euromktscan11072013.pdf

[OIL ]

www.platts.com

European products ($/mt) Code Mid Change Code Mid Change

Mediterranean cargoes (PGA page 1114)

FOB Med (Italy) CIF Med (Genova/Lavera)Naphtha* PAAAI00 868.00–868.50 868.250 +5.250 PAAAH00 883.50–884.00 883.750 +5.500Prem Unl 10ppm AAWZA00 1005.25–1005.75 1005.500 +3.250 AAWZB00 1015.00–1015.50 1015.250 +3.500Jet AAIDL00 955.50–956.00 955.750 -1.000 AAZBN00 974.25–974.75 974.500 -0.50010ppm ULSD AAWYY00 924.25–924.75 924.500 -4.000 AAWYZ00 935.75–936.25 936.000 -3.750Gasoil 0.1% AAVJI00 905.00–905.50 905.250 -1.000 AAVJJ00 917.75–918.25 918.000 -1.000Fuel Oil 1.0% PUAAK00 609.50–610.00 609.750 +3.500 PUAAJ00 620.00–620.50 620.250 +3.500Fuel oil 3.5% PUAAZ00 594.75–595.25 595.000 +9.000 PUAAY00 605.25–605.75 605.500 +9.000Jet FOB Med premium AAIDN00 13.75/14.25 14.000 0.000

*Naphtha FOB Med is basis East Med

Northwest Europe cargoes (PGA page 1110)

FOB NWE CIF NWE/Basis ARANaphtha (Aug) PAAAJ00 881.75–882.25 882.000 +5.750Naphtha PAAAL00 891.25–891.75 891.500 +5.750Gasoline 10ppm AAXFQ00 1025.00–1025.50 1025.250 +3.250Jet PJAAV00 963.75–964.25 964.000 -0.500 PJAAU00 975.75–976.25 976.000 -0.500ULSD 10 ppm AAVBF00 918.75–919.25 919.000 0.000 AAVBG00 934.50–935.00 934.750 0.000Diesel 10ppm NWE AAWZD00 921.25–921.75 921.500 0.000 AAWZC00 937.50–938.00 937.750 0.000Diesel 10 ppm UK AAVBH00 939.00–939.50 939.250 0.000Gasoil 0.1% AAYWR00 896.75–897.25 897.000 -3.750 AAYWS00 914.25–914.75 914.500 -3.750Fuel oil 1.0% PUAAM00 601.00–601.50 601.250 +3.500 PUAAL00 610.50–611.00 610.750 +3.500Fuel oil 3.5% PUABB00 582.50–583.00 582.750 +0.750 PUABA00 594.00–594.50 594.250 +0.750Straight run 0.5-0.7% PKABA00 701.50–702.50 702.000 -0.500VGO 0.5-0.6% AAHMX00 785.00–786.00 785.500 -2.000 AAHMZ00 795.00–796.00 795.500 -2.000VGO 2% max AAHNB00 776.50–777.50 777.000 -2.000 AAHND00 786.50–787.50 787.000 -2.000

Northwest Europe barges (PGA page 1112)

FOB RotterdamNaphtha PAAAM00 887.25–887.75 887.500 +5.750Eurobob AAQZV00 1010.00–1010.50 1010.250 +3.25098 RON gasoline 10 ppm AAKOD00 1047.00–1047.50 1047.250 +3.250Premium gasoline 10 ppm PGABM00 1019.00–1019.50 1019.250 +3.250Jet PJABA00 975.75–976.25 976.000 -3.000Diesel 10 ppm AAJUS00 926.50–927.00 926.750 -1.750Gasoil 50 ppm AAUQC00 922.75–923.25 923.000 -1.750Gasoil 0.1% AAYWT00 911.25–911.75 911.500 -2.000Fuel oil 1.0% PUAAP00 607.75–608.25 608.000 +3.500Fuel oil 3.5% PUABC00 599.00–599.50 599.250 +0.750Rotterdam bunker 380 CST PUAYW00 602.00–603.00 602.500 +3.000VGO 0.5-0.6% AAHNF00 785.00–786.00 785.500 -2.000VGO 2% max AAHNI00 776.50–777.50 777.000 -2.000MTBE* PHALA00 1180.75–1181.25 1181.000 +15.750

*FOB Amsterdam-Rotterdam-Antwerp

ICE futures

Platts ICE 1630 London assessments* (PGA page 703)

Gasoil Low Sulfur Gasoil

Aug AARIN00 910.00 Aug AAGL001 926.50Sep AARIO00 910.50 Sep AAGL002 928.00Oct AARIP00 910.00 Oct AAGL003 930.00

Brent Brent NX

Aug AAYES00 107.93 Sep AAXZL00 107.18Sep AAYET00 107.18 Oct AAXZM00 106.53Oct AAXZY00 106.53 Nov AAXZN00 105.99Nov AAYAM00 105.99 Dec AAYAP00 105.44

*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

Aug AAQSG00 909.50 Aug AAGS001 928.00Sep AAQSH00 910.00 Sep AAGS002 930.25Oct AAQSI00 909.75 Oct AAGS003 931.50Nov AAQSJ00 907.75 Nov AAGS004 928.00Dec AAQSK00 905.25 Dec AAGS005 924.50Jan AAQSL00 903.50 Jan AAGS006 922.75Expiry AAQSM00 911.50*

*Value at 12:00 London time will only appear on day of expiry

ICE gasoil GWAVE (Previous day’s values) (PGA page 702)

Jul PXAAJ00 915.00 Aug PXAAK00 913.00

NYMEX futures (16:30 London time)

NYMEX WTI (PGA page 703)

