]
www.platts.com EUROPEAN MARKETSCAN
European products ($/mt)
Code Mid Change Code Mid Change
Mediterranean cargoes (PGA page 1114)
FOB Med (Italy) CIF Med (Genova/Lavera)
Naphtha* PAAAI00 875.00–875.50 875.250 +3.750 PAAAH00 896.25–896.75 896.500 +3.000
Prem Unl 10ppm AAWZA00 998.50–999.00 998.750 +0.750 AAWZB00 1012.25–1012.75 1012.500 +0.500
Jet AAIDL00 1011.75–1012.25 1012.000 +7.500 AAZBN00 1036.50–1037.00 1036.750 +6.750
10ppm ULSD AAWYY00 966.50–967.00 966.750 +5.750 AAWYZ00 982.75–983.25 983.000 +5.250
Gasoil 0.1% AAVJI00 956.00–956.50 956.250 +6.000 AAVJJ00 974.50–975.00 974.750 +5.500
Fuel Oil 1.0% PUAAK00 642.00–642.50 642.250 -6.500 PUAAJ00 655.00–655.50 655.250 -6.500
Fuel oil 3.5% PUAAZ00 602.00–602.50 602.250 -1.500 PUAAY00 615.00–615.50 615.250 -1.500
Jet FOB Med premium AAIDN00 11.00/11.50 11.250 0.000
*Naphtha FOB Med is basis East Med
Northwest Europe cargoes (PGA page 1110)
FOB NWE CIF NWE/Basis ARA
Naphtha (Feb) PAAAJ00 908.00–908.50 908.250 +4.250
Naphtha PAAAL00 906.50–907.00 906.750 +2.750
Gasoline 10ppm AAXFQ00 987.00–987.50 987.250 -5.750
Jet PJAAV00 1021.50–1022.00 1021.750 +6.750 PJAAU00 1038.00–1038.50 1038.250 +6.750
ULSD 10 ppm AAVBF00 956.50–957.00 956.750 +5.250 AAVBG00 978.00–978.50 978.250 +5.250
Diesel 10ppm NWE AAWZD00 960.00–960.50 960.250 +5.250 AAWZC00 982.00–982.50 982.250 +5.250
Diesel 10 ppm UK AAVBH00 984.25–984.75 984.500 +5.250
Gasoil 0.1% AAYWR00 939.50–940.00 939.750 +5.750 AAYWS00 963.25–963.75 963.500 +5.750
Fuel oil 1.0% PUAAM00 632.75–633.25 633.000 -5.000 PUAAL00 643.75–644.25 644.000 -5.000
Fuel oil 3.5% PUABB00 585.50–586.00 585.750 +0.250 PUABA00 598.75–599.25 599.000 +0.250
Straight run 0.5-0.7% PKABA00 718.00–719.00 718.500 +2.500
VGO 0.5-0.6% AAHMX00 782.00–783.00 782.500 +3.000 AAHMZ00 785.00–786.00 785.500 +3.000
VGO 2% max AAHNB00 766.00–767.00 766.500 +3.000 AAHND00 769.00–770.00 769.500 +3.000
Northwest Europe barges (PGA page 1112)
FOB Rotterdam Naptha crack swap ($)
Naphtha PAAAM00 902.50–903.00 902.750 +2.750
Eurobob AAQZV00 965.00–965.50 965.250 -3.750 -6
98 RON gasoline 10 ppm AAKOD00 1024.00–1024.50 1024.250 -3.750
Premium gasoline 10 ppm PGABM00 1004.00–1004.50 1004.250 -3.750
Jet PJABA00 1033.00–1033.50 1033.250 +6.500
Diesel 10 ppm AAJUS00 974.00–974.50 974.250 +4.000
Gasoil 50 ppm AAUQC00 972.25–972.75 972.500 +4.500 -8
Gasoil 0.1% AAYWT00 961.00–961.50 961.250 +6.500
Fuel oil 1.0% PUAAP00 633.50–634.00 633.750 +0.750
Fuel oil 3.5% PUABC00 603.25–603.75 603.500 +0.250
Rotterdam bunker 380 CST PUAYW00 609.00–610.00 609.500 -1.000
VGO 0.5-0.6% AAHNF00 777.50–778.50 778.000 +4.500 -10
VGO 2% max AAHNI00 766.00–767.00 766.500 +3.000 Mar May Jul Sep Nov Jan
MTBE* PHALA00 1220.75–1221.25 1221.000 +19.250
*FOB Amsterdam-Rotterdam-Antwerp
The McGraw Hill Companies
[OIL ]
Volume 45 / Issue 10 / January 15, 2013
ICE futures
Platts ICE 1630 London assessments* (PGA page 703)
Gasoil Low Sulfur Gasoil
Feb AARIN00 960.25 Feb AAGL001 979.50
Mar AARIO00 951.50 Mar AAGL002 974.75
Apr AARIP00 942.75 Apr AAGL003 968.25
Brent Brent NX
Feb AAYES00 111.31 Mar AAXZL00 110.51
Mar AAYET00 110.48 Apr AAXZM00 109.71
Apr AAXZY00 109.68 May AAXZN00 109.08
May AAYAM00 109.05 Jun AAYAP00 108.47
*Platts ICE assessments reflect the closing value of the ICE contracts at
precisely 16:30 London time.
ICE gasoil settlements (PGA page 702)
Gasoil Low Sulfur Gasoil
Feb AAQSG00 960.75 Feb AAGS001 976.75
Mar AAQSH00 952.00 Mar AAGS002 975.25
Apr AAQSI00 943.00 Apr AAGS003 971.00
May AAQSJ00 935.75 May AAGS004 966.00
Jun AAQSK00 930.25 Jun AAGS005 961.25
Jul AAQSL00 926.75 Jul AAGS006 958.25
Expiry AAQSM00 NA*
*Value at 12:00 London time will only appear on day of expiry
ICE gasoil GWAVE (Previous day’s values) (PGA page 702)
Feb PXAAJ00 952.75 Mar PXAAK00 946.25
NYMEX futures (16:30 London time)
NYMEX WTI (PGA page 703)
$/barrel $/barrel
Feb AASCR00 93.93 Mar AASCS00 94.36
NYMEX heating oil (PGA page 703)
¢/gal ¢/gal
Feb AASCT00 304.96 Mar AASCU00 303.92
NYMEX RBOB (unleaded gasoline) (PGA page 703)
¢/gal ¢/gal
Feb AASCV00 272.92 Mar AASCW00 275.07

Market Update (PGA page 724)
The front-month NYMEX heating oil contract tumbled
in early afternoon US trade Tuesday, as sentiment
turned bearish ahead of upcoming data releases by
the American Petroleum Institute and the US Energy
Information Administration. NYMEX February heating
oil was down 2.63 cents from Monday’s settle at
$3.0362/gal, after sliding more than 2.5 cents
between 11:15 a.m. and 12:15 p.m. EST. There was
no comparative slide in either the NYMEX crude or ICE
Brent contracts. NYMEX February crude was down 24
cents on-the-day at $93.90/barrel, while ICE February
Brent was 73 cents lower at $111.15/b. “A lot of
this is just trading,” Tim Evans, energy analyst at Citi
Futures Perspective, said. “One of the things about
market sentiment is that it can change abruptly without
advance notice, and the market doesn’t always have
a very long attention span. Yesterday, [sentiment]
may have been about the weather, today it could be
about inventories.” The slide largely erased gains in
the front-month heating oil contract seen Monday,
as expectations of colder weather in the Atlantic
Basin boosted distillate prices on both sides of the
Atlantic overnight. The American Petroleum Institute
is scheduled to release its weekly data on US fuel
inventories at 4:30 pm EST (2130 GMT), while the
US Energy Information Administration is scheduled to
publish its figures at 10:30 a.m. EST (1530 London
time) Wednesday. Analysts polled by Platts this week
anticipated a 1.6 million-barrel climb in US distillate
stocks over the survey week ended January 11.
