]

www.platts.com EUROPEAN MARKETSCAN

[OIL ]

Volume 45 / Issue 10 / January 15, 2013

European products ($/mt) ICE futures

Code Mid Change Code Mid Change
Platts ICE 1630 London assessments* (PGA page 703)
Mediterranean cargoes (PGA page 1114)
Gasoil Low Sulfur Gasoil
FOB Med (Italy) CIF Med (Genova/Lavera)
Feb AARIN00 960.25 Feb AAGL001 979.50
Naphtha* PAAAI00 875.00–875.50 875.250 +3.750 PAAAH00 896.25–896.75 896.500 +3.000 Mar AARIO00 951.50 Mar AAGL002 974.75
Prem Unl 10ppm AAWZA00 998.50–999.00 998.750 +0.750 AAWZB00 1012.25–1012.75 1012.500 +0.500
Apr AARIP00 942.75 Apr AAGL003 968.25
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 Brent Brent NX
Gasoil 0.1% AAVJI00 956.00–956.50 956.250 +6.000 AAVJJ00 974.50–975.00 974.750 +5.500 Feb AAYES00 111.31 Mar AAXZL00 110.51
Fuel Oil 1.0% PUAAK00 642.00–642.50 642.250 -6.500 PUAAJ00 655.00–655.50 655.250 -6.500 Mar AAYET00 110.48 Apr AAXZM00 109.71
Fuel oil 3.5% PUAAZ00 602.00–602.50 602.250 -1.500 PUAAY00 615.00–615.50 615.250 -1.500
Apr AAXZY00 109.68 May AAXZN00 109.08
Jet FOB Med premium AAIDN00 11.00/11.50 11.250 0.000
May AAYAM00 109.05 Jun AAYAP00 108.47
*Naphtha FOB Med is basis East Med
*Platts ICE assessments reflect the closing value of the ICE contracts at
Northwest Europe cargoes (PGA page 1110) precisely 16:30 London time.

FOB NWE CIF NWE/Basis ARA ICE gasoil settlements (PGA page 702)
Naphtha (Feb) PAAAJ00 908.00–908.50 908.250 +4.250
Gasoil Low Sulfur Gasoil
Naphtha PAAAL00 906.50–907.00 906.750 +2.750
Gasoline 10ppm AAXFQ00 987.00–987.50 987.250 -5.750 Feb AAQSG00 960.75 Feb AAGS001 976.75
Jet PJAAV00 1021.50–1022.00 1021.750 +6.750 PJAAU00 1038.00–1038.50 1038.250 +6.750 Mar AAQSH00 952.00 Mar AAGS002 975.25
ULSD 10 ppm AAVBF00 956.50–957.00 956.750 +5.250 AAVBG00 978.00–978.50 978.250 +5.250 Apr AAQSI00 943.00 Apr AAGS003 971.00
Diesel 10ppm NWE AAWZD00 960.00–960.50 960.250 +5.250 AAWZC00 982.00–982.50 982.250 +5.250 May AAQSJ00 935.75 May AAGS004 966.00
Diesel 10 ppm UK AAVBH00 984.25–984.75 984.500 +5.250 Jun AAQSK00 930.25 Jun AAGS005 961.25
Gasoil 0.1% AAYWR00 939.50–940.00 939.750 +5.750 AAYWS00 963.25–963.75 963.500 +5.750 Jul AAQSL00 926.75 Jul AAGS006 958.25
Fuel oil 1.0% PUAAM00 632.75–633.25 633.000 -5.000 PUAAL00 643.75–644.25 644.000 -5.000
Expiry AAQSM00 NA*
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 *Value at 12:00 London time will only appear on day of expiry
VGO 0.5-0.6% AAHMX00 782.00–783.00 782.500 +3.000 AAHMZ00 785.00–786.00 785.500 +3.000 ICE gasoil GWAVE (Previous day’s values) (PGA page 702)
VGO 2% max AAHNB00 766.00–767.00 766.500 +3.000 AAHND00 769.00–770.00 769.500 +3.000
Feb PXAAJ00 952.75 Mar PXAAK00 946.25
Northwest Europe barges (PGA page 1112)

FOB Rotterdam Naptha crack swap ($) NYMEX futures (16:30 London time)
Naphtha PAAAM00 902.50–903.00 902.750 +2.750
Eurobob AAQZV00 965.00–965.50 965.250 -3.750 -6 NYMEX WTI (PGA page 703)
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 $/barrel $/barrel
Jet PJABA00 1033.00–1033.50 1033.250 +6.500 Feb AASCR00 93.93 Mar AASCS00 94.36
Diesel 10 ppm AAJUS00 974.00–974.50 974.250 +4.000
NYMEX heating oil (PGA page 703)
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 ¢/gal ¢/gal
Fuel oil 1.0% PUAAP00 633.50–634.00 633.750 +0.750 Feb AASCT00 304.96 Mar AASCU00 303.92
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 NYMEX RBOB (unleaded gasoline) (PGA page 703)
VGO 0.5-0.6% AAHNF00 777.50–778.50 778.000 +4.500 -10 ¢/gal ¢/gal
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 Feb AASCV00 272.92 Mar AASCW00 275.07