$/barrel $/barrel

Aug AASCR00 105.06 Sep AASCS00 104.47

NYMEX heating oil (PGA page 703)

¢/gal ¢/gal

Aug AASCT00 299.92 Sep AASCU00 300.35

NYMEX RBOB (unleaded gasoline) (PGA page 703)

¢/gal ¢/gal

Aug AASCV00 301.55 Sep AASCW00 296.56

EUROPEAN MARKETSCANVolume 45 / Issue 133 / July 11, 2013

Jet crack swap ($)

16

19

22

JulMayMarJanNovSep

july 11, 2013EuROPEAN MARKETSCAN

2Copyright © 2013, McGraw Hill Financial

Market Update (PGA page 724)

NYMEX crude traded around $105.50 Thursday heading into the US trading day, down around $2 from a 16-month high in the Asian session that also saw the discount to ICE Brent narrow below $2/b for the first time since December 2010. At 1245 GMT, August ICE Brent was down 12 cents (0.11%) at $108.39/b, while August NYMEX crude had shed 90 cents (0.84%) to $105.62/b. The two contracts have traded in the ranges $107.94/b-$108.93/b and $105.34/b-$107.45/b, respectively, this was the highest level for ICE Brent since April 3, 2013, while NYMEX crude was at levels not seen since March 27, 2012. The Brent premium to NYMEX crude traded at $1.32/b-$2.90/b, falling below $2/b for the first time since December, 2010 and to the lowest since November 12, 2010. “WTI in particular found tailwind from a strong inventory reduction in the US: According to the US Department of Energy, US crude oil stocks declined last week by nearly 10 million barrels,” Commerzbank analysts said in a note. “In the last two weeks put together, US oil stocks have plunged by 20 million barrels -- this is the sharpest two-week fall since the data series began more than 30 years ago.” Adding support to oil prices were dovish comments overnight from the US federal reserve that gave a boost to risk sentiment and put the US dollar under pressure. The euro climbed as high as $1.3210, before drifting back to $1.3044, this compares with $1.2978 at Wednesday’s close and Tuesday’s settle of $1.2783. The US dollar index, meanwhile, was down 1.13% on the day at 83.25, having traded at 84.96 on Tuesday, the highest level since 2010. “The market already showed signs of nervousness on its long US dollar position as the USD weakened despite very little in the way of dovish gleanings from the FOMC minutes, which included word that about half were looking for a halt of Fed purchases by the end of the year,” said Saxo Bank head of FX strategy John Hardy. “But it was the post-Bernanke speech Q&A that delivered the real kicker -- during the Q&A session, Mr Bernanke waxed extremely dovish by indicating that the Bernanke Put remains in place.” In products markets, front-month NYMEX August

Foreign exchange rates (PGA page 1151)

July 11, 2013 London 16:30Dollar/Swiss franc BCADC00 0.9493GB pound/Dollar BCADB00 1.5133Dollar/Yen BCACW00 98.7600Euro/Dollar BCADD00 1.3050Dollar/Ruble AAUJO00 32.5770

Euro-denominated assessments 16:30 London (€/mt)Med cargoes (PGA page 1120)

FOB Med CIF Med (Italy) (Genova/Lavera)Naphtha* ABWHE00 665.326 ABWHD00 677.203Prem Unl 10ppm ABWGV00 770.498 ABWGU00 777.969Jet ABWGZ00 732.375 AAZBO00 746.74310ppm ULSD ABWHM00 708.429 ABWHH00 717.241Gasoil 0.1% ABWGQ00 693.678 ABWGO00 703.448Fuel Oil 1.0% ABWGH00 467.241 ABWGF00 475.287Fuel oil 3.5% ABWGM00 455.939 ABWGK00 463.985Jet FOB Med premium ABWHA00 10.728

*Naphtha FOB Med is basis East Med

Northwest Europe cargoes (PGA page 1116)

FOB NWE CIF NWE/ Basis ARANaphtha AAQCE00 683.142Gasoline 10ppm ABWGS00 785.632Jet ABWHB00 738.697 AAQCF00 747.893ULSD 10 ppm ABWHO00 706.130 ABWHI00 718.582Diesel 10ppm NWE ABWHP00 704.215 ABWHK00 716.284Diesel 10 ppm UK ABWHJ00 719.732Gasoil 0.1% ABWGR00 687.356 ABWGP00 700.766Fuel oil 1.0% AAQCG00 460.728 ABWGG00 468.008Fuel oil 3.5% ABWGN00 446.552 ABWGL00 455.364Straight run 0.5-0.7% ABWHG00 537.931

European clean product barge freight rates

ARA ($/mt) (PGT page 1918)

Rotterdam — Rotterdam TCAEI00 2.50 Rotterdam — Flushing TCAEJ00 4.25 Rotterdam — Ghent TCAEK00 4.00 Rotterdam — Antwerp TCAEL00 3.75

Germany ($/mt) (PGT page 1918)

Rotterdam — Duisburg TCAEM00 8.00 Rotterdam — Cologne TCAEN00 10.75 Rotterdam — Karlsruhe TCAEO00 17.25 Antwerp — Duisburg TCAEP00 8.75

Switzerland ($/mt) (PGT page 1918)

Rotterdam — Basel TCAEQ00 18.75

ULSD was up 66 points (0.22%) at $3.0083/gal, while NYMEX August RBOB had dropped 1.58 cents (0.52%) to $2.9991/gal. July ICE gasoil, meanwhile, was $1.50 (0.16%) higher at $915.25/mt.