Gasoline (PGA page 1399)
The contango in the Northwest Europe EBOB market
persisted during the current season of low demand, but
there were some fresh arbitrage opportunities to the
US, traders said Tuesday. The FOB Rotterdam EBOB
gasoline market had opened 2013 in a slight contango
structure, as would be typical for this time of year, after
a year marked by heavy backwardation, Platts data
showed. The January-February FOB Rotterdam EBOB
EUROPEAN MARKETSCAN
Euro-denominated assessments 16:30 London (€/mt)
Med cargoes (PGA page 1120)
FOB Med CIF Med
(Italy) (Genova/Lavera)
Naphtha* ABWHE00 656.454 ABWHD00 672.392
Prem Unl 10ppm ABWGV00 749.081 ABWGU00 759.394
Jet ABWGZ00 759.019 AAZBO00 777.582
10ppm ULSD ABWHM00 725.081 ABWHH00 737.268
Gasoil 0.1% ABWGQ00 717.205 ABWGO00 731.081
Fuel Oil 1.0% ABWGH00 481.700 ABWGF00 491.450
Fuel oil 3.5% ABWGM00 451.699 ABWGK00 461.449
Jet FOB Med premium ABWHA00 8.438
*Naphtha FOB Med is basis East Med
Northwest Europe cargoes (PGA page 1116)
FOB NWE CIF NWE/
Basis ARA
Naphtha AAQCE00 680.080
Gasoline 10ppm ABWGS00 740.456
Jet ABWHB00 766.332 AAQCF00 778.707
ULSD 10 ppm ABWHO00 720.206 ABWHI00 736.706
Diesel 10ppm NWE ABWHP00 717.580 ABWHK00 733.706
Diesel 10 ppm UK ABWHJ00 738.393
Gasoil 0.1% ABWGR00 704.830 ABWGP00 722.643
Fuel oil 1.0% AAQCG00 474.762 ABWGG00 483.012
Fuel oil 3.5% ABWGN00 439.323 ABWGL00 449.261
Straight run 0.5-0.7% ABWHG00 538.888
Euro/US$ forex rate: 1.3333. Platts Euro denominated European & US product
assessments are based on market values and a Euro/US$ forex rate at 4:30
PM local London time.
Foreign exchange rates (PGA page 1151)
January 15, 2013 London 16:30
Dollar/Swiss franc BCADC00 0.9286
GB pound/Dollar BCADB00 1.6092
Dollar/Yen BCACW00 88.5000
Euro/Dollar BCADD00 1.3333
Dollar/Ruble AAUJO00 30.2840
swap spread languished in contango at minus $2.75/
mt contango, down from Monday’s minus $1/mt, Platts
data showed. The front month-second month spread had
first slipped into contango January 2, the first trading
day of 2013, but it had marked a modest recovery back
into backwardation until January 8, Platts data showed.
However, late last week, the spread drifted back into a
persistent contango structure after the closure of the
arbitrage from NWE to the US Atlantic Coast, traders
said. The January, balance month swap had also fell
into a discount against the front month, February
swap late last week, Platts data showed, where it had
Copyright © 2013, The McGraw-Hill Companies
january 15, 2013
Northwest Europe barges (PGA page 1118)
FOB Rotterdam
Naphtha ABWHF00 677.079
Eurobob ABWGT00 723.956
98 RON gasoline 10 ppm ABWGX00 768.207
Premium gasoline 10 ppm AAQCH00 753.206
Jet ABWHC00 774.957
Diesel 10 ppm AAQCI00 730.706
Gasoil 50 ppm AAUQF00 729.393
Gasoil 0.1% AAYWY00 720.956
Fuel oil 1.0% ABWGI00 475.324
Fuel oil 3.5% AAQCK00 452.636
Rotterdam bunker 380 CST AAUHE00 457.136
New York Harbor cargoes 16:30 London (PGA pages 1350 & 1450)
FOB NY Harbor
(€ cent/gal)
Unleaded 87 AAPYV00 205.06
Unleaded 89 AAPYW00 214.07
Unleaded 93 AAPYX00 227.59
No. 2 AAPYY00 230.23
European clean product barge freight rates
ARA ($/mt) (PGT page 1918)
Rotterdam — Rotterdam TCAEI00 2.00
Rotterdam — Flushing TCAEJ00 3.50
Rotterdam — Ghent TCAEK00 3.00
Rotterdam — Antwerp TCAEL00 3.00
Germany ($/mt) (PGT page 1918)
Rotterdam — Duisburg TCAEM00 7.00
Rotterdam — Cologne TCAEN00 10.00
Rotterdam — Karlsruhe TCAEO00 15.75
Antwerp — Duisburg TCAEP00 7.75
Switzerland ($/mt) (PGT page 1918)
Rotterdam — Basel TCAEQ00 16.25
languished ever since. Moreover, the EBOB market
had not flipped into contango since March 2012. “The
market in January looks weak. People are not keen on
buying at flat and currently EBOB is being offered under
flat,” a second trader said Tuesday. He added that the
key reason for the recent slide into contango was the
lack of arbitrage opportunity to the US. “There’s no real
interest with the closed arbitrage to the US. There’s
lots of supply here and the pressure is on Europe.” The
NWE-USAC February arbitrage swap was heard at minus
$2.50 cents/gal, down from a last heard peg of minus
$2.25 cents/gal Monday, a third trader said. The NWE-
2

USAC arbitrage swap measures the relative strength of
the NYMEX RBOB futures contract and FOB Rotterdam
Eurobob gasoline barge swaps against ICE Brent, and is
used by market participants to determine the viability of
exporting gasoline from Europe to the USAC. However,
despite the weak arbitrage outlook, a second trader
said that trader flows were ongoing from NWE to the
US. “The flow is still happening at today’s arbitrage
[value]. Fresh moves. Both sides going into contango is
seasonal and doesn’t affect the arbitrage.” A third trader
also said that the contango in the EBOB market could
open up further opportunities. “As the front Eurobob
market is again in contango, the arbitrage from NWE to
the US could maybe work again.”
