 2 delivery $485/ Gasoil 0.005% sulfur AASGJ00 74.04–74.08 74.060 -0.270
mt; STASCO OFFERS 12,500 mt CIF NWE naphtha Gasoil 0.05% sulfur AAFEZ00 73.44–73.48 73.460 -0.220
Gasoil 0.25% sulfur AACUA00 72.74–72.78 72.760 -0.270
cargo December 31-January 4 delivery $485/mt; Gasoil POAAT00 73.44–73.48 73.460 -0.220
LITASCO OFFERS 12,500 mt CIF NWE naphtha cargo HSFO 180 CST ($/mt) PUABE00 321.56–321.60 321.580 -3.910
January 1-5 delivery $488/mt; KOCH OFFERS 12,500 Japan (PGA page 2006)
mt CIF NWE naphtha cargo January 4-8 delivery $485/ C+F Japan ($/mt) Premium/Discount
mt; STASCO OFFERS 12,500 mt CIF NWE naphtha Naphtha PAAAD00 514.75–516.25 515.500 +3.500
Naphtha MOPJ Strip AAXFH00 522.50–523.00 522.750 +3.500 AAXFI00 -7.50/-7.00 -7.250
0.000
cargo January 5-9 delivery $481/mt; GUNVOR OFFERS Naphtha 2nd 1/2 Jan PAAAE00 514.00–514.50 514.250 +3.500
12,500 mt CIF NWE naphtha cargo January 5-9 Naphtha 1st 1/2 Feb PAAAF00 514.75–515.25 515.000 +3.500
Naphtha 2nd 1/2 Feb PAAAG00 515.75–516.25 516.000 +3.500
delivery $481/mt. GLENCORE OFFERS 12,500 mt CIF
Gasoline unleaded ($/barrel) PGACW00 70.35–70.39 70.370 -0.190
NWE naphtha cargo January 5-9 delivery $483/mt. Kerosene ($/barrel) PJAAN00 79.11–79.15 79.130 -0.160
Gasoil ($/barrel) POABF00 79.51–79.55 79.530 -0.240
HSFO 180 CST PUACJ00 358.77–358.81 358.790 -4.070
(continued on page 9)

Copyright © 2014, McGraw Hill Financial 7

 EUROPEAN MARKETSCAN December 15, 2014

US Products: December 12, 2014

Code Mid Change Code Mid Change Code Mid Change
New York harbor (PGA page 152)
CIF cargoes (¢/gal) RVP
Unleaded 87 0.3% AAMHG00 164.35–164.45 164.400 -3.210 AAMHGRV 15.0
Unleaded-89 0.3% AAMIW00 176.49–176.59 176.540 -3.110 AAMIWRV 15.0
Unleaded-93 0.3% AAMIZ00 194.69–194.79 194.740 -2.960 AAMIZRV 15.0
Jet PJAAX00 200.69–200.79 200.740 -4.300
Low sulfur jet PJABK00 214.69–214.79 214.740 -4.300
ULS Kero AAVTH00 233.69–233.79 233.740 -4.300
No. 2 POAEH00 184.69–184.79 184.740 -4.550
$/barrel 1% strip NYH cargo vs 1% strip
No. 6 0.3% HP PUAAE00 67.68–67.70 67.690 -1.900 AAUGA00 17.93/17.95 17.940 -0.090
No. 6 0.3% LP PUAAB00 68.98–69.00 68.990 -1.950 AAUGB00 19.23/19.25 19.240 -0.140
No. 6 0.7% PUAAH00 53.28–53.30 53.290 -1.800 AAUGC00 3.53/3.55 3.540 +0.010
No. 6 1.0%** PUAAO00 49.88–49.90 49.890 -1.800 AAUGG00 49.74–49.76 49.750 -1.810 AAUGD00 0.13/0.15 0.140 +0.010
No. 6 2.2% PUAAU00 48.68–48.70 48.690 -1.940 AAUGE00 -1.07/-1.05 -1.060 -0.130
No. 6 3.0% PUAAX00 48.53–48.55 48.540 -1.940 AAUGF00 -1.22/-1.20 -1.210 -0.130
Residual swaps ($/barrel)
No. 6 1.0% paper Bal M AARZS00 49.79–49.81 49.800 -1.800
No. 6 1.0% paper 1st month PUAXD00 49.60–49.70 49.650 -1.800
No. 6 1.0% paper 2nd month PUAXF00 49.80–49.90 49.850 -1.800
No. 6 1.0% paper next quarter PUAXG00 49.80–49.90 49.850 -1.800
Boston cargoes (PGA pages 152)
¢/gal
Low sulfur jet PJABL00 217.19–217.29 217.240 -4.300
ULS Kero AAVTJ00 236.19–236.29 236.240 -4.300
No. 2 POAEA00 189.69–189.79 189.740 -4.550
No. 6 2.2% ($/barrel) PUAWN00 49.53–49.55 49.540 -1.940
NY/Boston numbers include duty. **This assessment reflects 150 max al+si
FOB Gulf Coast (PGA page 156 & 338)
¢/gal RVP
Unleaded 87 PGACT00 143.42–143.52 143.470 -0.990 PGACTRV 13.5
Unleaded 89 PGAAY00 152.42–152.52 152.470 +0.610 PGAAYRV 13.5
Unleaded 93 PGAJB00 165.92–166.02 165.970 +3.010 PGAJBRV 13.5
MTBE PHAKX00 210.80–210.90 210.850 -11.000
Alkylate* AAFIE00 31.70/31.80 31.750 -0.250
Naphtha PAAAC00 131.42–131.52 131.470 -2.990
Jet 54 PJABM00 174.69–174.79 174.740 -6.050
Jet 55 PJABN00 178.19–178.29 178.240 -6.050
ULS Kero AAVTK00 188.94–189.04 188.990 -6.050
No. 2 POAEE00 168.19–168.29 168.240 -7.300
Cargo (¢/gal) Cargo ($/mt)
FOB Naphtha AAXJP00 133.470 -2.990 AAXJU00 467.170 -10.470
NEW Export ULSD AAXRV00 174.519 -6.529 AAXRW00 546.071 -20.427
*Premium to US Gulf Coast pipeline gasoline
$/barrel 3% strip vs 1% strip
Slurry Oil PPAPW00 47.74–47.76 47.750 -1.950 AAUGS00 0.30/0.32 0.310 -0.100
No. 6 1.0% 6 API PUAAI00 51.19–51.21 51.200 -1.930 AAUGT00 3.75/3.77 3.760 -0.080
No. 6 3.0% PUAFZ00 46.94–46.96 46.950 -1.850 AAUGW00 47.43–47.45 47.440 -1.850 AAUGU00 -0.50/-0.48 -0.490 0.000
RMG 380 PUBDM00 47.94–47.96 47.950 -1.850 AAUGV00 0.50/0.52 0.510 0.000
Residual swaps ($/barrel)
No. 6 3.0% paper 1st month PUAXJ00 47.30–47.40 47.350 -1.800
No. 6 3.0% paper 2nd month PUAXL00 47.65–47.75 47.700 -1.750
No. 6 3.0% paper next quarter PUAXN00 47.65–47.75 47.700 -1.750

Copyright © 2014, McGraw Hill Financial 8

 EUROPEAN MARKETSCAN December 15, 2014

Naphtha Cargo exclusions: (PGA page 1387) Naphtha Jet FOB Rdam Barge assessment rationale: (PGA page cargo assessment, using the following assessments:
Cargo exclusions: No market data was excluded from the 1489) Jet FOB Rotterdam barges were assessed at Jet CIF NWE cargoes: $629.5-630/mt. Code PJAAU00;
December 15 assessment process. $625.75/mt Monday, down $8.25/mt from the previous Med-UKC 30,000 mt clean freight rate spot Worldscale
close. The premium to front-month 0.1% gasoil futures was assessment W220 The Worldscale flat rate, calculated
assessed at $71.25/mt, up $3.25/mt from the previous for 2014 at: $12.87/mt and Rotterdam Harbor dues of
Jet
close. Two offers did not prove competitive against the $1.17/mt; The Jet Aviation FOB Med cargo assessment
Market analysis: (PGA page 1497) The physical jet cargo previously tested relationship between FOB Rotterdam was derived as a freight netback to the CIF NWE cargo
market continued to strengthen Monday, as demand barges and CIF NWE cargoes, and with no bids presented, assessment, using the following calculation: Jet CIF NWE
for prompt barrels saw the physical market structure the relationship was maintained with FOB Rotterdam cargoes minus $32/mt (Med-UKC freight).
shift into backwardation on firm and sustained barges assessed at a $4/mt discount to CIF cargoes. The above commentary applies to the following market data
buying appetite into Le Havre, which saw premiums The above commentary applies to the following market data code: AAIDL00
close $3.25/mt higher from Friday to $75.25/ code: PJABA00
mt. As jet continued to strengthen against a well Jet Barge bids/offers/trades: (PGA page 1490)
offered diesel market, spot cracks for FOB Rotterdam Jet CIF NWE Cargo assessment rationale: (PGA page ■■JET FUEL: BARGE DEAL SUMMARY: None
jet barges versus Dated Brent closed at $18.30/ 1492) Jet CIF NWE cargoes were assessed at $629.75/ ■■JET FUEL: BARGE OUTSTANDING INTEREST: OFFERS: 1)
barrel, leaving the premium of jet to diesel at $3/b, mt Monday, down $8.25/mt from the previous close. BP offers 2-3kt, FARA, Dec 26-30 at CCM+3, pxg 95%
its highest level since September 2009. Interest for The premium to front-month 0.1% gasoil futures was 20-24 Dec bal 1 quote after BL; 1. VSA offers CCM-0,
FOB Rotterdam barges however appeared to recede assessed at $75.25/mt, up $3.25/mt from the 95% pricing as 16-19 Dec and balance 1 quote after
somewhat from last week, with trade interest focused previous close. A front-window bid from Totsa valued at b/l (BL=0), Dec 18-22 (B/O) Rotterdam, 2kt.
in the swaps market, where Q4 15 Rotterdam Barge/ a $77.80/mt premium to January 0.1% gasoil futures ■■BIDS: None
CIF Cargo swaps were seen trading at minus 1.75/ proved competitive and remained outstanding with
mt, while more prompt Q1 15 swaps were heard at no offers over front-laycan dates. Over mid-window Jet Barge exclusions: (PGA page 1490) No market data
minus $2.50/mt. Jet CIF cargo swap differentials wide laycan dates an offer from Vitol basis Rotterdam was excluded from the December 15 assessment
reflected stronger buying appetite over the prompt demonstrated a physical backwardation over the front process.
as balance-month swaps continued the upward trend half of the assessed period, outstanding at $74.57/mt,
seen last week, up by $2.75/mt to $71.5/mt, while while a second bid found selling interest from Vitol at Jet Cargo bids/offers/trades: (PGA page 1493)
January increased by $1.25/mt to $56.50/mt. In $75.84/mt. Value over mid-window dates was assessed ■■JET FUEL: NWE CARGO DEAL SUMMARY: VITOL-TOTSA
fixtures, Trafigura was heard to have the 76,564 dwt at the mean point between traded competitive bid and trade on bid, Platts NWE Jet Crg - CIF bss Le Havre
BW Lena for a 60,000 mt cargo from Persian Gulf- outstanding offer at $75.08/mt. A further offer of a CIM - 10-25, Main: 27kt, 31/12 - 4/1, Indication
UK Continent at $2.025 million lump sum, while Vitol cargo from Vitol over the back laycan at $74.49/mt number : 3 Main volume pricing : 27 kt prx 23-31
was heard to have fixed the 46,342 dwt Torm Freya demonstrated a physical backwardation over the second dec 2014; Optol : 0-6 kt (pricing basis 3 quotes after
currently ballasting back from Rotterdam through half of the assessed period, which was applied over COD with COD =0) as per last differential indication
the Gulf of Aden for 35,000 mt from PG-West India those dates. A flat structure was applied over the first for main volume; Spec : Jet A1 Defstan 91-91 latest
with UKC options. The 40,354 dwt Simoa was seen two dates given the contrasting physical and forward issue, JFSCLI latest issue (current at bill of lading) with
en route through the Gulf of Aden westbound for curve structure. possible exception of electrical conductivity (stadis
UKC. For Mediterranean delivery, the Kings Road was The above commentary applies to the following market data to be provided on board in drums) CP : full NWE C/P
seen arriving into the Mediterranean bound for UKC, code: PJAAU00 Options Vessel : TOTAL/SHELL/KPIAC approved, ISPS
while the FPMC P Ideal was seen arriving in Cypriot compliant 100% of main at Jet CIF NWE Crg Any Day
waters, with the 110,295 dwt Mare Nostrum heading Jet FOB Med Cargo assessment rationale: (PGA page See TQC 4.
north through the Red Sea passing Eritrea bound for 1492) The Jet Aviation Fuel FOB Med cargo assessed ■■JET FUEL: NWE CARGO OUSTANDING INTEREST:
Kalamata, West Greece, shipping data showed. was derived as a freight netback to the Jet CIF NWE OFFERS: Vitol offers Platts NWE Jet Crg - CIF bss

Copyright © 2014, McGraw Hill Financial 9

 EUROPEAN MARKETSCAN December 15, 2014

Rotterdam - 10-25, Main: 27 kt, 27/12 - 4/1 (wide A1 Defstan 91-91 latest issue, JFSCLI latest issue and conditions Vessel: BP/Totsa/KPI, 100% of main
laycan), Indication number: 1) Laycan: Buyer to narrow (current at bill of lading) with possible exception volume at EFP ICE 0.1% GO Month Jan $72; BP bids
to 5 day at time of booking Main volume pricing: 27kt of electrical conductivity (stadis to be provided on Platts NWE Jet Crg - CIF bss IoG - 10-25, Main: 27
CCM pricing 16 - 31 Dec Optol: 0-6kt, CCM +$1, board in drums) CP : full NWE C/P Options Vessel kt, 25/12 - 9/1 (wide laycan), Indication number: 1
pricing 5 after COD (COD=0). Terminal/jetty: Rotterdam : TOTAL/SHELL/KPIAC approved, ISPS compliant, Laycan: Seller to narrow to 5 day window at time of
Spec: JetA-1 CP: CIF NWE Vessel: BP, Exxon, Totsa 100% of main volume at EFP ICE 0.1% GO Month trade Main volume pricing: 27kt pricing 15-31 Jan
GT&Cs Total 2007, 100% of main volume at Jet CIF Jan $77; Totsa bids Platts NWE Jet Crg - CIF bss 2015 Optol: 0-6kt CCM flat 5 days after cod (where
NWE Crg Any Day See TQC $3; Vitol offers Platts NWE Le Havre CIM - 10-25, Main: 27 kt, 25/12 - 29/12, cod=0) Terminal/jetty: Isle of Grain Spec: Jet A1
Jet Crg - CIF bss Rotterdam - 10-25, Main: 27 kt, 4/1 - Indication number : 2OCO1 Main volume pricing : 27 DEFSTAN 91-91, meeting JFSCL latest issue (current
9/1 (wide laycan), Indication number: 2) Laycan: Buyer kt prx 23-31 dec 2014 Optol : 0-6 kt (pricing basis 3 at bill of lading) with possible exception of electrical
to narrow to 5 day at time of booking Main volume quotes after COD with COD =0) as per last differential conductivity (Stadis to be provided on board in drums),
pricing: 27kt CCM pricing 16 - 31 Dec Optol: 0-6kt, indication of #2 Spec : Jet A1 Defstan 91-91 latest ISPS compliant CP: Full NWE charter party options at
CCM +$1, pricing 5 after COD (COD=0). Terminal/ issue, JFSCLI latest issue (current at bill of lading) charter party rate, terms and conditions Vessel: BP/
jetty: Rotterdam Spec: JetA-1 CP: CIF NWE Vessel: with possible exception of electrical conductivity Totsa/KPI, 100% of main volume at Jet CIF NWE Crg
BP/Exxon/Totsa GT&Cs Total 2007, 100% of main (stadis to be provided on board in drums) CP : full Any Day See TQC $4.
volume at Jet CIF NWE Crg Any Day See TQC $3; Vitol NWE C/P Options Vessel : TOTAL/SHELL/KPIAC
offers Platts NWE Jet Crg - CIF bss IoG - 10-25, Main: approved, ISPS compliant, 100% of main volume at Jet Cargo exclusions: (PGA page 1493) No market data
34 kt, 1/1 - 8/1 (wide laycan), Indication number: 3) Jet CIF NWE Crg Any Day See TQC $6; MS bids Platts was excluded from the December 15 assessment
Laycan: Buyer to narrow to 5 day at time of booking NWE Jet Crg - CIF bss Le Havre CIM - 10-25, Main: process.
Main volume pricing: 34kt CCM pricing 16 - 31 Dec 27 kt, 1/1 - 9/1 (wide laycan), Indication number: 1
Optol: 0-6kt, CCM +$4, pricing 5 after COD (COD=0). Laycan: Seller to declare a 5 day window at the time Jet Index (PGA page 115)

Full Cargo Terminal/jetty: IOG Spec: JetA-1 CP: CIF of the booking Main Volume Pxg: Full Jan EFP ICE GO December 12, 2014 Index $/mt
Europe & CIS PJECI00 217.46 PJECI09 636.00
NWE Vessel: Simoa GT&Cs Total 2007, 100% of main Optol: 0-6kt priced full Jan EFP ICE GO as per last
MidEast & Africa PJMEA00 226.69 PJMEA09 598.93
volume at Jet CIF NWE Crg Any Day See TQC $5. differential indication Terminal: CIM Le Havre Spec: Global PJGLO00 214.58 PJGLO09 618.68
■■BIDS: BP bids Platts NWE Jet Crg - CIF bss Rotterdam Jet A1 Defstan 91-91 latest issue, JFSCLI latest issue
- 10-25, Main: 27 kt, 29/12 - 4/1 (wide laycan), (current at bill of lading) with possible exception of
Indication number: 2 Laycan: Seller to narrow to 5 electrical conductivity (Stadis to be provided on board
Gasoil
day window at time of trade Main volume pricing: in drums), ISPS compliant. f/p cargo s/option CP: Full
27kt pricing Full EFP Jan 2015 Optol: 0-6kt Full NWE charter party options at charter party rate, terms Market analysis: (PGA page 1499) Physical gasoil outright
EFP Jan 2015, premium in line with last differential and conditions Vessel: BP/KPI/TOTSA, 100% of main prices weakened on the day following a fall in the
indication Terminal/jetty: Rotterdam Spec: Jet A1 volume at EFP ICE 0.1% GO Month Jan $71; BP bids January 0.1% ICE gasoil futures contract at the close
DEFSTAN 91-91, meeting JFSCL latest issue (current Platts NWE Jet Crg - CIF bss Le Havre - 10-25, Main: Monday. The fall in ICE gasoil futures followed a similar
at bill of lading) with possible exception of electrical 27 kt, 25/12 - 3/1 (wide laycan), Indication number: drop on the January ICE Brent contract despite a small
conductivity (Stadis to be provided on board in drums), 3 Laycan: Seller to narrow to 5 day window at time uptick in Monday morning trading as traders priced
ISPS compliant CP: Full NWE charter party options at of trade Main volume pricing: 27kt pricing Full EFP in the impact of the shutdown of two oil terminals
charter party rate, terms and conditions Vessel: BP/ Jan 2015 Optol: 0-6kt Full EFP Jan 2015, premium in in Libya. Meanwhile, trading activity for 0.1% barges
Shell/KPI, 100% of main volume at EFP ICE 0.1% line with last differential indication Terminal/jetty: Le remained quite active in Platts Market on Close process
GO Month Jan $70; Totsa bids Platts NWE Jet Crg - Havre Spec: Jet A1 DEFSTAN 91-91, meeting JFSCL Monday. “I feel demand is not great but the lower flat
CIF bss Le Havre CIM - 10-25, Main: 27 kt, 25/12 latest issue (current at bill of lading) with possible price is triggering some purchase from end users,”
- 29/12, Indication number : 1OCO2 Main volume exception of electrical conductivity (Stadis to be said one trader. Traders also added that West Africa
pricing : full JAN EFP ICE GO Optol : 0-6 kt premium provided on board in drums), ISPS compliant CP: Full and South America and the East Coast US continued
as per last EFP indication for main volume Spec : Jet NWE charter party options at charter party rate, terms to pull some oil from ARA. “I heard some movement

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 EUROPEAN MARKETSCAN December 15, 2014

into New York harbor, it’s a kind of structural thing, the the Gasoil 0.1% Cargo CIF NWE cargo assessment, Gasoil .1%S (1000ppm) CIF Med Cargo assessment
HOGO is very wide...enough to pull oil from ARA,” the using the following assessments UKC-UKC 22,000 rationale: (PGA page 1392) The CIF delivered 0.1%
trader added. The HOGO, or the spread between the mt clean freight spot Worldscale assessment w240. Mediterranean cargo cash premium was assessed at
front-month January NYMEX ULSD contract and January The average of the basket of Worldscale flat rates, January 0.1% ICE gasoil plus $8/mt on Monday, up $1/mt
0.1% ICE gasoil futures, closed at around $68.75/mt calculated for 2014 at: $9.33/mt; The Gasoil 0.1% on the day. The outright price was assessed at $562.50/
levels Friday. Gunvor was heard to have put a vessel FOB NWE cargo assessment was derived as a mt, down $10.50/mt on the day. A bid by BP did not prove
on subjects for an ARA-Nouadhibou voyage loading freight netback from the Gasoil 0.1% CIF NWE cargo competitive against Friday’s spread between the paper and
December 20, while Addax was heard to have the Torm assessment, using the following calculation; Gasoil physical was maintained on Friday with a $0.06/mt per
Gyda on subjects for a Fawley-Las Palmas voyage for the 0.1% CIF NWE cargo minus $22.75/mt. (UKC-UKC day contango applied throughout the physical assessment
same loading dates. freight plus $0.25/mt insurance) curve as suggested by the paper structure.
The above commentary applies to the following market data The above commentary applies to the following market data
Gasoil .1%S (1000ppm) FOB ARA Barge assessment code: AAYWR00 code: AAVJJ00
rationale: (PGA page 1427) The FOB delivered gasoil 0.1%
barge cash premium was assessed at January 0.1% Gasoil 0.1%S CIF NWE Cargo assessment rationale: Gasoil 0.1% Barge bids/offers/trades: (PGA page 1428)
ICE gasoil minus $2.50/mt Monday, up $0.75/mt on (PGA page 1443) The CIF delivered 0.1% NWE cargo cash ■■GASOIL: 0.1%: BARGE DEAL SUMMARY: BP-Vitol, offer
the day. The outright price was assessed at $552/mt, premium was assessed at January 0.1% ICE gasoil plus Jan minus 2.5, 22-26 Dec, ARA, 3kt; BP-Vitol, offer
down $10.75/mt on the day. In the Platts Market on $8.75/mt on Monday, up $1/mt on the day. The outright Jan minus 2.5, 22-26 Dec, Rotterdam, 3kt; Glencore-
Close assessment process, a bid by Vitol at minus $3/ price was assessed at $563.25/mt, down $10.50/mt Vitol, offer at Jan minus 2.5, 18-22 Dec, ARA, 2kt;
mt against the January ICE gasoil futures as well as the on the day. No indications were live at the close and BP-Vitol, offer Jan minus 2.5, 22-26 Dec, ARA, 2kt;
trade between BP and Vitol at minus $2.50/mt proved Friday’s spread between the swaps and physical was BP-Vitol, offer Jan minus 2.5, 22-26 Dec, Rotterdam,
competitive in line with Friday’s spread between the maintained on Friday with a $0.19/mt per day contango 2kt; Glencore-Vitol, offer at Jan minus 2.5, 18-22 Dec,
paper and physical. A $0.28/mt per day backwardation applied throughout the physical assessment curve as ARA, 2kt.
structure was applied throughout the physical suggested by the paper structure. ■■GASOIL: 0.1%: BARGE OUTSTANDING INTEREST:
assessment curve as suggested by the paper structure. The above commentary applies to the following market data ■■OFFERS: Socar offers at Jan +0, 18-22 Dec, RAG,
The above commentary applies to the following market data code: AAYWS00 1-3kt.
code: AAYWT00 ■■BIDS: MS bids at Jan minus 3, 26-30 Dec, ARA, 1-3kt;
Gasoil 0.1%S FOB Med Cargo assessment 1) Vitol bids at Jan minus 3, 18-22 Dec, ARA, 1-3kt;
Gasoil .005%S (50ppm) FOB ARA Barge assessment rationale: (PGA page 1392) The Gasoil 0.1% Cargo Belgomine bids at Jan minus 4, 18-22 Dec, RA, 1-3kt.
rationale: (PGA page 1408) The FOB delivered gasoil 50 FOB Mediterranean cargo assessment was derived
ppm barge cash premium was assessed at January as a freight netback from the Gasoil 0.1% Cargo CIF Gasoil 0.1% Barge exclusions: (PGA page 1428) No
0.1% ICE gasoil plus $5/mt Monday, down $0.50/mt on Mediterranean cargo assessment, using the following market data was excluded from the December 15
the day. The outright price was assessed at $559.50/ assessments: Black Sea-Mediterranean 30,000 mt assessment process.
mt, down $12/mt on the day. The market was assessed clean freight rate spot Worldscale assessment w210.
on the back of Glencore’s offer at $5/mt on front-window The average of the basket of Worldscale flat rates, Gasoil NWE Cargo bids/offers/trades: (PGA page 1444)
dates and Mabanaft’s bid at the same level for back- calculated for 2014 at: $10.42/mt; The Gasoil 0.1% ■■GASOIL: NWE CARGO DEAL SUMMARY: None
window dates. FOB Mediterranean cargo assessment was derived as a ■■GASOIL: NWE CARGO OUSTANDING INTEREST:
The above commentary applies to the following market data freight netback from the Gasoil 0.1% CIF Mediterranean OFFERS: None
code: AAUQC00 cargo assessment, using the following calculation; ■■BIDS: None
Gasoil 0.1% CIF Mediterranean cargo minus $22.25/mt.
Gasoil 0.1%S FOB NWE Cargo assessment rationale: (Black Sea-Med freight plus $0.25/mt insurance) Gasoil NWE Cargo exclusions: (PGA page 1444)
(PGA page 1443) The Gasoil 0.1% Cargo FOB NWE cargo The above commentary applies to the following market data No market data was excluded from the December 15
assessment was derived as a freight netback from code: AAVJI00 assessment process.