Gasoline (PGA page 1399)

The Northwest European gasoline market began the day in softer territory before picking up in the afternoon. “Both cash barges and paper slowed this morning,” a source said earlier in the day. The August NYMEX RBOB versus ICE Brent futures value traded

at $17.30/b at 10:18 London time, slightly lower relative to the levels seen at the close Wednesday. However, later on the day the Eurobob barge market in the Amsterdam-Rotterdam-Antwerp region tracked the strength of the US gasoline market and rebounded towards the end of the session. The August NYMEX RBOB versus ICE Brent futures value traded at $18.41/b before the close, higher by $1.11/b from levels seen in the morning. The balance-month/front-month EBOB barge swap spread widened over the day, assessed $19/mt backwardated, up from $14.50/mt backwardated. The FOB Amsterdam-Rotterdam-Antwerp

Northwest Europe barges (PGA page 1118)

FOB RotterdamNaphtha ABWHF00 680.077Eurobob ABWGT00 774.13898 RON gasoline 10 ppm ABWGX00 802.490Premium gasoline 10 ppm AAQCH00 781.034Jet ABWHC00 747.893Diesel 10 ppm AAQCI00 710.153Gasoil 50 ppm AAUQF00 707.280Gasoil 0.1% AAYWY00 698.467Fuel oil 1.0% ABWGI00 465.900Fuel oil 3.5% AAQCK00 459.195Rotterdam bunker 380 CST AAUHE00 461.686

New York Harbor cargoes 16:30 London (PGA pages 1350 & 1450)

FOB NY Harbor (€ cent/gal)Unleaded 87 AAPYV00 226.49Unleaded 89 AAPYW00 233.61Unleaded 93 AAPYX00 244.28No. 2 AAPYY00 218.71

Euro/US$ forex rate: 1.3050. 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.



barge was assessed at $1,010.25/mt Thursday, higher by $3.25/mt on the day, assessed at a $17/mt cash premium versus front month outright barge swap, Platts data showed. The August USAC-UKC gasoline arbitrage swap was reported to be around 12.35 cents/gallon at the close. “On our calculations it has just opened,” a source said referring to the arbitrage opportunity to export gasoline from NWE to the US. However, for some market participants the arbitrage remained shut due to high price of RINs, sources said. The FOB Mediterranean gasoline cargo value was assessed at $1,005.50/mt, a day-on-day rise of $3.25/mt, Platts data showed. “August is still very strong despite not being positive,” a source said referring to the August FOB Mediterranean 10 ppm cargo swap discount to the FOB Rotterdam EBOB

barge gasoline swap -- the Med/North differential -- which was heard bid minus $5/mt, offered at minus $3/mt. Weak refinery margins along with firm demand expected for August could partly contribute to the current straight, sources said. Moreover, Persian Gulf could continue pulling barrels from the Mediterranean region on the anticipation of Asian markets remaining strong into August. “There could be spikes in demand in August due to the end of Ramadan...all the demand in the Mediterranean should come from the east,” a source said. The FOB AR premium unleaded 10 ppm barge market premium was unchanged at a $9/mt premium over the FOB AR EBOB barge market, assessed at $1,019.25/mt, Platts data showed. The blending margin on Nigerian WAF gasoline grade softened, a source previously said. FOB NWE WAF

Nigerian gasoline cargoes was heard trading at around a $37/mt discount to Platts Premium Unleaded 10ppm FOB barges. However, the blending economics differed for different market participants. “Mogas-naphtha spread is much better, so there is some room still in the blending,” one source said.

GasoLINE dEaLs (PGA page 5)

■■ Eurobob gasoline barge MOC deals: No trades reported.

■■ Premium 10 ppm gasoline barge MOC deals: NICH-Totsa MW at $1020/mt for 1.

■■ Gasoline cargo MOC deals: No Trades reported.

■■■ SUBSCRIBER NOTE: Update to Europe naphtha vessel standards from July 1

■■■ Following feedback to a subscriber note published on May 3, 2013, Platts confirms that the ability of sellers to substitute vessels nominated to buyers in the Platts European naphtha Market on Close assess-ment process should be permitted up until one clear working day before the first day of the narrowed three day delivery period (laycan), with effect from July 1. As an example, for a laycan narrowed by a seller to June 26-28, a seller will be permitted to substitute the vessel up until the close of business on Monday, June 24. Platts also expects parties to be reasonable when exceptional circumstances may require later substitu-tions and also in managing buyers requests to change discharge orders. Under Platts guidelines, a nominated cargo need solely meet the specifications defined in Platts methodology and those expressed by the market maker in MOC. Re-nominated vessels need to be able to meet the logistical requirements of the originally agreed discharge port. Please send any further com-ments or questions to [email protected] with a CC to [email protected].

■■■ Platts is re-opening a consultation period on whether oxygenate limits currently reflected in its European

naphtha assessments should be reviewed further. Platts currently reflects merchantable quality, open specifica-tion naphtha in its European CIF NWE physical naphtha assessment. Such quality is currently considered to have a maximum MTBE content of 50 ppm and a total oxy-genate content of 100 ppm. Please send any comments or questions to [email protected] with a CC to [email protected]

■■■ Under Platts Market on Close assessment guide-lines, commodities supplied from countries or enti-ties that are subject to trading embargoes and sanc-tions recognized under international law should not be delivered against transactions concluded during the Platts MOC assessment processes. Bids and offers that contain statements surrounding delivery of embargoed materials will be considered by Platts for publication, and if published after review may be subject to normalization in value. Please send any questions and comments to [email protected] and [email protected].

■■■ ICE has released a document covering Frequently Asked Questions regarding the transition from swaps to futures effective October 15, 2012. The docu-ment 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 nomencla-ture 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 meth-odology please access Platts.com or contact the vari-ous commodity sectors including [email protected] and [email protected].