Gasoline deals (PGA page 5)
Gasoline MOC deals: PREM UNL: Nich-Glencore at
$1006/mt MW; Trafigura-Litasco at $1005/mt MW
Naphtha (PGA page 1398)
The naphtha complex appeared to be a touch weaker
Tuesday with the January/February spread widening
to minus $1.0/mt from minus $0.5/mt Monday. Only
one trade was concluded during the Platts Market
on Close assessment process with Statoil lifting
Stasco’s offer at $904/mt for a front window delivery.
Three bids were still active when the window closed,
including a bid from Trafigura at $909/mt for delivery
February 5-9. Platts assessed CIF Northwest European
cargoes at $906.75/mt, up from $904/mt Monday.
The February CIF NWE crack firmed very slightly to
minus $7.95/barrel versus $8.05/b Monday, while
ICE Brent future for February rose by 36 cents on the
day to $111.31/b. In naphtha news, opportunities to
ship naphtha from Europe to Asia were the focus of
the day with the February East/West spread continuing
to widen: at the Asian close, it was valued at $17.75/
mt. Traders said early Tuesday that the focus in Asia
has shifted towards naphtha supply concerns with
multiple South Korean refineries due to undergo
EUROPEAN MARKETSCAN
Subscriber notes (PGA page 1500)
■■ As part of its commitment to maintaining open
dialog with the industry, Platts is hosting an Oil
Technical Workshop on January 23 in Rotterdam. This
workshop will focus on barge and cargo logistics in the
Amsterdam-Rotterdam-Antwerp region, including the
importance of performance in the Platts MOC process,
Platts nomination procedures, rights and obligations in
chains, compensation, alternate delivery solutions and
demurrage issues and is aimed at inviting feedback from
traders and operators as well as other market partici-
pants. The Platts panel will comprise of Simon Thorne,
Tim Worledge, Benno Spencer and Chris Vowden.
Register now to reserve your free place:
http://marketing2012.platts.com/content/OLEM201301_
RotterdamOilTechnicalWorkshop
■■ Effective January 9, 2013 and following a revised
freight rates for Italian ports issued by Worldscale, the
Worldscale flat rate used to calculate the netback formu-
la for FOB Med 10ppm diesel is amended to $9.47/mt.
Comments please to europe_products@platts.com, CC to
pricegroup@platts.com.
■■ Effective January 9, 2013 and following a revised
freight rates for Italian ports issued by Worldscale, the
Worldscale flat rate used to calculate the netback for-
mula for FOB Med 0.1% gasoil is amended to $10.74/mt.
Comments please to europe_products@platts.com, CC to
pricegroup@platts.com.
■■ Effective January 9, 2013 and following a revised
freight rates for Italian ports issued by Worldscale, the
Worldscale flat rate used to calculate the netback formu-
la for FOB Med 3.5% Fuel oil cargo is amended to $8.41/
mt. Comments please to europe_products@platts.com,
CC to pricegroup@platts.com.
■■ Effective January 9, 2013 and following a revised
freight rates for Italian ports issued by Worldscale, the
Worldscale flat rate used to calculate the netback formu-
la for FOB Med 1% Fuel oil cargo is amended to $8.41/
mt. Comments please to europe_products@platts.com,
CC to pricegroup@platts.com.
■■ Effective January 9, 2013 and following a revised
freight rates for Italian ports issued by Worldscale, the
Copyright © 2013, The McGraw-Hill Companies
january 15, 2013
Worldscale flat rate used to calculate the netback for-
mula for the NWE-Med jet fuel freight rate is amended
to $13.42/mt. The Rotterdam port fee calculation
within the Jet NWE-Med freight rate remains $1.15/mt.
Comments please to europe_products@platts.com, CC to
pricegroup@platts.com.
■■ Effective January 9, 2013 and following a revised freight
rates for Italian ports issued by Worldscale, the Worldscale
flat rate used to calculate the netback formula for CIF
Med premium gasoline 10 ppm is amended to $8.05/mt.
Comments please to europe_products@platts.com, CC to
pricegroup@platts.com.
■■ Effective January 1, 2013, Platts has removed a range
of biofuel assessments from European Marketscan. The
Platts MTBE assessment (code PHALA00) will continue
to be published in European Marketscan. From 2013
forward, the only Platts publication to carry biofuels is
Platts Biofuelscan. The codes affected are: Fuel grade eth-
anol codes AAWUQ00, AAYDT00, AAVLD00, AAYDS00;
Biodiesel FAME -10 codes AAWGY00, AAWGH00; FAME
0 codes AAXQL00, AAWGI00; Soy Methyl Ester (SME)
codes AAUCB00, AAWGJ00; Rapeseed Methyl Ester
(RME) codes AAUCA00, AAWGK00.
■■ ICE has released a document covering Frequently
Asked Questions regarding the transition from swaps
to futures effective October 15, 2012. The document is
available at www.theice.com/publicdocs/Platts_Swaps_
to_Futures_FAQ.pdf. The move by ICE to convert swaps
into futures has raised questions over whether the
change has also affected the nomenclature of Platts
assessments. The nomenclature of Platts assessments in
all its publications remains the same and there are no
changes envisioned as a result of the ICE move. Platts
methodologies are also unaffected by ICE changes. For
more information about our methodology please access
Platts.com or contact the various commodity sectors
including oil@platts.com and pricegroup@platts.com.
■■ Effective January 2, 2014 and following industry
feedback to a previous subscriber note, Platts will cal-
culate the CIF Mediterranean naphtha assessment by
only applying the freight value between Alexandria
and Lavera to the FOB Med naphtha assessment. This
3

turnarounds over H2 February and March. According
to market sources, as many as 13 LR2 cargoes have
been fixed from Europe to Asia for January loading.
This represents about one million tons of naphtha,
mainly heavy naphtha but also full-range, open specs
and some paraffinic naphtha (containing at least 70%
of paraffin), explained traders. Although it could not be
confirmed how many of these 80,000 cargoes were
being shipped from the Mediterranean, a trader said
that three of them were coming from Northwest Europe.