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 EUROPEAN MARKETSCAN December 15, 2014

Gasoil Mediterranean bids/offers/trades: (PGA page 1393) sulfur diesel stocks to 35.29 million in the latest week, ULSD 10ppmS CIF NWE Basis UK Cargo assessment
■■GASOIL: MED CARGO DEAL SUMMARY: None US Energy Information Administration data showed. That rationale: (PGA page 1467) The diesel 10 ppm (UK) CIF
■■GASOIL: MED CARGO OUSTANDING INTEREST: put stocks in the region near the five-year average. Prior to NWE cargo assessment was derived as a freight net-
OFFERS: None that, combined stocks on the USGC had averaged around forward from the ULSD 10 ppm ARA cargo assessment,
■■BIDS: BP bids Platts Med 0.1% Gasoil Crg - CIF 12% below the five-year average. US Gulf Coast ULSD using the following assessments: ULSD 10ppm
bss Genoa - 10-25, Main: 25 kt, 27/12 - 31/12, differentials fell 5.75 cents/gallon Friday as US Gulf Coast ARA Cargo: $573-573.5/mt. Code AAVBG00; UKC-
Indication Number: 1 optol: 0-5 kt s,o as per last efp supply continues to search for markets. Platts assessed UKC 22,000 mt clean freight rate spot Worldscale
differential Terminal/Jetty: GENOA Spec: Gasoil 0.1 the US Gulf Coast ULSD differential at NYMEX January assessment w240; The average of the basket of
Max meeting B+C Winter Spec with density min 0.83 ULSD futures minus 29 cents/gal. The benchmark Gulf Worldscale flat rates, calculated for 2014 at: $2.51/mt;
CP: Euromed/neobig + slovenia + algeria +tunisia + Coast ULSD outright price, $1.7274/gal, was the lowest The Diesel 10 ppm (UK) CIF NWE cargo assessment was
turkish med + others as per vessel cp Vessel : BP/ since September 29, 2009. In other news, Russia’s export derived as a freight net-forward from the ULSD 10 ppm
Exxon/Litasco, 100% of main volume at EFP ICE 0.1% duty on its main Urals crude and other crude blends — ARA cargo assessment, using the following calculation:
GO Month Jan $6. except those enjoying a more favorable tax regime — will ULSD 10 ppm ARA cargoes plus $6/mt.
be set at $170.20/mt, or $23.30/barrel, for January, The above commentary applies to the following market data
Gasoil Mediterranean exclusions: (PGA page 1393) down 38.7% from $277.50/m in December, as recently code: AAVBH00
No market data was excluded from the December 15 approved changes to Russian tax legislation come into
assessment process. force from the beginning of next year. Russia’s latest ULSD 10ppmS CIF NWE Basis Le Havre Cargo
changes also affect export duty on oil products, with the assessment rationale: (PGA page 1467) The diesel 10
tax level set at a certain percentage of the crude oil export ppm CIF NWE (Le Havre) cargo assessment was derived
Diesel
duty. Under the tax maneuver, the export duty on diesel as a freight net-forward from the ULSD 10 ppm ARA
Market analysis: (PGA page 1498) Diesel saw sharp falls export duty will drop to 48% from 65%. At the same time, cargo assessment, using the following assessments:
across the cargo and barge markets Monday, with the the fuel oil export duty will increase to 76% from 66% of ULSD 10 ppm ARA Cargo: $573-573.5/mt. Code
paper structure moving from backwardation to contango on the Urals duty. AAVBG00; UKC-UKC 22,000 mt clean freight rate spot
expectations of a better supply towards the end of year on Worldscale assessment w240; The average of the
increased arbitrage flows and steady refinery margins. US ULSD 10ppmS FOB Rdam Barge assessment rationale: basket of Worldscale flat rates, calculated for 2014 at:
distillate exports tracked by Platts to arrive in Europe rose (PGA page 1478) FOB Rotterdam ULSD barges were $1.56/mt; The Diesel 10 ppm CIF NWE (Le Havre) cargo
to around 440,000 mt last week, up from 380,000 mt in assessed at $568.75/mt Monday, down $14.25/mt from assessment was derived as a freight net-forward from
the prior week, according to Platts ship-tracking software the previous close. The premium over front-month 0.1% the ULSD 10 ppm ARA cargo assessment, using the
cFlow. A total of 1.8 million-2.2 million mt is being tracked gasoil futures was assessed at $14.25/mt, down $2.75/ following calculation: ULSD 10 ppm ARA cargoes plus
to arrive in Europe this month. The US is a major exporter mt from the previous assessment. In the Platts Market $3.75/mt.
of ULSD to Europe, with some clean product vessels On Close assessment process, a trade on a bid by Vitol The above commentary applies to the following market data
carrying distillates such as gasoil or jet fuel depending assessed at $14.66/mt was competitive, crossing with a code: AAWZC00
on the economics of the arbitrage. If all vessels arrive at trade on an offer by BP assessed at $14/mt. On the mid-
their intended destinations, the December export total will window, a trade on a BP offer was competitive assessed ULSD 10ppmS CIF NWE Cargo assessment rationale:
be the largest from the US since September, when just at $14/mt, with a trade on a Vitol bid on the earlier (PGA page 1467) The Northwest European diesel cargo
over 2 million mt of distillates arrived in Europe. Exports date on the curve at $14.32/mt considered competitive. outright price was assessed at $573.25/mt CIF
to Europe have been limited by a sharp increase in clean On the front-window a trade on a BP offer also at $14/ Monday, down $15.75/mt from the previous day. The
freight costs, according to traders. Pressure has been mt was competitive. Structure was drawn between the premium to front-month 0.1% ICE gasoil futures was
mounting in the US as distillate inventories build, with indications, with the 7 cent/day contango as implied by assessed at $18.75/mt, down $4.25/mt from the
limited appetite for European spot fixtures and significant paper used for the remaining dates. previous assessment. In the Platts Market On Close
Latin American exports already taking place. The US Gulf The above commentary applies to the following market data assessment process, an outstanding BP offer assessed
Coast saw a 2.76 million barrel build in low and ultra low code: AAJUS00 at $18.91/mt was competitive on a laycan of January

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 EUROPEAN MARKETSCAN December 15, 2014

1-5. The 12 cent/day contango as implied by paper was 95 % pricing as per 5 day laycan , balance pricing 3 ■■BIDS: Gunvor bids Platts NWE ULSD Crg - CIF bss
used from the competitive indication for the remaining quotes after bl date, Dec 26-30, 3kt; BP 1-MS, offer Thames - 10-25, Main: 18 kt, 5/1 - 9/1, indication
dates on the curve. JAN +13.50, Dec 18-22, RA, 1.5kt; BP 1-AST, offer JAN 2 oco indication 1 french winter 10ppm max density
The above commentary applies to the following market data +13.50, Dec 18-22, RA, 3kt; BP 2-HETCO, offer JAN 0.842 terminal :stolthaven thames bp /totsa/shell
code: AAVBG00 +13.50, Dec 22-26, RA, 2kt; BP 3-HETCO, offer JAN approved optol 0-4kt pricing as per last efp differential
+13.50, Dec 26-30, RA, 2kt. cp options hamburg/bordeaux + obtainable +
ULSD 10ppmS CIF Med Cargo assessment rationale: ■■ULSD: BARGE OUTSTANDING INTEREST: OFFERS: available, 100% of main volume at EFP ICE 0.1% GO
(PGA page 1456) The Mediterranean cargo outright price 3) HETCO offer barge mean +1.50, 95% pricing Dec Month Jan $21.
was assessed at $578/mt CIF Monday, down $13.50/ 18-22, bal 3 quotes after BL, Dec 18-22, ARA, 1-3kt; ■■Gunvor bids Platts NWE ULSD Crg - CIF bss
mt on the day. The premium to the front-month 0.1% ICE Belgomine offer JAN +15.00, Dec 26-30, RA, 1-2kt; Amsterdam - 10-25, Main: 27 kt, 30/12 - 3/1,
gasoil futures was assessed at $23.50/mt, down $2/mt 2) HETCO offers JAN +18.00, Dec 18-22, RA, 1-3kt ; indication 1 oco indication 2 french winter 10ppm
from the previous assessment. In the Platts Market On 1) HETCO offers JAN +17.50, Dec 18-22, ARA, 1-3kt ; max density 0.842 optol 0-6kt pricing as per last efp
Close assessment process, an outstanding BP offer on Gunvor offers JAN +16.00, Dec 18-22, AR, 1-2kt. price differential bp/shell/totsa approved hamburg/
December 28-January 1 dates was competitive assessed ■■BIDS: 1) Vitol bids JAN +12.50, Dec 18-23 (SO) AR, bordeaux + cp options available and obtainable, 100%
at $23.74/mt. An outstanding bid on the front-window 1-3kt; 1) MS bids JAN +11.00, Dec 18-22, ARA, 1-2kt; of main volume at EFP ICE 0.1% GO Month Jan $18.
by Litasco was also considered competitive, assessed 1) AST bids JAN +12.50, Dec 18-22, AR 1-3kt; 2) AST
at $24.25/mt. Structure as drawn between with the bids JAN +12.50, Dec 18-22, FRAG 1-3kt ; 3) AST Diesel NWE Cargo exclusions: (PGA page 1468)
physical curve used for the front dates, with the back bids JAN LSG minus 4.00, Dec 18-22, AR 1-3kt; 2) No market data was excluded from the December 15
dates kept flat to the BP offer disproving the 5 cent/day Vitol bids JAN +12.50, Dec 22-27 (SO) AR, 1-3kt. assessment process.
contango as implied by paper.
The above commentary applies to the following market data Diesel Barge exclusions: (PGA page 1479) No market Diesel Mediterranean bids/offers/trades: (PGA page 1457)
code: AAWYZ00 data was excluded from the December 15 assessment ■■ULSD: MED CARGO DEAL SUMMARY: None
process. ■■ULSD: MED CARGO OUSTANDING INTEREST: OFFERS:
Diesel Barge bids/offers/trades: (PGA page 1479) Glencore offers Platts Med ULSD Crg - CIF bss Lavera
■■ULSD: BARGE DEAL SUMMARY: BP 2-HETCO, offer Diesel NWE Cargo bids/offers/trades: (PGA page 1468) - 10-25, Main: 25 kt, 31/12 - 4/1, Indication 1 :
JAN +12.50, Dec 22-26, RA, 2kt; BP 3-HETCO, offer ■■ULSD: NWE CARGO DEAL SUMMARY: None Main volume pricing: 16-22 December Optol : 0-5
JAN +12.50, Dec 26-30, RA, 2kt; BP-AST 1, bid JAN ■■ULSD: NWE CARGO OUSTANDING INTEREST: kt s.o, pricing 5 quotes after COD Terminal/Jetty:
+12.00, Dec 18-22, AR, 2.3kt; BP 2-NOBLE, offer JAN OFFERS: Cargill offers Platts NWE ULSD Crg - CIF bss Lavera Spec: ulsd 10 ppm meeting french winter spec
+12.50, Dec 22-26, RA, 3kt; BP 3-NOBLE, offer JAN Amsterdam - 10-25, Main: 27 kt, 27/12 - 31/12, Options: euromed/neobig + slovinia+turkish med +
+12.50, Dec 26-30, RA, 3kt; GLENCORE-VSA, offer Indication:1 Optol:0-6kt pricing as per last efp price others obtainable Vessel : Repsol/Lukoil/Erg Gtc’s
JAN +12.00, Dec 22-26, ARA, 2kt; BP 2-HETCO, offer differential Spec: French winter 10ppm max density :TOTSA 2007, 100% of main volume at ULSD CIFMed
JAN +12.50, Dec 22-26, RA, 2kt; BP 3-HETCO, offer 0.842, C&B Options: hamg-bdx range + ecuk + n spain Crg Any Day See TQC $0.75; BP offers Platts Med
JAN +12.50, Dec 26-30, RA, 2kt; BP 1-VSA, offer Approval: BP/Shell/Total, 100% of main volume at EFP ULSD Crg - CIF bss Lavera - 10-25, Main: 27 kt, 28/12
JAN +12.50, Dec 18-22, RA, 3kt; ULSD: BARGE: BP ICE 0.1% GO Month Jan $19. - 1/1, Indication :2 Main volume: 27kt pricing 22-31
1-TOTSA, offer JAN +13.00, Dec 18-22, RA, 2.8kt; ■■BP offers Platts NWE ULSD Crg - CIF bss Amsterdam Dec Optol: 0-6kt pricing 3 quotes after cod at last
BP 2-VSA, offer JAN +13.00, Dec 22-26, RA, 3kt; - 10-25, Main: 18 kt, 1/1 - 5/1, indication 1 french differential as per main pricing Spec: French winter
BP 3-VSA, offer JAN +13.00, Dec 26-30, RA, 3kt; BP winter 10ppm max density 0.842 main pricing: 16-19 c+b CP: Euromed/Neobig excluding Y/FY but including
1-TOTSA, offer JAN +13.50, Dec 18-22, RA, 2.8kt; Dec optol 0-4kt pricing 3 quotes after COD, differential Slovenia and Croatia, Turkish Med, Sea of Marmara
STR-VSA 3, bid JAN +12.50, Dec 26-30, AR, 3kt; as per main bp/shell/totsa approved hamburg/ and Other as available Vessel: BP/Litasco/Shell BP
BP-VSA 4, bid mean barges +1.00, 95 % pricing as per bordeaux + cp options available and obtainable bp 2007 GTCs, 100% of main volume at ULSD CIFMed
5 day laycan , balance pricing 3 quotes after bl date, 2007 gtcs, 100% of main volume at ULSD CIFNWE Crg Crg Any Day See TQC $-0.25; Trafigura offers Platts
Dec 21-25, 3kt; BP-VSA 5, bid mean barges +1.00, Any Day See TQC $1.5. Med ULSD Crg - CIF bss Aliaga (Total Terminal) - 10-25,

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 EUROPEAN MARKETSCAN December 15, 2014

Main: 27 kt, 31/12 - 4/1, Indication 1 Quality: ulsd physical Med/North — the discount of 3.5% FOB meant barges were assessed at a $0.50/mt premium
10 ppm meeting french winter spec optol 0-6 kt s.o , Mediterranean cargoes to 3.5% FOB Rotterdam barges to the January swap.
price as per last efp indication Terminal/Jetty: Aliaga — shrank to $3.25/mt Monday, from a previous The above commentary applies to the following market data
Euromed/neobig/som/turkish med/+others as per vsl $5.50/mt. “There are lots of barrels on offer...the code: PUABC00
approvals: BP/SHELL/TOTSA GTCS: BP 2007, 100% of overhang mostly hasn’t been cleared,” one trader said.
main volume at EFP ICE 0.1% GO Month Jan $27. “But, what helped clear some of it was some players FO 1%S CIF NWE Cargo assessment rationale: (PGA
■■BIDS: Litasco bids Platts Med ULSD Crg - CIF bss sending material east. Also, Turkey is producing but page 1588) The 1% CIF Northwest European cargo
Koper - 10-25, Main: 25 kt, 3/1 - 9/1 (wide laycan), freight is expensive, so how competitive are their assessment was derived as a freight net-forward to the
Indication: 2 Optol: 0-5kt pricing same as main pricing offers going to be for West Med?” Meanwhile, the low 1% FOB Northwest European cargo assessment, using
as per last differential indication Spec: french winter sulfur fuel oil market remained pressured by reduced the following assessments: 1% FOB Northwest European
spec ulsd with C+B CP: euromedneobig+ rijeka +SOM demand. “On the bunkering side, players aren’t buying cargoes: $306.25-306.75/mt. Code PUAAM00; Cross-
+Turkish med + others as per cp Vessel: Litasco/ much because on January 1 there will be a change UKC 30,000 mt dirty freight rate spot Worldscale
omv/eni, 100% of main volume at EFP ICE 10ppmGO in the ECAs regulation, so shipowners don’t want to assessment w170. Code TDADY00; The average of the
Month Feb $6; Litasco bids Platts Med ULSD Crg - take this [LSFO] product,” one trader said. Another basket of Worldscale flat rates, calculated for 2014
CIF bss Aliaga - 10-25, Main: 25 kt, 25/12 - 29/12, said: “There is still oil in NWE and the Mediterranean at: $7.23/mt. The 1% CIF Northwest European cargo
Indication: 1 aliaga , poas terminal ,stern line demand is bad.” The source said current levels of assessment was derived as a freight net-forward to the
discharge Optol: 0-5kt pricing same as main pricing supplies were largely covering the remaining demand. 1% FOB Northwest European cargo assessment, using
as per last differential indication Spec: french winter The physical hi-lo — the premium of 1% FOB NWE the following calculation: 1% FOB Northwest European
spec ulsd with C+B CP: euromedneobig+ rijeka +SOM cargoes to 3.5% FOB Rotterdam barges — was cargoes plus $12.25/mt (cross-UKC freight). 1% CIF
+Turkish med + others as per cp Vessel: Litasco/ unchanged at $5.75/mt Monday. Northwest European cargoes: $318.5-319/mt. Code
omv/shell, 100% of main volume at EFP ICE 0.1% GO PUAAL00.
Month Jan $24. FO 1%S FOB Rdam Barge assessment rationale: The above commentary applies to the following market data
(PGA page 1592) Platts assessed 1% FOB Rotterdam code: PUAAL00
Diesel Mediterranean exclusions: (PGA page 1457) barges at $306.50/mt. No bids or offers in the Platts
No market data was excluded from the December 15 Market on Close assessment process disproved Platts FO 1%S FOB NWE Cargo assessment rationale: (PGA
assessment process. perception of value, which meant the average of the page 1588) Platts assessed 1% FOB NWE cargoes at
barge assessment period was assessed at a $3.25/mt $306.50/mt, down $7.25/mt from the previous trading
discount to the front-month January swap. session. No bids or offers in the Platts Market on Close
Fuel Oil
The above commentary applies to the following market data assessment process disproved Platts perception of
Market analysis: (PGA page 1599) The European high code: PUAAP00 value. 1% FOB NWE cargoes were assessed at parity to
sulfur fuel oil market entered the week on a steady the front-month January swap.
note, with 3.5% FOB Rotterdam barges holding at FO 3.5%S FOB Rdam Barge assessment rationale: (PGA The above commentary applies to the following market data
a $0.50/mt premium to the front-month January page 1592) Platts assessed the front end of the barge code: PUAAM00
swap Monday, unchanged from the previous trading window at $301/mt, on a competitive bid that remained
session. Traders continued to report healthy resupply until a few seconds before the close and below an offer FO 1%S CIF Med Cargo assessment rationale:
flows amid planned VLCC loadings, while arbitrage which remained in extension. Platts assessed the mid (PGA page 1580) The 1% CIF Mediterranean cargo
opportunities to Asia have become less workable window at $300.75/mt, above a bid that remained until assessment was derived as a freight net-forward to
on the back of a weaker Singaporean market. The the close and on a competitive offer that withdrew after the 1% FOB Northwest European cargo assessment,
Mediterranean market remained characterized by a few seconds into extension. Platts then assessed using the following assessments: 1% FOB Northwest
abundant supply, notably due to a large Turkish the back end of the window at $300.75/mt on a European cargoes: $306.25-306.75/mt. Code
production which saw Tupras issue a tender for competitive bid which traded in extension. The average PUAAM00; UKC-Mediterranean 30,000 mt dirty
another two December cargoes Friday. However, the of the 3-15 day barge window was $300.75/mt. This freight rate spot Worldscale assessment w170.

Copyright © 2014, McGraw Hill Financial 14

 EUROPEAN MARKETSCAN December 15, 2014

Code TDADZ00; The Worldscale flat rate for Antwerp- FO 3.5%S FOB Med Cargo assessment rationale: mt for 2kt MW; KCEL Offer $301.00/mt for 2kt MW;
Milazzo, published for 2014 at: $13.83/mt. The 1% (PGA page 1580) The 3.5% FOB Mediterranean cargo KOCHSARL Offer $302.00/mt for 2kt MW;KOCHSARL
CIF Mediterranean cargo assessment was derived as a assessment was derived as a freight netback to the Offer $300.75/mt for 2kt MW; LITASCO Offer
freight net forward to the 1% FOB Northwest European 3.5% CIF Mediterranean cargo assessment, using $301.25/mt for 2kt MW; LITASCO Offer $301.25/mt
cargo assessment, using the following calculation: 1% the following assessments: 3.5% CIF Mediterranean for 2kt MW; LITASCO Offer $302.00/mt for 2kt MW;
FOB Northwest European cargoes plus $23.5/mt (UKC- cargoes: $312.5-313/mt. Code PUAAY00; Med-Med MERCURIASA Offer $305.00/mt for 2kt MW; TOTSA
Mediterranean freight). 1% CIF Mediterranean cargoes: 30,000 mt dirty freight rate spot Worldscale assessment Offer $301.00/mt for 2kt MW; VITOL Offer $301.50/
$329.75-330.25/mt. Code PUAAJ00. w187.5; The average of the basket of Worldscale flat mt for 2kt MW; VITOL Offer $302.50/mt for 2kt MW.
The above commentary applies to the following market data rates, calculated for 2014 at: $8.19/mt; The 3.5% ■■HSFO BARGE 380 CST MOC: OUTSTANDING INTEREST:
code: PUAAJ00 FOB Mediterranean cargo assessment was derived as BIDS: ARGBUNK Bid $298.00/mt for 2kt BE;
a freight netback to the 3.5% CIF Mediterranean cargo GUNVORSA Bid $300.75/mt for 2kt BE; LITASCO Bid
FO 1%S FOB Med Cargo assessment rationale: assessment, using the following calculation: 3.5% $297.75/mt for 2kt BE; MERCURIASA Bid $299.00/
(PGA page 1580) The 1% FOB Mediterranean cargo CIF Mediterranean cargoes minus $15.25/mt (cross- mt for 2kt BE; AEGEAN Bid $299.25/mt for 2kt FE;
assessment was derived as a freight netback to Mediterranean freight). BPBV Bid $298.00/mt for 2kt FE; GUNVORSA Bid
the 1% CIF Mediterranean cargo assessment, using The above commentary applies to the following market data $299.00/mt for 2kt FE; LITASCO Bid $298.00/mt for
the following assessments: 1% CIF Mediterranean code: PUAAZ00 2kt FE; OCHART Bid $298.00/mt for 2kt FE; ARGBUNK
cargoes: $329.75-330.25/mt. Code PUAAJ00; Bid $299.50/mt for 2kt MW; BPBV Bid $300.50/mt
Cross-Mediterranean 30,000 mt dirty freight Fuel Oil Barge bids/offers/trades: (PGA page 1593) for 2kt MW; GUNVORSA Bid $299.25/mt for 2kt MW;
rate spot Worldscale assessment w187.5. Code ■■LSFO BARGE MOC: OUTSTANDING INTEREST: OFFERS: LITASCO Bid $298.00/mt for 2kt MW; MERCURIASA
TDAEA00; The average of the basket of Worldscale None. Bid $298.00/mt for 2kt MW.
flat rates, calculated for 2014 at: 8.19 The 1% FOB ■■LSFO BARGE MOC: OUTSTANDING INTEREST: BIDS: ■■HSFO BARGE 380 CST BARGE DEAL SUMMARY: 1)
Mediterranean cargo assessment was derived as a None. LITASCO-MERCURIASA, $301.5/mt, 2kt, FOB Rdam,
freight netback to the 1% CIF Mediterranean cargo ■■LSFO BARGE DEAL SUMMARY: No deals. FE;2)GUNVORSA-MERCURIASA, $301.25/mt, 2kt, FOB
assessment, using the following calculation: 1% CIF ■■HSFO BARGE 380 CST MOC: OUTSTANDING INTEREST: Rdam, FE; 3)GUNVORSA-MERCURIASA, $301.25/mt,
Mediterranean cargoes minus $15.25/mt (cross- OFFERS: BPBV Offer $307.00/mt for 2kt BE; 2kt, FOB Rdam, FE; 4)KCEL-BPBV, $301/mt, 2kt, FOB
Mediterranean freight). 1% FOB Mediterranean cargoes: GUNVORSA Offer $304.00/mt for 2kt BE; KCEL Offer Rdam, BE; 5)MERCURIASA-BPBV, $301/mt, 2kt, FOB
$306.25-306.75/mt. Code PUAAK00. $301.00/mt for 2kt BE; KCEL Offer $301.50/mt for Rdam, BE; 6)GUNVORSA-CARGILL, $301.25/mt, 2kt,
The above commentary applies to the following market data 2kt BE; KOCHSARL Offer $302.00/mt for 2kt BE; FOB Rdam, FE; 7)KCEL-GUNVORSA, $301/mt, 2kt,
code: PUAAK00 LITASCO Offer $301.50/mt for 2kt BE; LITASCO Offer FOB Rdam, BE; 8)LITASCO-GUNVORSA, $301/mt, 2kt,
$301.25/mt for 2kt BE; LITASCO Offer $301.00/mt FOB Rdam, BE; 9)KCEL-GUNVORSA, $301/mt, 2kt,
FO 3.5%S CIF Med Cargo assessment rationale: for 2kt BE; MERCURIASA Offer $301.25/mt for 2kt FOB Rdam, MW; 10)LITASCO-BPBV, $301/mt, 2kt, FOB
(PGA page 1580) 3.5% CIF Mediterranean cargoes were BE; TOTSA Offer $303.00/mt for 2kt BE; VITOL Offer Rdam, BE; 11)GUNVORSA-VMFBV, $301.25/mt, 2kt,
assessed at $312.75/mt. Platts assessed above a $302.50/mt for 2kt BE; VITOL Offer $301.50/mt for FOB Rdam, FE; 12)KCEL-GUNVORSA, $301/mt, 2kt,
competitive BP bid CIF basis Genoa at parity to 3.5% 2kt BE; BPBV Offer $307.00/mt for 2kt FE; KCEL Offer FOB Rdam, BE; 13)KCEL-GUNVORSA, $301/mt, 2kt,
CIF Med cargoes pricing full month January, for delivery $302.00/mt for 2kt FE; KOCHSARL Offer $302.00/ FOB Rdam, MW; 14)LITASCO-ARGBUNK, $301.5/mt,
January 1-5. A 10 cents/day contango structure was mt for 2kt FE; LITASCO Offer $301.25/mt for 2kt 2kt, FOB Rdam, FE; 15)TOTSA-BPBV, $301/mt, 2kt,
applied across the curve as implied by the underlying FE; LITASCO Offer $301.50/mt for 2kt FE; LITASCO FOB Rdam, MW; 16)KCEL-BPBV, $300.5/mt, 2kt, FOB
swaps structure. This meant the physical Med/North Offer $302.00/mt for 2kt FE; VITOL Offer $302.00/ Rdam, BE; 17)LITASCO-ARGBUNK, $301.25/mt, 2kt,
rose $2.25/mt, assessed at minus $3.25/mt. mt for 2kt FE; VITOL Offer $303.00/mt for 2kt FE; FOB Rdam, FE; 18)KOCHSARL-BPBV, $300.75/mt, 2kt,
The above commentary applies to the following market data BPBV Offer $307.00/mt for 2kt MW; GUNVORSA FOB Rdam, BE; 19)KOCHSARL-GUNVORSA, $300.75/
code: PUAAY00 Offer $303.75/mt for 2kt MW; KCEL Offer $301.50/ mt, 2kt, FOB Rdam, BE.

