]

www.platts.com EUROPEAN MARKETSCAN

[OIL ]

Volume 45 / Issue 1 / January 2, 2013

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European products ($/mt) ICE futures
Code Mid Change Code Mid Change
Platts ICE 1230 London assessments* (PGA page 703)
Mediterranean cargoes (PGA page 1114)
Gasoil Low Sulfur Gasoil
FOB Med (Italy) CIF Med (Genova/Lavera)

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Jan AARIN00 943.50 Jan AAGL001 963.50
Naphtha* PAAAI00 919.00–919.50 919.250 +16.500 PAAAH00 941.00–941.50 941.250 +17.250 Feb AARIO00 944.25 Feb AAGL002 964.50
Prem Unl 10ppm AAWZA00 995.00–995.50 995.250 +29.250 AAWZB00 1009.50–1010.00 1009.750 +29.750
Mar AARIP00 942.50 Mar AAGL003 962.50

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Jet AAIDL00 996.50–997.00 996.750 +14.500 AAZBN00 1023.00–1023.50 1023.250 +14.750
10ppm ULSD AAWYY00 953.50–954.00 953.750 +16.500 AAWYZ00 971.00–971.50 971.250 +17.250 Brent Brent NX
Gasoil 0.1% AAVJI00 934.75–935.25 935.000 +17.000 AAVJJ00 954.00–954.50 954.250 +17.250 Feb AAYES00 112.39 Feb AAXZL00 112.43
Fuel Oil 1.0% PUAAK00 610.00–610.50 610.250 +20.000 PUAAJ00 624.50–625.00 624.750 +19.250 Mar AAYET00 111.05 Mar AAXZM00 111.09

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Fuel oil 3.5% PUAAZ00 584.00–584.50 584.250 +16.000 PUAAY00 598.50–599.00 598.750 +15.250
Apr AAXZY00 110.13 Apr AAXZN00 110.17
Jet FOB Med premium AAIDN00 9.75/10.25 10.000 +1.500
May AAYAM00 109.46 May AAYAP00 109.50

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*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 929.75–930.25 930.000 +4.250
Gasoil Low Sulfur Gasoil
Naphtha PAAAL00 951.75–952.25 952.000 +17.000
Gasoline 10ppm AAXFQ00 989.25–989.75 989.500 +28.500 Jan AAQSG00 942.50 Jan AAGS001 963.50

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Jet PJAAV00 1008.75–1009.25 1009.000 +14.750 PJAAU00 1024.50–1025.00 1024.750 +14.750 Feb AAQSH00 943.50 Feb AAGS002 963.50
ULSD 10 ppm AAVBF00 947.00–947.50 947.250 +17.500 AAVBG00 967.50–968.00 967.750 +17.500 Mar AAQSI00 941.50 Mar AAGS003 960.50
Diesel 10ppm NWE AAWZD00 950.25–950.75 950.500 +17.500 AAWZC00 971.25–971.75 971.500 +17.250 Apr AAQSJ00 937.75 Apr AAGS004 956.75
PD
Diesel 10 ppm UK AAVBH00 973.50–974.00 973.750 +18.250 May AAQSK00 933.75 May AAGS005 953.25
Gasoil 0.1% AAYWR00 926.00–926.50 926.250 +17.000 AAYWS00 948.75–949.25 949.000 +17.000 Jun AAQSL00 929.50 Jun AAGS006 949.50
Fuel oil 1.0% PUAAM00 616.50–617.00 616.750 +17.250 PUAAL00 629.75–630.25 630.000 +17.250
Expiry AAQSM00 NA*
Fuel oil 3.5% PUABB00 570.75–571.25 571.000 +16.500 PUABA00 586.75–587.25 587.000 +15.750
Straight run 0.5-0.7% PKABA00 716.00–717.00 716.500 +21.000 *Value at 12:00 London time will only appear on day of expiry
VGO 0.5-0.6% AAHMX00 774.50–775.50 775.000 +20.000 AAHMZ00 777.50–778.50 778.000 +20.000 ICE gasoil GWAVE (Previous day’s values) (PGA page 702)
VGO 2% max AAHNB00 755.00–756.00 755.500 +20.000 AAHND00 758.00–759.00 758.500 +20.000
Jan PXAAJ00 930.75 Feb PXAAK00 932.00
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Northwest Europe barges (PGA page 1112)

FOB Rotterdam ULSD 10ppm barge crack swap ($) NYMEX futures (16:30 London time)
Naphtha PAAAM00 947.75–948.25 948.000 +17.000
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Eurobob AAQZV00 975.25–975.75 975.500 +28.500 25 NYMEX WTI (PGA page 703)
98 RON gasoline 10 ppm AAKOD00 1031.25–1031.75 1031.500 +15.500
Premium gasoline 10 ppm PGABM00 1011.25–1011.75 1011.500 +15.500 $/barrel $/barrel
Jet PJABA00 1021.75–1022.25 1022.000 +14.500 Feb AASCR00 93.18 Mar AASCS00 93.61
Diesel 10 ppm AAJUS00 964.25–964.75 964.500 +19.000
NYMEX heating oil (PGA page 703)
Ex