*FOB Amsterdam-Rotterdam-Antwerp

The McGraw Hill Companies

 EUROPEAN MARKETSCAN january 15, 2013

Market Update (PGA page 724) Euro-denominated assessments 16:30 London (€/mt)
The front-month NYMEX heating oil contract tumbled Med cargoes (PGA page 1120) Northwest Europe barges (PGA page 1118)

in early afternoon US trade Tuesday, as sentiment FOB Med CIF Med FOB Rotterdam
(Italy) (Genova/Lavera) Naphtha ABWHF00 677.079
turned bearish ahead of upcoming data releases by Naphtha* ABWHE00 656.454 ABWHD00 672.392 Eurobob ABWGT00 723.956
the American Petroleum Institute and the US Energy Prem Unl 10ppm ABWGV00 749.081 ABWGU00 759.394 98 RON gasoline 10 ppm ABWGX00 768.207
Jet ABWGZ00 759.019 AAZBO00 777.582 Premium gasoline 10 ppm AAQCH00 753.206
Information Administration. NYMEX February heating 10ppm ULSD ABWHM00 725.081 ABWHH00 737.268 Jet ABWHC00 774.957
oil was down 2.63 cents from Monday’s settle at Gasoil 0.1% ABWGQ00 717.205 ABWGO00 731.081 Diesel 10 ppm AAQCI00 730.706
Fuel Oil 1.0% ABWGH00 481.700 ABWGF00 491.450 Gasoil 50 ppm AAUQF00 729.393
$3.0362/gal, after sliding more than 2.5 cents
Fuel oil 3.5% ABWGM00 451.699 ABWGK00 461.449 Gasoil 0.1% AAYWY00 720.956
between 11:15 a.m. and 12:15 p.m. EST. There was Jet FOB Med premium ABWHA00 8.438 Fuel oil 1.0% ABWGI00 475.324
no comparative slide in either the NYMEX crude or ICE *Naphtha FOB Med is basis East Med Fuel oil 3.5% AAQCK00 452.636
Rotterdam bunker 380 CST AAUHE00 457.136
Brent contracts. NYMEX February crude was down 24 Northwest Europe cargoes (PGA page 1116)
cents on-the-day at $93.90/barrel, while ICE February FOB NWE CIF NWE/ New York Harbor cargoes 16:30 London (PGA pages 1350 & 1450)
Brent was 73 cents lower at $111.15/b. “A lot of Basis ARA FOB NY Harbor
Naphtha AAQCE00 680.080 (€ cent/gal)
this is just trading,” Tim Evans, energy analyst at Citi Gasoline 10ppm ABWGS00 740.456 Unleaded 87 AAPYV00 205.06
Futures Perspective, said. “One of the things about Jet ABWHB00 766.332 AAQCF00 778.707 Unleaded 89 AAPYW00 214.07
market sentiment is that it can change abruptly without ULSD 10 ppm ABWHO00 720.206 ABWHI00 736.706 Unleaded 93 AAPYX00 227.59
Diesel 10ppm NWE ABWHP00 717.580 ABWHK00 733.706 No. 2 AAPYY00 230.23
advance notice, and the market doesn’t always have Diesel 10 ppm UK ABWHJ00 738.393
a very long attention span. Yesterday, [sentiment] Gasoil 0.1% ABWGR00 704.830 ABWGP00 722.643
Fuel oil 1.0% AAQCG00 474.762 ABWGG00 483.012
may have been about the weather, today it could be Fuel oil 3.5% ABWGN00 439.323 ABWGL00 449.261
European clean product barge freight rates
about inventories.” The slide largely erased gains in Straight run 0.5-0.7% ABWHG00 538.888
ARA ($/mt) (PGT page 1918)
the front-month heating oil contract seen Monday, Euro/US$ forex rate: 1.3333. Platts Euro denominated European & US product
Rotterdam — Rotterdam TCAEI00 2.00