Copyright © 2014, McGraw Hill Financial 15

 EUROPEAN MARKETSCAN December 15, 2014

Fuel Oil Barge exclusions: (PGA page 1593) No market several LSVGO cargoes were said to be headed to the anti-government protesters occupied the terminals.
data was excluded from the December 15 barge US Gulf Coast, but were unlikely to find immediate In the medium-sour segment, Flotta Gold for January
assessment process. buyers due to oversupply. loading was expected to fetch higher differentials
than December-loading Flotta, which only had minimal
Fuel Oil NWE Cargo bids/offers/trades: (PGA page 1589) VGO deals quantities of Golden Eagle production blended in.
■■LSFO NWE CARGO MOC: DEAL SUMMARY: No deals. (PGA page 5) “I think some buyers were assessing it just slightly
■■LSFO NWE CARGO MOC: OUTSTANDING INTEREST: ■■VGO BARGE MOC: DEAL SUMMARY: No deals. VGO positive [versus Dated Brent],” said one trader Monday.
None CARGO MOC: DEAL SUMMARY: No deals. “That would make sense to some extent, especially if
it comes back lower sulfur than Forties.” Meanwhile
Fuel Oil NWE Cargo exclusions: (PGA page 1589) No the one cargo for which Monday was the last day to
North Sea crude
market data was excluded from the December 15 cargo be nominated into the 25-day ahead process, Statoil’s
assessment process. Market analysis: (PGA page 1299) The North Sea Oseberg 0101, was not heard nominated.
physical crude market firmed up Monday, led by Forties
Fuel Oil Mediterranean bids/offers/trades: (PGA page 1581) bidding for January dates. “There are anticipated arb Dated Brent assessment rationale: (PGA page 1297)
■■LSFO MED CARGO MOC: DEAL SUMMARY: None. movements out of the region, some people are talking Of the four BFOE grades, Forties, Oseberg and Ekofisk
■■LSFO MED CARGO MOC: OUTSTANDING INTEREST: about BP and Trafigura doing one,” said one trader, were seen in the North Sea physical cargo assessment
None. adding that this was possibly the reason why prompt process Monday, and Forties remained the most
■■HSFO MED CARGO MOC: DEAL SUMMARY: None. CFDs had gone backwardated. In addition, the market competitive grade across the assessed loading range,
■■HSFO MED CARGO MOC: OUTSTANDING INTEREST: was recovering after the slight dip in December buying December 25-January 11. In Forties, January 7-10
■■BP bids Platts HSFO Med Crg CIF bss Genoa 10-25, due to end-of-year de-stocking, said traders, and as was bid at Dated Brent plus $0.35/barrel, showing
January 1-January 5 100% 3.5% CIF Med cargoes more January dates came into the 10-25 day forward back-end levels to be higher than on Friday. However
Full Mnth Jan $0.00 for 25000-25000 “Optol: 0-5kt: assessed range this could support Dated Brent. December 26-28 was offered at February Cash minus
(pricing 3 quotes after COD) differential as per main “De-stocking impacted December loading grades, $0.50/b, equivalent to approximately Dated Brent
volume. Spec: RMG 380, ISO 8217, 2010 spec, we are now into January loaders,” said one trader, $0.18/b, showing prompt levels lower on the day. Just
3.50% sulfur max, H2S 2 max. CP: Full med (Excl. adding that some buyers may also be asking for cross- one loading day later, December 28-31 was bid at
israel/syria/ libia/Albania /toc/yugo former yugo). year deferrals to avoid oil in inventory for December. Dated Brent minus $0.10/b. Value was assessed one
Vessel acceptable to: CEPSA/TOTAL/BP.” January/February futures structure was also receiving a cent above this point, a cent above the back-end bid,
boost from renewed refinery demand after the running and the resulting five cents per day contango structure
Fuel Oil Mediterranean exclusions: (PGA page 1581) down of stocks in December. Falling margins over the extended across the remaining few days at each end
No market data was excluded from the December 15 last few weeks were so far having no impact on run of the assessed range. This brought the overall Forties
cargo assessment process. rates, said traders, and demand remained steady for differential to Dated Brent plus $0.075/b, up $0.11/b
January cargoes. “Refineries are slow to react, we’re on the previous day. Brent was assessed up $0.09/b
going to have to see poor performance for longer in at Dated Brent plus $0.375/b, based on the increase
VGO (PGA page 1597)
order for it to have an impact,” said one trader. North in Forties as well as a continued stronger relative
Northwest European vacuum gasoil cargo differentials Sea sweet crude grades could find some support refining margin [than Forties]. Ekofisk was bid for at
were unchanged Monday, with FOB NWE LSVGO cargoes from Libyan outages over the weekend according to Dated plus $0.50/b on January 4-11, not challenging
assessed at a $1.35/barrel discount to February some. Libya’s state-owned NOC declared force majeure the previous day’s levels, and value was assessed up
ICE Brent futures and HSVGO cargoes at a $2.50/b on exports from the major eastern ports of Es Sider two cents at Dated plus $0.575/b for the average of
discount. Sources said market activity had wound and Ras Lanuf. The ports — with a combined export the full 10-25 day range. In Oseberg, a back-end bid at
down ahead of the year-end with refiner buying interest capacity of 560,000 b/d — only resumed operations in Dated plus $1.05/b was withdrawn before the close,
decreasing, according to one supplier. Meanwhile, August having been closed for more than a year after and did not challenge Friday’s curve. The Oseberg

Copyright © 2014, McGraw Hill Financial 16

 EUROPEAN MARKETSCAN December 15, 2014

differential was assessed in a continued one cent per on the day’s Dated Brent versus February Cash spread. Monday. European LSSR demand remained lackluster
day contango structure, and up two cents overall at December 22-26 was assessed unchanged at February amid lower crude oil prices and better margins.
Dated plus $1.025/b. minus $0.30/b, above a bid at February minus $0.35/b.
The above commentary applies to the following market data December 29-January 2 was assessed at February minus Straight Run 0.5-0.7%S FOB NWE cargo assessment
code: PCAAS00 $0.35/b on three traded offers, after the minus $0.40/b rationale: (PGA page 1584) The outright FOB NWE LSSR
level had traded multiple times and then been bid on. 0.5-0.7% cargo value was assessed at $368.50/mt,
BFOE assessment rationale: (PGA page 1297) January January 5-9 was assessed at February minus $0.62/b down from a previous $375/mt. The LSSR FOB NWE
Cash was assessed at $60.97/barrel using a frozen (March minus $1.25/b), giving a much steeper roll differential was assessed at an unchanged $7/barrel
minus $0.40/b spread to February Cash. February Cash structure than heard in the afternoon, on two traded offers. discount to ICE February Brent crude futures. February
BFOE was assessed at $61.37/b, under an outstanding January 12-16 was assessed at February minus $0.67/b 16:30 ICE Brent crude was assessed at $61.40/b,
offer at $61.38/b. This followed two traded offers at the (March minus $1.30/b) on a traded offer, showing a from a previous $62.42/b. The outright LSSR price
same level, which at the time of trading were competitive steeper roll structure than heard in the afternoon. was derived using the dollars per barrel to metric ton
against the heard EFP offers at minus $0.05/b heard The above commentary applies to the following market data conversion factor of 6.77 for LSSR.
during the day. March Cash BFOE was assessed at codes: PCAKA00, PCAKC00, PCAKE00, PCAKG00, AAGLU00, The above commentary applies to the following market data
$62.00/b, using a flat EFP roll, and February/March AAGLV00, AALCZ00, AALDA00 code: PKABA00
futures structure at the close. No outstanding bids or
offers disproved this level. LSSR Cargo bids/offers/trades: (PGA page 1585)
The above commentary applies to the following market data ■■LSSR CARGO MOC: DEAL SUMMARY: No deals.
codes: PCAAP00, PCAAQ00, PCAAR00
LSSR
■■LSSR CARGO MOC: OUTSTANDING INTEREST: None.
Market analysis: (PGA page 1598) Northwest European
CFD assessment rationale: (PGA page 1297) December low sulfur straight run fuel differentials were assessed LSSR Cargo exclusions: (PGA page 1585) No market data
15-19 was assessed at February minus $0.37/barrel at unchanged $7/barrel discount to ICE February Brent was excluded from the December 15 assessment.

Copyright © 2014, McGraw Hill Financial 17

 [OIL ]

www.platts.com
CRUDE OIL MARKETWIRE
Volume 35 / Issue 246 / December 15, 2014

Key benchmarks ($/barrel) Brent/WTI spreads and EFPs (PGA page 218) Market Commentary
Mid Change Mid Change
Brent/WTI 1st AALAT00 2.78/2.80 2.790 0.000
(PGA page 2210)
Brent/WTI 2nd AALAU00 4.62/4.64 4.630 +0.740
Middle East Sour
Dubai (Feb) PCAAT00 59.40–59.42 59.410 -0.400
Brent/WTI 3rd AALAV00 4.88/4.90 4.890 +0.620
Dubai (Mar) PCAAU00 60.44–60.46 60.450 -0.280 Market analysis: (PGA page 2298) The Asian sour crude
Brent/WTI 4th AALAY00 5.220 +0.600
Dubai (Apr) PCAAV00 60.92–60.94 60.930 -0.440
MEC (Feb) AAWSA00 59.40–59.42 59.410 -0.400 Brent EFP (Jan) AAGVW00 -0.05/-0.03 -0.040 0.000
market continued to trade at higher spot differentials
MEC (Mar) AAWSB00 60.44–60.46 60.450 -0.280 Brent EFP (Feb) AAGVX00 -0.04/-0.02 -0.030 +0.080 compared to last month, though traders said Oman
MEC (Apr) AAWSC00 60.92–60.94 60.930 -0.440 Brent EFP (Mar) AAGVY00 -0.04/-0.02 -0.030 +0.080 crude was under pressure from more January-loading
Brent/Dubai (Feb) AAJMS00 3.32/3.34 3.330 -0.140 Brent EFP (Apr) AAMVY00 -0.030 +0.080
cargoes entering the market. Oman has released at
(PGA page 1212) WTI EFP (Jan) AAGVT00 -0.01/0.01 0.000 0.000
least 2 million barrels of crude loading in January after
Brent (Dated) PCAAS00 60.99–61.01 61.000 -0.625 WTI EFP (Feb) AAGVU00 -0.01/0.01 0.000 0.000
Dated North Sea Light AAOFD00 60.99–61.01 61.000 -0.625 WTI EFP (Mar) AAGVV00 -0.01/0.01 0.000 0.000 a fire shut the 106,000 b/d Mina Al Fahal refinery.
Brent (Jan) PCAAP00 60.96–60.98 60.970 -0.940 The extra supply was weighing on Oman, leading to
Brent (Feb) PCAAQ00 61.36–61.38 61.370 -0.940 Middle East ($/barrel) (PGA page 2210) a wider discount to benchmark Dubai crude, traders
Brent (Mar) PCAAR00 61.99–62.01 62.000 -1.020
Brent (Apr) PCARR00 62.710 -1.020 Mid Change said Monday. The Ministry of Oil and Gas released the
Sulfur de-escalator AAUXL00 0.20
(PGA page 2210) Oman crude to oil major Shell late last week, traders
Oseberg QP (Dec) AAXDW00 0.4332 Oman (Feb) PCABS00 60.09–60.11 60.100 -0.450 said. Neither Shell nor the ministry could be reached
Oseberg QP (Jan) AAXDX00 0.4973 Oman (Mar) AAHZF00 60.81–60.83 60.820 -0.310
Oman (Apr) AAHZH00 61.10–61.12 61.110 -0.460
for comment Monday. Traders said the additional
Ekofisk QP (Dec) AAXDY00 0.2675
Ekofisk QP (Jan) AAXDZ00 0.0000 Upper Zakum (Feb) AAOUQ00 59.39–59.43 59.410 -0.400 (continued on page 3)
(PGA page 210) (PGA page 2658)
Platts has detailed the Month-Ahead Brent implementation plan.
WTI (Jan) PCACG00 55.53–55.55 55.540 -2.190 Dubai Swap (Jan) AAHBM00 60.43–60.47 60.450 -0.280
Dubai Swap (Feb) AAHBN00 60.91–60.95 60.930 -0.440 Please review the full subscriber note in the subscriber note section of
WTI (Feb) PCACH00 55.92–55.94 55.930 -2.060
Dubai Swap (Mar) AAHBO00 61.61–61.65 61.630 -0.490 this publication, or on the Dated Brent landing page
WTI (Mar) AAGIT00 56.32–56.34 56.330 -2.000
Light Houston Sweet AAXEW00 55.190 -2.990
Bakken AAXPP00 48.140 -2.040 Dated Brent Contents
Eagle Ford Marker AAYAJ00 56.690 -2.250
ACM* (Jan) AAQHN00 53.03–53.05 53.040 -2.240 ($/barrel) Asia Pacific Sweet 3
ACM* (Feb) AAQHO00 53.22–53.24 53.230 -2.110 75
North Sea 4
ACM* (Mar) AAQHP00 53.47–53.49 53.480 -2.050
*Americas Crude Marker. Mediterranean Light/Sweet 5
70 Mediterranean Sour 6
Forward Dated Brent ($/barrel) (PGA page 1250)
West Africa 8
Mid Change
US MOC Commentary 9
North Sea Dated strip AAKWH00 60.92–60.93 60.925 -0.735 65
Mediterranean Dated strip AALDF00 60.86–60.87 60.865 -0.780 US Gulf Coast 9
Canada Dated strip AALDJ00 60.79–60.81 60.800 -0.930 US West Coast 10
BTC Dated strip AAUFI00 60.82–60.84 60.830 -0.815 60
15-45 Day Dated strip AALGM00 60.80–60.82 60.810 -0.870 01-Dec 03-Dec 05-Dec 09-Dec 11-Dec 15-Dec Canada 11
30-60 Day Dated strip AAXRK00 60.97–60.99 60.980 -0.930 Latin America 12
West Africa Dated strip AALDH00 60.80–60.82 60.810 -0.890 Source: Platts
 Crude oil Marketwire December 15, 2014

Asia Pacific and Middle East crude assessments ($/barrel)

(Asia MOC) (Asia MOC) (Asia close) (London close)
API
Gravity Code Mid Change Code Mid Change Code Mid Change Code Mid Change
Condensate (PGA page 2212) (PGA page 2213)

Diff to Dubai Diff to Asian Dated Brent

NW Shelf 61.9 PCAGX00 59.02–59.06 59.040 -0.580 AAPAI00 -3.60 0.000 AAPAH00 57.660 -1.080
Ras Gas 57.0 AAPET00 60.41–60.45 60.430 -0.340 AAPEU00 -0.55/-0.45 -0.500 +0.100 AARAZ00 -2.210 +0.240 AARAY00 59.050 -0.840
Qatar LSC 56.9 AARBB00 59.41–59.45 59.430 -0.340 AARBD00 -1.55/-1.45 -1.500 +0.100 AARBC00 -3.210 +0.240 AARBA00 58.050 -0.840
South Pars 57.4 AARAV00 57.41–57.45 57.430 -0.340 AARAX00 -3.55/-3.45 -3.500 +0.100 AARAW00 -5.210 +0.240 AARAU00 56.050 -0.840
Diff to ICP
Senipah 54.4 AAEOE00 61.62–61.66 61.640 -0.580 AAEOK00 0.75/0.85 0.800 0.000 AAPBE00 -1.000 0.000 AAPBD00 60.260 -1.080
Light crude (PGA page 2214) (PGA page 2215)

Diff to ICP Diff to Asian Dated Brent

Cossack 47.7 PCAGZ00 61.02–61.06 61.040 -0.580 AAPAC00 -1.600 0.000 AAPAB00 59.660 -1.080
Gippsland 48.7 PCACP00 59.77–59.81 59.790 -0.580 AAPAU00 -2.850 0.000 AAPAT00 58.410 -1.080
Tapis 45.2 PCACB00 65.52–65.56 65.540 -0.580 AAOZW00 2.900 0.000 AAOZV00 64.160 -1.080
Belida 45.1 PCAFL00 60.43–60.47 60.450 -0.500 PCAFM00 0.65/0.75 0.700 0.000 AAPBQ00 -2.190 +0.080 AAPBP00 59.070 -1.000
Kutubu 44.3 PCAFJ00 61.07–61.11 61.090 -0.580 AAPAE00 -1.550 0.000 AAPAD00 59.710 -1.080
Handil Mix 43.9 PCABE00 59.98–60.02 60.000 -0.500 PCABF00 1.10/1.20 1.150 0.000 AAPBI00 -2.640 +0.080 AAPBH00 58.620 -1.000
Attaka 42.3 PCAAJ00 60.33–60.37 60.350 -0.500 PCAAK00 0.45/0.55 0.500 0.000 AAPBC00 -2.290 +0.080 AAPBB00 58.970 -1.000
Ardjuna 38.0 PCACQ00 57.43–57.47 57.450 -0.500 PCACR00 0.55/0.65 0.600 0.000 AAPBG00 -5.190 +0.080 AAPBF00 56.070 -1.000
Diff to Dubai
Vityaz 41.6 AARAN00 62.36–62.40 62.380 -0.440 AARAP00 1.40/1.50 1.450 0.000 AARAO00 -0.260 +0.140 AARAM00 61.000 -0.940
ESPO M1 34.8 AARWF00 62.73–62.77 62.750 -0.180 AASEU00 2.25/2.35 2.300 +0.100
ESPO M2 34.8 AAWFE00 63.51–63.55 63.530 -0.240 AAWFG00 2.55/2.65 2.600 +0.200
Diff to Oman/Dubai
Sokol 39.7 AASCJ00 63.50–63.54 63.520 -0.450 AASCK00 2.45/2.55 2.500 0.000 AAPAO00 0.880 +0.130 AAPAN00 62.140 -0.950
Kikeh 34.9 AAWUH00 67.52–67.56 67.540 -0.580 AAOZY00 4.900 0.000 AAOZX00 66.160 -1.080
Miri Light 32.3 PCABQ00 67.47–67.51 67.490 -0.580 AAPAS00 4.850 0.000 AAPAR00 66.110 -1.080
Labuan 32.0 PCABL00 67.92–67.96 67.940 -0.580 AAPAQ00 5.300 0.000 AAPAP00 66.560 -1.080
Medium crude (PGA page 2216) (PGA page 2217)

Diff to OSP Diff to Asian Dated Brent

Su Tu Den 36.8 AARAR00 63.42–63.46 63.440 -0.580 AARAT00 0.00/0.10 0.050 --- --- AARAS00 0.800 0.000 AARAQ00 62.060 -1.080
Bach Ho 40.7 PCAHY00 65.12–65.16 65.140 -0.580 AAPAK00 2.500 0.000 AAPAJ00 63.760 -1.080
Nanhai 40.0 PCAFR00 59.87–59.91 59.890 -0.580 AAPAG00 -2.750 0.000 AAPAF00 58.510 -1.080
Diff to ICP
Minas 35.3 PCABO00 58.98–59.02 59.000 -0.500 PCABP00 0.30/0.40 0.350 0.000 AAPBA00 -3.640 +0.080 AAPAZ00 57.620 -1.000
Nile Blend 33.9 AAPLC00 54.63–54.67 54.650 -0.500 AAPEX00 -4.05/-3.95 -4.000 0.000 AAPAM00 -7.990 +0.080 AAPAL00 53.270 -1.000
Widuri 33.2 PCAFE00 57.68–57.72 57.700 -0.500 PCAFF00 -0.05/0.05 0.000 0.000 AAPBO00 -4.940 +0.080 AAPBN00 56.320 -1.000
Daqing 32.2 PCAAZ00 55.48–55.52 55.500 -0.500 AAPAW00 -7.140 +0.080 AAPAV00 54.120 -1.000
Cinta 31.1 PCAAX00 57.48–57.52 57.500 -0.500 PCAAY00 -0.05/0.05 0.000 0.000 AAPBK00 -5.140 +0.080 AAPBJ00 56.120 -1.000
Heavy crude (PGA page 2218) (PGA page 2219)

Diff to ICP Diff to Asian Dated Brent

Dar Blend 25.0 AARAB00 52.37–52.41 52.390 -0.580 AARAC00 -10.250 0.000 AARAA00 51.010 -1.080
Shengli 24.2 PCABY00 54.73–54.77 54.750 -0.500 AAPAY00 -7.890 + 0.080 AAPAX00 53.370 -1.000
Duri 20.8 PCABA00 54.98–55.02 55.000 -0.500 PCABB00 0.05/0.15 0.100 0.000 AAPBM00 -7.640 + 0.080 AAPBL00 53.620 -1.000
Stybarrow 22.8 AARAH00 67.340 -0.580 AARAI00 4.700 0.000 AARAG00 65.960 -1.080
Enfield 22.0 AARAE00 67.940 -0.580 AARAF00 5.300 0.000 AARAD00 66.560 -1.080
Vincent 18.3 AARAK00 64.540 -0.580 AARAL00 1.900 0.000 AARAJ00 63.160 -1.080

Copyright © 2014, McGraw Hill Financial 2

 Crude oil Marketwire December 15, 2014

supply would bring the total January-loading supply Middle East spot assessments ($/barrel) (PGA page 2220)
to 4 million barrels. Platts assessed cash Oman at a Mid Change Spread vs OSP Mid Change
discount of 82 cents/barrel to February Dubai swaps Murban AAKNL00 61.34–61.38 61.360
-0.400 AAKUB00 0.40/0.50 0.450 +0.200
Das Blend AAXOF00 60.39–60.43 60.410
-0.400 AAXPF00 0.45/0.55 0.500 +0.200
Friday, down from a discount of 59 cents/b Thursday. Qatar Land AAKNP00 60.49–60.53 60.510
-0.400 AAKUJ00 0.35/0.45 0.400 +0.300
Oman Oil Refineries & Petroleum Industries late last Qatar Marine AAKNR00 58.64–58.68 58.660
-0.400 AAKUH00 0.25/0.35 0.300 +0.250
week said the Mina Al Fahal refinery would restart Banoco Arab Medium AAKNT00 59.29–59.33 59.310
-0.450 AAKUD00 0.70/0.80 0.750 +0.350
Al Shaheen AAPEV00 59.86–59.90 59.880
-0.090 AAPEW00 -1.10/-1.00* -1.050
+0.350
December 18 after a fire at a naphtha unit shut the * Differential to Dubai
facility December 4. Shell was heard to have sold 2
million barrels of February Oman to Formosa on a
Asian Crude Indices ($/barrel) (PGA page 2206)
CFR basis through the latter’s tender. The discount
16:30 Singapore Interim Asian Close Diff to Dated Brent Final London Close
was heard to be wider than 80 cents/b to front-
Asian Dated Brent (ADB) AAXPG00 62.055
month cash Dubai assessments. Meanwhile Maersk ADB Strip Asia AARBV00 62.640 AARBX00 61.260
was heard to have sold at least two cargoes of Al ADB Strip Middle East AARBW00 62.640 AARBY00 61.260
Asian Crude Index (ACX) AAXIL00 60.917
Shaheen crude late last week at a discount of around Asian Heavy Sweet (AHS) AAXQC00 66.610 AAPDP00 3.970 AAPDO00 65.230
$1/b to Platts front-month Dubai crude assessments. For definitions see http://www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/Crude-oil-methodology.pdf
Japan’s TonenGeneral was heard to have bought one
of the cargoes. Unipec was heard to have sold two Al
Shaheen cargoes Monday at a slightly lower level, but Middle East Sour bids/offers/trades: (PGA page 2296) Middle East Sour exclusions: (PGA page 2296) No market
details were not immediately available. Meanwhile, ■■Platts Crude : PG BIDS: FINALS ON CLOSE: data was excluded from the December 15, 2014, Middle
traders said Qatar Marine for February loading was ■■Platts Dubai Partial Feb14: Shell bids at $59.40/b East sour crude assessment process.
done at a premium in the 20s-low 30s cents/b to for 25kb; Platts Dubai Partial Feb14: Gunvor bids
the grade’s official selling price. Upper Zakum was at $59.40/b for 25kb; Platts Dubai Partial Feb14:
Asia Pacific Sweet
heard traded at a premium of around 20 cents/b to Trafigura bids at $59.10/b for 25kb; Platts Oman
the grade’s OSP, a trader said but details could not be Partial Feb14: Trafigura bids at $60.05/b for 25kb Market analysis: (PGA page 2299) Activity in the Asia-
immediately confirmed. ■■Platts Crude : PG OFFERS: FINALS ON CLOSE: Pacific sweet crudes market remained subdued Monday
■■Platts Dubai Partial Feb14: ChinaOil offers at as participants continued to await the results of
Dubai Mo01 assessment rationale: (PGA page 2295) $59.50/b for 25kb; Platts Dubai Partial Feb14: Unipec several spot tenders. In particular they were monitoring
February cash Dubai was assessed at $59.41/barrel offers at $59.60/b for 25kb; Platts Dubai Partial progress in PV Oil’s latest tenders offering Chim Sao
Monday. The assessment reflected Shell’s bid for a Feb14: Gunvor offers at $59.70/b for 25kb; Platts and Su Tu Den crudes for indications of Japanese
February-loading Dubai partial at $59.40/b. Dubai Partial Feb14: Vitol offers at $59.80/b for appetite for regional direct-burning grades. “I expect
The above commentary applies to the following market data 25kb; Platts Dubai Partial Feb14/Mar14: Hetco offers trading activity to pick up once the results are out,” a
code: PCAAT00 at -$0.80/b for 25kb trader in Singapore said. Talk in the market indicated
■■Platts Crude : Platts Asia deals summary: four trades: that bids for PV Oil’s February-loading Chim Sao crude
Oman Blend Mo01 assessment rationale: (PGA page ■■1)Dubai: FOB Fateh: February : 25kb: Chinaoil sells were seen in the range of a $2.50-$2.90/b premium
2295) February cash Oman was assessed at $60.10/ to Shell at $59.40 (04:29:55); 2)Dubai: FOB Fateh: to Dated Brent crude assessments, below the $2.60-
barrel Monday. The cash Oman assessment reflected February : 25kb: Chinaoil sells to Shell at $59.40 $3.00/b premiums fetched for January cargoes. “The
a discount of 83 cents/b to February Dubai swaps, (04:29:39); 3)Dubai: FOB Fateh: February : 25kb: main upside catalyst [for Vietnamese direct-burning
compared with a discount of 82 cents/b Friday. Chinaoil sells to Shell at $59.40 (04:29:20); 4)Dubai: grades] is Japanese demand, but that’s not really
The above commentary applies to the following market data FOB Fateh: February : 25kb: Chinaoil sells to Shell at improving. Indications are that they [Japanese power
code: PCABS00 $59.40 (04:29:07) companies] have sufficient stockpiles to cover their

Copyright © 2014, McGraw Hill Financial 3

 Crude oil Marketwire December 15, 2014

entire winter needs,” said another trader in Singapore. North Sea spot crude assessments ($/barrel) (PGA page 1212)
Elsewhere, trading sources said there was one pre- Mid Change Spread vs fwd Dated Brent Mid Change
tender deal concluded for Qatar’s deodorized field Dated Brent Diff AAXEZ00 0.07/0.08 0.075 +0.110
BNB AAVJA00 61.29–61.31 61.300
-0.645 AAVJB00 0.37/0.38 0.375 +0.090
condensate for February loading. Talk indicated that Forties PCADJ00 60.99–61.01 61.000
-0.625 AAGWZ00 0.07/0.08 0.075 +0.110
Tasweeq might have sold one February cargo of DFC Oseberg PCAEU00 61.94–61.96 61.950
-0.715 AAGXF00 1.02/1.03 1.025 +0.020
to a Japanese buyer at a premium of around 20-30 Ekofisk PCADI00 61.49–61.51 61.500
-0.715 AAGXB00 0.57/0.58 0.575 +0.020
Statfjord PCAEE00 60.99–61.00 60.995
-0.705 AAGXD00 0.06/0.08 0.070 +0.030
cents/b to Platts front-month Dubai crude assessments, Flotta PCACZ00 60.32–60.33 60.325
-0.635 AAGXH00 -0.61/-0.59 -0.600 0.100
a sharp rebound from the $1/b discount heard paid Troll AAWEX00 63.45–63.46 63.455
-0.705 AAWEY00 2.52/2.54 2.530 +0.030
Duc AAWEZ00 62.82–62.83 62.825
-0.685 AAWFL00 1.89/1.91 1.900 +0.050
for January-loading DFC cargoes. A trading source with
Statfjord (CIF) AASAS00 62.25–62.26 62.255
-0.705 AASAT00 1.32/1.34 1.330 +0.030
close knowledge of monthly Qatari condensate tenders Gullfaks (CIF) AASAU00 63.17–63.18 63.175
-0.735 AASAV00 2.24/2.26 2.250 0.000
said Tasweeq won’t be offering low sulfur condensate North Sea basket AAGIZ00 61.43–61.45 61.440
-0.675

for February. Vietnam’s PV Oil has issued a tender

offering a total of 400,000 barrels of Thang Long Dated Brent/BFOE swaps ($/barrel) (PGA page 1214)

crude in two stems of 200,000 barrels for loading Week Week Date Brent CFD* Mid Change Dated Brent swap Mid Change
CFD Week 1 (Feb) Dec 15-19 PCAKA00 -0.38/-0.36 -0.370
+0.230 AAJNV00 60.99/61.01 61.000
-0.710
over February 1-10 and February 17-26 that closes CFD Week 2 (Feb) Dec 22-26 PCAKC00 -0.31/-0.29 -0.300
+0.300 AAJOS00 61.06/61.08 61.070
-0.640
December 19. PV Oil offered only one 200,000 barrel CFD Week 3 (Feb) Dec 29-02 PCAKE00 -0.36/-0.34 -0.350
+0.300 AAJOU00 61.01/61.03 61.020
-0.640
of Thang Long last month for January loading, which CFD Week 4 (Feb) Jan 05-09 PCAKG00 -0.63/-0.61 -0.620
+0.100 AAJOW00 60.74/60.76 60.750
-0.840
CFD Week 5 (Feb) Jan 12-16 AAGLU00 -0.68/-0.66 -0.670 -0.020 AAJPC00 60.69/60.71 60.700
-0.960
was heard sold to an oil major at a premium of around CFD Week 6 (Feb) Jan 19-23 AAGLV00 -0.62/-0.60 -0.610 -0.050 AAJPE00 60.75/60.77 60.760
-0.990
$1.50/b to Dated Brent. Russia’s Sakhalin Energy has CFD Week 7 (Feb) Jan 26-30 AALCZ00 -0.47/-0.45 -0.460 -0.020 AALAW00 60.90/60.92 60.910
-0.960
CFD Week 8 (Feb) Feb 02-06 AALDA00 -0.32/-0.30 -0.310 -0.040 AALAX00 61.05/61.07 61.060
-0.980
also issued a tender offering a 730,000-barrel cargo
Brent Swaps Week 1 to 8 are differentials to Brent Mo02 (Feb) PCAAQ00 found on page 1.
of Vityaz crude for loading over February 28-March
7 that closes December 18, with next day validity.
Separately, Sakhalin Energy was also heard to have at $2.30/barrel Monday. There were no bids or offers for for January dates. “There are anticipated arb movements
least three cargoes of Vityaz crude for March-loading ESPO Monday. out of the region, some people are talking about BP and
available. “February demand is OK but March should The above commentary applies to the following market data Trafigura doing one,” said one trader, adding that this
be maintenance period so we can expect demand to be code: AASEU00 was possibly the reason why prompt CFDs had gone
reduced sharply,” said a sweet crude trader. Sakhalin backwardated. In addition, the market was recovering
Energy was last heard to have sold a similar-sized cargo Asia Pacific Sweet bids/offers/trades: (PGA page 2293) after the slight dip in December buying due to end-of-
for January 29-February 5 loading to TonenGeneral at a ■■ASIA LIGHT CRUDE MOC: DEAL SUMMARY: No deals. year de-stocking, said traders, and as more January
premium of about $1.55/b to Dubai, CFR Yeosu. Brunei ■■ASIA LIGHT CRUDE MOC: OUTSTANDING INTEREST: dates came into the 10-25 day forward assessed range
Shell has lowered the official selling price of Seria None. this could support Dated Brent. “De-stocking impacted
Light crude lifted in November by $8.48/b from the December loading grades, we are now into January
October OSP to $82.09/b, market sources said Monday. Asia Pacific Sweet exclusions: (PGA page 2293) No loaders,” said one trader, adding that some buyers
The November OSP for Champion crude was set at market data was excluded from the December 15 Asia may also be asking for cross-year deferrals to avoid oil
$81.94/b, keeping its spread to Seria Light unchanged Light Crude assessment process. in inventory for December. January/February futures
from the previous month at 15 cents/b. structure was also receiving a boost from renewed
refinery demand after the running down of stocks in
North Sea
ESPO FOB Kozmino Mo01 Spore vs Dubai Mo01 December. Falling margins over the last few weeks
assessment rationale: (PGA page 2292) The ESPO M1 Market analysis: (PGA page 1299) The North Sea physical were so far having no impact on run rates, said traders,
differential to Dubai was assessed at a premium of crude market firmed up Monday, led by Forties bidding and demand remained steady for January cargoes.