■■■ Effective January 2, 2014 and following industry feedback to a previous subscriber note, Platts will calculate the CIF Mediterranean naphtha assess-ment by only applying the freight value between Alexandria and Lavera to the FOB Med naphtha assessment. This 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 assessment is calculated by apply-ing 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 calcula-tion of this assessment. Please send feedback and questions to [email protected] with a cc to [email protected]

subscriber notes (PGA page 1500)

http://www.theice.com/publicdocs/Platts_Swaps_to_Futures_FAQ.pdf

http://www.theice.com/publicdocs/Platts_Swaps_to_Futures_FAQ.pdf



Naphtha (PGA page 1398)

European naphtha followed the gasoline market higher on Thursday, as the expectation of higher blending demand moving forward helped carry both cracks and inter-month spreads. CIF NWE naphtha cargoes gained $5.75/mt to close at $891.50/mt -- or a premium of $2.50/mt to the balance-month July CIF NWE naphtha cargo outright swap at $889/mt -- despite an overnight decline in crude prices. The gain in the outright price was carried largely by an overnight climb in cracks, which broke out of a recent narrow trading band to push higher as the gasoline market extended its recent rally and expectations of further petrochemical demand in Asia remained robust. The balance-month CIF NWE naphtha cargo crack swap gained 95 cents to hit a more than one-month high of minus $7.45/b, while the front-month August crack swap rose 83 cents to minus $7.75/b. Prompt spreads also continued to widen, with the backwardation between the July and August CIF NWE naphtha cargo outright swaps ticking up a marginal 25 cents to $7/mt, while the differential between August and September climbed $1/mt to $7.50/mt. “Gasoline is strong again today, but we don’t see the effect on naphtha demand yet,” a trader said. “Maybe it will come. Or not. There’s still a lot of length to clear at the front.” Recent lackluster demand from gasoline blenders in the Antwerp-Rotterdam-Amsterdam refining region has highlighted softness in the naphtha market with most petrochemical end-users maximizing the LPG cracking. There were no trades in the Platts Market on Close process, though both Vitol and Stasco continued to bid, with Totsa, Gunvor and Glencore on the offer side. “There is a certain demand, but not at the levels that the sellers would like to achieve,” a petrochemical source said, adding that bids for material were hard to come by outside of the pricing window. “Offers are still at mid-single [digit premiums], while buyers are not prepared to pay that, so most of the time, it doesn’t come to a conclusion.” However, despite the availability of product at the prompt, he added that there were no distressed cargoes.

Naphtha dEaLs (PGA page 5)

■■ NAPHTHA: MOC SUMMARY: NO TRADES REPORTED

Jet (PGA page 1497)

More than 6% was added to the CIF Northwest European physical jet cargo premium on Thursday, as demand firmed into northern France, the Netherlands and UK and importers appeared relaxed about selling, according to Platts data and market sources. The premium was assessed at $66/mt (up $3.75/mt day-on-day) to the new front-month August ICE 0.1% gasoil futures contract, keeping the outright price broadly unchanged at $976/mt. Resupply barrels from the Persian Gulf and India reached NWE, but while volumes on the larger-sized tankers were expected to continue to flow into the region some tankers were seen heading to other locations. Gulf Crystal, a Long Range 1 tanker, has been lined up to deliver jet from the UAE into Fiumicino; and the Vitol-chartered Lady Henrietta is on its way to the Bahamas, having traveled through the Mediterranean from Kuwait, Platts vessel tracking tool cFlow showed. BP was looking for jet fuel into Le Havre, Hamble, and Rotterdam, but the major’s bids in the Platts Market On Close assessment process found no selling interest. Vitol offered cargoes backed by the tankers Victor Bakaev and FPMC P Ideal. They found no buying interest. Shortly before the MOC close, Vitol sold into a BP barge bid for between 2,000-2,500 mt into FARAG, over July 16-20, when the major reached August gasoil plus $65/mt. Normalization of plus $1/mt was applied for the range of loading options in the bid. It was the most competitive of four BP bids. A higher Vitol barge offer from Amsterdam/Rotterdam to Platts CIF Cargoes Mean plus $4/mt went untraded. FOB Rotterdam barges were assessed at $976/mt (down $3/mt). In fixture news, Sasol fixed the Anwaar Libya at $245,000 to promptly load 26,000 mt of jet on a Libya-Augusta route. The Maguro was fixed by Vitol from its own program to load 65,000 mt on July 23 on a PG-West route. The Athina, an LR1, was lined up by

Kuwait Petroleum Corp. to load July 25 from Kuwait-UK Continent at a lump sum of $1.575 million. OECD Europe demand for jet/kerosene fell 3.2 million b/d in May, compared to the same month in 2012, according to the International Energy Agency Thursday. Of Europe’s five largest oil consumers, only France saw demand grow, up 0.9% to 150,000 b/d. Demand in Germany was 200,000 b/d (down 2.6%); UK, 290,000 b/d (down 10.5%); Italy, 90,000 b/d (down 5%); and Spain, 110,000 b/d (down 7.5%). “Eurocontrol, the European Organization for the Safety of Air Navigation, has downgraded its forecast for growth in the total number of European flights in 2014 to 2.6%, from 2.9% previously,” the IEA said in its latest oil market report. “Whereas previously Eurocontrol set its maximum potential load factor at 85%, recent experience led it to raise it to 90%. Eurocontrol’s latest two-year flight forecast now includes a 1.3% decrease in the total number of European flights in 2013.” Heathrow saw 6.5 million passengers pass through its terminals in June, up 4.6% over the same time last year, the airport operator said Thursday. The load factor -- a measure of aircraft capacity utilization -- remained broadly unchanged at 81% (up 0.7 points). Meanwhile, the “busiest June in the history” of Frankfurt airport was reported by airline operator Fraport, up 40,000 passengers to 5.4m. Fraport’s five airports -- Frankfurt, Antalya, Burgas, Varna, and Lima -- posted a 4.6% traffic rise to a total of 10.8 million passengers.