assessments are based on market values and a Euro/US$ forex rate at 4:30
as expectations of colder weather in the Atlantic PM local London time. Rotterdam — Flushing TCAEJ00 3.50
Rotterdam — Ghent TCAEK00 3.00
Basin boosted distillate prices on both sides of the
Rotterdam — Antwerp TCAEL00 3.00
Atlantic overnight. The American Petroleum Institute Foreign exchange rates (PGA page 1151) Germany ($/mt) (PGT page 1918)
is scheduled to release its weekly data on US fuel January 15, 2013 London 16:30 Rotterdam — Duisburg TCAEM00 7.00
inventories at 4:30 pm EST (2130 GMT), while the Dollar/Swiss franc BCADC00 0.9286 Rotterdam — Cologne TCAEN00 10.00
GB pound/Dollar BCADB00 1.6092 Rotterdam — Karlsruhe TCAEO00 15.75
US Energy Information Administration is scheduled to Antwerp — Duisburg TCAEP00 7.75
Dollar/Yen BCACW00 88.5000
publish its figures at 10:30 a.m. EST (1530 London Euro/Dollar BCADD00 1.3333 Switzerland ($/mt) (PGT page 1918)
time) Wednesday. Analysts polled by Platts this week Dollar/Ruble AAUJO00 30.2840 Rotterdam — Basel TCAEQ00 16.25
anticipated a 1.6 million-barrel climb in US distillate
stocks over the survey week ended January 11. swap spread languished in contango at minus $2.75/ languished ever since. Moreover, the EBOB market
mt contango, down from Monday’s minus $1/mt, Platts had not flipped into contango since March 2012. “The
Gasoline (PGA page 1399)
data showed. The front month-second month spread had market in January looks weak. People are not keen on
first slipped into contango January 2, the first trading buying at flat and currently EBOB is being offered under
The contango in the Northwest Europe EBOB market day of 2013, but it had marked a modest recovery back flat,” a second trader said Tuesday. He added that the
persisted during the current season of low demand, but into backwardation until January 8, Platts data showed. key reason for the recent slide into contango was the
there were some fresh arbitrage opportunities to the However, late last week, the spread drifted back into a lack of arbitrage opportunity to the US. “There’s no real
US, traders said Tuesday. The FOB Rotterdam EBOB persistent contango structure after the closure of the interest with the closed arbitrage to the US. There’s
gasoline market had opened 2013 in a slight contango arbitrage from NWE to the US Atlantic Coast, traders lots of supply here and the pressure is on Europe.” The
structure, as would be typical for this time of year, after said. The January, balance month swap had also fell NWE-USAC February arbitrage swap was heard at minus
a year marked by heavy backwardation, Platts data into a discount against the front month, February $2.50 cents/gal, down from a last heard peg of minus
showed. The January-February FOB Rotterdam EBOB swap late last week, Platts data showed, where it had $2.25 cents/gal Monday, a third trader said. The NWE-