Copyright © 2014, McGraw Hill Financial 4

 Crude oil Marketwire December 15, 2014

“Refineries are slow to react, we’re going to have to see Brent was assessed up $0.09/b at Dated Brent plus traded offers. January 12-16 was assessed at February
poor performance for longer in order for it to have an $0.375/b, based on the increase in Forties as well as a minus $0.67/b (March minus $1.30/b) on a traded
impact,” said one trader. North Sea sweet crude grades continued stronger relative refining margin [than Forties]. offer, showing a steeper roll structure than heard in the
could find some support from Libyan outages over Ekofisk was bid for at Dated plus $0.50/b on January afternoon.
the weekend according to some. Libya’s state-owned 4-11, not challenging the previous day’s levels, and value The above commentary applies to the following market data
NOC declared force majeure on exports from the major was assessed up two cents at Dated plus $0.575/b codes: PCAKA00, PCAKC00, PCAKE00, PCAKG00, AAGLU00,
eastern ports of Es Sider and Ras Lanuf. The ports for the average of the full 10-25 day range. In Oseberg, AAGLV00, AALCZ00, AALDA00
— with a combined export capacity of 560,000 b/d — a back-end bid at Dated plus $1.05/b was withdrawn
only resumed operations in August having been closed before the close, and did not challenge Friday’s curve.
for more than a year after anti-government protesters The Oseberg differential was assessed in a continued
Mediterranean Light/Sweet (PGA page 1295)
occupied the terminals. In the medium-sour segment, one cent per day contango structure, and up two cents
Flotta Gold for January loading was expected to fetch overall at Dated plus $1.025/b. All eyes in the Mediterranean light sweet crude
higher differentials than December-loading Flotta, which The above commentary applies to the following market data oil market Monday were focused on Libya’s
only had minimal quantities of Golden Eagle production code: PCAAS00 announcement over the weekend that force majeure
blended in. “I think some buyers were assessing it just had been declared on the key oil ports of Es Sider
slightly positive [versus Dated Brent],” said one trader BFOE assessment rationale: (PGA page 1297) January and Ras Lanuf. The news led to a surge in outright
Monday. “That would make sense to some extent, Cash was assessed at $60.97/barrel using a frozen prices and reports of increased interest in competing
especially if it comes back lower sulfur than Forties.” minus $0.40/b spread to February Cash. February Cash sweet Mediterranean crudes at a time when high
Meanwhile the one cargo for which Monday was the last BFOE was assessed at $61.37/b, under an outstanding availability in the region had been seeing an unusually
day to be nominated into the 25-day ahead process, offer at $61.38/b. This followed two traded offers at the slack market characterized by low differentials for key
Statoil’s Oseberg 0101, was not heard nominated. same level, which at the time of trading were competitive grades such as Azeri Light. “Clearly the market talk
against the heard EFP offers at minus $0.05/b heard today is dominated by the Libyan force majeure.,”
Dated Brent assessment rationale: (PGA page 1297) during the day. March Cash BFOE was assessed at one trader said. “Previously, it had been all about
Of the four BFOE grades, Forties, Oseberg and Ekofisk $62.00/b, using a flat EFP roll, and February/March the large overhang of West African crude and the
were seen in the North Sea physical cargo assessment futures structure at the close. No outstanding bids or obvious overhangs in the Mediterranean, resulting
process Monday, and Forties remained the most offers disproved this level. in very weak prices. It’s been ages since I’ve seen
competitive grade across the assessed loading range, The above commentary applies to the following market data Azeri Light so depressed, and the last time it was
December 25-January 11. In Forties, January 7-10 was codes: PCAAP00, PCAAQ00, PCAAR00 this low, it was a completely different environment.”
bid at Dated Brent plus $0.35/barrel, showing back-end Libya’s state-owned oil company NOC declared force
levels to be higher than on Friday. However December CFD assessment rationale: (PGA page 1297) December majeure on exports from the major eastern ports of
26-28 was offered at February Cash minus $0.50/b, 15-19 was assessed at February minus $0.37/barrel Es Sider and Ras Lanuf over the weekend because
equivalent to approximately Dated Brent $0.18/b, on the day’s Dated Brent versus February Cash spread. of heavy fighting between armed groups in the
showing prompt levels lower on the day. Just one loading December 22-26 was assessed unchanged at February area. “A crisis team has been employed to ensure
day later, December 28-31 was bid at Dated Brent minus minus $0.30/b, above a bid at February minus $0.35/b. operations can be suspended and restarted safely.
$0.10/b. Value was assessed one cent above this point, December 29-January 2 was assessed at February NOC and its subsidiaries are committed to working
a cent above the back-end bid, and the resulting five minus $0.35/b on three traded offers, after the minus to maintain the equipment and the capacity of the
cents per day contango structure extended across the $0.40/b level had traded multiple times and then country’s oil,” NOC said in a statement posted on its
remaining few days at each end of the assessed range. been bid on. January 5-9 was assessed at February website. Azeri Light had moved below Dated Brent
This brought the overall Forties differential to Dated minus $0.62/b (March minus $1.25/b), giving a much plus $1.30/barrel Friday, reaching a level seen briefly
Brent plus $0.075/b, up $0.11/b on the previous day. steeper roll structure than heard in the afternoon, on two in September, and before that as far back as in 2010.

Copyright © 2014, McGraw Hill Financial 5

 Crude oil Marketwire December 15, 2014

Traders were unsure, however, how the market would Russian Urals/ESPO spot assessments ($/barrel) (PGA page 1220)
react to the removal of crude from a market that was Mid Change Spread vs fwd Dated Brent Mid Change
well-supplied, and whether it would lead to prices Urals (Rotterdam) PCAFW00 58.73–58.75 58.740
-0.780 AAGXJ00 -2.13/-2.12 -2.125 0.000
Urals (Mediterranean) PCACE00 59.68–59.71 59.695
-0.800 AAGXX00 -1.18/-1.16 -1.170 -0.020
stabilizing or even rising. Some were watching for Urals (Ex-Novorossiisk) AAGZS00 57.65–57.67 57.660
-1.450 AAHPH00 -3.21/-3.20 -3.205 -0.670
evidence of new trades, with attention being drawn by Urals (Ex-Novo) FOB 80kt AAOTH00 57.40–57.43 57.415
-1.055 AAOTI00 -3.46/-3.44 -3.450 -0.275
a TPAO tender for Azeri Light closing over the course Urals (Ex-Baltic) AAGZT00 57.46–57.49 57.475
-0.810 AAHPI00 -3.40/-3.38 -3.390 -0.030
Urals (Primorsk) AAWVH00 57.41–57.43 57.420
-0.810 AAWVI00 -3.45/-3.44 -3.445 -0.030
of the afternoon. “It’s the first chance to check what Urals RCMB (Recombined) AALIN00 59.81–59.85 59.830
-0.645
is happening in the market,” a trader said. “Either it ESPO (FOB Kozmino) AARWD00 61.36–61.38 61.370
-0.620 AARWE00 0.55/0.57 0.560 +0.240
is so long that no one will care what happens in Libya,
or perhaps someone will overpay for a cargo of Azeri
because they are unable or unwilling to take Libyan
Urals Med/NWE CFD assessments ($/barrel)
crude.” CPC Blend and Saharan Blend were less
Urals CFD Mid Change

immediately affected by the force majeure declaration, Mediterranean (PPE page 1616)
Urals Med CFD (Jan) AAMDU00 -1.21/-1.19 -1.200
0.000
being more similar to Libya’s Sharara crude, already Urals Med CFD (Feb) AAMEA00 -1.21/-1.19 -1.200
0.000
shut in back in November. However, traders said light Urals Med CFD (Mar) UMCM003 -1.21/-1.19 -1.200
0.000
sweet grades in general would feel a boost from the Northwest Europe (PPE page 1618)

fresh shut-in. “The Mediterranean has been long, but Urals NWE CFD (Jan) UNCM001 -1.86/-1.84 -1.850
+0.100
Urals NWE CFD (Feb) UNCM002 -1.76/-1.74 -1.750
+0.050
today there seems to be a slight pick up in interest on Urals NWE CFD (Mar) UNCM003 -1.71/-1.69 -1.700 0.000
grades,” one trader said. “Libyan events are drawing
interest to grades similar to those shut in, like
Saharan.” Another trader said: “The impact won’t just Mediterranean spot crude assessments ($/barrel)
be felt on Azeri Light [a substitute for Es Sider crude], Mid Change Spread vs fwd Dated Brent Mid Change
but could also be felt by CPC Blend and Saharan Azeri and BTC (PGA page 1222)
Blend. If you have to lift a cargo then you will need a Azeri Lt CIF AAGZX00 62.37–62.41 62.390
-0.545 AAHPM00 1.55/1.57 1.560 +0.270
substitute, even if it is not an ideal one.” Azeri Lt FOB Ceyhan AAUFM00 61.24–61.28 61.260
-0.765 AAUFN00 0.42/0.44 0.430 +0.050
Azeri Lt FOB Ceyhan 80KT AAUFK00 61.02–61.06 61.040
-0.545 AAUFL00 0.20/0.22 0.210 +0.270
Azeri Lt FOB AALWD00 60.50–60.54 60.520
-1.155 AALWF00 -0.32/-0.30 -0.310 -0.340
Azeri Lt FOB 80KT AATHM00 60.28–60.32 60.300
-0.795 AATHN00 -0.54/-0.52 -0.530
+0.020
Mediterranean Sour BTC FOB Ceyhan AAUFH00 61.13–61.17 61.150
-0.655 AAUFJ00 0.31/0.33 0.320 +0.160
Black Sea (PGA page 1220)
Market analysis: (PGA page 1296) The sour crude oil
Siberian Light CIF AAGZW00 60.45–60.48 60.465
-0.730 AAHPK00 -0.41/-0.39 -0.400
+0.050
market was awaiting further direction Monday following CPC Blend CIF AAGZU00 60.53–60.55 60.540
-0.730 AAHPL00 -0.33/-0.32 -0.325
+0.050
the release of the preliminary Novorossiisk loading CPC Blend FOB AALVX00 58.69–58.71 58.700
-1.335 AALVZ00 -2.17/-2.16 -2.165 -0.555
CPC FOB 80KT AAOFV00 58.45–58.47 58.460
-0.965 AAOFW00 -2.41/-2.40 -2.405 -0.185
program, which did not give a clear indication of Kumkol AAHMP00 60.51–60.54 60.525
-0.510 AALOW00 -0.35/-0.33 -0.340
+0.270
whether the market would be longer in January or not. Middle East & North Africa (PGA page 1234)
Preliminary loadings of Urals crude from Novorossiisk Suez Blend PCACA00 56.71–56.74 56.725
-0.800 AAGYD00 -4.15/-4.13 -4.140 -0.020
from January 1-6 will be unchanged from the 380,000 Es Sider PCACO00 59.55–59.58 59.565
-0.880 AAGYH00 -1.31/-1.29 -1.300 -0.100
Kirkuk AAEJD00 57.80–57.83 57.815
-0.780 AAGYF00 -3.06/-3.04 -3.050 0.000
mt seen in the final December program, a copy of Iranian Light (Sidi Kerir) PCABI00 58.98–59.01 58.995
-0.980 AAGXZ00 -1.88/-1.86 -1.870 -0.200
the loading schedule obtained by Platts showed. The Iranian Heavy (Sidi Kerir) PCABH00 57.28–57.31 57.295
-0.980 AAGYB00 -3.58/-3.56 -3.570 -0.200
number was higher than the preliminary early December Saharan Blend AAGZY00 60.55–60.58 60.565
-0.730 AAHPN00 -0.31/-0.29 -0.300
+0.050
Zarzaitine AAHMO00 60.55–60.58 60.565
-0.730 AALOY00 -0.31/-0.29 -0.300
+0.050
program, which included 300,000 mt from December Syrian Light FOB AAHMM00 61.08–61.11 61.095
-0.800 AALOU00 0.22/0.24 0.230 -0.020
1-5. No program was available for the Baltic ports of Syrian Heavy FOB AAHMN00 57.28–57.31 57.295
-0.800 AALOV00 -3.58/-3.56 -3.570 -0.020

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 Crude oil Marketwire December 15, 2014

Primorsk and Ust-Luga. Their appearance was eagerly while generally good, were not heard to be incentivising $63.38/barrel. Code PCAJI00. Second month Cash
awaited by traders looking for indications of the full additional buying, resulting in a market that was weak Dubai: $60.45/barrel. Code PCAAU00. ESPO differential
January program. “The January program from Russia to stable. Asia Mo01: $2.30/barrel. Code AASEU00. Forward Dated
is expected to be very long, as a result of royalties The above commentary applies to the following market data Brent 15-45 days ahead (the 15-45 Day Dated Strip)
and the export tax,” one trader said. “We will have to code: AAGXX00 $60.81/barrel. Code AALGM00. The ESPO FOB Kozmino
see if it ends up being true or not. Russia is looking Mo01 London time assessment was derived using
for alternative markets to Europe anyway, with the Urals CIF Med assessment rationale: (PGA page 1287) the following calculation: The difference between Third
deal to sell a high quantity of oil to Essar and India.” The Urals CIF Med assessment reflected the value of month Cash BFOE London: $62/barrel and Third month
Another trader, referring to the preliminary Novorossiisk the Mediterranean Dated Brent Strip (AALDF00) plus the Cash BFOE Asia: $63.38/barrel equals: minus $1.38/
program, said: “The first few days of Novorossiisk Urals CIF Augusta differential assessment (AAGXX00). barrel. The difference between Second month Cash
do not give the impression of being particularly The above commentary applies to the following market data Dubai: $60.45/barrel and minus $1.38/barrel equals:
long,” adding that the relatively small size of typical code: PCACE00 $59.07/barrel. The difference between ESPO differential
Novorossiisk loadings meant early releases of that Asia Mo01: $2.30/barrel and $59.07/barrel equals the
program were less representative than they were in the Urals RCMB (Recombined) assessment rationale: (PGA ESPO outright price assessment of $61.37/barrel The
Baltic programs. Following recent falls in the outright page 1287) The Urals RCMB (Recombined) assessment difference between the ESPO outright assessment and
price of crude, and with values for many grades sold reflected the value of the Platts Dated Brent assessment forward Dated Brent 15-45 days ahead (the 15-45 Day
into Europe also weak, traders said noted impact on (PCAAS00) plus the Urals CIF Augusta differential Dated Strip) equals the ESPO London time differential.
refining margins and said it this was not encouraging assessment (AAGXX00). The above commentary applies The above commentary applies to the following market data
additional buying. “It seems that this is a time of to the following market data code: AALIN00. code: AARWD00
exceptionally low prices and large availability,” a trader The above commentary applies to the following market data
said. “Margins should be good. The fact that we do not code: AALIN00 Med Dated Brent Strip 13-28 Day assessment rationale:
see margins reflected in the differential price is the (PGA page 1287) The Mediterranean Dated Brent Strip
best proof that the market is very long indeed.” Another Urals CIF Rdam assessment rationale: (PGA page reflected the value of Forward Dated Brent 13-28 days
trader also said strong margins were not necessarily 1287) Urals CIF Rotterdam was assessed unchanged ahead of the day of publication. Forward Dated Brent
going to lead to more buying. “Margins have been good Monday, with no fresh trades reported to suggest is assessed as a function of Platts assessments of
for a long time. Refineries are already running at their a clear direction in the market. Traders were second-month Cash BFOE and BFOE CFD differentials.
nominal rated capacity.” Events in Libya, following a awaiting the early January programs for Primorsk The above commentary applies to the following market data
force majeure on loadings from Es Sider and Ras Lanuf, and Novorossiisk, which looked set to give an early code: AALDF00
were primarily having an impact on the sweet crude indication of overall loadings in the Baltic, currently
market. However, traders said Urals could potentially expected to be significantly longer than December. No Urals Mediterranean bids/offers/trades: (PGA page 1288)
also come under upward pressure. “I do think that Es bids or offers were seen in the Platts Market on Close ■■URALS MED MOC: DEAL SUMMARY: No deals.
Sider has pressed on Urals,” a trader said. Quite a few assessment process. ■■URALS MED MOC: OUTSTANDING: None.
buyers have taken it northwards as a Urals alternative.” The above commentary applies to the following market data ■■URALS MED MOC: WITHDRAWN: None.
code: PCAFW00 ■■URALS NWE MOC: DEAL SUMMARY: No deals.
Urals CIF Augusta differential assessment rationale: ■■URALS NWE MOC: OUTSTANDING INTEREST: None.
(PGA page 1287) Urals CIF Augusta was assessed ESPO FOB Kozmino Mo01 London assessment rationale: ■■URALS NWE MOC: WITHDRAWN: None.
$0.02/barrel lower Monday, following the release of (PGA page 1286) The ESPO FOB Kozmino Mo01 London
the early-Novorossiisk loading program which showed time assessment was derived using the following Urals Mediterranean exclusions: (PGA page 1288) No
no immediate change in volumes month on month, assessments: Third month Cash BFOE London: $62/ market data were excluded from the December 15
despite expectations of an increase. Refining margins, barrel. Code PCAAR00. Third month Cash BFOE Asia: assessment process.

Copyright © 2014, McGraw Hill Financial 7

 Crude oil Marketwire December 15, 2014

West African spot crude assessments ($/barrel) (PGA page 1230)

West Africa (PGA page 1294)
Mid Change Spread vs fwd Dated Brent Mid Change
The West African crude market started the week on Bonny Light PCAIC00 61.58–61.62 61.600
-0.960 AAGXL00 0.61/0.63 0.620 -0.030
Qua Iboe PCAID00 61.68–61.72 61.700
-0.960 AAGXN00 0.71/0.73 0.720 -0.030
a tepid note with a substantial overhang of Nigerian Forcados PCABC00 62.68–62.72 62.700
-0.960 AAGXP00 1.71/1.73 1.720 -0.030
January cargoes putting pressure on crude differentials. Agbami AAQZB00 60.38–60.42 60.400
-0.960 AAQZC00 -0.59/-0.57 -0.580 -0.030
On the Angolan side, however, almost all of the January Escravos AAEIZ00 61.53–61.57 61.550
-0.960 AAGXR00 0.56/0.58 0.570 -0.030
Brass River AAEJB00 60.63–60.67 60.650
-0.960 AAGXV00 -0.34/-0.32 -0.330 -0.030
program had traded with only one or two cargoes still Akpo PCNGA00 60.53–60.57 60.550
-0.960 PCNGB00 -0.44/-0.42 -0.430 -0.030
available. The provisional February loading program was Bonga PCNGC00 62.18–62.22 62.200
-0.960 PCNGD00 1.21/1.23 1.220 -0.030
Djeno PCNGE00 57.18–57.22 57.200
-1.010 PCNGF00 -3.79/-3.77 -3.780 -0.080
expected to be released by Tuesday afternoon. Traders
said activity on the Nigerian market for January cargoes Angola spot crude assessments ($/barrel) (PGA page 1232)
had been very slow especially for flagship grades like
Mid Change Spread vs fwd Dated Brent Mid Change
Qua Iboe, Bonny Light, Forcados and Bonga. There was Cabinda PCAFD00 58.26–58.30 58.280
-0.930 AAGXT00 -2.71/-2.69 -2.700 0.000
an oversupply of light sweet crudes in the Atlantic basin Nemba AAQYZ00 58.46–58.50 58.480
-0.930 AAQZA00 -2.51/-2.49 -2.500 0.000
Dalia AAQYX00 56.91–56.95 56.930
-0.930 AAQYY00 -4.06/-4.04 -4.050 0.000
and this was bringing the entire sweet crude complex Girassol AASNL00 59.66–59.70 59.680
-0.930 AASJD00 -1.31/-1.29 -1.300 0.000
down, traders said. “The market is in disaster mode. Hungo AASLJ00 57.81–57.85 57.830
-0.930 AASJF00 -3.16/-3.14 -3.150 0.000
Kissanje AASLK00 59.16–59.20 59.180
-0.930 AASJE00 -1.81/-1.79 -1.800 0.000
There is just no demand for these Nigerian grades at
Pazflor PCNGG00 56.81–56.85 56.830
-0.930 PCNGH00 -4.16/-4.14 -4.150 0.000
the moment. There is too much oil to choose from. Plutonio PCNGI00 58.31–58.35 58.330
-0.930 PCNGJ00 -2.66/-2.64 -2.650 0.000
Even the Azeri Light values are coming crashing down,”
said a trader. “The arbitrage east is almost closed and US spot crude assessments ($/barrel) (PGA pages 210 & 214)

the OSPs in Middle East are very cheap. The Brent/ Mid Change
Mars (Jan) AAMBR00 53.93–53.95 53.940 -2.240
Dubai spread is wide, There are plenty of alternatives Mars (Feb) AAMBU00 54.12–54.14 54.130 -2.110
for [Asian] refiners instead of WAF. And the European Mars (Mar) AAMBX00 54.37–54.39 54.380 -2.050
refiners are spoilt for choice.” Traders said there were Mars/WTI (Jan) AAGWH00 -1.61/-1.59 -1.600
-0.050
Mars/WTI (Feb) AAKTH00 -1.81/-1.79 -1.800
-0.050
still more than 30 Nigerian January loading cargoes Mars/WTI (Mar) AAMBO00 -1.96/-1.94 -1.950
-0.050
unsold, and with the Nigerian February program expected WTI-Delta AAEJK00 -0.53/-0.51 -0.520
-0.150
P-Plus WTI PCACI00 2.85/2.87 2.860
-0.150
later in the day, differentials were expected to fall P-5 WTI AAFEN00 52.510 -1.810
steadily if demand did not materialize. “The Angolan P-5 WTI is a crude oil postings-based index as of 5:30 p.m. local New York time. Posted prices by the following companies are used in the index: Phillips66, Plains,
January program is sold out thanks to the Chinese but Sunoco, Shell, and Valero.
Mid Change Spread vs 1st line WTI Mid Change
on Nigeria, we still have almost 40 million barrels left WTI (Midland) PCACJ00 52.38–52.40 52.390
-3.340 AAGVZ00 -3.16/-3.14 -3.150 -1.150
[including] some December barrels on storage. The WTS (1st month) PCACK00 54.53–54.55 54.540
-2.140 AAGWB00 -1.01/-0.99 -1.000
+0.050
Eugene PCAFC00 56.08–56.10 56.090
-2.240 AAGWD00 0.54/0.56 0.550 -0.050
market is very long in WAF and in the Med,” another
Bonito PCAIE00 56.08–56.10 56.090
-2.240 AAGWF00 0.54/0.56 0.550 -0.050
trader said. In other news, Nigerian crude exports were SGC AASOI00 53.23–53.25 53.240
-2.240 AASOJ00 -2.31/-2.29 -2.300 -0.050
not hit by a strike Monday by oil workers over foreign Poseidon AABHK00 53.03–53.05 53.040
-2.240 AAGWL00 -2.51/-2.49 -2.500 -0.050
LLS (1st month) PCABN00 57.93–57.95 57.940
-2.240 AAGWN00 2.39/2.41 2.400 -0.050
companies’ labor practices, West African crude trading HLS (1st month) PCABD00 55.83–55.85 55.840
-2.140 AAGWP00 0.29/0.31 0.300
+0.050
sources said. But some said that if the three-day strike Wyoming Sweet PCACM00 52.68–52.70 52.690
-2.240 AAGWR00 -2.86/-2.84 -2.850 -0.050
continued there could be “potential” loading delays. Thunder Horse AAWZK00 55.93–55.95 55.940
-2.490 AAWZL00 0.39/0.41 0.400 -0.300
Spread vs 2nd line WTI
“We are hearing no approvals were granted by Nigerian
WTS (2nd month) AAURG00 54.42–54.44 54.430
-2.010 AAURH00 -1.51/-1.49 -1.500 +0.050
National Petroleum Corporations today for new loadings LLS (2nd month) AAURC00 58.12–58.14 58.130
-2.110 AAURD00 2.19/2.21 2.200 -0.050
due to the strike,” said a trader. “I know some of our HLS (2nd month) AAURE00 56.02–56.04 56.030
-2.010 AAURF00 0.09/0.11 0.100 +0.050
Basrah Light* AAEJH00 54.22–54.24 54.230
-1.110 AAGWV00 -1.71/-1.69 -1.700 +0.950
clearances are delayed, and no clearances could mean
* The assessment is for waterborne barrels of Iraqi Basrah light delivered into the US gulf.

Copyright © 2014, McGraw Hill Financial 8

 Crude oil Marketwire December 15, 2014

no loadings so in theory it has potential to affect US spot crude assessments ($/barrel) (PGA pages 210 & 214)
production. Other traders, however, said no loading Mid Change Mid Change
delays had been seen yet. “It is too early to tell as the Spread vs Eagle Ford Marker
Eagle Ford Postings Avg. AAYAH00 51.515
-1.285 AAYAI00 -5.179
+0.959
strike has just started but we could see an impact in
Eagle Ford Marker represents the gross product weight of a 47 API Eagle Ford crude barrel adjusted for spot values. The specific product assessments and yield
a few days,” said a second trader. But no impact on percentages used to calculate the Eagle Ford Marker can be found at http://www.platts.com/MethodologyAndSpecifications/Oil. Eagle Ford Postings Average is the daily
average of four posted prices for Eagle Ford crude from the following companies:Sunoco, Plains, Flint Hills, and Enterprise.
loadings yet is what we hear.” Nigerian oil workers began
Spread vs 1st line WTI CMA
the strike after talks broke down with the government to WCS ex-Cushing AAWTY00 47.29–47.39 47.340
-1.290 AAWTZ00 -8.80/-8.70 -8.750 +0.750
address the alleged anti-labor practices. Bakken Blend Ex-Guernsey AASRR00 53.18–53.20 53.190
-2.190 AASRV00 -2.91/-2.89 -2.900 -0.150
Bakken Blend Ex-Clearbrook AASRU00 50.73–50.75 50.740
-2.190 AASRW00 -5.36/-5.34 -5.350 -0.150
Bakken Blend ex-Guernsey reflects 38-40 API and 0.2% sulfur. Bakken Blend ex-Clearbrook reflects 38-40 API and 0.2% sulfur. Both grades are assessed versus calendar
US MOC Commentary (PGA pages 291 & 287) month average of 1st month NYMEX WTI futures at 3:15 pm ET.