However, players disagreed on whether the NWE-Asia
arbitrage was open for many kinds of naphtha including
open specs or only for heavy naphtha. “Due to the
30-day time delay between the departure from NWE
and the delivery in Asia - Japan or Korea for example-
-it’s very hard to make it work,” argued a trader. “You
would have to buy naphtha based on January prices
and then sell it based on February prices.” A 80,000
mt cargo named NS Asia was reportedly fixed to ship
naphtha from Rotterdam to Japan for a delivery January
18 at $2.6 million.
Naphtha deals (PGA page 5)
Naphtha MOC deal: Stasco-Statoil 12,500 mt 25-29
January $904/mt.
Jet (PGA page 1497)
The premium paid for a 30,000 mt CIF cargo in
Northwest Europe increased by 50 cents day-on-day to
$78/mt Tuesday, as a lack of prompt availability of that
size proved enough to offset weak seasonal demand
and buck the recent downward trend. The premium to
ICE 0.1% gasoil futures had fallen from $81.50-77.75/
mt between January 8-14, Platts data shows. Sources
also pointed to a fire at one of India Essar Energy’s UK
sites as potentially adding a bullish edge to the day’s
proceedings. “Essar did have fire at Stanlow, so that
might explain some of the demand,” said one trader.
India’s Essar Energy said Monday it was investigating
the cause of a fire at its Stanlow refinery in the UK
EUROPEAN MARKETSCAN
Subscriber notes (cont.) (PGA page 1500)
freight value will be calculated using the Platts cross
Med clean tanker assessment for 27,500 mt naphtha
cargoes only. Currently the CIF Med naphtha assess-
ment is calculated by applying the freight value between
Alexandria and Lavera plus an allowance of $3/mt for
port costs. Platts proposes to remove the port costs from
the calculation of this assessment. Please send feedback
and questions to europe_products@platts.com with a cc
to pricegroup@platts.com
■■ Following feedback to its proposal published on June
27, 2012, Platts has discontinued its FOB NWE Premium
Gasoline Non-Oxy and Regular Unleaded Non-Oxy assess-
ments as planned. The assessments will be suspended
with effect from January 2, 2013. Platts proposed to dis-
continue the assessment because the quality reflected in
the two assessments no longer reflects an actively traded
or supplied grade in northwest Europe. Please send ques-
tions and feedback to europe_products@platts.com with a
CC to pricegroup@platts.com.
■■ Effective January 2, 2013, Platts is reflecting an updat-
ed specification in all European cracked LSFO cargoes
in response to changes in supply and demand patterns
in the European low sulfur fuel oil market. Under its
revised specifications, Platts assessments will reflect the
over the weekend, which shut down one of the plant’s
secondary production units. The refiner declined to
say which unit was affected but said the plant’s crude
distillation units and residue catalytic cracking unit were
not affected by the incident. The overall fundamental
picture for jet in the short-term, however, would continue
to be guided by low demand and steep backwardation
in the underlying benchmark gasoil futures, sources
noted. Ample supply in the Northwest Europe of the
smaller cargoes and barges with small pockets of
reported dual-purpose kerosene buying gave a balanced
tone. The FOB Rotterdam jet barge premium to gasoil
was unchanged at $73/mt. “People offering [dual-
purpose kerosene] cargoes out of the UK are struggling
to find buyers. Even with the cold snap, [sellers] are
complaining how poor demand in the UK has been,” a
Copyright © 2013, The McGraw-Hill Companies
january 15, 2013
following qualities: EU-qualified, 1.00% sulfur, 0.991
kg/l density, 380 CST viscosity, 60 ppm aluminium/
silicon, 7% asphaltenes, 30 degrees Celsius pour point,
65 degrees Celsius flash point, 15% CCR, 0.1% ash, 0.5%
water, 150 ppm vanadium, 9650 kcal/kg NCV, 0.1%
TSP. This represents a change from the previous Platts
assessment specifications of 0.995 kg/l density, 420 CST
viscosity, 80 ppm aluminium/silicon, 6% asphaltenes
and 120 ppm vanadium. All other specifications remain
unchanged from the current specification reflected.
Platts will continue to consider other merchantable LSFO
specifications in its assessment process, and normalize
to the updated specifications. Please send comments to
europe_products@platts.com with a cc to
pricegroup@platts.com.
■■ In preparation for a change to the benchmark
Singapore FOB gasoil assessment, the Gasoil Reg 0.5%
assessment was renamed Gasoil on January 3, 2012. The
renamed Gasoil assessment will continue to reflect the
same underlying methodology and quality specifications,
including a sulfur content of 0.5% sulfur, all through
calendar year 2012. The specification will change to 500
ppm sulfur on January 2, 2013. This name change has
now also been made in the Platts European Marketscan.
second source said. “A typical kero buyer has become
a seller.” Ireland is usually one of the big DPK buyers,
but sources said end consumer demand was lower than
originally forecast and DPk already in tank was sufficient
to meet current requirements. The February-March ICE
0.1% gasoil futures spread was $8.75/mt backwardated
at 1630 GMT Tuesday, steepening $2/mt in 24 hours.
A bullish prompt would typically encourage sellers to
unleash whatever they have in tank into the market. Its
impact was somewhat curtailed, however, by the parlous
state of both jet demand and stocks in the region. In
the Mediterranean there was sufficient local length to
quench demand. “For the Med to be balanced is typical
for this time of year, at low demand season. What hasn’t
helped was the large amount of arrivals in January into
Europe,” said the source, pointing some of that the
4

vessels coming via Suez to NWE would often make their
way into Med outlets. Eni was heard by sources to have
been awarded a recent sell tender by Egypt’s Midor.
The tender was for 25,000 mt of jet fuel, loading from
Dekheila (Alexandria).
Jet deals (PGA page 5)
No deals reported.
Jet Index (PGA page 115)
January 14, 2013 Index $/mt
Europe & CIS PJECI00 351.87 PJECI09 1029.13
MidEast & Africa PJMEA00 376.81 PJMEA09 995.57
Global PJGLO00 358.41 PJGLO09 1033.30
Gasoil (PGA page 1499)
Falling temperatures in Germany had yet to translate
into any increase in 50 ppm gasoil differentials in the
Amsterdam-Rotterdam-Antwerp region, with sources
reporting Tuesday that internal German refinery
production is enough to meet the demand. Warmer-
than-usual temperatures over November and December
led to the limited drawing of overall heating oil stocks
in Germany, with household heating oil stocks at 59%
January 1, traders said, unchanged from December.