Copyright © 2013, The McGraw-Hill Companies 2

 EUROPEAN MARKETSCAN january 15, 2013

USAC arbitrage swap measures the relative strength of Subscriber notes (PGA page 1500)

the NYMEX RBOB futures contract and FOB Rotterdam

Eurobob gasoline barge swaps against ICE Brent, and is ■■ As part of its commitment to maintaining open Worldscale flat rate used to calculate the netback for-
dialog with the industry, Platts is hosting an Oil mula for the NWE-Med jet fuel freight rate is amended
used by market participants to determine the viability of
Technical Workshop on January 23 in Rotterdam. This to $13.42/mt. The Rotterdam port fee calculation
exporting gasoline from Europe to the USAC. However,
workshop will focus on barge and cargo logistics in the within the Jet NWE-Med freight rate remains $1.15/mt.
despite the weak arbitrage outlook, a second trader Amsterdam-Rotterdam-Antwerp region, including the Comments please to [email protected], CC to
said that trader flows were ongoing from NWE to the importance of performance in the Platts MOC process, [email protected].
US. “The flow is still happening at today’s arbitrage Platts nomination procedures, rights and obligations in
[value]. Fresh moves. Both sides going into contango is ■■ Effective January 9, 2013 and following a revised freight
chains, compensation, alternate delivery solutions and
rates for Italian ports issued by Worldscale, the Worldscale
seasonal and doesn’t affect the arbitrage.” A third trader demurrage issues and is aimed at inviting feedback from
flat rate used to calculate the netback formula for CIF
also said that the contango in the EBOB market could traders and operators as well as other market partici-
Med premium gasoline 10 ppm is amended to $8.05/mt.
open up further opportunities. “As the front Eurobob pants. The Platts panel will comprise of Simon Thorne,
Comments please to [email protected], CC to
market is again in contango, the arbitrage from NWE to Tim Worledge, Benno Spencer and Chris Vowden.
[email protected].
the US could maybe work again.” Register now to reserve your free place:
http://marketing2012.platts.com/content/OLEM201301_ ■■ Effective January 1, 2013, Platts has removed a range
RotterdamOilTechnicalWorkshop of biofuel assessments from European Marketscan. The
Gasoline deals (PGA page 5) Platts MTBE assessment (code PHALA00) will continue
■■ Effective January 9, 2013 and following a revised
to be published in European Marketscan. From 2013
Gasoline MOC deals: PREM UNL: Nich-Glencore at freight rates for Italian ports issued by Worldscale, the
forward, the only Platts publication to carry biofuels is
$1006/mt MW; Trafigura-Litasco at $1005/mt MW Worldscale flat rate used to calculate the netback formu-
Platts Biofuelscan. The codes affected are: Fuel grade eth-
la for FOB Med 10ppm diesel is amended to $9.47/mt.
anol codes AAWUQ00, AAYDT00, AAVLD00, AAYDS00;
Comments please to [email protected], CC to
Naphtha (PGA page 1398) [email protected].
Biodiesel FAME -10 codes AAWGY00, AAWGH00; FAME
0 codes AAXQL00, AAWGI00; Soy Methyl Ester (SME)
The naphtha complex appeared to be a touch weaker ■■ Effective January 9, 2013 and following a revised codes AAUCB00, AAWGJ00; Rapeseed Methyl Ester
Tuesday with the January/February spread widening freight rates for Italian ports issued by Worldscale, the (RME) codes AAUCA00, AAWGK00.
to minus $1.0/mt from minus $0.5/mt Monday. Only Worldscale flat rate used to calculate the netback for-
■■ ICE has released a document covering Frequently
mula for FOB Med 0.1% gasoil is amended to $10.74/mt.
one trade was concluded during the Platts Market Asked Questions regarding the transition from swaps
Comments please to [email protected], CC to
on Close assessment process with Statoil lifting to futures effective October 15, 2012. The document is
[email protected].
Stasco’s offer at $904/mt for a front window delivery. available at www.theice.com/publicdocs/Platts_Swaps_
Three bids were still active when the window closed, ■■ Effective January 9, 2013 and following a revised to_Futures_FAQ.pdf. The move by ICE to convert swaps
including a bid from Trafigura at $909/mt for delivery freight rates for Italian ports issued by Worldscale, the into futures has raised questions over whether the
February 5-9. Platts assessed CIF Northwest European Worldscale flat rate used to calculate the netback formu- change has also affected the nomenclature of Platts
la for FOB Med 3.5% Fuel oil cargo is amended to $8.41/ assessments. The nomenclature of Platts assessments in
cargoes at $906.75/mt, up from $904/mt Monday.
mt. Comments please to [email protected], all its publications remains the same and there are no
The February CIF NWE crack firmed very slightly to
CC to [email protected]. changes envisioned as a result of the ICE move. Platts
minus $7.95/barrel versus $8.05/b Monday, while methodologies are also unaffected by ICE changes. For
ICE Brent future for February rose by 36 cents on the ■■ Effective January 9, 2013 and following a revised
more information about our methodology please access
day to $111.31/b. In naphtha news, opportunities to freight rates for Italian ports issued by Worldscale, the
Platts.com or contact the various commodity sectors
ship naphtha from Europe to Asia were the focus of Worldscale flat rate used to calculate the netback formu-
including [email protected] and [email protected].
la for FOB Med 1% Fuel oil cargo is amended to $8.41/
the day with the February East/West spread continuing
mt. Comments please to [email protected], ■■ Effective January 2, 2014 and following industry
to widen: at the Asian close, it was valued at $17.75/
CC to [email protected]. feedback to a previous subscriber note, Platts will cal-
mt. Traders said early Tuesday that the focus in Asia culate the CIF Mediterranean naphtha assessment by
has shifted towards naphtha supply concerns with ■■ Effective January 9, 2013 and following a revised
only applying the freight value between Alexandria
multiple South Korean refineries due to undergo freight rates for Italian ports issued by Worldscale, the
and Lavera to the FOB Med naphtha assessment. This