No trades reported. California spot crude assessments ($/barrel) (PGA page 214)

Mid Change Spread to cash WTI Mid Change

LIne 63/Hynes PCABM00 55.14–55.18 55.160 -1.960
US Gulf Coast (PGA pages 290 & 292) Thums/Long Beach PCACD00 52.14–52.16 52.150 -2.080
Kern River PCABJ00 50.44–50.46 50.450 -1.980
A tumbling differential for West Texas Intermediate in P-Plus Line 63 PCAFV00 1.19/1.21 1.200
+ 0.100
ANS/Long Beach PCAAD00 57.49–57.53 57.510 -1.650 AAGWX00 1.47/1.49 1.480
+0.400
Midland, Texas, due to heavy selling pulled down the
Light Houston Sweet differential Monday. After falling
$1.25 last week, the WTI Midland differential fell $1.15 US domestic crude assessments London close ($/barrel) (PGA page 1240)

Monday to be assessed at WTI minus $3.15/b, following Spread to

Mid Change NYMEX light sweet crude Mid Change
a trade at WTI minus $3.10/b and then an offer at that WTI (Jan) AAQAR00 56.38–56.40 56.390
-1.740 AAQAS00 --0.01/0.01 0.000 0.000
level. The declining WTI Midland differential resulted in WTI (Feb) AAQAT00 56.73–56.75 56.740
-1.680 AAQAU00 --0.01/0.01 0.000 0.000
WTI (Mar) AAQAV00 57.10–57.12 57.110
-1.640 AAQAW00 --0.01/0.01 0.000 0.000
the LHS differential dropping as well. LHS slipped 75
Spread to
cents to be assessed $2.75 below the Light Louisiana
same-month cash WTI Mid Change
Sweet differential, or WTI minus 35 cents/b, where LHS LLS (Jan) AAQBB00 58.77–58.81 58.790
-1.740 AAQBC00 2.39/2.41 2.400 0.000
was heard to trade last at Magellan’s East Houston LLS (Feb) AAQBD00 58.97–59.01 58.990
-1.680 AAQBE00 2.24/2.26 2.250 0.000
MARS (Jan) AAQAX00 54.77–54.81 54.790
-1.840 AAQAY00 -1.61/-1.59 -1.600
-0.100
crude terminal. A trade was heard done earlier in the MARS (Feb) AAQAZ00 54.92–54.96 54.940
-1.780 AAQBA00 -1.81/-1.79 -1.800
-0.100
day at LLS minus $2.50/b. WTI Midland specifications
at the East Houston terminal apply to the Platts LHS America closes ($/barrel) (PGA page 210)
assessment methodology. The differentials for offshore
Mid Change
US Gulf Coast sweet grades were mostly unchanged Americas Dated Brent AAQBF00 60.41–60.43 60.420
-0.890
Monday despite a wider NYMEX crude/ICE Brent spread. Americas Dated Brent reflects market value for Dated Brent at 3:15pm Eastern Time. Value of Brent futures contracts at US MOC close. *These assessments reflect the
value of futures at precisely 1:30 pm ET on the business day preceding the following holidays: Christmas Day, New Years Day, Fourth of July, and Thanksgiving Day.
The NYMEX crude/ICE Brent spread widened $1.02 to
$5.07/b as of the Platts 3:15 pm EST assessment. A
wider NYMEX crude/ICE Brent spread typically indicates Canadian spot crude cargo assessments ($/barrel) (PGA page 230)

that US crude differentials should increase so that Mid Change Spread vs fwd Dated Brent Mid Change
Terra Nova AAJUH00 60.34–60.46 60.400
-0.880 AAJUJ00 -0.45/-0.35 -0.400 +0.050
WTI-based crudes keep pace with Brent-based crudes.
Hibernia AAJKK00 60.86–60.98 60.920
-0.880 AAJKM00 0.07/0.17 0.120 +0.050
The LLS differential — the benchmark for light sweet White Rose AAVJX00 62.34–62.46 62.400
-0.880 AAVJY00 1.55/1.65 1.600 +0.050
Gulf Coast crudes — dropped 5 cents to be assessed The published spreads for Canadian cargo assessments reflect the market value at which these grades are trading versus Dated Brent around loading time. The spreads
and fixed price assessments reflect a typical forward loading window of 42-56 days forward.
at WTI plus $2.40/b after trading at WTI plus $2.35/b
For further explanation see www.platts.com > Oil > Specifications > Crude oil specifications.

Copyright © 2014, McGraw Hill Financial 9

 Crude oil Marketwire December 15, 2014

and then bid there late, and the Heavy Louisiana Sweet Canadian spot crude assessments ($/barrel) (PGA page 230)
differential rose 5 cents to WTI plus 30 cents/b after Mid Change Spread vs Canada basis Mid Change
it was bid at WTI plus 25 cents/b. In North Dakota, Lloyd Blend AALRK00 39.04–39.14 39.090
-1.040 AALRP00 -17.05/-16.95 -17.000 +1.000
Mixed Sweet AALRR00 49.14–49.24 49.190
-1.940 AALRV00 -6.95/-6.85 -6.900 +0.100
the differentials for Bakken at Clearbrook and Bakken Light Sour Blend AALRX00 47.84–47.94 47.890
-1.990 AALSD00 -8.25/-8.15 -8.200 +0.050
at Guernsey weakened on the back of an offer, while Midale AAUCC00 43.39–43.49 43.440
-1.990 AAUCE00 -12.70/-12.60 -12.650 +0.050
Williston Basin Bakken crude remained unchanged on Condensates AALSF00 51.39–51.49 51.440
-1.190 AALSJ00 -4.70/-4.60 -4.650 +0.850
Syncrude Sweet AASOK00 53.29–53.39 53.340
-1.490 AASOM00 -2.80/-2.70 -2.750 +0.550
a lack of indications, a weakening pipeline market and WCS Hardisty AAPPN00 39.29–39.39 39.340
-1.040 AAPPP00 -16.80/-16.70 -16.750 +1.000
the wider Brent/WTI spread. The differential for Bakken Cold Lake Hardisty AASZX00 38.29–38.39 38.340
-1.040 AASZZ00 -17.80/-17.70 -17.750 +1.000
WTI CMA (1st mo) AAVSN00 56.090
-2.040
at Clearbrook was assessed down 15 cents at WTI CMA
minus $5.35/b, based on an offer at minus $5.30/b.
The differential for Bakken at Guernsey followed suit,
falling 15 cents to WTI CMA minus $2.90/b. The Daily Canadian crude posting averages (PGA page 253)

decrease in the Bakken pipeline market coupled with C$/cu m Mid Change $/barrel Mid Change
Bow River/Hardisty PCAEY00 339.000–341.000 340.000
-13.000 PCAFB00 46.341–46.614 46.477
-2.159
a widening Brent/WTI spread left the differential for
Light/Sour Cromer PCAII00 374.000–376.000 375.000
-14.000 PCAIK00 51.125–51.399 51.262
-2.334
Williston Basin Bakken crude unchanged at minus
$7.95/b; Williston Basin Bakken crude was assessed at
$48.14/b Monday.
Latin American assessments ($/barrel) (PGA page 280)
Diff to Diff to Futures Diff to Dated
Cash differentials for offshore US Gulf Coast sour Mid Change WTI strip Brent strip Brent strip
crudes were mostly unchanged Monday despite the Escalante PCAGC00 54.42–54.47 54.445 -1.115 PCAGO00 -1.730 AAXBS00 -6.900 AAXAX00 -5.800
wider NYMEX crude/ICE Brent spread. The Mars Roncador AAQTL00 54.27–54.32 54.295 -1.115 AAQTK00 -1.880 AAXBT00 -7.050 AAXAY00 -5.950
Santa Barbara AAITD00 62.85–62.90 62.875 -2.050 AAITJ00 6.700 AAXBU00 1.530 AAXAZ00 2.630
differential fell 5 cents to be assessed at WTI minus Loreto PCAGH00 50.50–50.55 50.525 -1.850 PCAGQ00 -5.650 AAXBV00 -10.820 AAXBG00 -9.720
$1.60/b, where it traded. The Poseidon and Southern Oriente PCADE00 50.25–50.30 50.275 -1.850 PCAGU00 -5.900 AAXBW00 -11.070 AAXBH00 -9.970
Green Canyon differentials dropped 5 cents as well to Napo AAMCA00 45.25–45.30 45.275 -1.850 AAMCD00 -10.900 AAXBX00 -16.070 AAXBI00 -14.970
Marlim AAITF00 54.77–54.82 54.795 -1.115 AAITL00 -1.380 AAXBY00 -6.550 AAXBJ00 -5.450
be assessed at WTI minus $2.50/b and WTI minus Castilla Blend AAVEQ00 50.27–50.32 50.295 -1.115 AAVEQ01 -5.880 AAXBZ00 -11.050 AAXBK00 -9.950
$2.30/b. The Bonito and Eugene Island differentials Magdalena AAWFR00 49.92–49.97 49.945 -1.115 AAWFS00 -6.230 AAXCA00 -11.400 AAXBL00 -10.300
each moved 5 cents lower to be assessed at WTI plus Vasconia PCAGI00 55.02–55.07 55.045 -1.115 PCAGR00 -1.130 AAXCB00 -6.300 AAXBN00 -5.200
Mesa 30 AAITB00 60.52–60.57 60.545 -1.115 AAITH00 4.370 AAXCC00 -0.800 AAXBO00 0.300
55 cents/b as they moved with Mars. Thunder Horse Latin America WTI strip AAXBP00 56.175
dropped 30 cents to be assessed at WTI plus 40 Latin America Futures Brent strip AAXBQ00 61.345
cents/b, where it traded. In the Permian Basin, the West Latin America Dated Brent strip AAXBR00 60.245

Texas Sour differential added 5 cents to be assessed at

WTI minus $1/b, where it traded.
Platts euro-denominated assessments (€/barrel) (PGA page 1252)

Mid Change
US West Coast (PGA page 294)
European crude oil benchmarks
Dated Brent AAPYR00 48.930–48.950 48.940 -0.445
The ANS differential was assessed 40 cents higher Urals (Mediterranean) AAPYS00 47.880–47.910 47.895 -0.585
Monday at WTI CMA plus $1.48/b for delivery in January. US crude oil benchmarks
Platts calculates the ANS differential to reflect that the WTI (Jan 15) AAPYT00 45.230–45.250 45.240 -1.340
ANS market uses WTI CMA at the underlying contract’s Mars (Jan 15) AAPYU00 43.940–43.970 43.955 -1.425
Euro/US$ forex rate: 1.2464. Platts Euro denominated crude oil assessments are based on market values and a Euro/US$ forex rate at 4:30 PM local London time.
settlement as a basis for trading, then normalizes the

Copyright © 2014, McGraw Hill Financial 10

 Crude oil Marketwire December 15, 2014

differential against the Platts assessment of WTI CMA. Ruble-denominated Russian assessments (Rb/barrel) (PGA page 1224)
While the ANS market is thinly traded, Platts weighs Mid Change
recent differentials with changes in prices for competing Russian crude oil benchmarks
grades. The differential for 2:30 pm EST (1930 GMT) Urals FOB Novorossiysk AAUJP00 3649.250–3650.510 3649.880
+229.010
was calculated at plus $1.10/b. When adjusted to Urals FOB Ventspils AAUJQ00 3637.220–3639.120 3638.170
+265.040
Urals FOB Novorossiysk 80kt AAUJR00 3633.420–3635.320 3634.370
+250.535
reflect the WTI CMA at 3:15 pm EST, the assessment Urals CIF Mediterranean AAUJS00 3777.740–3779.640 3778.690
+277.660
was plus $1.48/b. Although the ANS differential for 2:30 Urals CIF Rotterdam AAUJT00 3717.610–3718.880 3718.245
+273.645
US$/Ruble forex rate: 63.3000. Platts Ruble denominated crude oil assessments are based on market values and a US$/Ruble forex rate at 4:30 PM local London time.
pm EST was 15 cents/b higher, changes in the crude
futures market between 2:30 pm and 3:15 pm EST
caused the final value to be 40 cents higher than Friday. Platts CAD-denominated Canada spot crude assessments (C$/cu m) (PGA page 232)

Tesoro is scheduled to load a Suezmax-sized vessel of Mid Change

Lloyd Blend AALRM00 285.59–286.32 285.958 -5.304
Angolan crude for delivery to Chiriqui Grande, Panama, in Mixed Sweet AALRT00 359.48–360.21 359.843 -11.257
the first half of January. That unspecified crude will then Light Sour Blend AALRZ00 349.97–350.70 350.333 -11.695
be transported via the PTP pipeline for loading out of Midale AAUCD00 317.41–318.15 317.780 -11.950
Condensates AALSH00 375.94–376.67 376.303 -5.684
Puerto Armuelles, Panama, for delivery to California. Syncrude Sweet AASOL00 389.84–390.57 390.202 -7.753
WCS Hardisty AAPPO00 287.42–288.15 287.787 -5.290
Cold Lake Hardisty AASZY00 280.11–280.84 280.472 -5.347
Canada (PGA pages 296 & 298)
Daily US$ vs EURO exchange rate (PGA page 1151)
Strength in competing crude oil grades in the North
Mid Change
Sea and a wider Brent/NYMEX crude contract spread December 15, 2014 AAFCW00 1.2464 -0.002
as of Platts assessment at 11:30 am EST (1630 GMT)
boosted price differentials for January crude cargoes Asia close Brent and WTI spot assessments ($/barrel) (PGA page 2210)
from offshore Newfoundland and Labrador Monday. East Mid Change
Coast Canadian grades were assessed 5 cents/b higher. Brent (Jan) PCAJE00 62.32–62.36 62.340 -0.540
Hibernia was assessed at Dated Brent plus 12 cents/b, Brent (Feb) PCAJG00 62.72–62.76 62.740 -0.540
Brent (Mar) PCAJI00 63.36–63.40 63.380 -0.580
Terra Nova at Dated Brent minus 40 cents/b and White Brent (Apr) PCAJ000 64.060 -0.580
Rose at Dated Brent plus $1.60/b. Though no new WTI (Jan) AAFFU00 58.34–58.38 58.360 -0.740
WTI (Feb) AAFFW00 58.59–58.63 58.610 -0.710
fixtures were reported, 13 crude oil cargoes were seen WTI (Mar) AAFFY00 58.92–58.96 58.940 -0.680
headed for the Atlantic Coast of Canada, according to
Platts cFlow vessel-tracking software. Two are headed for Oman OSPs and derivatives ($/barrel) (PGA pages 2658 & 2210)
to Quebec, five to Newfoundland and Labrador, three to Mid Change
New Brunswick, and three to Nova Scotia. Oman/Dubai Swap (Jan) AAIHJ00 0.35/0.39 0.370 -0.030
Oman/Dubai Swap (Feb) AAIHL00 0.16/0.20 0.180 -0.020
Oman/Dubai Swap (Mar) AAIHN00 0.16/0.20 0.180 -0.020
Canadian crude differentials strengthened across the Oman cash/OSP (Feb) PCABT00 -2.83/-2.79 -2.810 -0.270
board Monday on market indications. WCS at Hardisty, Oman Swap (Jan) AAHZP00 60.80–60.84 60.820 -0.310
Oman Swap (Feb) AAHZR00 61.09–61.13 61.110 -0.460
the benchmark for heavy crudes, strengthened $1 to be
Oman Swap (Mar) AAHZT00 61.79–61.83 61.810 -0.510
assessed at the calendar-month average of NYMEX light
sweet crude (WTI CMA) minus $16.75/b. Syncrude, the Daily OPEC Basket Price ($/barrel) (PGA page 207)
benchmark for light grades, increased 55 cents to WTI
Mid Change
CMA minus $2.75/b. The Mixed Sweet differential was December 12, 2014 AAEUQ00 58.650 -1.850

Copyright © 2014, McGraw Hill Financial 11

 Crude oil Marketwire December 15, 2014

assessed 10 cents higher at WTI CMA minus $6.90/b, Futures Settlements

based on a deal at that level. Light Sour blend rose 5 Settlement Change Low High Volume Open interest PNT***
cents to WTI CMA minus $8.20/b, following Mixed Sweet NYMEX Light Sweet crude ($/barrel) (PGA page 705)
higher, and Midale also rose 5 cents to WTI CMA minus Jan 15 NMCL001 55.91 -1.90 55.29 58.73 414224 161331
Feb 15 NMCL002 56.26 -1.82 55.68 59.00 161612 244501
$12.65/b, echoing the move by Light Sour blend. Mar 15 NMCL003 56.64 -1.77 56.08 59.34 70630 187523
Apr 15 NMCL004 57.04 -1.72 56.60 59.70 29528 48820
Total NMCL000 853278 XNCLP00 38671
Latin America (PGA page 288) ICE Brent ($/barrel) (PGA page 704)
Jan 15 ICLL001 61.06 -0.79 60.28 63.25 174848 64018
At least three VLCC cargoes were headed to Asia from Feb 15 ICLL002 61.21 -0.94 60.55 63.48 227761 291490
Mar 15 ICLL003 61.81 -1.04 61.22 64.10 100739 254268
the Pacific coast of Panama, data from Platts cFlow Apr 15 ICLL004 62.48 -1.08 61.93 64.76 38369 80483
vessel-tracking software showed Monday. The vessel Total ICLL000 740752 XILLP00 27388

Sifa is north of Hawaii with an estimated arrival of ICE Brent NX ($/barrel) (PGA page 704)
Feb 15 ICBN001 61.12 -1.22 61.12 61.12 0 0
January 23 at Ningbo, China, according to Platts cFlow. Mar 15 ICBN002 61.72 -1.32 61.72 61.72 0 0
That 2 million-barrel ship loaded from the port of Puerto Apr 15 ICBN003 62.39 -1.46 62.39 62.39 0 0
May 15 ICBN004 63.07 -1.48 63.07 63.07 0 0
Armuelles on December 1. The DHT Chris is also in the Total ICBN000 0
north Pacific northeast of the Hawaii islands with an ICE WTI ($/barrel) (PGA page 704)
estimated arrival of January 5 at Zhoushan in eastern Jan 15 ICIC001 55.91 -1.90 55.03 58.72 67506 38603
Feb 15 ICIC002 56.26 -1.82 55.46 59.00 43463 55121
China. The vessel loaded from the port of Esmeraldas, Mar 15 ICIC003 56.64 -1.77 55.92 59.32 21371 57354
Ecuador, on November 30, but prior to that loaded Apr 15 ICIC004 57.04 -1.72 56.37 59.65 5165 12615
Total ICIC000 171095 XIICP00 11004
crude on the Panamanian offshore loading facility. The
ICE Middle East Sour crude ($/barrel) (PGA page 704)
DHT Chris is likely carrying Ecuadorean Oriente or Napo Feb 15 ICOQ001 58.96 -1.12 58.96 58.96 0 0
crude, but this could not be confirmed. Platts assessed Mar 15 ICOQ002 60.25 -0.93 60.25 60.25 0 0
Apr 15 ICOQ003 60.87 -0.99 60.87 60.87 0 0
Oriente at Latin WTI strip minus $5.90/b, or $50.275/b, May 15 ICOQ004 61.56 -0.99 61.56 61.56 0 0
on Monday, down $1.85 from Friday. Napo was assessed Total Volume ICOQ000 0 XIOQP00

at Latin WTI strip minus $10.90/b or $45.275/b, down ICE BWAVE ($/barrel) (PGA page 704)
Jan 15 XIBW001 62.48
$1.85. Meanwhile, the Libra Voyager is off the coast Feb 15 XIBW002 62.79
of Mexico and heading to Tangshan, China, according DME Oman crude ($/barrel) (PGA pages 702 & 2710)
to Platts cFlow. The vessel departed Puerto Armuelles Feb 15 XDOA001 60.19 -0.35 1658
Feb 15 DMOQ001 58.77 -0.83 58.53 60.67 2865 10522
on December 10 for an estimated arrival of January Mar 15 DMOQ002 59.62 -1.27 59.62 61.83 79 4
10. The vessel is likely taking either Colombian crude Apr 15 DMOQ003 60.22 -1.29 60.22 60.22 78 5
May 15 DMOQ004 60.89 -1.31 60.89 60.89 410 400
or Colombian and Ecuadorean crudes, but this could Total Volume DMOQ000 7862 XDOQP00 3200
not be confirmed. Colombian Castilla Blend was NYMEX ULSD ($/gal) (PGA page 705)
assessed Monday at Latin ICE strip minus $11.05/b, Jan 15 NMHO001 2.0017 -0.0143 1.9948 2.0657 61559 57798
Feb 15 NMHO002 1.9324 -0.0301 1.9230 2.0038 43781 81251
or $50.295/b, down $1.12. Platts assessed Vasconia Mar 15 NMHO003 1.9076 -0.0302 1.8980 1.9737 22387 63677
crude at Latin ICE strip minus $6.30/b, or $55.045/b, Apr 15 NMHO004 1.8905 -0.0283 1.8871 1.9467 9727 32657
Total NMHO000 152357 XNHOP00 9740
down $1.12. China’s state oil company Unipec is a
NYMEX RBOB unleaded gasoline ($/gal) (PGA page 705)
frequent loader of crude from the PTP pipeline loading Jan 15 NMRB001 1.5764 -0.0209 1.5675 1.6268 47374 76481
facility, while PetroChina typically loads from the ship- Feb 15 NMRB002 1.5905 -0.0186 1.5818 1.6371 30544 72816
Mar 15 NMRB003 1.6117 -0.0188 1.6022 1.6580 15219 53044
to-ship facility offshore Panama. Tesoro is scheduled Apr 15 NMRB004 1.8140 -0.0213 1.8095 1.8498 8356 37739
to load a Suezmax-sized vessel of Angolan crude for Total Volume NMRB000 122432 XNRBP00 8042

Copyright © 2014, McGraw Hill Financial 12

 Crude oil Marketwire December 15, 2014

delivery to Chiriqui Grande, Panama, in the first half of Futures Settlements

January. That unspecified crude will then be transported Settlement Change Low High Volume Open interest PNT***
via the PTP pipeline for loading out of Puerto Armuelles, NYMEX Natural Gas ($/MMBtu) (PGA page 705)

Panama, for delivery to California. Jan 15 NMNG001 3.719 -0.076 3.699 3.936 124556 108398
Feb 15 NMNG002 3.730 -0.086 3.715 3.950 61976 142348
Mar 15 NMNG003 3.697 -0.080 3.680 3.907 50133 182429
Apr 15 NMNG004 3.479 -0.051 3.466 3.613 28908 96657
Total Volume NMNG000 295666 XNNGP00 3271
News (PGA page 100)
ICE gasoil ($/mt) (PGA page 704)
Jan 15 ICLO001 555.75 -10.25 551.25 572.00 52202 103042
Feb 15 ICLO002 572.25 -8.25 566.25 586.50 43522 94578
Mexico undeterred on reform despite low Mar 15 ICLO003 574.50 -7.75 570.25 588.75 9954 39225
oil prices, but may defer shale tender Apr 15
Total Volume
ICLO004 577.25 -7.50 572.00
ICLO000 162296 XILOP00 2133
591.25 7133 25956

ICE low sulfur gasoil ($/mt) (PGA page 704)

Mexico may postpone leases for shale oil development
Jan 15 ICLS001 571.75 -9.00 568.75 585.75 2368 16783
under its long-anticipated energy sector reform, but other Feb 15 ICLS002 NA NA NA NA 5732 17424
tenders — for onshore, shallow water and deepwater Total Volume ICLS000 2368 XILSP00 0
*Volume, open interest and PNT reflect prior trading day. PNT reflect volume for Privately Negotiated Trades or off-exchange. **Oman settlements are Post Close
tracts — should go on as planned next year, despite settlements. ***Privately Negotiated Trade values found on PGA page 710
current low oil prices, the country’s energy minister said
Monday. “We are offering longterm contracts, 25 years,
for exploration and exploitation,” Mexico Energy Secretary
Futures at Platts’ Market on Close ($/barrel) (PGA page 703)
Pedro Joaquin Coldwell said, through a translator. “We
Singapore* London* Houston* Singapore* London* Houston*
believe that the companies will submit bids thinking
ICE Brent NYMEX WTI
of longterm projects.” With oil prices slumping, many
Jan XILLA01 62.60 AAYES00 61.19 AAQBG00 60.61 M1 XNCLA01 58.36 AASCR00 56.39 NYCRM01 55.54
observers have said investment interest in Mexico’s Feb XILLA02 62.85 AAYET00 61.40 AAQBH00 60.76 M2 XNCLA02 58.61 AASCS00 56.74 NYCRM02 55.93
oil and gas sector could be imperiled by companies Mar AAXZY00 62.03 AAXZZ00 61.36 M3 NYCRM03 56.33
slashing their capital budgets for 2015. NYMEX crude Apr AAYAM00 62.74 AAYAL00 62.03 M4 NYCRM04 56.72

on Monday fell to its lowest settle since May 2009, at ICE Brent NX Oman
$55.91/barrel. Mexico’s energy ministry on Thursday Feb AAXZL00 61.40 Feb XDOA001 60.19

presented draft guidelines for the nation’s first upstream Mar AAXZM00 62.03 Volume XDOAV01 1658
Apr AAXZN00 62.74 *Singapore and London MOC close at precisely 16:30 local time while Houston
auction since its oil industry was nationalized in 1938, MOC closes at precisely 14:15 local time. MOC times are usually earlier on the
May AAYAP00 63.44
with 14 fields of light crude in shallow waters of the day preceding major local holidays.