Gasoil 50 ppm AAUQC00 962.25–962.75 962.500 +19.000 20

Gasoil 0.1% AAYWT00 942.00–942.50 942.250 +16.250 ¢/gal ¢/gal
Fuel oil 1.0% PUAAP00 613.00–613.50 613.250 +8.500 Feb AASCT00 304.85 Mar AASCU00 303.74
Fuel oil 3.5% PUABC00 591.50–592.00 591.750 +15.750
Rotterdam bunker 380 CST PUAYW00 598.00–599.00 598.500 +14.000 NYMEX RBOB (unleaded gasoline) (PGA page 703)
VGO 0.5-0.6% AAHNF00 774.50–775.50 775.000 +20.000 15 ¢/gal ¢/gal
VGO 2% max AAHNI00 755.00–756.00 755.500 +20.000 Mar May Jul Sep Nov Jan
MTBE* PHALA00 1360.00–1360.50 1360.250 +29.000 Feb AASCV00 279.96 Mar AASCW00 279.71

*FOB Amsterdam-Rotterdam-Antwerp

The McGraw Hill Companies

 EUROPEAN MARKETSCAN january 2, 2013

Market Update (PGA page 724) Euro-denominated assessments 16:30 London (€/mt)
NYMEX February crude futures remained in bullish Med cargoes (PGA page 1120) Northwest Europe barges (PGA page 1118)

territory midday Wednesday, although eased back from FOB Med CIF Med FOB Rotterdam
(Italy) (Genova/Lavera) Naphtha ABWHF00 718.508
an early morning rally. Crude was lingering around Naphtha* ABWHE00 696.718 ABWHD00 713.392 Eurobob ABWGT00 739.351
$1.25/barrel higher at $93.07/b midday, after running Prem Unl 10ppm ABWGV00 754.320 ABWGU00 765.310 98 RON gasoline 10 ppm ABWGX00 781.795
Jet ABWGZ00 755.457 AAZBO00 775.542 Premium gasoline 10 ppm AAQCH00 766.636
up to $93.87/b on news that a deal between the 10ppm ULSD ABWHM00 722.866 ABWHH00 736.130 Jet ABWHC00 774.595

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White House and Congress had been made to avert the Gasoil 0.1% ABWGQ00 708.655 ABWGO00 723.245 Diesel 10 ppm AAQCI00 731.014
Fuel Oil 1.0% ABWGH00 462.521 ABWGF00 473.511 Gasoil 50 ppm AAUQF00 729.498
so-called US “fiscal cliff.” “The debate is far from over,”

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Fuel oil 3.5% ABWGM00 442.815 ABWGK00 453.805 Gasoil 0.1% AAYWY00 714.150
Price Futures Group analyst Phil Flynn said in a report. Jet FOB Med premium ABWHA00 7.579 Fuel oil 1.0% ABWGI00 464.795
“The passage of this bill just kicked that dang proverbial *Naphtha FOB Med is basis East Med Fuel oil 3.5% AAQCK00 448.499
Rotterdam bunker 380 CST AAUHE00 453.615
can down the road again because the across-the-board Northwest Europe cargoes (PGA page 1116)
government spending cuts will have a deadline for

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FOB NWE CIF NWE/ New York Harbor cargoes 16:30 London (PGA pages 1350 & 1450)
completion two months from now. Yet in the meantime, Basis ARA FOB NY Harbor
Naphtha AAQCE00 721.540 (€ cent/gal)
ignorance is bliss and this deal should propel oil to

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Gasoline 10ppm ABWGS00 749.962 Unleaded 87 AAPYV00 216.51
the high end of my predicted range near $96 a barrel.” Jet ABWHB00 764.742 AAQCF00 776.679 Unleaded 89 AAPYW00 225.76
NYMEX crude prices have risen “despite the fact that ULSD 10 ppm ABWHO00 720.403 ABWHI00 736.320 Unleaded 93 AAPYX00 239.65
Diesel 10ppm NWE ABWHP00 717.940 ABWHK00 733.477 No. 2 AAPYY00 232.57

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crude oil supply in Cushing, Oklahoma, is near record Diesel 10 ppm UK ABWHJ00 738.025
highs,” Flynn added. “The increase of oil flow through Gasoil 0.1% ABWGR00 702.024 ABWGP00 719.266