Temperatures in Berlin were predicted to be remain
around the minus 9 degrees Celsius, according
to CustomWeather. In the Platts Market on Close
assessment process Argos Supply Trading offered to
February 0.1% gasoil futures contract plus $13/mt for
front window loading. There were no bid or trades for 50
ppm gasoil in the Platts Market on Close assessment
process. Refinery maintenance at Bayernoil refinery in
Germany, Vohburg around 206,000 b/d capacity site is
expected to start from the end of February, according
to a refinery source. Further details about the extent
of works or duration were not confirmed. The FOB
Rotterdam 0.1% gasoil barge differential to the front-
month ICE 0.1% gasoil futures contract was unchanged
over the day Tuesday assessed at $1/mt, Platts data
EUROPEAN MARKETSCAN
showed. The cold weather in the region has added
some support to the for 0.1% gasoil market for use as
a heating oil. However, sources added that it was lack
of resupply to the ARA region that was having a larger
impact. “Resupply from Russia is reducing, cargoes
are moving to the Mediterranean, West Africa, and the
USA, so we drawing stocks and with no resupply,” a
trader said. The Med market saw a small softening over
the day but fundamentals remained bullish. The Med
CIF 0.1% gasoil value was assessed $14.50/mt over
the front month ICE 0.1% gasoil futures contract, from
$15.50/mt, Platts data showed. “I see good demand-
-but there’s no-one producing 0.1%. There’s a whole
swathe of customers who want to buy though,” a trader
said. “Algeria is buying huge amounts, the Greeks are
buying, there?s interest from EGPC, Libya tendered
yesterday [Monday] for five cargoes, Tupras has a
tender that’s closing today...it’s changing the dynamics
of the 0.1% and the 10 ppm markets.” A buy tender by
Libya’s National Oil Corporation for four to five cargoes
of 25,000 mt 0.1% gasoil for delivery over February
closed Tuesday, with the results expected on January
17, market sources said. NOC could not be reached for
comment. Tupras typically buy gasoil for desulfurization,
to produce diesel, and tendered Monday for a gasoil
cargo for February 1-7 delivery. A source at Tupras
declined to comment at the time.
Gasoil deals (PGA page 5)
Gasoil 50 ppm barge MOC deals: Gunvor-STR, 0.1 gasoil
2kt fob ARA 18-22 at Feb minus 0.
Diesel (PGA page 1498)
Ultra low sulfur diesel barge prices hit a seven-month
low Tuesday, weighed by poor end-user demand in
Europe and with good supply from Russia, said traders.
The Rotterdam barge premium over the front-month
ICE 0.1% gasoil futures contract was assessed at
plus $14/mt at end of play, down a further $2.50/
mt on-day and at its lowest level since June last year.
Copyright © 2013, The McGraw-Hill Companies
january 15, 2013
Traders said refineries situated in Northwest Europe
and the Mediterranean basin had reduced production
in recent weeks because of poor margins for many
refined products, including diesel, however this was
not immediately apparent in the market with offers at
lower prices for the grade Tuesday. In the Platts Market
on Close assessment process, Argos, Total and STR
all sold January-loading barges at lower premiums to
ICE gasoil futures. A total of 600,000 mt of ULSD was
exported from Primorsk in November, 700,000 mt in
December and 1 million mt is expected this month,
according to Russian state-owned refined products
pipeline operator Transnefteprodukt, which confirmed
previous information obtained from traders. The
refineries supplying Primorsk with ULSD are Yaroslavl,
Moscow, Ryazan, NORSI, Perm and Nizhnekamsk, it
said. Black Sea exports of ULSD over January were put
by one source at six cargoes of 30,000 mt, but traders
reported all the vessels had already been sold. The NWE
CIF cargo assessment was February ICE 0.1% gasoil
futures contract plus $18/mt, down $1.25/mt, while in
the Med it was plus $22.75/mt, down $1.25/mt. The
Mediterranean market continued to be more supported
than NWE due to increased demand for gasoil for
heating reasons, and with tenders from Algeria and Libya
seen in recent days, said traders. “The premium of the
Med to NWE is justified given the demand backdrop,”
said one trader. “But I think both the Med and NWE
premiums should be higher...stocks are low and there’s
nothing new coming from the East. I’m struggling to find
a cargo.” Traders said the profit margin for turning gasoil
into diesel in a desulfurization unit in the Med was at its
lowest level since first-quarter last year because of the
increase in gasoil prices.
Diesel deals (PGA page 5)
ULSD MOC barge deal summary: Argos Supply Trading-JP
Morgan Commodities at Feb +$12/mt, 3kt ULSD 10ppm
FOB A/R 22-26/01; Totsa-STR, Feb +$12/mt 10 ppm
barges fob ara 18-22th 2 kt; Totsa-STR, Feb +$12/mt
10 ppm barges fob ara 18-22th 2 kt; STR-Vitol SA at Feb
5

+$14/mt, ULSD 10ppm, FOB ARA, 2kt, lifting 26-30 Jan;
STR-Vitol SA at Feb +$14/mt, ULSD 10ppm, FOB ARA,
2kt, lifting 26-30 Jan.
Fuel oil (PGA page 1599)
The high sulfur fuel oil market remained firm Tuesday
despite a lack of new fixtures to Asia and lower
Singapore premiums. The cash differential for Singapore
380 CST fuel oil, slipped further into the negative
territory, and was assessed 35 cents/mt lower from
Monday at minus 71 cents/mt. The market structure for
both 180 CST and 380 CST Singapore fuel weakened.