Gulf of Mexico the first to be put up for bid. Under the

bidding schedule, known as Round One of the energy
reform plan passed earlier this year, bids for the CRUDE OIL MARKETWIRE Volume 35 / Issue 246 / December 15, 2014
shallow water blocks will be awarded in July, followed
Editorial: Richard Swann, Editorial Director, Americas Oil: +1-713-658-3273; Jonty Rushforth, Editorial Director, Asia & Middle East: +65-6530-6581;
in successive months by heavy oil, unconventional, Christian Schmollinger, Senior Managing Editor, Asia & Middle East, Oil Products, +65-6530-6429; Daniel Colover, Managing Editor, Asia & Middle East, Crude Oil,
+65-6530-6501; Andrew Bonnington, Editorial Director, Europe, +44-20-7176-6164; Benno Spencer, Managing Editor, Europe, Crude Oil, +44-20-7176-6299.
onshore and deepwater blocks. Coldwell, speaking at
Client services information: North America: 800-PLATTS8 (800-752-8878); direct: +1-212-904-3070 Europe & Middle East: +44-20-7176-6111
a press conference with his counterparts from the US Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: support@platts.com

and Canada after a trilateral meeting in Washington, Copyright © 2014 McGraw Hill Financial. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system
or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of McGraw Hill Financial. Information has been obtained from sources
acknowledged that Mexico was “studying” whether to believed reliable. However, because of the possibility of human or mechanical error by sources, McGraw Hill Financial or others, McGraw Hill Financial 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 such
delay the bidding round for the unconventional blocks, information. See back of publication invoice for complete terms and conditions.
as shale drilling typically requires a higher breakeven

Copyright © 2014, McGraw Hill Financial 13

 Crude oil Marketwire December 15, 2014

price for oil than conventional drilling. But he declined Reported spot cash transactions (PGA page 3)
to offer details. Under the ministry’s original schedule, Trans. Cargo Spread Cargo CFD Crude Reported Outright Differential Diff. Barrels Seller Buyer
bidding for the unconventional tracts was to begin in Date month month load range/ roll grade(s) Status Price grade/ Price (barrel)
CFD week week ($/barrel) month ($/barrel)
March. “What we might reevaluate is the bids that are
London crude window deals
related to nonconventional reservoirs,” he said. But the
15-Dec Jan Jan 12 16 Brent CFD Done March -1.3 100000 Noble Shell
onshore blocks should still see substantial interest from 15-Dec Dec Dec 29 2 Brent CFD Done February -0.45 100000 Phibro BP
investors, Coldwell said, given that “the environmental 15-Dec Dec Dec 29 2 Brent CFD Done February -0.4 100000 Total Petroineos
15-Dec Dec Dec 29 2 Brent CFD Done February -0.4 100000 Chevron BP
risks are minimal and the costs for extraction are highly
15-Dec Dec Dec 29 2 Brent CFD Done February -0.4 100000 Gunvor OMV
competitive, even taking into account current prices.” As 15-Dec Dec Dec 29 2 Brent CFD Done February -0.4 100000 Chevron OMV
for the deepwater tenders, drilling in the Gulf of Mexico 15-Dec Jan Jan 19 23 Brent CFD Done March -1.25 100000 Noble Mercuria
15-Dec Dec Dec 29 2 Brent CFD Done February -0.4 100000 Gunvor BP
likely would not begin for three years at least, he said,
15-Dec Jan Jan 19 23 Brent CFD Done March -1.25 100000 Noble Mercuria
so current low oil prices may not be relevant when 15-Dec Jan Jan 5 9 Brent CFD Done March -1.25 100000 Noble Petroineos
production is set to start. Michael Cohen, an analyst with 15-Dec Jan Jan 5 9 Brent CFD Done March -1.25 100000 Noble Chevron
15-Dec Dec Dec 29 2 Brent CFD Done February -0.35 100000 Total BP
Barclays, said Mexico contains “a lot of low hanging fruit”
15-Dec Feb Feb Cash BFOE Done 61.38 100000 Vitol Hetco
in terms of oil and gas resources that would be relatively 15-Dec Dec Dec 29 2 Brent CFD Done February -0.35 100000 Total BP
easy for major international oil companies to develop, 15-Dec Feb Feb Cash BFOE Done 61.38 100000 Vitol Mercuria
15-Dec Dec Dec 29 2 Brent CFD Done February -0.35 100000 Total BP
but the pace of production may be slowed as a result of
the price decline. But he doubts Mexico would delay the North Sea, Mediterranean and West African deals
15-Dec Dec Dec 29 2 Brent CFD Reported February -0.4 100000 Gunvor BP
actual tenders. “They want to reassure investors that the
15-Dec Dec Dec 29 2 Brent CFD Reported February -0.36 100000 Shell BP
process won’t be derailed,” he said in an email. 15-Dec Jan Jan 1 31 1 28 Cash BFOE Reported -0.18 600000 Total Shell

PG/Asia Pacific Rim deals

Libya suspends crude exports 15-Dec
15-Dec
Feb
Feb
Dubai Partial Done
Dubai Partial Done
59.4 25000 Chinaoil
59.4 25000 Chinaoil
Shell
Shell
from Ras Lanuf, Es Sider 15-Dec Feb Dubai Partial Done 59.4 25000 Chinaoil Shell
15-Dec Feb Dubai Partial Done 59.4 25000 Chinaoil Shell
Libya’s fragile oil sector recovery suffered further
disruption at the weekend when state-owned NOC declared recognized Tobruk-based Libyan government at the OPEC of returning output to pre-crisis levels of around 1.5
force majeure on exports from the major eastern ports of meeting in Vienna last month. NOC said Saturday it had million b/d by end-2014. But first the major 340,000 b/d
Es Sider and Ras Lanuf because of heavy fighting between declared force majeure at the ports of Es Sider and Ras capacity Sharara field was closed in November because
armed groups in the area. A senior government official Lanuf because of armed clashes in the area. “A crisis of security issues, and now exports are halted from the
told Platts Monday that exports had now been suspended team has been employed to ensure operations can be country’s largest and third-biggest ports. The oil price
from the ports, which have a combined capacity of suspended and restarted safely. NOC and its subsidiaries — which has been in freefall in since mid-June — was
560,000 b/d — around half of the country’s total. “They are committed to working to maintain the equipment and boosted Monday by the Libyan force majeure, and a likely
have suspended exports and invoked force majeure,” the capacity of the country’s oil,” it said in a statement fall in Libyan exports could breathe life back into the sweet
Mohamed Oun, deputy vice prime minister for energy, told posted to its website. It also said it was taking steps to crude market in the Mediterranean, traders said. “The
Platts. Much of Libya’s eastern production is exported keep operating staff, wells, pumps, piping and equipment force majeure in Libya over the weekend may well revitalize
via Es Sider and Ras Lanuf, so lengthy disruption to in the area safe. Es Sider and Ras Lanuf resumed the sweet crude market. Differentials have been under
operations at the ports could see Libyan oil production — operations in August, having been closed for more than pressure, but they should recover a little bit,” one trader
currently running at 700,000 b/d — fall significantly. Oun, a year after anti-government protesters occupied the said. “I would imagine that there should be more interest
together with Abdourhman Ataher Al-Ahirish, Libya’s vice terminals. Libya succeeded in boosting production to 1 in Mediterranean sweet grades from people who had been
prime minister for co-operation, represented the officially million b/d by the end of October, and NOC was hopeful looking to take Libyan.

Copyright © 2014, McGraw Hill Financial 14

 Crude oil Marketwire December 15, 2014

foreign companies’ labor practices, West African

China’s CNPC, Kazakhstan’s KMG to North Sea Buzzard
crude trading sources said. But some said that if
work on enhanced oil recovery projects oil field production halted the three-day strike continued for a few days there
China’s state-owned CNPC and Kazakhstan’s NC The Buzzard field in the UK North Sea halted production could be “potential” loading delays. “We are hearing
KazMunaiGaz have agreed to work on a number of Monday due to an unspecified upstream issue, according no approvals were granted by Nigerian National
enhanced oil recovery projects in the Central Asian country to trading sources. One source said the field had been Petroleum Corporations today for new loadings
and to create a diesel and chemicals plant, Kazakh down since the morning. There was no comment from due to the strike,” said a trader very active on
sovereign wealth fund Samruk-Kazyna said Monday. operator Nexen, however. “CNOOC does not publish the Nigerian crude market. “I know some of our
The companies agreed to new technical projects at the production information on an individual-asset basis clearances are delayed, and no clearances could
PetroKazakhstan joint venture in central Kazakhstan during and we will not be making any comment on Buzzard’s mean no loadings so in theory it has potential to
a weekend business forum led by the countries’ prime status,” said the company in a written statement. affect production. Other traders however said that
ministers, Samruk-Kazyna, which owns NC KazMunaiGaz, Buzzard had an irregular return from scheduled summer no loading delays were seen yet. “It is too early to
said. CNPC has a 67% stake in PetroKazakhstan, with maintenance; the field had been ramping up production tell as the strike has just started but we could see
the remainder held by NC KazMunaiGaz’s subsidiary, after being taken offline on August 30, days after having an impact in a few days,” said a second trader. But
KazMunaiGaz EP. The projects will include testing of restarted. Before that, on Monday August 25, the field no impact on loadings yet is what we hear.” Nigerian
polymer flooding at the South Kumkol field, regional temporarily restarted production, before being shut down oil workers began the strike after talks broke down
news site CA-News.org reported. Production from all 15 again on the 26th to allow for the demobilization of a with the government to address the alleged anti-
PetroKazakhstan fields last year was 113,000 b/d. The drilling rig. Three shut-downs within three weeks was labor practices. The white-collar Pengassan union
companies will also work on water flood techniques at “significant, after a four-week maintenance program,” and its junior counterpart Nupen said they would
the Kalamkas field in western Kazakhstan, a 50:50 joint said one market source at the time. The Buzzard field strike if their demands were not addressed during
venture between CNPC and KazMunaiGaz NC, the news has a nameplate capacity of 220,000 b/d. It is typically last week’s meeting with the government. The
site reported. The partners will also look into utilizing the largest contributor to Forties Blend, which is one of unions wanted the government to order ExxonMobil,
associated gas for chemical production, CA-News.org said. the four grades included in the Dated Brent benchmark. Addax, Petrobras and Chevron to recall fired staff,
Samruk-Kazyna gave no details on the proposed diesel some of whom they said were dismissed unjustly on
and chemicals plant. Kazakhstan’s total oil production grounds that they were union officials. The unions
Nigerian crude exports
is expected to be around 1.8 million b/d this year, flat said workers would put down tools at oil export
compared with last year. Stagnation has set in despite the
not impacted by strike: traders terminals, refineries and fuel depots. The unions
potential to develop major reserves, partly as a result of Nigerian crude exports have not been impacted also demanded there be no further delays in passing
delays to the start up of the giant Kashagan offshore field. by a strike started Monday by oil workers over Nigeria’s Petroleum Industry Bill.

Subscriber notes (PGA page 1500)

Platts 2015 European freight-based oil assessments in Europe, including: ULSD 10 ppm FOB NWE Cargo, Platts clarifies that for its freight-derived cargo assessments,
(update) ULSD 10 ppm FOB NWE Le Havre Cargo, ULSD 10 ppm Platts will continue to calculate these freight derived
Platts has reviewed feedback to its subscriber note of CIF NWE Le Havre Cargo, Diesel 10 ppm UK CIF, Diesel 10 assessments by using the $/mt Worldscale flat rates only,
October 21, 2014, where Platts clarified that its European ppm CIF NWE, Gasoil 0.1% FOB NWE Cargo, HSFO 3.5% and will not apply these fixed differentials in 2015. This
freight-based oil assessments in 2015 would not reflect FOB NWE Cargo, CIF MED naphtha, FOB MED naphtha continues existing methodology, where Platts only uses the
Worldscale fixed differentials based on the use of 0.1% and Jet FOB MED. Platts understands that Worldscale has $/mt Worldscale flat rates for these netback calculations
sulfur fuels in the Baltic and North Sea ECA. Following its announced fixed differentials based on the use of 0.1% and does not use Worldscale fixed rate differentials for
review of that feedback Platts wishes to further clarify that sulfur fuels in the Baltic and North Sea ECA zones of $48.35 1% sulfur fuel in the ECA zones. Platts also clarifies that
this extends to all published freight-based oil assessments per mile of the voyage steamed within the zones for 2015. for its LSFO 1% CIF NWE and CIF Med assessments that

Copyright © 2014, McGraw Hill Financial 15

 Crude oil Marketwire December 15, 2014

Subscriber notes (PGA page 1500)

are typically derived as freight netbacks from the LSFO is publishing its decision before the start of December. to 12:30 Moscow time. All Market on Close assessment
FOB NWE assessment, the fixed rate differentials will Platts will not publish assessments from Singapore, Tokyo, process time cut-off guidelines for physical and derivative
also not be applied. Platts Urals ex-Baltic Sea (FOB) and or China on this day. As a result, Asia-Pacific/Arab Gulf oil and oil product markets will be moved forward by four
Urals ex-Primorsk (FOB) will also only take in to account Marketscan will not be published on that day, there hours. Please send any comments or questions to europe_
the $/mt Worldscale rates in 2015, as it has previously will be no Asia region crude assessments in Crude Oil products@platts.com with a CC to pricegroup@platts.com.
done. Please send any further comments or questions by Marketwire, no Asia-Pacific/Arab Gulf bunker assessments
December 19, 2014 to europe_products@platts.com and in Bunkerwire, no Asian or AG assessments in LPGaswire Platts details Month-Ahead
pricegroup@platts.com. For written comments, please and no tanker assessments originating in ports East of Brent implementation plan
provide a clear indication if comments are not intended for Suez Canal in Clean and Dirty Tankerwires. Platts will Following continued feedback and extensive engagement
publication by Platts for public viewing. Platts will consider maintain its current publication schedule for Wednesday, since 2011, Platts is now providing more details regarding
all comments received and will make comments not December 24, 2014; Wednesday, December 31, 2014 and its plans to move to full month-ahead assessment processes
marked as confidential available upon request. Friday, January 2, 2015, on which days its assessment for its North Sea Dated Brent (BFOE), cash BFOE and
processes will close early. All assessments and Market on related markets. Platts intends to move its Brent assessment
No Platts Americas oil assessments on Dec 26 Close processes will be basis 12:30 pm Singapore time (0430 processes to reflect a month-ahead schedule with effect from
Platts confirms it will amend its publication schedule GMT) on those days. Please submit any comments in favor February 2, 2015 for cargoes loading the following month.
for Friday, December 26, 2014 and not publish any oil of or against a change in the oil publication schedule for This move will allow Platts’ North Sea crude oil assessment
assessments from its offices in the US on that day in December 26 to oilgroup@platts.com and pricegroup@ methodology to continue reflecting trends towards trading
observance of the Christmas holiday. Platts had proposed platts.com. For full details of Platts publishing schedule and cargoes further forward in time in the North Sea market.
waiting for feedback until December 3 prior to publishing services affected, refer to http://www.platts.com/holiday Please send any comments and questions and feedback by
a decision on this proposal. However, in response to November 7, 2014 on all aspects of this methodology to
widespread feedback favoring a decision before the start Platts to change name for Syncrude assessment europe_crude@platts.com and pricegroup@platts.com. For
of the new trading month, Platts is publishing its decision Platts will change the name of its Canadian Syncrude written comments, please provide a clear indication whether
before the start of December. Platts will maintain its current Sweet crude assessment to Syncrude Sweet Premium, the feedback is intended for publication by Platts for
publication schedule for Wednesday, December 24, 2014; effective January 15, 2015. The change, which was public viewing. Platts will consider all comments received
Wednesday, December 31, 2014 and Friday, January 2, proposed on October 29, reflects changes on Enbridge’s and will make comments not marked as confidential
2015 on which days its assessment processes will close grouping system for crudes shipped through its pipeline available upon request. Details of the Month-ahead Brent
early. All assessments and Market-on-Close processes will network. The methodology used to assess the value of implementation follow: TIME SPAN REFLECTED IN THE
be basis 1:30 pm Eastern time on those days. Please submit this crude, including its specifications, will not change as ASSESSMENT: With effect starting Feb 2, 2014 Platts’ Dated
any comments to oilgroup@platts.com and PriceGroup@ a result of this name change. This assessment appears on Brent assessments will reflect cargoes scheduled for loading
platts.com. For full details of Platts publishing schedule and Platts Global Alert Page 230, in the Crude Oil Marketwire, between 10 days to a full month ahead forward from the
services affected, refer to http://www.platts.com/holiday the North American Crude and Products Scan and in the date of publication. This means the furthest forward loading
Platts price database under the code AASOK00. date reflected in the Dated Brent assessment will fall on the
No Platts Asia/Middle East oil assessments on Dec 26 corresponding date of the following month. For example,
Following extensive feedback, Platts confirms that it will Early European MOC close Dec 24 and 31, Jan 2 on February 2, Platts’ Dated Brent assessment will reflect
amend its publication schedule for Friday, December 26, Due to upcoming public holidays in the UK, the Platts cargoes loading between February 12 (10 days ahead) and
2014 and not publish any oil or tanker assessments from its Market on Close assessment process will reflect an earlier March 2 (month ahead). On that day, the first BFOE cargo
offices in Asia on this day in observance of the Christmas close of 12:30 London time, not the usual 16:30, on that can be bid, offered or traded in the Platts Market on
holiday. Platts had proposed waiting for feedback until December 24 and December 31, 2014, and January 2, 2015. Close assessment process will be any February 12-14 cargo;
December 3 prior to publishing a decision on this proposal. All European and African oil and oil product assessments the last BFOE cargo that can be bid, offered or traded in
However, in response to widespread feedback favoring a that day will be time-stamped to 12:30 London time. the Platts MOC will be any March 2-4 cargo. Similarly,
decision before the start of the new trading month, Platts Platts Russian domestic assessments will be time-stamped on February 3, Platts’ Dated Brent assessment will reflect

Copyright © 2014, McGraw Hill Financial 16

 Crude oil Marketwire December 15, 2014

Subscriber notes (PGA page 1500)

cargoes loading between February 13 and March 3. On that that the month rolls to become month-ahead. For example, would implement this change with effect from 2015, and
day, the first BFOE cargo that can be bid, offered or traded Platts will publish a March cash BFOE assessment during announced that the final assessments using a 25-day basis
in the Platts Market on Close assessment process will be the month of February; this will be derived by applying would be concluded on January 30, 2015. At the same time,
any February 13-15 cargo; the last BFOE cargo that can be the March/April cash BFOE spread that was assessed on the Platts confirmed that its Brent assessments would thereafter
bid, offered or traded in the Platts MOC will be any March final assessment day of January to the observable value of reflect a month-ahead schedule. Platts also announced in
3-5 cargo. MONTH-AHEAD NOMINATION: Month-ahead April BFOE assessed each day in February. An April cash February 2013 that it was studying a possible move to reflect
nominations against cargoes loading in any given month BFOE value would be published in the same way through Brent assessed using a 45-days basis with effect from 2020.
should occur on the corresponding date of the preceding the month of March: by applying the final April/May cash Platts continues to request feedback on this concept, which
month. So for example a cargo loading March 2-4 would be spread assessed in the last working day in February to the remains under study.
nominated on February 2. TIME SPAN ADJUSTMENTS: The prevailing May cash BFOE assessment throughout March.
date range reflected in Platts’ Dated Brent assessments will Platts continues to study the suspension of a month-ahead Platts to align Flotta Gold
continue to adjust when needed for weekends and public BFOE published value, and proposes to do so with effect appellation to terminal operator
holidays, as they do now. They will also adjust at the end from January 1, 2016. FULL ASSESSMENT CALENDAR: Platts plans to change the name of its North Sea Flotta
of an assessment month when necessary to reflect shorter Platts is publishing on its website a full calendar for 2015, crude oil assessment to “Flotta Gold” in line with the
and longer months ahead. For example, on February 27, illustrating in detail what cargo loading dates will be change in name by the terminal operator, Talisman Sinopec
the last working day of the month, the assessment range reflected on each day of assessment. The calendar also Energy UK Ltd (TSEUK). The Flotta Gold appellation is
will be March 9 to March 30 (reflecting a longer month contains the date of anticipated release of the cargo loading currently scheduled for the January-loading program, to
ahead). On January 29, 2016, the assessment range would programs for them to be in line with the new month-ahead be announced in December, a spokesman for the terminal
be February 8 to February 28 (reflecting a shorter month Brent assessment process. A web link for this calendar will operator told Platts. Production from the North Sea Golden
ahead). All cargoes must be chained by the last working day be announced shortly. IMPLEMENTATION DATE: This Eagle area which began in early November 2014 will be
of the month. This is of importance on those months that update will be effective for Brent, Forties, Oseberg and processed through the Flotta Terminal and blended with
have fewer days than the following month. For instance, on Ekofisk cargoes loading March 2015 onwards and will the existing Flotta system crudes to produce a new grade
February 27, 2015, the Platts Dated Brent assessment would become effective February 2, 2015. ALTERNATIVE CRUDE that will be marketed as Flotta Gold. At startup, the Flotta
reflect dated cargoes loading on March 27-29, March 28-30, DELIVERIES: Platts continues to review the potential to Gold blend will be about 70% Flotta and 30% Golden Eagle,
March 29-31 and March 30-April 1. NORTH SEA LOADING reflect more crudes as deliverable into its Brent assessment but by mid-2015 when the project is expected to reach
PROGRAMS: North Sea loading programs reflected in the processes. Currently, Platts reflects deliveries of Brent, full production, these percentages are expected to reverse.
Platts Market on Close assessment process for Dated BFOE Forties, Ekofisk and Oseberg in these assessments. FURTHER Platts will reflect the actual quality of the new blend in
and related instruments should be released latest on the INFORMATION: Platts will host a Technical Workshop its assessments, moving from the current API gravity of
first working day of the preceding month, in-line with at its Canary Wharf office on October 20 to discuss all about 36.9 degrees and sulfur content of around 0.83%, to
a month-ahead process. Platts has engaged closely with matters related to the month-ahead change in the BFOE an expected API of 36 degrees and 0.64% sulfur as Golden
loading program issuers since 2011, and continues to do mechanism. Platts is also planning to host a webinar to Eagle fully co-mingles with the existing Flotta. Due to the
so. Platts understands that BFOE loading schedules will review these changes. Full details and invitations will be co-mingling of new Golden Eagle crude oil production in
be made available in line with the market’s continued sent out in due course. Platts will also publish a more increasing quantities with existing Flotta production over
evolution towards further forward trading. CASH BFOE: detailed FAQ document on its website. Platts will separately the coming month production is expected to increase
When this change is implemented, Platts will only consider announce when this FAQ is released, and provide the from around 20,000 b/d to 100,000 b/d. Please send any
in its assessment of cash Brent (BFOE) those crudes where web link. BACKGROUND: Platts confirmed in September comments or questions, to europe_products@platts.com
the cargoes are nominated a full month ahead of loading, 2011 that it was moving its Brent assessments to reflect a and pricegroup@platts.com. For written comments, please
instead of the current 25 days. FRONT-MONTH CASH 10-25 days dated loading schedule. At the same time, Platts provide a clear indication if comments are not intended for
BFOE: Platts will continue to publish a front-month cash announced its proposal to move all Brent assessments to publication by Platts for public viewing. Platts will consider
BFOE assessment, but this assessment will be derived by reflect a month ahead loading schedule with effect from all comments received and will make comments not marked
applying the time spread that prevails between that cash 2015 or 2016. After more than a year of consultation on as confidential available upon request. To see this note and
BFOE month and the next cash BFOE month at the time that proposal, Platts confirmed in February 2013 that it others, please go to http://www.platts.com/subscriber-notes/.

Copyright © 2014, McGraw Hill Financial 17

 Crude oil Marketwire December 15, 2014

US and Caribbean Yields and Netbacks Effective December 15, 2014 ($/barrel)
Caribbean Winter Specifications (PGA page 802) Caribbean Winter Specifications (PGA page 804)

Crack Yield Freight Crack Netback Spot Price Crack Margin Coke Yield Freight Coke Netback Spot Price Coke Margin
Arab Berri TYAAH00 64.05 TDDAH00 1.96 TNAAH00 62.09 AAXCT00 57.340 TNAAHMR 4.750 Arab Berri TYAAF00 64.73 TDDAH00 1.96 TNAAF00 62.77 AAXCT00 57.340 TNAAFMR 5.430
Arab Heavy TYABB00 57.45 TDDAP00 2.09 TNABB00 55.36 AAXDI00 51.740 TNABBMR 3.620 Arab Heavy TYAAZ00 61.89 TDDAP00 2.09 TNAAZ00 59.80 AAXDI00 51.740 TNAAZMR 8.060
Arab Light TYABZ00 61.57 TDDAX00 2.00 TNABZ00 59.57 AAXCU00 55.540 TNABZMR 4.030 Arab Light TYABX00 63.12 TDDAX00 2.00 TNABX00 61.12 AAXCU00 55.540 TNABXMR 5.580
Arab Medium TYADF00 59.09 TDDBF00 2.04 TNADF00 57.05 AAXDN00 53.290 TNADFMR 3.760 Arab Medium TYADD00 62.02 TDDBF00 2.04 TNADD00 59.98 AAXDN00 53.290 TNADDMR 6.690
Basrah Light TYAFV00 63.74 TDDBV00 1.42 TNAFV00 62.32 AAXDO00 51.720 TNAFVMR 10.600 Basrah Light TYAFT00 62.99 TDDBV00 1.42 TNAFT00 61.57 AAXDO00 51.720 TNAFTMR 9.850
BCF 22 TYAET00 57.93 TDDBN00 0.49 TNAET00 57.44 BCF 22 TYAER00 63.71 TDDBN00 0.49 TNAER00 63.22
BCF 24 TYAFF00 59.27 TDDBQ00 0.49 TNAFF00 58.78 BCF 24 TYAFD00 64.35 TDDBQ00 0.49 TNAFD00 63.86
Bonny Light TYAGN00 70.40 TDDEV00 2.03 TNAGN00 68.37 PCAIC00 61.600 TNAGNMR 6.770
Brass River TYAGZ00 67.10 TDDEW00 2.13 TNAGZ00 64.97 AAEJB00 60.650 TNAGZMR 4.320
Brent TYAHL00 66.04 TDDCE00 1.10 TNAHL00 64.94 PCAAS00 61.000 TNAHLMR 3.940 Brent TYAHJ00 66.33 TDDCE00 1.10 TNAHJ00 65.23 PCAAS00 61.000 TNAHJMR 4.230
Cabinda TYAHX00 67.18 TDDCI00 2.14 TNAHX00 65.04 PCAFD00 58.280 TNAHXMR 6.760 Cabinda TYAHV00 68.57 TDDCI00 2.14 TNAHV00 66.43 PCAFD00 58.280 TNAHVMR 8.150
Escalante TYAKE00 61.27 TDDEY00 4.05 TNAKE00 57.22 PCAGC00 54.445 TNAKEMR 2.775 Escalante TYAKC00 68.13 TDDEY00 4.05 TNAKC00 64.08 PCAGC00 54.445 TNAKCMR 9.635
Forcados TYAKT00 67.61 TDDFA00 2.03 TNAKT00 65.58 PCABC00 62.700 TNAKTMR 2.880
Isthmus TYAMN00 65.44 TDDDK00 1.08 TNAMN00 64.36 PDATO09 56.640 TNAMNMR 7.720 Isthmus TYAML00 64.24 TDDDK00 1.08 TNAML00 63.16 PDATO09 56.640 TNAMLMR 6.520
Kuwait TYAND00 61.63 TDDDO00 2.03 TNAND00 59.60 AAXDQ00 57.655 TNANDMR 1.945 Kuwait TYANB00 63.39 TDDDO00 2.03 TNANB00 61.36 AAXDQ00 57.655 TNANBMR 3.705
Maya TYAOF00 52.76 TDDDR00 1.13 TNAOF00 51.63 PDATS09 49.300 TNAOFMR 2.330 Maya TYAOD00 60.86 TDDDR00 1.13 TNAOD00 59.73 PDATS09 49.300 TNAODMR 10.430
Merey TYAOV00 53.54 TDDDU00 0.52 TNAOV00 53.02 Merey TYAOT00 62.72 TDDDU00 0.52 TNAOT00 62.20
Mesa TYAPD00 64.01 TDDFB00 0.47 TNAPD00 63.54 AAITB00 60.545 TNAPDMR 2.995 Mesa TYAPB00 63.77 TDDFB00 0.47 TNAPB00 63.30 AAITB00 60.545 TNAPBMR 2.755
Olmeca TYAQB00 66.64 TDDEA00 1.07 TNAQB00 65.57 PDATT09 58.770 TNAQBMR 6.800 Olmeca TYAPZ00 64.72 TDDEA00 1.07 TNAPZ00 63.65 PDATT09 58.770 TNAPZMR 4.880
Statfjord TYASJ00 67.37 TDDEM00 1.58 TNASJ00 65.79 AASAS00 62.255 TNASJMR 3.535 Statfjord TYASH00 67.43 TDDEM00 1.58 TNASH00 65.85 AASAS00 62.255 TNASHMR 3.595
Troll TYATD00 68.68 TDDER00 1.65 TNATD00 67.03 AAWEX00 63.455 TNATDMR 3.575 Troll TYATB00 71.93 TDDER00 1.65 TNATB00 70.28 AAWEX00 63.455 TNATBMR 6.825

US Atlantic Coast Winter Specifications (PGA page 810) US Atlantic Coast Winter Specifications (PGA page 812)