Copyright © 2013, The McGraw-Hill Companies 3

 EUROPEAN MARKETSCAN january 15, 2013

turnarounds over H2 February and March. According Subscriber notes (cont.) (PGA page 1500)

to market sources, as many as 13 LR2 cargoes have

been fixed from Europe to Asia for January loading. freight value will be calculated using the Platts cross following qualities: EU-qualified, 1.00% sulfur, 0.991
Med clean tanker assessment for 27,500 mt naphtha kg/l density, 380 CST viscosity, 60 ppm aluminium/
This represents about one million tons of naphtha,
cargoes only. Currently the CIF Med naphtha assess- silicon, 7% asphaltenes, 30 degrees Celsius pour point,
mainly heavy naphtha but also full-range, open specs
ment is calculated by applying the freight value between 65 degrees Celsius flash point, 15% CCR, 0.1% ash, 0.5%
and some paraffinic naphtha (containing at least 70% Alexandria and Lavera plus an allowance of $3/mt for water, 150 ppm vanadium, 9650 kcal/kg NCV, 0.1%
of paraffin), explained traders. Although it could not be port costs. Platts proposes to remove the port costs from TSP. This represents a change from the previous Platts
confirmed how many of these 80,000 cargoes were the calculation of this assessment. Please send feedback assessment specifications of 0.995 kg/l density, 420 CST
being shipped from the Mediterranean, a trader said and questions to [email protected] with a cc viscosity, 80 ppm aluminium/silicon, 6% asphaltenes
that three of them were coming from Northwest Europe. to [email protected] and 120 ppm vanadium. All other specifications remain
However, players disagreed on whether the NWE-Asia unchanged from the current specification reflected.
■■ Following feedback to its proposal published on June
arbitrage was open for many kinds of naphtha including Platts will continue to consider other merchantable LSFO
27, 2012, Platts has discontinued its FOB NWE Premium
open specs or only for heavy naphtha. “Due to the specifications in its assessment process, and normalize
Gasoline Non-Oxy and Regular Unleaded Non-Oxy assess-
30-day time delay between the departure from NWE to the updated specifications. Please send comments to
ments as planned. The assessments will be suspended
[email protected] with a cc to
and the delivery in Asia - Japan or Korea for example- with effect from January 2, 2013. Platts proposed to dis-
[email protected].
-it’s very hard to make it work,” argued a trader. “You continue the assessment because the quality reflected in
would have to buy naphtha based on January prices the two assessments no longer reflects an actively traded ■■ In preparation for a change to the benchmark
and then sell it based on February prices.” A 80,000 or supplied grade in northwest Europe. Please send ques- Singapore FOB gasoil assessment, the Gasoil Reg 0.5%
mt cargo named NS Asia was reportedly fixed to ship tions and feedback to [email protected] with a assessment was renamed Gasoil on January 3, 2012. The
naphtha from Rotterdam to Japan for a delivery January CC to [email protected]. renamed Gasoil assessment will continue to reflect the
same underlying methodology and quality specifications,
18 at $2.6 million. ■■ Effective January 2, 2013, Platts is reflecting an updat-
including a sulfur content of 0.5% sulfur, all through
ed specification in all European cracked LSFO cargoes
calendar year 2012. The specification will change to 500
in response to changes in supply and demand patterns
Naphtha deals (PGA page 5) ppm sulfur on January 2, 2013. This name change has
in the European low sulfur fuel oil market. Under its
now also been made in the Platts European Marketscan.
Naphtha MOC deal: Stasco-Statoil 12,500 mt 25-29 revised specifications, Platts assessments will reflect the
January $904/mt.
over the weekend, which shut down one of the plant’s second source said. “A typical kero buyer has become
Jet (PGA page 1497)
secondary production units. The refiner declined to a seller.” Ireland is usually one of the big DPK buyers,
say which unit was affected but said the plant’s crude but sources said end consumer demand was lower than
The premium paid for a 30,000 mt CIF cargo in distillation units and residue catalytic cracking unit were originally forecast and DPk already in tank was sufficient
Northwest Europe increased by 50 cents day-on-day to not affected by the incident. The overall fundamental to meet current requirements. The February-March ICE
$78/mt Tuesday, as a lack of prompt availability of that picture for jet in the short-term, however, would continue 0.1% gasoil futures spread was $8.75/mt backwardated
size proved enough to offset weak seasonal demand to be guided by low demand and steep backwardation at 1630 GMT Tuesday, steepening $2/mt in 24 hours.
and buck the recent downward trend. The premium to in the underlying benchmark gasoil futures, sources A bullish prompt would typically encourage sellers to
ICE 0.1% gasoil futures had fallen from $81.50-77.75/ noted. Ample supply in the Northwest Europe of the unleash whatever they have in tank into the market. Its
mt between January 8-14, Platts data shows. Sources smaller cargoes and barges with small pockets of impact was somewhat curtailed, however, by the parlous
also pointed to a fire at one of India Essar Energy’s UK reported dual-purpose kerosene buying gave a balanced state of both jet demand and stocks in the region. In
sites as potentially adding a bullish edge to the day’s tone. The FOB Rotterdam jet barge premium to gasoil the Mediterranean there was sufficient local length to
proceedings. “Essar did have fire at Stanlow, so that was unchanged at $73/mt. “People offering [dual- quench demand. “For the Med to be balanced is typical
might explain some of the demand,” said one trader. purpose kerosene] cargoes out of the UK are struggling for this time of year, at low demand season. What hasn’t
India’s Essar Energy said Monday it was investigating to find buyers. Even with the cold snap, [sellers] are helped was the large amount of arrivals in January into
the cause of a fire at its Stanlow refinery in the UK complaining how poor demand in the UK has been,” a Europe,” said the source, pointing some of that the