JEt dEaLs (PGA page 5)

■■ Jet Cargo MOC Deals: None reported.

■■ Jet Barge MOC Deals: Vitol-BP 2.35KT FARAG 16-20 July at Aug plus 65.

Jet Index (PGA page 115)

July 10, 2013 Index $/mtEurope & CIS PJECI00 334.31 PJECI09 977.75MidEast & Africa PJMEA00 359.54 PJMEA09 949.93Global PJGLO00 335.32 PJGLO09 966.76



Gasoil (PGA page 1499)

Physical gasoil differentials rose over the day across all markets, despite outright prices falling, reflecting weaker demand in the barge and cargo markets in Northwest Europe and the Mediterranean, traders said. “There’s a lack of demand in the market, June saw seasonal highs, but has weakened a lot since then, which reflects thinner activity in and outside the Platts window,” said a trader. In the Mediterranean, activity picked up for the day as Vitol bought a 25-30,000 mt gasoil cargo from Gunvor for delivery July 21-25 basis Genoa, with charterparty options covering delivery in most ports in the Mediterranean. On the swap side, Vitol also bought 10,000 mt of Bal Month 0.1% Med cargo swaps from Gunvor at $8.00/mt, before purchasing an additional 5,000 mt slightly higher at $8.25/mt, expressing its expectations for premiums to be higher on average for the rest of the month. The physical 0.1% Mediterranean cargo premium rose to $8.00/mt Thursday, Platts data showed. BB Naft was reported to have the Mount Victoria fixed for a 35,000 mt gasoil cargo to Mauritania on the West Coast of Africa from ARA, with ship-tracking data showing the vessel anchored and unladen at the West Hinder anchorage. Meanwhile, the Andromeda was reported fixed, with the charterer unknown, for a 30,000 mt cargo from Novorossiisk to the Mediterranean with data showing the vessel was expected to load on Friday. August ICE gasoil futures traded higher through the day to reach an intraday high of $918.75/mt, before falling in afternoon trading to settle at $909.50/mt, as the July contract settled at $914.50/mt midday, with the spread between the front two contracts -- July and August -- settling in a $1.50/mt backwardation, according to ICE data. Physical delivery against holders of the expired July contract for ICE 0.1% gasoil was reported to be 184,800 mt, a significant drop from June’s 466,600 mt delivery, although still a strong volume.

GasoIL dEaLs (PGA page 5)

■■ Gasoil 0.1% Barge MOC deals: : No trades reported.

■■ Gasoil 50 ppm Barge MOC deals: No trades reported.

■■ Gasoil 0.1% Cargo MOC deals: One trade reported: Gunvor-Vitol at Mean 0.1% CIF Med cargo quote (Flat), on 0.845 for 25-30kt of 0.1 Spanish B+C Summer 21-25 July CIF basis Genoa, Pricing: 13-31 JULY for 25kt, Bal 3 quotes after final COD, euromed neobig (excl yugo/former yugo/albania/syria but including croatia/slovania)+Tunisia+Egypt med +Algeria, CP options, Litasco& BP& Total acceptable vessel. As per BP GTC’s 2007.

diesel (PGA page 1498)

Traders placed a much higher number of indications in the Platts Market on Close assessment process for cargoes Thursday, reflecting strong demand from end-users, they said. The Northwest European cargo premium was assessed at August 0.1% gasoil futures plus $24.75/mt CIF ARA, up $4.25/mt from Wednesday’s July-related assessment. The premium rose by a less significant $2.75/mt when taking into account the earlier expiration of the July gasoil futures contract at a higher price. The outright Northwest Europe cargo price was unchanged at $934.75/mt CIF ARA as the rising premium offset lower gasoil futures, the second time this happened this week. In the MOC process, BP put a stronger bid for a vessel discharging in the UK’s Thames and was hit by Statoil, while Vitol was still offering material from the Baltic area on the vessel Amalienborg. In the end, BP’s bid showed the premium to have risen on the day. In the Mediterranean cargo market, the standoff between ERG and Vitol continued as the Italian refiner placed a bid at a higher premium into Italy’s Fiumicino and with the trading house offering material on two separate ships coming from the US. Vitol’s offer on the STI Highlander was normalized up $1/mt to reflect the fact the vessel was not acceptable to ERG, following a deal between the two the previous day that was canceled. Vitol also came up with a second offer on the Nord Innovation Thursday, which is currently berthed in the US Gulf Coast,

according to Platts vessel tracking software cFlow. The offer showed the back of the Mediterranean physical curve to have fallen on-day. In the barge market, some traders and barge operators said that while the recent union-organized lock workers’ strikes created logistical difficulties, they would not have substantial effects on ULSD prices. “It’s pretty quiet at the moment anyway. There’s not that much thought about heating oil and diesel road fuel is pretty quiet,” said a trader. “The market is difficult at the moment. Nothing very big is happening, that’s also due to the high flat price,” said a second trader. However, BP confirmed Wednesday its Lingen and Gelsenkirchen refineries were both inaccessible by barges and were working on finding alternative transportation methods to deliver products. In the Rotterdam barge MOC process, 7,160 mt of ULSD was traded, a drop of 10,040 mt from Wednesday. While volume traded was lower on-day, buying interest was seen at higher levels than Wednesday’s premium. Thursday’s Rotterdam barge premium to July 0.1% ICE gasoil closed at $16.75/mt, up $2.50/mt on-day.

dIEsEL dEaLs (PGA page 5)

■■ ULSD MOC barge deal summary: 4 trades reported: Hetco - STR at Aug +17, July 16-20, ARA, 2kt; Litasco - Gunvor at Aug +18, July 16-20, FARA, 1.2kt; VSA - Cargill at Aug +17, July 16-20, ARA, 1.96kt; Hetco - STR at Aug +18, July 16-20, ARA, 2kt.