Crack Yield Freight Crack Netback Spot Price Crack Margin Coke Yield Freight Coke Netback Spot Price Coke Margin
Arab Heavy TYABN00 61.25 TDDAM00 2.32 TNABN00 58.93 AAXDI00 51.740 TNABNMR 7.190 Arab Heavy TYABL00 66.08 TDDAM00 2.32 TNABL00 63.76 AAXDI00 51.740 TNABLMR 12.020
Arab Light TYACL00 64.44 TDDAU00 2.21 TNACL00 62.23 AAXCU00 55.540 TNACLMR 6.690 Arab Light TYACJ00 67.27 TDDAU00 2.21 TNACJ00 65.06 AAXCU00 55.540 TNACJMR 9.520
Arab Medium TYADR00 62.06 TDDBC00 2.26 TNADR00 59.80 AAXDN00 53.290 TNADRMR 6.510 Arab Medium TYADP00 66.06 TDDBC00 2.26 TNADP00 63.80 AAXDN00 53.290 TNADPMR 10.510
Bakken TYASE00 69.96 TDDRN00 14.00 TNASE00 55.96 AASRU00 50.740 TNASEMR 5.220
Bonny Light TYAGP00 73.68 TDDBZ00 2.35 TNAGP00 71.33 PCAIC00 61.600 TNAGPMR 9.730
Brass River TYAHB00 71.25 TDDEW00 2.13 TNAHB00 69.12 AAEJB00 60.650 TNAHBMR 8.470
Brent TYAHP00 68.22 TDDCC00 1.18 TNAHP00 67.04 PCAAS00 61.000 TNAHPMR 6.040 Brent TYAHN00 72.39 TDDCC00 1.18 TNAHN00 71.21 PCAAS00 61.000 TNAHNMR 10.210
Cabinda TYAIB00 68.55 TDDCH00 2.46 TNAIB00 66.09 PCAFD00 58.280 TNAIBMR 7.810 Cabinda TYAHZ00 72.64 TDDCH00 2.46 TNAHZ00 70.18 PCAFD00 58.280 TNAHZMR 11.900
Ekofisk TYAKB00 69.22 TDDCS00 1.19 TNAKB00 68.03 PCADI00 61.500 TNAKBMR 6.530 Ekofisk TYAJZ00 72.41 TDDCS00 1.19 TNAJZ00 71.22 PCADI00 61.500 TNAJZMR 9.720
Forcados TYAKV00 71.41 TDDDA00 2.24 TNAKV00 69.17 PCABC00 62.700 TNAKVMR 6.470
Gullfaks TYALP00 70.77 TDDDB00 1.20 TNALP00 69.57 AASAU00 63.175 TNALPMR 6.395 Gullfaks TYALN00 73.92 TDDDB00 1.20 TNALN00 72.72 AASAU00 63.175 TNALNMR 9.545
Hibernia TYALT00 66.87 TDDDE00 1.24 TNALT00 65.63 AAJKK00 60.920 TNALTMR 4.710 Hibernia TYALR00 71.93 TDDDE00 1.24 TNALR00 70.69 AAJKK00 60.920 TNALRMR 9.770
Oriente TYAQR00 61.57 TDDED00 2.09 TNAQR00 59.48 PCADE00 50.275 TNAQRMR 9.205 Oriente TYAQP00 68.27 TDDED00 2.09 TNAQP00 66.18 PCADE00 50.275 TNAQPMR 15.905
Statfjord TYASN00 69.84 TDDEL00 1.40 TNASN00 68.44 AASAS00 62.255 TNASNMR 6.185 Statfjord TYASL00 72.78 TDDEL00 1.40 TNASL00 71.38 AASAS00 62.255 TNASLMR 9.125
Troll TYATH00 69.61 TDDEQ00 1.23 TNATH00 68.38 AAWEX00 63.455 TNATHMR 4.925 Troll TYATF00 76.72 TDDEQ00 1.23 TNATF00 75.49 AAWEX00 63.455 TNATFMR 12.035

Copyright © 2014, McGraw Hill Financial 18

 Crude oil Marketwire December 15, 2014

US Yields and Netbacks ($/barrel)

US Midwest Winter Specifications (PGA page 820) US Midwest Winter Specifications (PGA page 822)

Crack Yield Freight Crack Netback Spot Price Crack Margin Coke Yield Freight Coke Netback Spot Price Coke Margin
Arab Berri TYAAP00 63.07 TDDAD00 3.18 TNAAP00 59.89 AAXCT00 57.340 TNAAPMR 2.550 Arab Berri TYAAN00 65.00 TDDAD00 3.18 TNAAN00 61.82 AAXCT00 57.340 TNAANMR 4.480
Arab Light TYACT00 59.23 TDDAS00 3.23 TNACT00 56.00 AAXCU00 55.540 TNACTMR 0.460 Arab Light TYACR00 63.40 TDDAS00 3.23 TNACR00 60.17 AAXCU00 55.540 TNACRMR 4.630
Bakken TYASA00 63.48 TDDRO00 1.60 TNASA00 61.88 AASRU00 50.740 TNASAMR 11.140
Bow River TYAGV00 62.93 TDDRL00 4.03 TNAGV00 58.90
LLS TYANT00 66.23 TDDQV00 0.96 TNANT00 65.27 PCABN00 57.940 TNANTMR 7.330 LLS TYANR00 67.77 TDDQV00 0.96 TNANR00 66.81 PCABN00 57.940 TNANRMR 8.870
Mixed Lt Sour TYAPX00 59.33 TDDQZ00 3.86 TNAPX00 55.47 AALRX00 47.890 TNAPXMR 7.580 Mixed Lt Sour TYAPV00 62.43 TDDQZ00 3.86 TNAPV00 58.57 AALRX00 47.890 TNAPVMR 10.680
Mixed Lt Sweet TYAQZ00 64.37 TDDRA00 3.58 TNAQZ00 60.79 AALRR00 49.190 TNAQZMR 11.600 Mixed Lt Sweet TYAQX00 65.70 TDDRA00 3.58 TNAQX00 62.12 AALRR00 49.190 TNAQXMR 12.930
Syncrude TYAUR00 64.23 TDDFP00 3.58 TNAUR00 60.65 AASOK00 53.340 TNAURMR 7.310
WCS TYAVG00 58.89 TDDRL00 4.03 TNAVG00 54.86 AAPPN00 39.340 TNAVGMR 15.520
WTI TYAUB00 62.38 TDDRG00 1.44 TNAUB00 60.94 PCACG00 55.540 TNAUBMR 5.400 WTI TYATZ00 64.27 TDDRG00 1.44 TNATZ00 62.83 PCACG00 55.540 TNATZMR 7.290
WTS TYAUJ00 60.95 TDDRI00 2.16 TNAUJ00 58.79 PCACK00 54.540 TNAUJMR 4.250 WTS TYAUH00 64.46 TDDRI00 2.16 TNAUH00 62.30 PCACK00 54.540 TNAUHMR 7.760

US Gulf Coast Winter specifications (PGA page 830) US Gulf Coast Winter specifications (PGA page 832)

Crack Yield Freight Crack Netback Spot Price Crack Margin Coke Yield Freight Coke Netback Spot Price Coke Margin
Arab Berri TYAAL00 61.94 TDDAC00 1.78 TNAAL00 60.16 AAXCT00 57.340 TNAALMR 2.820 Arab Berri TYAAJ00 61.08 TDDAC00 1.78 TNAAJ00 59.30 AAXCT00 57.340 TNAAJMR 1.960
Arab Heavy TYABR00 55.64 TDDAJ00 1.91 TNABR00 53.73 AAXDI00 51.740 TNABRMR 1.990 Arab Heavy TYABP00 58.54 TDDAJ00 1.91 TNABP00 56.63 AAXDI00 51.740 TNABPMR 4.890
Arab Light TYACP00 58.85 TDDAR00 1.82 TNACP00 57.03 AAXCU00 55.540 TNACPMR 1.490 Arab Light TYACN00 59.56 TDDAR00 1.82 TNACN00 57.74 AAXCU00 55.540 TNACNMR 2.200
Arab Medium TYADV00 56.52 TDDAZ00 1.86 TNADV00 54.66 AAXDN00 53.290 TNADVMR 1.370 Arab Medium TYADT00 58.58 TDDAZ00 1.86 TNADT00 56.72 AAXDN00 53.290 TNADTMR 3.430
Bakken TYASG00 61.96 TDDRP00 13.00 TNASG00 48.96 AASRU00 50.740 TNASGMR -1.780
Basrah Light TYAGD00 58.83 TDDBS00 2.51 TNAGD00 56.32 AAXDO00 51.720 TNAGDMR 4.600 Basrah Light TYAGB00 59.52 TDDBS00 2.51 TNAGB00 57.01 AAXDO00 51.720 TNAGBMR 5.290
BCF 22 TYAFB00 55.97 TDDBL00 1.68 TNAFB00 54.29 BCF 22 TYAEZ00 59.27 TDDBL00 1.68 TNAEZ00 57.59
BCF 24 TYAFJ00 56.86 TDDBO00 1.67 TNAFJ00 55.19 BCF 24 TYAFH00 59.88 TDDBO00 1.67 TNAFH00 58.21
Bonny Light TYAGR00 65.07 TDDBX00 2.74 TNAGR00 62.33 PCAIC00 61.600 TNAGRMR 0.730
Brass River TYAHD00 61.92 TDDCA00 2.50 TNAHD00 59.42 AAEJB00 60.650 TNAHDMR -1.230
Brent TYAHT00 62.32 TDDCB00 1.64 TNAHT00 60.68 PCAAS00 61.000 TNAHTMR -0.320 Brent TYAHR00 61.75 TDDCB00 1.64 TNAHR00 60.11 PCAAS00 61.000 TNAHRMR -0.890
Cabinda TYAIF00 60.58 TDDCF00 2.90 TNAIF00 57.68 PCAFD00 58.280 TNAIFMR -0.600 Cabinda TYAID00 62.11 TDDCF00 2.90 TNAID00 59.21 PCAFD00 58.280 TNAIDMR 0.930
Eagle Ford TYASC00 58.89 TDDRQ00 1.31 TNASC00 57.58 AAYAJ00 56.690 TNASCMR 0.890
Escalante TYAKJ00 57.19 TDDCV00 5.19 TNAKJ00 52.00 PCAGC00 54.445 TNAKJMR -2.445 Escalante TYAKH00 61.15 TDDCV00 5.19 TNAKH00 55.96 PCAGC00 54.445 TNAKHMR 1.515
Forcados TYAKX00 64.67 TDDCY00 2.65 TNAKX00 62.02 PCABC00 62.700 TNAKXMR -0.680
Isthmus TYAMR00 60.90 TDDDJ00 0.83 TNAMR00 60.07 PDATO09 56.640 TNAMRMR 3.430 Isthmus TYAMP00 60.57 TDDDJ00 0.83 TNAMP00 59.74 PDATO09 56.640 TNAMPMR 3.100
Kuwait TYANL00 56.90 TDDDL00 1.85 TNANL00 55.05 AAXDQ00 57.655 TNANLMR -2.605 Kuwait TYANJ00 58.48 TDDDL00 1.85 TNANJ00 56.63 AAXDQ00 57.655 TNANJMR -1.025
LLS TYANP00 64.45 TDDQW00 0.99 TNANP00 63.46 PCABN00 57.940 TNANPMR 5.520 LLS TYANN00 63.98 TDDQW00 0.99 TNANN00 62.99 PCABN00 57.940 TNANNMR 5.050
Marlim TYAUG00 57.29 TDDGK00 1.71 TNAUG00 55.58 AAITF00 54.795 TNAUGMR 0.785 Marlim TYAUE00 60.06 TDDGK00 1.71 TNAUE00 58.35 AAITF00 54.795 TNAUEMR 3.555
Mars TYAOB00 57.85 TDDQY00 1.01 TNAOB00 56.84 AAMBR00 53.940 TNAOBMR 2.900 Mars TYANZ00 59.28 TDDQY00 1.01 TNANZ00 58.27 AAMBR00 53.940 TNANZMR 4.330
Maya TYAOJ00 50.44 TDDDP00 0.86 TNAOJ00 49.58 PDATS09 49.300 TNAOJMR 0.280 Maya TYAOH00 56.95 TDDDP00 0.86 TNAOH00 56.09 PDATS09 49.300 TNAOHMR 6.790
Merey TYAOZ00 51.78 TDDDT00 1.76 TNAOZ00 50.02 Merey TYAOX00 57.69 TDDDT00 1.76 TNAOX00 55.93
Mesa TYAPL00 59.72 TDDDV00 1.60 TNAPL00 58.12 AAITB00 60.545 TNAPLMR -2.425 Mesa TYAPJ00 60.80 TDDDV00 1.60 TNAPJ00 59.20 AAITB00 60.545 TNAPJMR -1.345
Olmeca TYAQF00 62.06 TDDDY00 0.83 TNAQF00 61.23 PDATT09 58.770 TNAQFMR 2.460 Olmeca TYAQD00 61.22 TDDDY00 0.83 TNAQD00 60.39 PDATT09 60.545 TNAQDMR 1.620
Saharan Blend TYAVB00 59.32 TDDRD00 2.23 TNAVB00 57.09 AAGZY00 60.565 TNAVBMR -3.475
Statfjord TYASR00 62.66 TDDEN00 1.65 TNASR00 61.01 AASAS00 62.255 TNASRMR -1.245 Statfjord TYASP00 62.18 TDDEN00 1.65 TNASP00 60.53 AASAS00 62.255 TNASPMR -1.725
Troll TYATL00 63.34 TDDEP00 1.73 TNATL00 61.61 AAWEX00 63.455 TNATLMR -1.845 Troll TYATJ00 65.22 TDDEP00 1.73 TNATJ00 63.49 AAWEX00 63.455 TNATJMR 0.035
Urals TYAUK00 59.51 TDDFM00 1.99 TNAUK00 57.52 AAWVH00 57.420 TNAUKMR 0.100 Urals TYAUI00 60.76 TDDFM00 1.99 TNAUI00 58.77 AAWVH00 57.420 TNAUIMR 1.350
WCS TYASI00 56.02 TDDRS00 10.80 TNASI00 45.22 AAPPN00 39.340 TNASIMR 5.880
WTI TYATX00 61.59 TDDRH00 4.00 TNATX00 57.59 PCACG00 55.540 TNATXMR 2.050 WTI TYATV00 61.16 TDDRH00 4.00 TNATV00 57.16 PCACG00 55.540 TNATVMR 1.620
WTS TYAUF00 60.92 TDDRJ00 4.72 TNAUF00 56.20 PCACK00 54.540 TNAUFMR 1.660 WTS TYAUD00 61.02 TDDRJ00 4.72 TNAUD00 56.30 PCACK00 54.540 TNAUDMR 1.760

Copyright © 2014, McGraw Hill Financial 19

 Crude oil Marketwire December 15, 2014

US Yields and Netbacks ($/barrel)

US West Coast Winter specifications (PGA page 840) US West Coast Winter specifications (PGA page 842)

Crack Yield Freight Crack Netback Spot Price Crack Margin Coke Yield Freight Coke Netback Spot Price Coke Margin
ANS TYAAD00 56.93 TDDGL00 0.00 TNAAD00 56.93 PCAAD00 57.510 TNAADMR -0.580 ANS TYAAB00 60.93 TDDGL00 0.00 TNAAB00 60.93 PCAAD00 57.510 TNAABMR 3.420
Arab Berri TYAAT00 60.15 TDDAE00 3.28 TNAAT00 56.87 AAXCT00 57.340 TNAATMR -0.470 Arab Berri TYAAR00 61.42 TDDAE00 3.28 TNAAR00 58.14 AAXCT00 57.340 TNAARMR 0.800
Arab Light TYACX00 56.66 TDDAT00 3.35 TNACX00 53.31 AAXCU00 55.540 TNACXMR -2.230 Arab Light TYACV00 59.79 TDDAT00 3.35 TNACV00 56.44 AAXCU00 55.540 TNACVMR 0.900
Arab Medium TYADY00 53.88 TDDBB00 3.42 TNADY00 50.46 AAXDN00 53.290 TNADYMR -2.830 Arab Medium TYADW00 58.83 TDDBB00 3.42 TNADW00 55.41 AAXDN00 53.290 TNADWMR 2.120
Bakken TYASK00 60.79 TDDRT00 13.00 TNASK00 47.79 AASRU00 50.740 TNASKMR -2.950
Basrah Light TYAGL00 56.17 TDDBW00 3.32 TNAGL00 52.85 AAXDO00 51.720 TNAGLMR 1.130 Basrah Light TYAGJ00 59.38 TDDBW00 3.32 TNAGJ00 56.06 AAXDO00 51.720 TNAGJMR 4.340
Escalante TYAKN00 53.28 TDDCW00 7.79 TNAKN00 45.49 PCAGC00 54.445 TNAKNMR -8.955 Escalante TYAKL00 60.57 TDDCW00 7.79 TNAKL00 52.78 PCAGC00 54.445 TNAKLMR -1.665
Kern River TYAMV00 54.35 TDDGM00 1.38 TNAMV00 52.97 PCABJ00 50.450 TNAMVMR 2.520 Kern River TYAMT00 61.66 TDDGM00 1.38 TNAMT00 60.28 PCABJ00 50.450 TNAMTMR 9.830
Line 63 TYANX00 56.73 TDDGN00 0.14 TNANX00 56.59 PCABM00 55.160 TNANXMR 1.430 Line 63 TYANV00 61.53 TDDGN00 0.14 TNANV00 61.39 PCABM00 55.160 TNANVMR 6.230
Marlim TYAVC00 55.63 TDDQX00 9.35 TNAVC00 46.28 AAITF00 54.795 TNAVCMR -8.515 Marlim TYAVD00 60.62 TDDQX00 9.35 TNAVD00 51.27 AAITF00 54.795 TNAVDMR -3.525
Minas TYATC00 60.04 TDDGO00 5.14 TNATC00 54.90 PCABO00 59.000 TNATCMR -4.100 Minas TYATA00 63.56 TDDGO00 5.14 TNATA00 58.42 PCABO00 59.000 TNATAMR -0.580
Mixed Lt Sweet TYARD00 89.34 TDDGP00 2.64 TNARD00 86.70 AALRR00 49.190 TNARDMR 37.510 Mixed Lt Sweet TYARB00 84.25 TDDGP00 2.64 TNARB00 81.61 AALRR00 49.190 TNARBMR 32.420
Oriente TYAQV00 57.48 TDDEC00 3.41 TNAQV00 54.07 PCADE00 50.275 TNAQVMR 3.795 Oriente TYAQT00 60.73 TDDEC00 3.41 TNAQT00 57.32 PCADE00 50.275 TNAQTMR 7.045
Thums TYASZ00 55.37 TDDGQ00 0.00 TNASZ00 55.37 PCACD00 52.150 TNASZMR 3.220 Thums TYASX00 60.07 TDDGQ00 0.00 TNASX00 60.07 PCACD00 52.150 TNASXMR 7.920

European Yields and Netbacks Effective December 15, 2014 ($/barrel)

Northwest Europe Winter Specifications (PGA page 1810) Northwest Europe Winter Specifications (PGA page 1812)

Crack Yield Freight Crack Netback Spot Price Crack Margin Visbreak Yield Freight Visbreak Netback Spot Price Visbreak Margin
Arab Heavy** TYAAV00 58.70 TDDAN00 1.44 TNAAV00 57.26 AAXDH00 54.530 TNAAVMR 3.750 Arab Heavy** TYAAX00 56.75 TDDAN00 1.44 TNAAX00 55.31 AAXDH00 54.530 TNAAXMR 1.690
Arab Light** TYABT00 62.45 TDDAV00 1.37 TNABT00 61.08 AAXDK00 59.130 TNABTMR 2.950 Arab Light** TYABV00 60.60 TDDAV00 1.37 TNABV00 59.23 AAXDK00 59.130 TNABVMR 0.970
Arab Medium** TYACZ00 60.19 TDDBD00 1.40 TNACZ00 58.79 AAXDM00 57.480 TNACZMR 2.300 Arab Medium** TYADB00 58.03 TDDBD00 1.40 TNADB00 56.63 AAXDM00 57.480 TNADBMR 0.030
Azeri Light TYAEB00 66.19 TDDBI00 2.27 TNAEB00 63.92 AAGZX00 62.390 TNAEBMR 1.530 Azeri Light TYAED00 63.25 TDDBI00 2.27 TNAED00 60.98 AAGZX00 62.390 TNAEDMR -1.410
Basrah Light TYAFP00 61.94 TDDBU00 2.17 TNAFP00 59.77 AAXDO00 51.720 TNAFPMR 8.050 Basrah Light TYAFR00 60.06 TDDBU00 2.17 TNAFR00 57.89 AAXDO00 51.720 TNAFRMR 6.170
Brass River TYATS00 66.58 TDDRE00 2.09 TNATS00 64.49 AAEJB00 60.650 TNATSMR 3.840
Brent TYAHF00 64.72 TDDCD00 1.11 TNAHF00 63.61 PCAAS00 61.000 TNAHFMR 2.610 Brent TYAHH00 62.11 TDDCD00 1.11 TNAHH00 61.00 PCAAS00 61.000 TNAHHMR 0.000
Cabinda TYAVK00 62.09 TDDQR00 2.46 TNAVK00 59.63 PCAFD00 58.280 TNAVKMR 1.350
Ekofisk TYAJV00 64.37 TDDCT00 0.77 TNAJV00 63.60 PCADI00 61.500 TNAJVMR 2.100 Ekofisk TYAJX00 61.74 TDDCT00 0.77 TNAJX00 60.97 PCADI00 61.500 TNAJXMR -0.530
Flotta TYAKP00 62.86 TDDCX00 0.95 TNAKP00 61.91 PCACZ00 60.325 TNAKPMR 1.585 Flotta TYAKR00 60.60 TDDCX00 0.95 TNAKR00 59.65 PCACZ00 60.325 TNAKRMR -0.675
Forties TYALB00 62.87 TDDEZ00 1.13 TNALB00 61.74 PCADJ00 61.000 TNALBMR 0.740 Forties TYALD00 60.85 TDDEZ00 1.13 TNALD00 59.72 PCADJ00 61.000 TNALDMR -1.280
Gullfaks TYALF00 64.71 TDDDC00 0.97 TNALF00 63.74 AASAU00 63.175 TNALFMR 0.565 Gullfaks TYALH00 62.76 TDDDC00 0.97 TNALH00 61.79 AASAU00 63.175 TNALHMR -1.385
Hungo TYAVI00 58.87 TDDQU00 2.49 TNAVI00 56.38 AASLJ00 57.830 TNAVIMR -1.450
Iran Heavy TYALV00 61.83 TDDDG00 2.24 TNALV00 59.59 PCABH00 57.295 TNALVMR 2.295 Iran Heavy TYALX00 59.78 TDDDG00 2.24 TNALX00 57.54 PCABH00 57.295 TNALXMR 0.245
Iran Light TYAMD00 63.24 TDDDI00 2.20 TNAMD00 61.04 PCABI00 58.995 TNAMDMR 2.045 Iran Light TYAMF00 60.69 TDDDI00 2.20 TNAMF00 58.49 PCABI00 58.995 TNAMFMR -0.505
Kirkuk TYATU00 62.96 TDDGH00 2.65 TNATU00 60.31 AAEJD00 57.815 TNATUMR 2.495
Kuwait TYAMX00 60.68 TDDDM00 1.43 TNAMX00 59.25 AAXDQ00 57.655 TNAMXMR 1.595 Kuwait TYAMZ00 58.53 TDDDM00 1.43 TNAMZ00 57.10 AAXDQ00 57.655 TNAMZMR -0.555
Murban TYATQ00 65.06 TDDRB00 1.32 TNATQ00 63.74 AAKNL00 61.360 TNATQMR 2.380
Oseberg TYAVJ00 66.51 TDDRC00 0.97 TNAVJ00 65.54 PCAEU00 61.950 TNAVJMR 3.590
Saharan Blend TYATY00 64.72 TDDGI00 1.70 TNATY00 63.02 AAGZY00 60.565 TNATYMR 2.455
Statfjord TYASD00 65.26 TDDEK00 1.13 TNASD00 64.13 AASAS00 62.255 TNASDMR 1.875 Statfjord TYASF00 62.88 TDDEK00 1.13 TNASF00 61.75 AASAS00 62.255 TNASFMR -0.505
Urals TYATN00 62.28 TDDET00 1.27 TNATN00 61.01 PCAFW00 58.740 TNATNMR 2.270 Urals TYATP00 60.06 TDDET00 1.27 TNATP00 58.79 PCAFW00 58.740 TNATPMR 0.050
Zuetina TYAUC00 66.33 TDDGJ00 1.77 TNAUC00 64.56 AAXDT00 61.100 TNAUCMR 3.460

Copyright © 2014, McGraw Hill Financial 20

 Crude oil Marketwire December 15, 2014

European Yields and Netbacks ($/barrel)

Italy Winter Specifications (PGA page 1820) Italy Winter Specifications (PGA page 1822)

Crack Yield Freight Crack Netback Spot Price Crack Margin Visbreak Yield Freight Visbreak Netback Spot Price Visbreak Margin
Arab Heavy** TYABD00 57.51 TDDAI00 2.33 TNABD00 55.18 AAXDH00 54.530 TNABDMR 1.480 Arab Heavy** TYABF00 55.43 TDDAI00 2.33 TNABF00 53.10 AAXDH00 54.530 TNABFMR -0.660
Arab Light** TYACB00 61.35 TDDAQ00 2.22 TNACB00 59.13 AAXDK00 59.130 TNACBMR 0.920 Arab Light** TYACD00 58.62 TDDAQ00 2.22 TNACD00 56.40 AAXDK00 59.130 TNACDMR -1.920
Arab Medium** TYADH00 59.25 TDDAY00 2.27 TNADH00 56.98 AAXDM00 57.480 TNADHMR 0.380 Arab Medium** TYADJ00 56.82 TDDAY00 2.27 TNADJ00 54.55 AAXDM00 57.480 TNADJMR -2.130
Azeri Light TYAEF00 64.43 TDDBH00 1.54 TNAEF00 62.89 AAGZX00 62.390 TNAEFMR 0.500 Azeri Light TYAEH00 61.69 TDDBH00 1.54 TNAEH00 60.15 AAGZX00 62.390 TNAEHMR -2.240
Basrah Light TYAFX00 60.99 TDDBR00 1.47 TNAFX00 59.52 AAXDO00 51.720 TNAFXMR 7.800 Basrah Light TYAFZ00 58.29 TDDBR00 1.47 TNAFZ00 56.82 AAXDO00 51.720 TNAFZMR 5.100
CPC Blend TYAVN00 61.51 TDDQT00 1.62 TNAVN00 59.89 AAGZU00 60.540 TNAVNMR -0.650
Es Sider TYAKD00 63.15 TDDCU00 0.96 TNAKD00 62.19 PCACO00 59.565 TNAKDMR 2.625 Es Sider TYAKF00 60.95 TDDCU00 0.96 TNAKF00 59.99 PCACO00 59.565 TNAKFMR 0.425
Iran Heavy TYALZ00 60.23 TDDDF00 1.15 TNALZ00 59.08 PCABH00 57.295 TNALZMR 1.785 Iran Heavy TYAMB00 57.97 TDDDF00 1.15 TNAMB00 56.82 PCABH00 57.295 TNAMBMR -0.475
Iran Light TYAMH00 61.21 TDDDH00 1.13 TNAMH00 60.08 PCABI00 58.995 TNAMHMR 1.085 Iran Light TYAMJ00 59.18 TDDDH00 1.13 TNAMJ00 58.05 PCABI00 58.995 TNAMJMR -0.945
Kirkuk TYAMU00 61.53 TDDFF00 1.41 TNAMU00 60.12 AAEJD00 57.815 TNAMUMR 2.305 Kirkuk TYAMW00 59.56 TDDFF00 1.41 TNAMW00 58.15 AAEJD00 57.815 TNAMWMR 0.335
Saharan Blend TYARO00 63.27 TDDFG00 0.78 TNARO00 62.49 AAGZY00 60.565 TNAROMR 1.925 Saharan Blend TYARQ00 62.30 TDDFG00 0.78 TNARQ00 61.52 AAGZY00 60.565 TNARQMR 0.955
Suez Blend TYAUO00 59.73 TDDRF00 1.15 TNAUO00 58.58 PCACA00 56.725 TNAUOMR 1.855 Suez Blend TYAUP00 57.54 TDDRF00 1.15 TNAUP00 56.39 PCACA00 56.725 TNAUPMR -0.335
Urals TYATR00 60.61 TDDES00 1.68 TNATR00 58.93 PCACE00 59.695 TNATRMR -0.765 Urals TYATT00 58.47 TDDES00 1.68 TNATT00 56.79 PCACE00 59.695 TNATTMR -2.905
Zuetina TYAUL00 64.26 TDDEU00 1.06 TNAUL00 63.20 AAXDT00 61.100 TNAULMR 2.100 Zuetina TYAUN00 62.10 TDDEU00 1.06 TNAUN00 61.04 AAXDT00 61.100 TNAUNMR -0.060
**Arab proxy spot values are calculated by adding monthly Saudi OSP differentials to daily numbers: ICE BWAVE for European OSPs (PGA1069), Mars for US OSPs (PGA1070) and Oman/Dubai average Asian OSPs (PGA1068). ICE BWAVE is published after current
day yields & netbacks are calculated. Therefore, Arab proxy spot prices and margins in Northwest Europe and Italy are effective the previous business day.