Copyright © 2013, The McGraw-Hill Companies 4

 EUROPEAN MARKETSCAN january 15, 2013

vessels coming via Suez to NWE would often make their showed. The cold weather in the region has added Traders said refineries situated in Northwest Europe
way into Med outlets. Eni was heard by sources to have some support to the for 0.1% gasoil market for use as and the Mediterranean basin had reduced production
been awarded a recent sell tender by Egypt’s Midor. a heating oil. However, sources added that it was lack in recent weeks because of poor margins for many
The tender was for 25,000 mt of jet fuel, loading from of resupply to the ARA region that was having a larger refined products, including diesel, however this was
Dekheila (Alexandria). impact. “Resupply from Russia is reducing, cargoes not immediately apparent in the market with offers at
are moving to the Mediterranean, West Africa, and the lower prices for the grade Tuesday. In the Platts Market
Jet deals (PGA page 5)
USA, so we drawing stocks and with no resupply,” a on Close assessment process, Argos, Total and STR
trader said. The Med market saw a small softening over all sold January-loading barges at lower premiums to
No deals reported. the day but fundamentals remained bullish. The Med ICE gasoil futures. A total of 600,000 mt of ULSD was
CIF 0.1% gasoil value was assessed $14.50/mt over exported from Primorsk in November, 700,000 mt in
Jet Index (PGA page 115) the front month ICE 0.1% gasoil futures contract, from December and 1 million mt is expected this month,
January 14, 2013 Index $/mt $15.50/mt, Platts data showed. “I see good demand- according to Russian state-owned refined products
Europe & CIS PJECI00 351.87 PJECI09 1029.13
-but there’s no-one producing 0.1%. There’s a whole pipeline operator Transnefteprodukt, which confirmed
MidEast & Africa PJMEA00 376.81 PJMEA09 995.57
Global PJGLO00 358.41 PJGLO09 1033.30 swathe of customers who want to buy though,” a trader previous information obtained from traders. The
said. “Algeria is buying huge amounts, the Greeks are refineries supplying Primorsk with ULSD are Yaroslavl,
buying, there?s interest from EGPC, Libya tendered Moscow, Ryazan, NORSI, Perm and Nizhnekamsk, it
Gasoil (PGA page 1499)
yesterday [Monday] for five cargoes, Tupras has a said. Black Sea exports of ULSD over January were put
tender that’s closing today...it’s changing the dynamics by one source at six cargoes of 30,000 mt, but traders
Falling temperatures in Germany had yet to translate of the 0.1% and the 10 ppm markets.” A buy tender by reported all the vessels had already been sold. The NWE
into any increase in 50 ppm gasoil differentials in the Libya’s National Oil Corporation for four to five cargoes CIF cargo assessment was February ICE 0.1% gasoil
Amsterdam-Rotterdam-Antwerp region, with sources of 25,000 mt 0.1% gasoil for delivery over February futures contract plus $18/mt, down $1.25/mt, while in
reporting Tuesday that internal German refinery closed Tuesday, with the results expected on January the Med it was plus $22.75/mt, down $1.25/mt. The
production is enough to meet the demand. Warmer- 17, market sources said. NOC could not be reached for Mediterranean market continued to be more supported
than-usual temperatures over November and December comment. Tupras typically buy gasoil for desulfurization, than NWE due to increased demand for gasoil for
led to the limited drawing of overall heating oil stocks to produce diesel, and tendered Monday for a gasoil heating reasons, and with tenders from Algeria and Libya
in Germany, with household heating oil stocks at 59% cargo for February 1-7 delivery. A source at Tupras seen in recent days, said traders. “The premium of the
January 1, traders said, unchanged from December. declined to comment at the time. Med to NWE is justified given the demand backdrop,”
Temperatures in Berlin were predicted to be remain said one trader. “But I think both the Med and NWE
around the minus 9 degrees Celsius, according Gasoil deals (PGA page 5)
premiums should be higher...stocks are low and there’s
to CustomWeather. In the Platts Market on Close nothing new coming from the East. I’m struggling to find
assessment process Argos Supply Trading offered to Gasoil 50 ppm barge MOC deals: Gunvor-STR, 0.1 gasoil a cargo.” Traders said the profit margin for turning gasoil
February 0.1% gasoil futures contract plus $13/mt for 2kt fob ARA 18-22 at Feb minus 0. into diesel in a desulfurization unit in the Med was at its
front window loading. There were no bid or trades for 50 lowest level since first-quarter last year because of the
ppm gasoil in the Platts Market on Close assessment Diesel (PGA page 1498)
increase in gasoil prices.
process. Refinery maintenance at Bayernoil refinery in
Germany, Vohburg around 206,000 b/d capacity site is Ultra low sulfur diesel barge prices hit a seven-month Diesel deals (PGA page 5)
expected to start from the end of February, according low Tuesday, weighed by poor end-user demand in
to a refinery source. Further details about the extent Europe and with good supply from Russia, said traders. ULSD MOC barge deal summary: Argos Supply Trading-JP
of works or duration were not confirmed. The FOB The Rotterdam barge premium over the front-month Morgan Commodities at Feb +$12/mt, 3kt ULSD 10ppm
Rotterdam 0.1% gasoil barge differential to the front- ICE 0.1% gasoil futures contract was assessed at FOB A/R 22-26/01; Totsa-STR, Feb +$12/mt 10 ppm
month ICE 0.1% gasoil futures contract was unchanged plus $14/mt at end of play, down a further $2.50/ barges fob ara 18-22th 2 kt; Totsa-STR, Feb +$12/mt
over the day Tuesday assessed at $1/mt, Platts data mt on-day and at its lowest level since June last year. 10 ppm barges fob ara 18-22th 2 kt; STR-Vitol SA at Feb