The balance January/February spread for the 180
CST HSFO was down 25 cents/mt from Monday to be
assessed at minus $3.50/mt Tuesday, while the same
spread for 380 CST HSFO slumped $1/mt over the
same period to flip back into a contango over the same
period to be assessed at minus 50 cents/mt. There
were no new fixtures heard on the Rotterdam-Singapore
route as traders took a more cautious approach. “If
the demand is not moving up in Singapore, I don’t see
how barges can stay supported in Europe,” a trader
said. FOB Rotterdam 3.5% barges were assessed at
a $3.75/mt premium to the February swap, up from
Monday’s $1.75/mt premium. In the Mediterranean,
sources continued to highlight product tightness on
the prompt. “There were some delays from the Black
Sea for fuel oil and crude and that took some straight
run from the market. I think it should be less tight next
week,” a trader said. On the news front, Gibraltar has
increased regulation of ship-to-ship transfers. The new
legislation, which took effect January 10, will require
ship-to-ship cargo transfers to take place inside British
Gibraltar Territorial Waters, rather than international
waters, and under the direct supervision of the Gibraltar
Port Authority. STS transfer costs are likely to rise as
a result. At the same time, Algeciras could receive a
boost given that vessels there are able to conduct STS
free-of-charge and without declaring hydrogen sulfide
levels, which has been a prerequisite in Gibraltar for
some time, a trader said. In the Northwest European
EUROPEAN MARKETSCAN january 15, 2013
low sulfur fuel oil market Tuesday, FOB NWE 1% cargoes n HSFO barge MOC deals: 1) Koch-Gunvor $604/
softened slightly, assessed at minus $3.00/mt against mt, 2kt, FOB Rdam, BE; 2) Chemoil-ArgosBunk $605/
equivalent front-month swaps, from minus $2.25/mt mt, 2kt, FOB Rdam, FE; 3) Chemoil-ArgosBunk $605/
Monday. This was based on activity in the Platts Market mt, 2kt, FOB Rdam, MW; 4) Chemoil-Aegean $605/
on Close assessment process in which Vitol offered mt, 2kt, FOB Rdam, FE; 5) Koch-Gunvor $604.25/
a high quality FOB Antwerp 30,000 mt LSFO cargo, of mt, 2kt, FOB Rdam, BE; 6) Mercuria-Vitol $604/
0.98% sulfur, 30 ppm aluminium and silicon content, 60 mt, 2kt, FOB Rdam, BE; 7) Koch-Gunvor $604.25/
vanadium, 30 CCR, which failed to find buying interest mt, 2kt, FOB Rdam, BE; 8) Mercuria-Gunvor $604/
at Febuary minus $1.00/mt. Gunvor and TOTSA also mt, 2kt, FOB Rdam, BE; 9) Koch-BP $604.25/mt, 2kt,
offered cargoes, while BP and Trafigura were bidding, FOB Rdam, BE; 10) Mercuria-Gunvor $604.25/mt,
but there were no trades. Rising LSFO premiums over 2kt, FOB Rdam, MW; 11) Koch-BP $604.25/mt, 2kt,
the last few weeks were related to the recovery in low FOB Rdam, BE; 12) Litasco-Aegean $604.5/mt, 2kt,
sulfur straight run, said one trader. FOB LSSR cargo FOB Rdam, FE; 13) Koch-BP $604.25/mt, 2kt, FOB
differentials to Brent crude have been recovering Rdam, BE; 14) Litasco-ArgosBunk $604.5/mt, 2kt,
steadily through most of December and January, as FOB Rdam, FE; 15) Chemoil-Vitol $604/mt, 2kt, FOB
lower crude margins at European refineries, particularly Rdam, FE; 16) Litasco-Vitol $604/mt, 2kt, FOB Rdam,
in the Mediterranean, led to higher demand for LSSR MW; 17) Litasco-ArgosBunk $604/mt, 2kt, FOB Rdam,
as a feedstock. Total said the European refining margin FE; 18) Mercuria-Vitol $604/mt, 2kt, FOB Rdam, BE;
indicator--the margin for a hypothetical complex refinery 19) Koch-Gunvor $604/mt, 2kt, FOB Rdam, BE; 20)
in Northern Europe--for the fourth quarter of 2012 was Litasco-BP $604/mt, 2kt, FOB Rdam, BE; 21) Mercuria-
$33.90/mt ($4.61/b), down by 33% on the previous Vitol $603.5/mt, 2kt, FOB Rdam, BE; 22) Litasco-Vitol
quarter, but more than double the margin in Q4 2011. $604/mt, 2kt, FOB Rdam, FE; 23) Litasco-ArgosBunk
European refiners, having posted big jumps in profit in $604/mt, 2kt, FOB Rdam, MW; 24) Litasco-Gunvor
Q3 as margins stayed at unexpectedly high levels, had $604/mt, 2kt, FOB Rdam, MW; 25) Koch-Gunvor
now reportedly begun to cut runs. $604/mt, 2kt, FOB Rdam, BE; 26) Litasco-Totsa $604/
mt, 2kt, FOB Rdam, MW; 27) Litasco-Vitol $604/mt,
Fuel Oil deals (PGA page 5)
2kt, FOB Rdam, MW; 28) Koch-Vitol $604/mt, 2kt, FOB
Rdam, BE; 29) Litasco-ArgosBunk $604/mt, 2kt, FOB
n LSFO barge MOC deals: 1) Chemoil-BP $635/mt, 1kt, Rdam, FE; 30) Litasco-Vitol $604/mt, 2kt, FOB Rdam,
FOB Rdam, FE; 2) Chemoil-BP $635/mt, 1kt, FOB Rdam, FE; 31) Chemoil-Vitol $604/mt, 2kt, FOB Rdam, MW;
FE; 3) Chemoil-OWgt $636/mt, 1kt, FOB Rdam, FE; 4) 32) Koch-Gunvor $603.5/mt, 2kt, FOB Rdam, BE; 33)
Litasco-OWgt $633/mt, 1kt, FOB Rdam, FE. Litasco-Vitol $603.5/mt, 2kt, FOB Rdam, MW; 34)
] EUROPEAN MARKETSCAN Volume 45 / Issue 10 / January 15, 2013
Editorial: Gasoil: +44-20-7176-6166 Diesel: +44-20-7176-6684 Gasoline: +44-20-7176-6120 Jet: +44-20-7176-6206 Naphtha: +44-20-7176-3144
Crude: +44-20-7176-6114 Fuel Oil: +44-20-7176-6104 Feedstocks: +44-20-7176-6112
Client services information: North America: 800-PLATTS8 (800-752-8878); direct: +1 212-904-3070, Europe & Middle East: +44-20-7176-6111,
Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: support@platts.com
Copyright © 2013 The McGraw-Hill Companies. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a compu-
ter system or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of The McGraw-Hill Companies Inc.Information has been
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such information. See back of publication invoice for complete terms and conditions.
Copyright © 2013, The McGraw-Hill Companies 6

OWnv-Aegean $604/mt, 2kt, FOB Rdam, FE; 35) Koch-
Vitol $604/mt, 2kt, FOB Rdam, BE; 36) Koch-Gunvor
$603.5/mt, 2kt, FOB Rdam, BE.
VGO (PGA page 1597)
In the Northwest European vacuum gasoil market
Tuesday, the arbitrage to the US for both high and
low sulfur grades started to look doubtful after US
VGO prices fell off sharply, with traders describing
an oversubscribed VGO market following three FCCs
going offline on the West Coast, and potentially more
to follow. “The US collapse is justified, we’re already
coming to maintenance there,” said one trader. “Valero
and Marathon FCCs are going down, some people
have stopped buying already and offers are piling up
a little bit...Everybody thinks it will be difficult to place
February cargoes.” Although European VGO values
remained largely unchanged, the region was bound to be
weakened by its export market soon, said traders. “So
far European demand is relatively good, but it has to be
impacted [by the US],” said the trader. “Europe cannot
live by its own.” FOB NWE low sulfur VGO cargoes were
assessed unchanged at a $3.90/mt premium to March
ICE Brent crude futures, while LSVGO barges rose
$0.25/barrel against March Brent to reach a $3.25/b
premium, catching up slowly with cargoes. High sulfur
VGO barges and cargoes were assessed up $0.10/b
against March Brent at a $1.60/b premium.