■■ ULSD MOC cargo deal summary: 1 trade reported: Statoil - BP, 22-26/7 dates, Aug +26.00, 20kt +/-10%, French Summer, 0.842 max density, cif basis Thames, Hamburg to northspain cp options, BP/Shell/Total approved vessel.

Fuel oil (PGA page 1599)

The Northwest European fuel oil market was softer Thursday, with FOB Rotterdam 3.5% sulfur fuel oil barges assessed at a $7.50/mt premium to the August swap, down $2/mt. There were reports that Cargill may have put



on subjects the VLCC Maersk Nautica on a Rotterdam-Singapore route despite a closed arbitrage. Cargill was unavailable for comment. The front-month east-west swap -- the difference between Singapore 180 CST HSFO and Rotterdam 380 CST -- was a touch firmer day on day at $17.75/mt, but still well below levels needed to make the arbitrage more workable, while the physical east-west spread rebounded to $10.17/mt from Wednesday’s $3.49/mt. “There was a bull play in Singapore, but that market has now collapsed. The East-West at these levels is not sustainable. We should see a rise in demand from Singapore soon,” a trader said. Fuel oil stockpiles in Singapore fell to 19.79 million barrels in the week ended July 10, down from a previous 19.9 million barrels, according to data from IE Singapore. In the Mediterranean, Lia was back bidding for an HSFO cargo in the Platts Market on Close assessment process, this time basis Barcelona, with main volume pricing prompt dates and at a $2.50/mt premium. The bid was quite aggressive given a deeper backwardation on the front-end of the 3.5% CIF Med curve. Consequently, the Med/north spread snapped back down to a $4.25/mt discount for the Med from a previous $12.50/mt discount. In the Northwest European low sulfur fuel oil market, cargoes were assessed unchanged for a third straight session at minus $7.75/mt versus front-month swaps. Meanwhile, the hi-lo spread rebounded to plus $2/mt from a previous minus $0.75/mt print. One source said he did not expect the hi-lo to move back in to negative territory for a prolonged period. “It is just a one day print. The balance July swap is still higher,” a trader said. In the Platts NWE cargoes MOC, there were three offers, two from Totsa and one from EON, but no bids -- a sign of continued weak demand. In the Med, BP offered a 2005 specification cargo pricing balance-month next-day 1% FOB NWE cargoes at a plus $10/mt premium, but the offer did not form the basis for the Med assessment, with sources saying there were no natural outlets for 2005 specification in the Med. “Nobody in the market is taking 1% 2005...I don’t know why they are offering this quality,” a trader said. “This cargo has no natural home in the Med. It does not fit utilities and it does not fit bunkers,” said a second trader.

FUEL oIL dEaLs (PGA page 5)

■■ HSFO barge MOC deal summary: 1) BP-Koch $599.25/mt, 2kt, FOB Rdam, FE; 2) BP-Litasco $599.5/mt, 2kt, FOB Rdam, FE; 3) OWnv-Litasco $599.5/mt, 2kt, FOB Rdam, FE; 4) BP-Litasco $599/mt, 2kt, FOB Rdam, FE; 5) Mercuria-Litasco $600/mt, 2kt, FOB Rdam, MW; 6) Gunvor-Litasco $599.5/mt, 2kt, FOB Rdam, MW; 7) OWnv-Litasco $600/mt, 2kt, FOB Rdam, MW; 8) BP-Litasco $599/mt, 2kt, FOB Rdam, FE.

VGo (PGA page 1597)

In the Northwest European vacuum gasoil market Thursday, FOB low sulfur VGO cargoes were assessed down $0.05/b versus ICE September Brent crude futures at a plus $7.65/b differential, while high sulfur VGO was assessed down $0.10/b at plus $6.40/b. Sources said the LSVGO market was tepid with not much activity seen, and that despite a narrowing WTI Brent spread and a slight draw in US gasoline stocks observed mid-week there was not much concrete demand seen. “The US is not buying that much LSVGO at the moment regardless of the WTI-Brent spread. I wouldn’t say demand is firm at the moment. And, for the arbitrage to work, differentials would have to be firmer,” said a source. In HSVGO, sources said the Minerva Gloria Aframax was fixed on a Tallinn to US Atlantic Coast route for July 27 loading dates. Sources said the ship was carrying a HSVGO cargo though a charterer could not be confirmed at the time of writing.