Copyright © 2013, The McGraw-Hill Companies 5

 EUROPEAN MARKETSCAN january 15, 2013

+$14/mt, ULSD 10ppm, FOB ARA, 2kt, lifting 26-30 Jan; low sulfur fuel oil market Tuesday, FOB NWE 1% cargoes n HSFO barge MOC deals: 1) Koch-Gunvor $604/
STR-Vitol SA at Feb +$14/mt, ULSD 10ppm, FOB ARA, softened slightly, assessed at minus $3.00/mt against mt, 2kt, FOB Rdam, BE; 2) Chemoil-ArgosBunk $605/
2kt, lifting 26-30 Jan. 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/
Fuel oil (PGA page 1599)
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/
The high sulfur fuel oil market remained firm Tuesday 0.98% sulfur, 30 ppm aluminium and silicon content, 60 mt, 2kt, FOB Rdam, BE; 7) Koch-Gunvor $604.25/
despite a lack of new fixtures to Asia and lower vanadium, 30 CCR, which failed to find buying interest mt, 2kt, FOB Rdam, BE; 8) Mercuria-Gunvor $604/
Singapore premiums. The cash differential for Singapore at Febuary minus $1.00/mt. Gunvor and TOTSA also mt, 2kt, FOB Rdam, BE; 9) Koch-BP $604.25/mt, 2kt,
380 CST fuel oil, slipped further into the negative offered cargoes, while BP and Trafigura were bidding, FOB Rdam, BE; 10) Mercuria-Gunvor $604.25/mt,
territory, and was assessed 35 cents/mt lower from but there were no trades. Rising LSFO premiums over 2kt, FOB Rdam, MW; 11) Koch-BP $604.25/mt, 2kt,
Monday at minus 71 cents/mt. The market structure for the last few weeks were related to the recovery in low FOB Rdam, BE; 12) Litasco-Aegean $604.5/mt, 2kt,
both 180 CST and 380 CST Singapore fuel weakened. sulfur straight run, said one trader. FOB LSSR cargo FOB Rdam, FE; 13) Koch-BP $604.25/mt, 2kt, FOB
The balance January/February spread for the 180 differentials to Brent crude have been recovering Rdam, BE; 14) Litasco-ArgosBunk $604.5/mt, 2kt,
CST HSFO was down 25 cents/mt from Monday to be steadily through most of December and January, as FOB Rdam, FE; 15) Chemoil-Vitol $604/mt, 2kt, FOB
assessed at minus $3.50/mt Tuesday, while the same lower crude margins at European refineries, particularly Rdam, FE; 16) Litasco-Vitol $604/mt, 2kt, FOB Rdam,
spread for 380 CST HSFO slumped $1/mt over the in the Mediterranean, led to higher demand for LSSR MW; 17) Litasco-ArgosBunk $604/mt, 2kt, FOB Rdam,
same period to flip back into a contango over the same as a feedstock. Total said the European refining margin FE; 18) Mercuria-Vitol $604/mt, 2kt, FOB Rdam, BE;
period to be assessed at minus 50 cents/mt. There indicator--the margin for a hypothetical complex refinery 19) Koch-Gunvor $604/mt, 2kt, FOB Rdam, BE; 20)
were no new fixtures heard on the Rotterdam-Singapore in Northern Europe--for the fourth quarter of 2012 was Litasco-BP $604/mt, 2kt, FOB Rdam, BE; 21) Mercuria-
route as traders took a more cautious approach. “If $33.90/mt ($4.61/b), down by 33% on the previous Vitol $603.5/mt, 2kt, FOB Rdam, BE; 22) Litasco-Vitol
the demand is not moving up in Singapore, I don’t see quarter, but more than double the margin in Q4 2011. $604/mt, 2kt, FOB Rdam, FE; 23) Litasco-ArgosBunk
how barges can stay supported in Europe,” a trader European refiners, having posted big jumps in profit in $604/mt, 2kt, FOB Rdam, MW; 24) Litasco-Gunvor
said. FOB Rotterdam 3.5% barges were assessed at Q3 as margins stayed at unexpectedly high levels, had $604/mt, 2kt, FOB Rdam, MW; 25) Koch-Gunvor
a $3.75/mt premium to the February swap, up from now reportedly begun to cut runs. $604/mt, 2kt, FOB Rdam, BE; 26) Litasco-Totsa $604/
Monday’s $1.75/mt premium. In the Mediterranean, mt, 2kt, FOB Rdam, MW; 27) Litasco-Vitol $604/mt,
sources continued to highlight product tightness on Fuel Oil deals (PGA page 5)
2kt, FOB Rdam, MW; 28) Koch-Vitol $604/mt, 2kt, FOB
the prompt. “There were some delays from the Black Rdam, BE; 29) Litasco-ArgosBunk $604/mt, 2kt, FOB
Sea for fuel oil and crude and that took some straight n LSFO barge MOC deals: 1) Chemoil-BP $635/mt, 1kt, Rdam, FE; 30) Litasco-Vitol $604/mt, 2kt, FOB Rdam,
run from the market. I think it should be less tight next FOB Rdam, FE; 2) Chemoil-BP $635/mt, 1kt, FOB Rdam, FE; 31) Chemoil-Vitol $604/mt, 2kt, FOB Rdam, MW;
week,” a trader said. On the news front, Gibraltar has FE; 3) Chemoil-OWgt $636/mt, 1kt, FOB Rdam, FE; 4) 32) Koch-Gunvor $603.5/mt, 2kt, FOB Rdam, BE; 33)
increased regulation of ship-to-ship transfers. The new Litasco-OWgt $633/mt, 1kt, FOB Rdam, FE. Litasco-Vitol $603.5/mt, 2kt, FOB Rdam, MW; 34)
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
] 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,
boost given that vessels there are able to conduct STS Asian Pacific: +65-6530-6430 Latin America: +54-11-4121-4810, E-mail: [email protected]
Copyright © 2013 The McGraw-Hill Companies. All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a compu-
free-of-charge and without declaring hydrogen sulfide ter system or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of The McGraw-Hill Companies Inc.Information has been
levels, which has been a prerequisite in Gibraltar for obtained from sources believed reliable. However, because of the possibility of human or mechanical error by sources, McGraw-Hill or others, McGraw-Hill does not
guarantee the accuracy, adequacy or completeness of any such information and is not responsible for any errors or omissions or for results obtained from use of
some time, a trader said. In the Northwest European such information. See back of publication invoice for complete terms and conditions.