Asian Yields and Netbacks Effective December 15, 2014 ($/barrel)

Singapore Winter Specifications (PGA page 2810) Singapore Winter Specifications (PGA page 2812)

Crack Yield Freight Crack Netback Spot Price Crack Margin Visbreak Yield Freight Visbreak Netback Spot Price Visbreak Margin
Arab Heavy TYABH00 61.62 TDDAO00 1.66 TNABH00 59.96 AAXDG00 55.705 TNABHMR 4.255 Arab Heavy TYABJ00 58.87 TDDAO00 1.66 TNABJ00 57.21 AAXDG00 55.705 TNABJMR 1.505
Arab Light TYACF00 64.38 TDDAW00 1.58 TNACF00 62.80 AAXDJ00 59.655 TNACFMR 3.145 Arab Light TYACH00 61.07 TDDAW00 1.58 TNACH00 59.49 AAXDJ00 59.655 TNACHMR -0.165
Arab Medium TYADL00 62.70 TDDBE00 1.62 TNADL00 61.08 AAXDL00 58.155 TNADLMR 2.925 Arab Medium TYADN00 59.59 TDDBE00 1.62 TNADN00 57.97 AAXDL00 58.155 TNADNMR -0.185
Attaka TYADX00 68.44 TDDBG00 3.49 TNADX00 64.95 PCAAJ00 60.350 TNADXMR 4.600 Attaka TYADZ00 67.78 TDDBG00 3.49 TNADZ00 64.29 PCAAJ00 60.350 TNADZMR 3.940
Cabinda TYAVF00 64.48 TDDQS00 4.00 TNAVF00 60.48 PCAFD00 58.280 TNAVFMR 2.200
Das Blend TYDSH00 65.22 TDDCQ00 1.51 TNDSH00 63.71 AAXOF00 60.410 TNDSHMR 3.300 Das Blend TYDSJ00 61.37 TDDCQ00 1.51 TNDSJ00 59.86 AAXOF00 60.410 TNDSJMR -0.550
Dubai TYAJN00 64.84 TDDCQ00 1.51 TNAJN00 63.33 PCAAT00 59.410 TNAJNMR 3.920 Dubai TYAJP00 61.02 TDDCQ00 1.51 TNAJP00 59.51 PCAAT00 59.410 TNAJPMR 0.100
Duri TYAJR00 59.87 TDDCR00 1.77 TNAJR00 58.10 PCABA00 55.000 TNAJRMR 3.100 Duri TYAJT00 55.83 TDDCR00 1.77 TNAJT00 54.06 PCABA00 55.000 TNAJTMR -0.940
Kuwait TYANF00 62.91 TDDDN00 1.68 TNANF00 61.23 AAXDQ00 57.655 TNANFMR 3.575 Kuwait TYANH00 59.85 TDDDN00 1.68 TNANH00 58.17 AAXDQ00 57.655 TNANHMR 0.515
Minas TYAPR00 65.66 TDDDX00 1.62 TNAPR00 64.04 PCABO00 59.000 TNAPRMR 5.040 Minas TYAPT00 60.50 TDDDX00 1.62 TNAPT00 58.88 PCABO00 59.000 TNAPTMR -0.120
Murban TYAPY00 66.13 TDDCQ00 1.51 TNAPY00 64.62 AAKNL00 61.360 TNAPYMR 3.260 Murban TYAQA00 62.71 TDDCQ00 1.51 TNAQA00 61.20 AAKNL00 61.360 TNAQAMR -0.160
Oman TYAQL00 64.57 TDDEB00 1.39 TNAQL00 63.18 PCABS00 60.100 TNAQLMR 3.080 Oman TYAQN00 61.25 TDDEB00 1.39 TNAQN00 59.86 PCABS00 60.100 TNAQNMR -0.240
Qatar Land TYARA00 65.62 TDDBE00 1.62 TNARA00 64.00 AAKNP00 60.510 TNARAMR 3.490 Qatar Land TYARC00 62.19 TDDBE00 1.62 TNARC00 60.57 AAKNP00 60.510 TNARCMR 0.060
Qatar Marine TYARE00 65.73 TDDBE00 1.62 TNARE00 64.11 AAKNR00 58.660 TNAREMR 5.450 Qatar Marine TYARG00 61.98 TDDBE00 1.62 TNARG00 60.36 AAKNR00 58.660 TNARGMR 1.700
Tapis TYAST00 68.60 TDDEO00 1.56 TNAST00 67.04 PCACB00 65.540 TNASTMR 1.500 Tapis TYASV00 65.69 TDDEO00 1.56 TNASV00 64.13 PCACB00 65.540 TNASVMR -1.410

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LPGASWIRE
Volume 36 / Issue 246 / December 15, 2014

Asia LPG ($/mt) (PGL page 2780) Market Commentary

Code Mid Change Code Mid Change
CFR Refrigerated Diffs to Saudi CP strip Asia LPG (PGL page 2798)
11:11 Singapore-Japan (H1 Jan) AASGO00 494.000 + 7.000
11:11 Singapore-Japan (H2 Jan) AASGP00 494.000 + 7.000
11:11 Singapore-Japan (H1 Feb) AASGQ00 494.000 + 7.000 Asian LPG prices rebounded Monday after declining for
11:11 Singapore-Japan cargo* AASGN00 494.000 + 7.000 15 straight trading sessions since November 21, largely
Propane Japan cargo (H1 Jan) AAVAK00 478.00–480.00 479.000 +7.000 Propane Japan PMAAX00 40.00/42.00 41.000 -1.000
Propane Japan cargo (H2 Jan) AAVAL00 478.00–480.00 479.000 +7.000
in line with firmer Western crude markers seen at the
Propane Japan cargo (H1 Feb) AAVAM00 478.00–480.00 479.000 +7.000 5:30 pm (0930 GMT) close of trading in Singapore.
Propane Japan cargo* PMAAV00 478.00–480.00 479.000 +7.000
Market sentiment, however, remained subdued with little
Propane South China cargo AABAK00 465.00–467.00 466.000 0.000 Propane South China AABAI00 -57.00/-55.00 -56.000 +21.000
Propane Taiwan cargo AABAN00 466.00–468.00 467.000 0.000 Propane Taiwan AABAO00 -56.00/-54.00 -55.000 +21.000 buying interest. The price of propane cargoes for delivery
Propane North Asia Zone AAJTQ00 472.00–474.00 473.000 +4.000 along the Singapore-Japan route 30-45 days forward,
Propane Korea PMABK00 37.00/39.00 38.000 -1.000
or in H1 January, was assessed up $8/mt day on day
Butane Japan cargo (H1 Jan) AAVAN00 508.00–510.00 509.000 +7.000 Butane Japan PMAAH00 40.00/42.00 41.000 -1.000
Butane Japan cargo (H2 Jan) AAVAO00 508.00–510.00 509.000 +7.000 at $428/mt. Butane was also assessed up $8/mt at
Butane Japan cargo (H1 Feb) AAVAP00 508.00–510.00 509.000 +7.000 $458/mt. The premium for propane for the H1 January
Butane Japan cargo* PMAAF00 508.00–510.00 509.000 +7.000
Butane South China cargo AABAU00 495.00–497.00 496.000 0.000 Butane South China AABAT00 -50.00/-48.00 -49.000 +18.000
cycle was assessed at $41/mt against the prompt-
Butane Taiwan cargo AABBH00 496.00–498.00 497.000 0.000 Butane Taiwan AABBI00 -49.00/-47.00 -48.000 +18.000 month Saudi Aramco contract price propane swap,
Butane North Asia Zone AAJTT00 502.00–504.00 503.000 +4.000 compared with $42/mt on Friday. The prompt-month
Butane Korea PMABL00 37.00/39.00 38.000 -1.000
CFR Pressurized Diffs to Saudi CP strip
CP propane swap traded at $438/mt, up from $430/
LPG Vietnam AAWUV00 526.00–528.00 527.000 +8.000 LPG Vietnam AAWUW00 67.00/69.00 68.000 0.000 mt traded Friday. The spread between prompt-month
LPG Philippines AAWUX00 531.00–533.00 532.000 +8.000 LPG Philippines AAWUY00 72.00/74.00 73.000 0.000 propane and butane CP swap traded at $30/mt in favor
FOB Pressurized Diffs to Saudi CP strip
of butane. The January Argus Far East Index propane
LPG East China AAWUZ00 499.00–501.00 500.000 +7.000 LPG East China AAWVA00 40.00/42.00 41.000 -1.000
LPG South China AAWVB00 499.00–501.00 500.000 +7.000 LPG South China AAWVC00 40.00/42.00 41.000 -1.000 swap traded at $500/mt, versus $485/mt Friday. The
LPG Singapore AAWVD00 504.00–506.00 505.000 +7.000 LPG Singapore AAWVE00 45.00/47.00 46.000 -1.000 balance December FEI propane swap stood at $489/mt,
*An average of the first two half-month assessments
compared with $482/mt Friday. The discount between
Middle East LPG ($/mt) (PGL page 2776) January FEI propane swap and Mean of Platts Japan
Code Mid Change Code Mid Change naphtha assessments narrowed further to $19.75/
FOB Arab Gulf Diffs to Saudi CP mt, compared with $28/mt a day earlier. The physical
Propane cargo PMUDM00 427.00–429.00 428.000 +8.000 Propane vs CP PMABF00 -11.00/-9.00 -10.000 0.000
market saw two bids and one offer with no trades seen.
Propane vs CP M1 (Jan) AAKZA00 -11.00/-9.00 -10.000 0.000
Butane cargo PMUDR00 457.00–459.00 458.000 +8.000 Butane vs CP PMABG00 -11.00/-9.00 -10.000 0.000
Butane vs CP M1 (Jan) AAKZB00 -11.00/-9.00 -10.000 0.000 Middle East LPG (PGL page 2799)
Propane CP strip (Japan-Korea)* AAKZC00 437.00–439.00 438.000 +8.000
Butane CP strip (Japan-Korea)* AAKZD00 467.00–469.00 468.000 +8.000
Propane CP strip (China-Taiwan)** AAKZE00 521.00–523.00 522.000 -21.000 The marginal rise in Western crude markers Monday
Butane CP strip (China-Taiwan)** AAKZF00 544.00–546.00 545.000 -18.000 failed to generate much buying interest for prompt
*loading 20-40 days; **loading 5-15 days
January-loading cargoes in the Middle East, said traders.
 LPGASWIRE December 15, 2014

European LPG ($/mt) (PGL page 1775) West Mediterranean LPG (PGL page 1797)

Code
Propane Mid Change Code Butane Mid Change
Northwest Europe The butane West Mediterranean coaster market loading
FOB Seagoing PMABB00 358.75–359.25 359.000 -16.000 FOB Seagoing PMAAL00 470.75–471.25 471.000 -6.000 five to 15 days forward and basis FOB was assessed
FOB ARA PMAAS00 358.75–359.25 359.000 -26.000 FOB ARA PMAAC00 436.75–437.25 437.000 -2.000 at $662/mt Monday, down $10/mt on the day. “The
FCA ARA* PMABH00 432.75–433.25 433.000 -7.000 FCA ARA* PMABI00 440.75–441.25 441.000 -2.000
CIF 1-3k mt PMAAZ00 398.75–399.25 399.000 -16.000 CIF 1-3k mt PMAAJ00 450.75–451.25 451.000 -3.000 Med is till tight,” a trader said. The FOB propane West
CIF 7000+ mt PMABA00 368.75–369.25 369.000 -16.000 CIF 3000+ mt PMAAK00 429.75–430.25 430.000 -2.000 Mediterranean market largely tracked North Sea propane
FOB 7000+ mt AAVKH00 343.75–344.25 344.000 -16.000 FOB 3000+ mt AAVKI00 384.75–385.25 385.000 -2.000
cargoes and was assessed at $481/mt, down $16/mt
Western Mediterranean
day on day.
FOB Ex-Refinery/Storage PMABC00 480.75–481.25 481.000 -16.000 FOB Ex-Ref/Storage PMAAM00 661.75–662.25 662.000 -10.000
FCA Ex-Refinery/Storage* PMABJ00 480.75–481.25 481.000 -16.000
CIF 7000+ mt PMABE00 455.75–456.25 456.000 -16.000 Northwest Europe Propane (PGL page 1798)
*FCA ARA refers to sales onto railcars and trucks in the Amsterdam-Rotterdam-Antwerp region

Delays were reported in the Northwest European

Naphtha ($/mt) LPG Postings ($/mt) propane market Monday, as the Belgian port of Antwerp
was closed due to a 24-hour nationwide strike. The
Code Mid Change Saudi Contract Postings (PGL page 2790)
Europe (PGA page 1310 & 1320)
action of trade unions, who protested against the new
Saudi Propane CP (Dec) PTAAM10 550.00
CIF ARA cargo PAAAL00 480.00–480.50 480.250 -2.250 Saudi Butane CP (Dec) PTAAF10 570.00 government’s austerity plan, led to the grounding of
CIF Med cargo PAAAH00 464.00–464.50 464.250 -2.250 Algerian Postings (PGL page 1790) flights, the cutting of international rail links and the
Propane FOB Bethouia CP (Dec) PTAAI10 440.00 shutting of sea ports. According to Belgian newspaper
Propane FOB Skikda CP (Dec) PTAAJ10 440.00 De Standaard, commercial shipping traffic on the
Month to Date Averages ($/mt) Butane FOB Algeria CP (Dec) PTAAC10 515.00
Scheldt has been halted for safety reasons, and ships
Code Mid Change
heading for the ports of Antwerp and Ghent have been
Northwest Europe Month to Date (PGL page 1775)
Propane FOB Seagoing PMUDI00 405.48–405.98 405.730 -4.670
Propane swaps prevented from going any further than Flushing until
Propane CIF 7000+ mt PMUDK00 399.93–400.43 400.180 -3.120 Code Mid Change Tuesday. “The strike is Antwerp is affecting loadings, but
Middle East Month to Date (PGL page 2776) Northwest Europe ($/mt) (PGL page 1775) it’s only causing some delays so if it lasts only one day
Propane cargo PMUDO00 468.82–470.82 470.000 -4.000 M1 (Jan) AAHIK00 376.00–380.00 378.000
-14.000 it is not catastrophic,” a trader said. In term of trading
Butane cargo PMUDQ00 492.45–494.45 493.000 -4.000 M2 (Feb) AAHIM00 382.00–386.00 384.000 +2.000 activity, the week started on a rather quiet note. “There
M3 (Mar) AAHIO00 370.00–374.00 372.000 +3.000
is not too much happening in the large propane cargo
LPG Shipping ($/mt) Q1 (Q1 2015) AAHIL00 376.00–380.00 378.000 -3.000 market and the picture is pretty bearish for January,”
Q2 (Q2 2015) AAHIN00 360.00–364.00 362.000 -3.000
a broker said, adding that more US cargoes are likely
From: To: Product Cargo size Code $/mt US Gulf Coast (¢/gal) (PGA page 780)
to arrive in Europe from the US in the second half of
(PGL page 1786) M1 (Jan) AAHYX00 57.01–57.11 57.063
+1.063
Norway Netherlands Propane 20kt AAVKK00 25.00 M2 (Feb) AAHYY00 57.01–57.11 57.063
+1.063 January. “Heating demand is not really there yet as it’s
Norway Netherlands Butane 10kt AAVKJ00 45.00 M3 (Mar) AAHYZ00 57.01–57.11 57.063
+1.063 still a bit mild [in continental Europe] for this time of
(PGL page 2786) year,” he also said. According to a trader the discount
Q1 (Q1 2015) PMABS00 57.01–57.11 57.063
+1.063
Persian Gulf Japan LPG 11-44kt AAPNI00 66.00 of propane to naphtha is not wide enough to attract
Q2 (Q2 2015) PMABT00 57.28–57.38 57.333
+0.883
Persian Gulf South China LPG 11-44kt AAPNG00 61.00
Persian Gulf East China LPG 11-44kt AAPNH00 64.00 Saudi CP ($/mt) (PPA page 2652) buyers or only at big discounts. “For the large cargo
Thailand Guangzhou LPG 1-3kt AAPNJ00 148.00 M1 (Jan) AAHHG00 437.98–438.02 438.000 +8.000 market, December is done and dusted,” he said. “Early
Thailand Guangxi LPG 1-3kt AAPNK00 146.00 M2 (Feb) AAHHH00 443.98–444.02 444.000 +9.000
January there is possibly two or three cargoes for sale
Thailand Shantou LPG 1-3kt AAPNL00 149.00 M3 (Mar) AAHHI00 440.98–441.02 441.000 +8.000
Japan Shanghai LPG 1-3kt AAPNM00 98.00 but maybe two buyers and the next arbitrage cargoes
Korea Shanghai LPG 1-3kt AAPNN00 83.00 Q1 (Q1 2015) AAHHJ00 440.98–441.02 441.000 +8.000 from the US Gulf Coast will arrive mid-January.” In the

Copyright © 2014, McGraw Hill Financial 2

 LPGASWIRE December 15, 2014

US LPG (PGA page 780) CIF ARA large cargo swaps market, the January CIF
Code Mid
Change Code Mid
Change propane swap future dropped $14/mt to $378/mt, and
the discount of the front-month propane swap to the
Mont Belvieu non-LST (¢/gal) Mont Belvieu LST (¢/gal)
Ethane/propane mix M1 PMUDA05 16.70–16.80 16.750 -0.250 equivalent CIF NWE naphtha swap widened to $100.50/
Ethane/propane mix M2 AAWUB00 16.95–17.05 17.000 -0.250 mt Monday from $90.25/mt Friday. There were three
Ethane purity M1 PMUDB05 17.20–17.30 17.250 -0.150 offers and one bid in the physical North Sea window.
Ethane purity M2 AAWUC00 17.45–17.55 17.500 -0.150
Propane M1 PMAAY00 55.83–55.93 55.875 +1.125 Propane M1 PMABQ00 55.95–56.05 56.000 +1.250
Statoil offered over a 19,400-21,700 mt propane
Propane M2 AAWUD00 56.98–57.08 57.025 +1.125 Propane M2 AAWUE00 56.95–57.05 57.000 +1.250 cargo for January 1-10 delivery at 50% $383/mt and
Normal butane M1 PMAAI00 72.70–72.80 72.750 +0.750 Normal butane PMABR00 71.95–72.05 72.000 +4.350 50%% January swaps plus $4/mt on the Clipper Star
Normal butane M2 AAWUF00 73.58–73.68 73.625 +0.625
or Clipper Posh. SHV was a seller for the same cargo
Isobutane PMAAB00 71.95–72.05 72.000 +0.750 Isobutane AAIVD00 71.95–72.05 72.000 +0.750
Natural gasoline (non-Targa) M1 PMABY05 109.70–109.80 109.750 -3.550 Natural gasoline AAIVF00 114.75–114.85 114.800 0.000
size to be delivered over January 1-7 at 50% $382/
Natural gasoline (non-Targa) M2 AAWUG00 111.20–111.30 111.250 -3.550 mt and 50% January plus $4/mt on the Waregem.
Natural gasoline (Targa) PMABW05 112.25–112.35 112.300 0.000 Gunvor offered a 10,000-12,000 mt cargo for December
($/mt) 27-January 1 delivery at 370/mt. Vilma bid at $355/mt
Propane AAXDD00 291.10–291.12 291.110 +5.860 for a 19,400-21,700 mt propane cargo to be delivered
Normal butane AAXDC00 329.55–329.57 329.560 +3.400
between December 31 and January 4. No public trade
Conway, Kansas (¢/gal) Bushton, Kansas (¢/gal) was reported. The CIF propane cargo was assessed at
Ethane/propane mix PMAAO00 16.45–16.55 16.500 +1.000
$369/mt, down $16/mt on the day. It was assessed at
Propane PMAAT00 53.70–53.80 53.750 +0.750 Propane AALBE00 53.70–53.80 53.750 +0.750
Normal butane PMAAD00 76.45–76.55 76.500 -1.250 a physical discount of $9/mt to the January CIF propane
Isobutane PMAAA00 77.95–78.05 78.000 0.000 swap, down from a $7/mt discount the previous day. In
Natural gasoline PMAAQ00 116.33–116.43 116.375 -0.625 the meantime, there was little change in fundamentals
The River* (¢/gal) Hattiesburg pipeline (¢/gal) in the barges and coasters market amid thin trading
Natural gasoline AALBG00 116.20–116.30 116.250 -5.050 Propane AALBC00 58.33–58.43 58.380 +1.130 activity. “There is no big demand for propane coasters
Note: Spot prices exclude terminalling; *The River means on barges in various points of Mississippi River in Louisiana.
at the moment, it’s a bit quiet.” a trader said. “There
Waterborne FOB Houston ($/mt) Waterborne FOB Houston (¢/gal) is a rather good supply of propane coasters available
Propane AAXIM00 295.50–295.52 295.510 +1.560 Propane AAXIN00 56.71–56.73 56.720 +0.300
for the second half of December and the Germans
Propane vs. Mt Belvieu AAXIO00 4.37–4.39 4.380 -0.570 vs. Mt Belvieu AAXIP00 0.79–0.89 0.840 -0.110
are completely covered for the rest of the month,” a
VLGC Freight Rates ($/mt) VLGC Freight Rates (¢/gal)
Houston to NWE AAXIQ00 70.00 Houston to NWE AAXIR00 13.44
Houston to Japan AAXIS00 215.00 Houston to Japan AAXIT00 41.27 NYMEX Futures
Platts Futures Assessments 3:15 pm ET* (PGA page 703)
$/barrel
Light sweet crude (NA) NYCRM01 55.54
LPGASWIRE Volume 36 / Issue 246 / December 15, 2014 Light sweet crude (NA) NYCRM02 55.93
Light sweet crude (NA) NYCRM03 56.33

Editorial: Esa Ramasamy, Editorial Director, Americas Oil: +1-713-658-3292, Matt Cook, Senior Managing Editor, Americas Clean Products +1-713-658-3208 Futures Settlement (PGA page 702)
Client services information: North America: +1 800-PLATTS8 (+1-800-752-8878); direct: +1-212-904-3070 Europe & Middle East: +44-20-7176-6111 $/MMBtu
Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: support@platts.com Natural gas (Jan) AACMZ00 3.72
Copyright © 2014 McGraw Hill Financial. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system $/barrel
or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of McGraw Hill Financial. Information has been obtained from sources Light sweet crude (Feb) AASCS00 56.74
believed reliable. However, because of the possibility of human or mechanical error by sources, McGraw Hill Financial or others, McGraw Hill Financial 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 such * These assessments reflect prevailing futures value exactly at 3:15 pm ET.
information. See back of publication invoice for complete terms and conditions. However, on the business day preceding the following holidays these assess-
ments reflect the value of futures at precisely 1:30 pm ET: Christmas Day, New
Years Day, Fourth of July, and Thanksgiving Day.

Copyright © 2014, McGraw Hill Financial 3

 LPGASWIRE December 15, 2014

broker said. “Lots of end-users want to keep their stock Finally, in the butane North Sea cargo market, the CIF Texas Commission on Environment Quality. The steam
levels low at the end of the year,” he added. The FOB cargo was assessed at $430/mt, down $2/mt on cracker was shut Sunday after an equipment malfunction
Seagoing market was assessed at $359/mt, down $16/ the day, with CIF values as a percentage of naphtha in a propylene compressor caused it to trip, resulting
mt, while spot propane barges loading 3-10 days forward remaining stable at around 89.50%. in gas flaring, the company said in an earlier filing.
were assessed at $359/mt, down $26/mt on the day. Emissions associated with the restart will be completed
The FCA ARA market referring to sales onto railcars and US Gulf Coast (PGA page 799) by Thursday, according to the filing. The ethylene unit
trucks in the Amsterdam-Rotterdam-Antwerp region was has an production capacity of 300,000 mt/yr. Chevron
assessed at $433/mt, down $7/mt on the day. Mont Belvieu Non-Targa natural gasoline fell 3.55 cents Phillips operates three steam crackers at the Sweeny
Monday to an assessment at $1.0975/gal, based site, with a combined estimated ethylene production
Northwest Europe Butane (PGL page 1799) on Market on Close assessment process activity and of 1.9 million mt/year. In spot market action Monday,
the decline in prompt RBOB futures. During the MOC December ethylene was heard offered at 39 cents/lb
The Northwest European butane market started the process, Koch bought from Vitol at $1.0975, and a Mont Belvieu Williams pipeline and traded at 38.75-39
week on a rather stable note, with activity reported $1.09 bid was left by Vitol. Natural gasoline for Mont cents/lb MtB Wms. January was heard traded at 39.5
mostly in the coaster market where both blenders and Belvieu LST assessed 5.05 cents higher than Mont cents/lb MtB Wms and in a bid/offer range of 37.5-
petrochemical buyers were in the market around 93-95% Belvieu Non-Targa. The NYMEX January RBOB futures 39.375 cents/lb MtB Wms. Ethylene trading at or below
on a delivered basis, trading sources said Monday. “I contract was assessed by Platts at $1.5689/gal at the 39 cents/lb level last seen in late October 2010,
haven’t heard any FOB deal but all sellers prefer to 3:15 pm EST, down 3.08 cents from Friday. Gulf Coast according to Platts data.
sell on delivered basis at the moment,” a trader said. propane rose 1.025 cents to 55 cents/gal, as well
According to another trader, the butane coaster market as butane, which rose 75 points to 72.75 cents/gal. Pemex rents salt cavern for LPG
resembles a two-tier market. “CIF values I have heard Ethane fell 75 points to 17.25 cents/gal, along with a
storage
around 95-96%...if you are looking for pure FOB value, lower NYMEX January natural gas futures contract. The
it’s a very different story.” “The pull of demand in the NYMEX January natural gas futures contract fell 7.6 Mexican state oil company Pemex said Monday it
South and values in the Med means that everyone cents to a $3.719/MMBtu close Monday. signed a rental for a salt cavern in the southern Gulf
seems to be valuing their FOBs dearly right now,” he state of Veracruz owned by Cydsa, a Monterrey-based
added. A couple of trading sources reported offers at chemicals and fibers group. The cavern is to be used
100% for FOB Seagoing, but some market participants News (PGA page 100) for storage of liquefied petroleum gas (LPG), the fuel
said value was much lower. In the butane coaster used by 80% of Mexican homes. It has a capacity of
market, CIF values as a percentage of the price of Chevron Phillips restarting Texas 1.8 million barrels. Pemex said on its website that the
physical naphtha stayed unchanged at around 94%, contract represents an investment of $130 million. The
steam cracker: filing
while FOB values slipped to 98% from 99% and FOB company said the underground storage will avoid the
Seagoing butane was assessed at $471/mt, down Chevron Phillips Chemical has begun restarting ethylene need to make spot purchases in international markets,
$6/mt on the day. On the barges side, FOB values unit No. 22 at its Sweeny complex in Old Ocean, Texas, so contributing to supply stability and more competitive
as a percentage of the price of physical naphtha were the company said Monday in filing with state regulators. prices. The underground facility will be the first of its
assessed at 91% Monday, unchanged on the day, and “Operations will return ethylene unit 22 to service in kind in Latin America, though there are 1,500 salt
FOB ARA barges were assessed at $437/mt, down $2/ a manner that minimizes the duration and quantity of caverns in the rest of the world that store LPG and
mt as NWE naphtha outright prices also fell slightly. emissions,” the company said in the filing with the other fuels, Pemex said.

Copyright © 2014, McGraw Hill Financial 4