VGo dEaLs (PGA page 5)

■■ No deals reported

North sea crude (PGA page 1299)

North Sea crude traders continued to describe firm sentiment Thursday, as short European supply still dominated talk. Ongoing loading uncertainty from Libya and Iraq saw the values of other grades bolstered in both the Mediterranean and North Sea, while Urals values continued to be talked at record highs. “I think the market is reacting to a lack of supply and demand is still there,” one North Sea crude trader said. While earlier in the week traders had largely dismissed the possibility of run-cuts in the region, some traders Thursday began to see more potential in the idea, as European crude differentials rose again. “You obviously have got volumes you have to produce regardless of the margin but I suspect there will be a lot of adjusting to do now,” one trader said. Other sources noted that refiners were likely to hold out in the currently poor margin environment, waiting for the saving grace of the seasonal turnaround period over September and October, which would likely see margins improve and crude differentials decrease. While supply certainty from Libya and Iraq may well remain unknown in the coming weeks -- although late Thursday traders said that Es Sider had completely returned to normal operations, with the nearby port of Ras Lanuf also operational while Zueitina and El Sharara remained offline -- current supply constraints also may well improve towards the end of the quarter.

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: [email protected]

Copyright © 2013 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 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 information. See back of publication invoice for complete terms and conditions.

Volume 45 / Issue 133 / July 11, 2013EUROPEAN MARKETSCAN



With around 1.5 million barrels/day of Russian capacity to enter turnaround in September and October, more Urals supply will likely become available, traders said. With two deferrals to Forties parcels confirmed Thursday -- F0714 was deferred to July 21-23 and F0715 was deferred to July 23-25, crude traders at Total and Shell, who own the respective cargoes, said -- and Wednesday’s indications of another potential deferral within the July Forties loading program, traders talked of the possibility of the August program having been bolstered by a late July Forties parcel. However, by the close of business, no such deferral had been confirmed. Meanwhile, there were no cargoes heard to have been entered into the 25-day nomination process.

LssR (PGA page 1598)

In the European low sulfur straight run market Thursday, FOB Northwest European low sulfur straight run cargoes were assessed up $0.15/b versus the September ICE Brent crude futures contract at minus $3.45/b. Sources said sentiment was looking firmer as Urals crude was still at record levels, and with weak refining margins, LSSR supplies in NWE and the Med were expected to see an increase. “LSSR is looking a bit better now. Fuel oil cracks are weak and margins are not great and LSSR is slightly tighter in the region,” said a source. Sources also said a US refiner had fixed a vessel carrying 80,000 mt of LSSR from Skikda in Algeria to Houston for July 18-19 loading dates at Worldscale 72.5. There has been an increase in Algerian LSSR going to the US with the second CDU at Skikda now back online. Sources also said that with news BP had shut the second-largest crude distillation unit at its Whiting refinery on Lake Michigan for maintenance, there could be more demand for LSSR in the US, with could further tighten supply in Europe.

LssR dEaLs (PGA page 5)

■■ No deals reported

asia products Code Mid Change Code Mid Change

Singapore (PGA page 2002)

FOB Singpore ($/barrel)Naphtha PAAAP00 99.60–99.64 99.620 +0.450Gasoline 92 unleaded PGAEY00 124.19–124.23 124.210 +2.700Gasoline 95 unleaded PGAEZ00 128.58–128.62 128.600 +2.790Gasoline 97 unleaded PGAMS00 131.70–131.74 131.720 +2.810Kerosene PJABF00 121.87–121.91 121.890 +0.690Gasoil 0.05% sulfur AAFEX00 123.83–123.87 123.850 +0.350Gasoil 0.25% sulfur AACUE00 122.92–122.96 122.940 +0.210Gasoil POABC00 123.83–123.87 123.850 +0.350Fuel oil 180 CST 2% ($/mt) PUAXS00 621.61–621.65 621.630 +7.590HSFO 180 CST ($/mt) PUADV00 609.40–609.44 609.420 +7.430HSFO 380 CST ($/mt) PPXDK00 599.55–599.59 599.570 +6.970

Indonesia (PGA page 2516)

FOB Indonesia ($/barrel)LSWR Mixed/Cracked PPAPU00 99.25–99.29 99.270 +1.150

Gasoline components (PBF page 2010)

FOB Singapore ($/mt)MTBE PHALF00 1190.00–1192.00 1191.000 -22.000

Singapore Swaps (PPA page 2654)

August ($/barrel) September ($/barrel)Naphtha Japan ($/mt) AAXFE00 904.00–904.50 904.250 +6.000 AAXFF00 897.50–898.00 897.750 +5.500Naphtha PAAAQ00 98.23–98.27 98.250 +0.350 PAAAR00 97.53–97.57 97.550 +0.300Gasoline 92 unleaded AAXEL00 116.98–117.02 117.000 +0.950 AAXEM00 114.28–114.32 114.300 +0.300Reforming Spread AAXEO00 18.73/18.77 18.750 +0.600 AAXEP00 16.73/16.77 16.750 0.000Kerosene PJABS00 121.17–121.21 121.190 +0.410 PJABT00 121.07–121.11 121.090 +0.280Gasoil POAFC00 121.76–121.80 121.780 +0.350 POAFG00 121.36–121.40 121.380 +0.380HSFO 180 CST ($/mt) PUAXZ00 608.73–608.77 608.750 +7.450 PUAYF00 611.73–611.77 611.750 +7.200

Middle East (PGA page 2004)

FOB Arab Gulf ($/barrel)Naphtha ($/mt) PAAAA00 881.78–886.03 883.905 +4.170Naphtha LR2 ($/mt) AAIDA00 885.40–889.65 887.525 +4.000Kerosene PJAAA00 119.89–119.93 119.910 +0.700Gasoil 0.005% sulfur AASGJ00 122.18–122.22 122.200 +0.360Gasoil 0.05% sulfur AAFEZ00 121.73–121.77 121.750 +0.360Gasoil 0.25% sulfur AACUA00 121.13–121.17 121.150 +0.360Gasoil POAAT00 121.73–121.77 121.750 +0.360HSFO 180 CST ($/mt) PUABE00 592.46–592.50 592.480 +6.640