Copyright © 2013, The McGraw-Hill Companies 6

 EUROPEAN MARKETSCAN january 15, 2013

OWnv-Aegean $604/mt, 2kt, FOB Rdam, FE; 35) Koch- Asia products
Vitol $604/mt, 2kt, FOB Rdam, BE; 36) Koch-Gunvor Code Mid Change Code Mid Change
$603.5/mt, 2kt, FOB Rdam, BE. Singapore (PGA page 2002)
FOB Singpore ($/barrel)
Naphtha PAAAP00 104.53–104.57 104.550 +2.220
VGO (PGA page 1597) Gasoline 92 unleaded PGAEY00 117.87–117.91 117.890 +1.540
Gasoline 95 unleaded PGAEZ00 120.32–120.36 120.340 +1.480
In the Northwest European vacuum gasoil market Gasoline 97 unleaded PGAMS00 121.82–121.86 121.840 +1.480
Kerosene PJABF00 128.31–128.35 128.330 +1.300
Tuesday, the arbitrage to the US for both high and Gasoil 0.05% sulfur AAFEX00 127.28–127.32 127.300 +1.220
low sulfur grades started to look doubtful after US Gasoil 0.25% sulfur AACUE00 126.18–126.22 126.200 +1.230
Gasoil POABC00 127.28–127.32 127.300 +1.220
VGO prices fell off sharply, with traders describing
Fuel oil 180 CST 2% ($/mt) PUAXS00 646.06–646.10 646.080 +1.780
an oversubscribed VGO market following three FCCs HSFO 180 CST ($/mt) PUADV00 633.94–633.98 633.960 +2.550
going offline on the West Coast, and potentially more HSFO 380 CST ($/mt) PPXDK00 630.85–630.89 630.870 +2.300

to follow. “The US collapse is justified, we’re already Indonesia (PGA page 2516)

coming to maintenance there,” said one trader. “Valero FOB Indonesia ($/barrel)
LSWR Mixed/Cracked PPAPU00 113.00–113.04 113.020 +1.300
and Marathon FCCs are going down, some people
Gasoline components (PBF page 2010)
have stopped buying already and offers are piling up
FOB Singapore ($/mt)
a little bit...Everybody thinks it will be difficult to place MTBE PHALF00 1152.00–1154.00 1153.000 +8.000
February cargoes.” Although European VGO values Singapore Swaps (PPA page 2654)
remained largely unchanged, the region was bound to be February ($/barrel) March ($/barrel)
weakened by its export market soon, said traders. “So 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
far European demand is relatively good, but it has to be
Gasoline 92 unleaded AAXEL00 116.83–116.87 116.850 +0.850 AAXEM00 116.03–116.07 116.050 +0.550
impacted [by the US],” said the trader. “Europe cannot Reforming Spread AAXEO00 14.73/14.77 14.750 -1.250 AAXEP00 15.18/15.22 15.200 -1.500
live by its own.” FOB NWE low sulfur VGO cargoes were 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
assessed unchanged at a $3.90/mt premium to March HSFO 180 CST ($/mt) PUAXZ00 638.23–638.27 638.250 +1.750 PUAYF00 638.58–638.62 638.600 +1.950
ICE Brent crude futures, while LSVGO barges rose Middle East (PGA page 2004)
$0.25/barrel against March Brent to reach a $3.25/b FOB Arab Gulf ($/barrel)
premium, catching up slowly with cargoes. High sulfur Naphtha ($/mt) PAAAA00 911.54–920.04 915.790 +21.350
VGO barges and cargoes were assessed up $0.10/b Naphtha LR2 ($/mt) AAIDA00 921.63–930.13 925.880 +20.330
Kerosene PJAAA00 125.63–125.67 125.650 +1.380
against March Brent at a $1.60/b premium. Gasoil 0.005% sulfur AASGJ00 124.99–125.03 125.010 +1.310
Gasoil 0.05% sulfur AAFEZ00 124.44–124.48 124.460 +1.310
Gasoil 0.25% sulfur AACUA00 122.99–123.03 123.010 +1.310
VGO deals (PGA page 5) Gasoil POAAT00 124.44–124.48 124.460 +1.310
HSFO 180 CST ($/mt) PUABE00 619.18–619.22 619.200 +2.820
No deals reported. Japan (PGA page 2006)
C+F Japan ($/mt) Premium/Discount
Naphtha PAAAD00 948.75–957.25 953.000 +20.000
North Sea crude (PGA page 1299) Naphtha MOPJ Strip AAXFH00 925.25–925.75 925.500 +15.750 AAXFI00 27.25/27.75 27.500 +4.250
Naphtha 2nd 1/2 Feb PAAAE00 964.75–965.25 965.000 +20.000
Traders Tuesday spoke of slightly more bullish Naphtha 1st 1/2 Mar PAAAF00 956.75–957.25 957.000 +20.000
Naphtha 2nd 1/2 Mar PAAAG00 948.75–949.25 949.000 +20.000
sentiment in the North Sea crude market, pointing
Gasoline unleaded ($/barrel) PGACW00 120.65–120.69 120.670 +1.540
to recovering margins on the back of both a weaker Kerosene ($/barrel) PJAAN00 130.33–130.37 130.350 +1.350
Dated Brent market and rising oil product cracks. Gasoil ($/barrel) POABF00 129.63–129.67 129.650 +1.430
HSFO 180 CST PUACJ00 647.08–647.12 647.100 +2.550
However, some traders also noted the competition
(continued on page 9)

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

 EUROPEAN MARKETSCAN january 15, 2013

LSSR (PGA page 1598)

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

Copyright © 2013, The McGraw-Hill Companies 9