VGO deals (PGA page 5)
No deals reported.
North Sea crude (PGA page 1299)
Traders Tuesday spoke of slightly more bullish
sentiment in the North Sea crude market, pointing
to recovering margins on the back of both a weaker
Dated Brent market and rising oil product cracks.
However, some traders also noted the competition
(continued on page 9)
EUROPEAN MARKETSCAN january 15, 2013
Asia products
Code Mid Change Code Mid Change
Singapore (PGA page 2002)
FOB Singpore ($/barrel)
Naphtha PAAAP00 104.53–104.57 104.550 +2.220
Gasoline 92 unleaded PGAEY00 117.87–117.91 117.890 +1.540
Gasoline 95 unleaded PGAEZ00 120.32–120.36 120.340 +1.480
Gasoline 97 unleaded PGAMS00 121.82–121.86 121.840 +1.480
Kerosene PJABF00 128.31–128.35 128.330 +1.300
Gasoil 0.05% sulfur AAFEX00 127.28–127.32 127.300 +1.220
Gasoil 0.25% sulfur AACUE00 126.18–126.22 126.200 +1.230
Gasoil POABC00 127.28–127.32 127.300 +1.220
Fuel oil 180 CST 2% ($/mt) PUAXS00 646.06–646.10 646.080 +1.780
HSFO 180 CST ($/mt) PUADV00 633.94–633.98 633.960 +2.550
HSFO 380 CST ($/mt) PPXDK00 630.85–630.89 630.870 +2.300
Indonesia (PGA page 2516)
FOB Indonesia ($/barrel)
LSWR Mixed/Cracked PPAPU00 113.00–113.04 113.020 +1.300
Gasoline components (PBF page 2010)
FOB Singapore ($/mt)
MTBE PHALF00 1152.00–1154.00 1153.000 +8.000
Singapore Swaps (PPA page 2654)
February ($/barrel) March ($/barrel)
Naphtha Japan ($/mt) AAXFE00 935.25–935.75 935.500 +17.000 AAXFF00 925.25–925.75 925.500 +15.750
Naphtha PAAAQ00 102.08–102.12 102.100 +2.100 PAAAR00 100.83–100.87 100.850 +2.050
Gasoline 92 unleaded AAXEL00 116.83–116.87 116.850 +0.850 AAXEM00 116.03–116.07 116.050 +0.550
Reforming Spread AAXEO00 14.73/14.77 14.750 -1.250 AAXEP00 15.18/15.22 15.200 -1.500
Kerosene PJABS00 127.58–127.62 127.600 +1.350 PJABT00 126.86–126.90 126.880 +1.310
Gasoil POAFC00 127.13–127.17 127.150 +1.350 POAFG00 126.78–126.82 126.800 +1.400
HSFO 180 CST ($/mt) PUAXZ00 638.23–638.27 638.250 +1.750 PUAYF00 638.58–638.62 638.600 +1.950
Middle East (PGA page 2004)
FOB Arab Gulf ($/barrel)
Naphtha ($/mt) PAAAA00 911.54–920.04 915.790 +21.350
Naphtha LR2 ($/mt) AAIDA00 921.63–930.13 925.880 +20.330
Kerosene PJAAA00 125.63–125.67 125.650 +1.380
Gasoil 0.005% sulfur AASGJ00 124.99–125.03 125.010 +1.310
Gasoil 0.05% sulfur AAFEZ00 124.44–124.48 124.460 +1.310
Gasoil 0.25% sulfur AACUA00 122.99–123.03 123.010 +1.310
Gasoil POAAT00 124.44–124.48 124.460 +1.310
HSFO 180 CST ($/mt) PUABE00 619.18–619.22 619.200 +2.820
Japan (PGA page 2006)
C+F Japan ($/mt) Premium/Discount
Naphtha PAAAD00 948.75–957.25 953.000 +20.000
Naphtha MOPJ Strip AAXFH00 925.25–925.75 925.500 +15.750 AAXFI00 27.25/27.75 27.500 +4.250
Naphtha 2nd 1/2 Feb PAAAE00 964.75–965.25 965.000 +20.000
Naphtha 1st 1/2 Mar PAAAF00 956.75–957.25 957.000 +20.000
Naphtha 2nd 1/2 Mar PAAAG00 948.75–949.25 949.000 +20.000
Gasoline unleaded ($/barrel) PGACW00 120.65–120.69 120.670 +1.540
Kerosene ($/barrel) PJAAN00 130.33–130.37 130.350 +1.350
Gasoil ($/barrel) POABF00 129.63–129.67 129.650 +1.430
HSFO 180 CST PUACJ00 647.08–647.12 647.100 +2.550
Copyright © 2013, The McGraw-Hill Companies 7
 EUROPEAN MARKETSCAN january 15, 2013

US Products: January 14, 2013

Code Mid Change Code Mid Change Code Mid Change
New York harbor (PGA page 152)
CIF cargoes (¢/gal) RVP
Unleaded 87 0.3% AAMHG00 275.92–276.02 275.970 +1.740 AAMHGRV 15.0
Unleaded-89 0.3% AAMIW00 287.94–288.04 287.990 +1.660 AAMIWRV 15.0
Unleaded-93 0.3% AAMIZ00 305.96–306.06 306.010 +1.540 AAMIZRV 15.0
Jet PJAAX00 321.48–321.58 321.530 +5.510
Low sulfur jet PJABK00 324.98–325.08 325.030 +1.260
ULS Kero AAVTH00 333.98–334.08 334.030 +1.260
No. 2 POAEH00 307.73–307.83 307.780 +5.260
$/barrel 1% strip NYH cargo vs 1% strip
No. 6 0.3% HP PUAAE00 112.35–112.45 112.400 +0.450 AAUGA00 9.19/9.29 9.240 -0.100
No. 6 0.3% LP PUAAB00 118.50–118.60 118.550 +0.500 AAUGB00 15.34/15.44 15.390 -0.050
No. 6 0.7% PUAAH00 107.65–107.75 107.700 +0.450 AAUGC00 4.49/4.59 4.540 -0.100
No. 6 1.0%** PUAAO00 103.80–103.90 103.850 +0.450 AAUGG00 103.15–103.17 103.160 +0.550 AAUGD00 0.64/0.74 0.690 -0.100
No. 6 2.2% PUAAU00 97.41–97.46 97.435 +0.560 AAUGE00 -5.75/-5.70 -5.725 +0.010
No. 6 3.0% PUAAX00 95.68–95.78 95.730 +0.560 AAUGF00 -7.48/-7.38 -7.430 +0.010
Residual swaps ($/barrel)
No. 6 1.0% paper Bal M AARZS00 103.74–103.76 103.750 +0.700
No. 6 1.0% paper 1st month PUAXD00 102.20–102.30 102.250 +0.600
No. 6 1.0% paper 2nd month PUAXF00 101.75–101.85 101.800 +0.600
No. 6 1.0% paper next quarter PUAXG00 100.75–100.85 100.800 +0.600
Boston cargoes (PGA pages 152)
¢/gal
Low sulfur jet PJABL00 326.98–327.08 327.030 +1.260
ULS Kero AAVTJ00 335.98–336.08 336.030 +1.260
No. 2 POAEA00 309.98–310.08 310.030 +5.260
No. 6 2.2% ($/barrel) PUAWN00 98.76–98.81 98.785 +0.560
NY/Boston numbers include duty. **This assessment reflects 150 max al+si