Japan (PGA page 2006)

C+F Japan ($/mt) Premium/DiscountNaphtha PAAAD00 908.00–912.25 910.125 +4.000Naphtha MOPJ Strip AAXFH00 897.50–898.00 897.750 +5.500 AAXFI00 12.13/12.63 12.380 -1.500Naphtha 2nd 1/2 Aug PAAAE00 915.75–916.25 916.000 +4.000Naphtha 1st 1/2 Sep PAAAF00 911.75–912.25 912.000 +4.000Naphtha 2nd 1/2 Sep PAAAG00 908.00–908.50 908.250 +4.000Gasoline unleaded ($/barrel) PGACW00 126.42–126.46 126.440 +2.700Kerosene ($/barrel) PJAAN00 122.48–122.52 122.500 +0.590Gasoil ($/barrel) POABF00 128.26–128.30 128.280 +0.500HSFO 180 CST PUACJ00 623.36–623.40 623.380 +7.430



Us products: July 10, 2013 Code Mid Change Code Mid Change Code Mid Change

New York harbor (PGA page 152)

CIF cargoes (¢/gal) RVPUnleaded 87 0.3% AAMHG00 294.52–294.62 294.570 +7.850 AAMHGRV 9.0Unleaded-89 0.3% AAMIW00 303.61–303.71 303.660 +7.450 AAMIWRV 9.0Unleaded-93 0.3% AAMIZ00 317.24–317.34 317.290 +6.840 AAMIZRV 9.0Jet PJAAX00 292.36–292.46 292.410 +1.440Low sulfur jet PJABK00 299.46–299.56 299.510 +1.540ULS Kero AAVTH00 314.46–314.56 314.510 +0.540No. 2 POAEH00 285.96–286.06 286.010 +1.540

$/barrel 1% strip NYH cargo vs 1% stripNo. 6 0.3% HP PUAAE00 95.68–95.70 95.690 +0.010 AAUGA00 2.28/2.30 2.290 0.000No. 6 0.3% LP PUAAB00 100.68–100.70 100.690 +0.110 AAUGB00 7.28/7.30 7.290 +0.100No. 6 0.7% PUAAH00 94.98–95.00 94.990 -0.040 AAUGC00 1.58/1.60 1.590 -0.050No. 6 1.0%** PUAAO00 93.13–93.15 93.140 +0.060 AAUGG00 93.39–93.41 93.400 +0.010 AAUGD00 -0.27/-0.25 -0.260 +0.050No. 6 2.2% PUAAU00 92.06–92.08 92.070 +0.500 AAUGE00 -1.34/-1.32 -1.330 +0.490No. 6 3.0% PUAAX00 91.11–91.13 91.120 +0.400 AAUGF00 -2.29/-2.27 -2.280 +0.390

Residual swaps ($/barrel)No. 6 1.0% paper Bal M AARZS00 93.24–93.26 93.250 0.000No. 6 1.0% paper 1st month PUAXD00 93.75–93.85 93.800 0.000No. 6 1.0% paper 2nd month PUAXF00 94.05–94.15 94.100 0.000No. 6 1.0% paper next quarter PUAXG00 93.90–94.00 93.950 -0.050

Boston cargoes (PGA pages 152)

¢/galLow sulfur jet PJABL00 301.46–301.56 301.510 +1.540ULS Kero AAVTJ00 316.46–316.56 316.510 +0.540No. 2 POAEA00 289.46–289.56 289.510 +1.540No. 6 2.2% ($/barrel) PUAWN00 92.82–92.84 92.830 +0.580

NY/Boston numbers include duty. **This assessment reflects 150 max al+si

FOB Gulf Coast (PGA page 156 & 338)

¢/gal RVPUnleaded 87 PGACT00 296.25–296.35 296.300 +3.330 PGACTRV 7.8Unleaded 89 PGAAY00 308.05–308.15 308.100 +4.230 PGAAYRV 7.8Unleaded 93 PGAJB00 325.75–325.85 325.800 +5.580 PGAJBRV 7.8MTBE PHAKX00 332.20–332.30 332.250 +6.300Alkylate* AAFIE00 26.20/26.30 26.250 -3.000Naphtha PAAAC00 252.00–252.10 252.050 +4.830Jet 54 PJABM00 289.26–289.36 289.310 +0.740Jet 55 PJABN00 289.51–289.61 289.560 +0.740ULS Kero AAVTK00 292.51–292.61 292.560 +0.740No. 2 POAEE00 287.31–287.41 287.360 +2.140Low sulfur No. 2 POAES00 289.46–289.56 289.510 +1.040

*Premium to US Gulf Coast pipeline gasoline $/barrel 3% strip vs 1% stripSlurry Oil PPAPW00 91.72–91.74 91.730 +0.410 AAUGS00 0.18/0.20 0.190 -0.030No. 6 1.0% 6 API PUAAI00 97.17–97.19 97.180 +0.310 AAUGT00 5.63/5.65 5.640 -0.130No. 6 3.0% PUAFZ00 91.52–91.54 91.530 +0.360 AAUGW00 91.53–91.55 91.540 +0.440 AAUGU00 -0.02/0.00 -0.010 -0.080RMG 380 PUBDM00 92.42–92.44 92.430 +0.460 AAUGV00 0.88/0.90 0.890 +0.020

Residual swaps ($/barrel)No. 6 3.0% paper 1st month PUAXJ00 91.30–91.40 91.350 +0.450No. 6 3.0% paper 2nd month PUAXL00 91.10–91.20 91.150 +0.450No. 6 3.0% paper next quarter PUAXN00 90.70–90.80 90.750 +0.450

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