FOB Gulf Coast (PGA page 156 & 338)
¢/gal RVP
Unleaded 87 PGACT00 260.94–261.04 260.990 +1.280 PGACTRV 13.5
Unleaded 89 PGAAY00 273.92–274.02 273.970 +1.460 PGAAYRV 13.5
Unleaded 93 PGAJB00 293.39–293.49 293.440 +1.730 PGAJBRV 13.5
MTBE PHAKX00 342.45–342.55 342.500 -3.700
Alkylate* AAFIE00 36.45/36.55 36.500 -4.000
Naphtha PAAAC00 275.69–275.79 275.740 +5.780
Jet 54 PJABM00 315.23–315.33 315.280 +6.460
Jet 55 PJABN00 320.23–320.33 320.280 +6.460
ULS Kero AAVTK00 330.23–330.33 330.280 +6.460
No. 2 POAEE00 301.68–301.78 301.730 +6.010
Low sulfur No. 2 POAES00 304.48–304.58 304.530 +4.260
*Premium to US Gulf Coast pipeline gasoline
$/barrel 3% strip vs 1% strip
Slurry Oil PPAPW00 95.57–95.59 95.580 +0.510 AAUGS00 -0.07/-0.05 -0.060 +0.200
No. 6 1.0% 6 API PUAAI00 102.69–102.71 102.700 +2.300 AAUGT00 7.05/7.07 7.060 +1.990
No. 6 3.0% PUAFZ00 95.42–95.44 95.430 +0.510 AAUGW00 95.63–95.65 95.640 +0.310 AAUGU00 -0.22/-0.20 -0.210 +0.200
RMG 380 PUBDM00 97.07–97.09 97.080 +0.460 AAUGV00 1.43/1.45 1.440 +0.150
Residual swaps ($/barrel)
No. 6 3.0% paper 1st month PUAXJ00 95.50–95.60 95.550 +0.500
No. 6 3.0% paper 2nd month PUAXL00 95.20–95.30 95.250 +0.550
No. 6 3.0% paper next quarter PUAXN00 94.70–94.80 94.750 +0.600

Copyright © 2013, The McGraw-Hill Companies 8


from West African crudes -- some grades of which
were experiencing an overhang -- that would provide
a natural cap to the market for the time being. “If
margins improve decently, I guess a decent chunk
[of West African crude] could clear. But we’re not
there yet,” one North Sea crude trader said. During
the Market on Close assessment process, a bid from
Total for February 1-5 Forties was sold by BP at Dated
Brent plus $0.70/barrel for February 1-3 loading dates.
This saw the Forties differential climb from Monday,
while a bid for BNB loading February 4-6 -- also from
Total at the same level, which was not sold by Shell
who own the only BNB February 4-6 cargo -- saw BNB
assessed up on the day too. Further rises to the BNB
differential were expected in the coming days as the
Abu Dhabi National Energy Company, or TAQA, shut
its Cormorant Alpha platform following a gas leak at
the facility. The platform and all pipeline infrastructure
were shut down as a precaution after hydrocarbons
were detected in one of the legs of the platform at
1615 GMT on Monday, TAQA said. TAQA said other
fields also shut in as a result of Cormorant Alpha’s
closure include Thistle, Northern Producer, Murchison,
EUROPEAN MARKETSCAN
North Alwyn, Tern, Eider and North Cormorant. The
Brent System is a venture among the 21 companies
that each own a share in the system and makes up
BNB with the inclusion of the Ninian stream. “I’m
hearing from the terminal that because of the leak
from Cormorant Alpha there will be a minimum seven
days down for the full Brent system,” one North Sea
crude trader said, referring to about 100,000 b/d. As a
result, though depending on how long the platform was
shut for, other traders suspected the BNB differential
would rise. “Well it can only be bullish...but it very
much depends on how long it will be down for,” one
said. Meanwhile, in the shipping market, Shell were
heard to have had two Suezmaxes on subjects or fixed
for mid-to-late-January loading at Hound Point, which
would fit a wide range of Forties cargoes the major
owns over that period. A crude trader at Shell was not
available for comment, though other sources suspected
a combination of destinations for the two vessels
extending to South Korea and the US Atlantic Coast.
This would combine with two VLCCs from Vitol to leave
at least 5 million barrels of Forties slated to load for
South Korea in January.
Copyright © 2013, The McGraw-Hill Companies
january 15, 2013
LSSR (PGA page 1598)
In the Northwest European low sulfur straight run market
Tuesday, FOB NWE LSSR cargoes gained $0.20/barrel
against the March ICE Brent crude futures contract
to reach a discount of $4.30/b. LSSR buying from
European refineries continued at a sustained higher
volume than typical, said traders, due to weak crude
margins. “When the margin for crude is worse, refiners
run more straight run” said one cargo trader. Another
trader agreed, saying; “There’s more straight run
demand in the Mediterranean, the Italians are cutting
crude runs,” in reference to ENI. “From the times when
we had zero demand, people put a lot in tank, and
current conditions [of increasing demand] are drawing
that out,” he said. Cold weather was hampering imports
of LSSR into the Mediterranean, said one trader.
“There’s less Turkmen stuff, which comes through Baku
to Kulevi [in Georgia], so we’re seeing slower discharge
from Kulevi ,” he said.
LSSR deals (PGA page 5)
No deals reported.
9