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Fuel oil 1.0% AAQCG00 467.447 ABWGG00 477.490
the Seaway Pipeline and more transportation moving oil Fuel oil 3.5% ABWGN00 432.772 ABWGL00 444.899
European clean product barge freight rates
should help support WTI versus Brent that had blown out Straight run 0.5-0.7% ABWHG00 543.050
ARA ($/mt) (PGT page 1918)
to ridiculous levels. In the new year, more infrastructures Euro/US$ forex rate: 1.3194. Platts Euro denominated European & US product
Rotterdam — Rotterdam TCAEI00 2.50
assessments are based on market values and a Euro/US$ forex rate at 4:30
will be built to alleviate the glut in Cushing and the PM local London time. Rotterdam — Flushing TCAEJ00 3.50
Rotterdam — Ghent TCAEK00 4.00
WTI will be on a path to restoring its reputation as the

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Rotterdam — Antwerp TCAEL00 3.50
world’s benchmark and why not! The US is going to be Foreign exchange rates (PGA page 1151) Germany ($/mt) (PGT page 1918)
the world’s largest oil producer in the world’s largest January 2, 2013 London 16:30 Rotterdam — Duisburg TCAEM00 8.50
PD
economy and soon to be a major exporter. The world is Dollar/Swiss franc BCADC00 0.9167 Rotterdam — Cologne TCAEN00 11.75
GB pound/Dollar BCADB00 1.6253 Rotterdam — Karlsruhe TCAEO00 19.00
already looking much different as we head into the new Antwerp — Duisburg TCAEP00 9.00
Dollar/Yen BCACW00 87.1100
year.” For the week ending December 21, crude stocks at Euro/Dollar BCADD00 1.3194 Switzerland ($/mt) (PGT page 1918)
the NYMEX crude futures delivery point at Cushing were Dollar/Ruble AAUJO00 30.1800 Rotterdam — Basel TCAEQ00 20.50
a record high 49.177 million barrels, according to the US
Energy Information Administration. Refined products were Eurobob gasoline barges gained $28.50/mt to be in the outright swaps market, with the balance-
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also bullish midday Wednesday, with NYMEX February assessed at $975.50/mt, as crude futures climbed month January outright swap closing at a $4.50/mt
heating oil lingering at $3.0440/gal, up 1.22 cents, and $2.84/b over the New Year holiday. Cash premiums premium to February. Cracks made gains on-the-day
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RBOB 3.52 cents higher at $2.7969/gal. also recovered marginally as the month rolled as well, boosted by a positive NWE-USAC arbitrage
January, though liquidity remained thin throughout swap, as the January FOB Rotterdam EBOB gasoline
Gasoline (PGA page 1399)
European trading. NWE EBOB gasoline barges were crack swap rose $0.60/b to close European trading
valued at a $1/mt premium to the February FOB at $5.85/b, while February gained $0.30/b to be
Ex

European gasoline prices jumped Wednesday on a Rotterdam EBOB gasoline outright swap at $974.50/ valued at $6.50/b. CIF NWE premium unleaded
surge in crude and a boost in RBOB following the mt, but maintained a $3.50/mt to the balance- gasoline cargoes also gained $28.50/mt from
news that Congress had passed a plan to avoid a month January swap at $979/mt. However, even Monday’s 1230 London close in line with EBOB to be
rash of spending cuts and tax increases that could as the physical barge market held on to a slight valued at $989.50/mt, with traders reporting steady
have negatively hit the US economy. FOB Rotterdam contango at the prompt, backwardation widened demand in to the UK. FOB Rotterdam premium

Copyright © 2013, The McGraw-Hill Companies 2

 EUROPEAN MARKETSCAN january 2, 2013

Gasoline deals (PGA page 5)

unleaded gasoline barges gained $15.50/mt on-the- assessment process of 2013, sources said
day to be valued at $1,011.50/mt as the premium Gasoline MOC deals: EBOB-- GUNVOR-STATOIL 10 ppm Wednesday. Front-month Brent contracts broke
unleaded premium over EBOB narrowed in Northwest EBOB MW $977/mt; GUNVOR-STATOIL 10 ppm EBOB above a near-three month trading range after the
Europe. Premium unleaded gasoline barges traded at MW $976/mt PREM UNL-- STATOIL-TOTSA 10 ppm successful passage through the US Congress of a
record-high premiums to EBOB in Northwest Europe premium unleaded MW $1,012/mt; STATOIL-GLENCORE bill to avert the “fiscal cliff” of automatic tax rises
through December. In the Mediterranean, traders 10 ppm premium unleaded MW $1,012/mt and spending cuts. A further rise in oil prices could

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said that demand is likely to continue in to the cause European petrochemical margins to come
Red Sea through January as a strong Asian market Naphtha under pressure following a broadly unchanged olefin

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(PGA page 1398)
has served to pull barrels from the West Coast settlement for January published December 28, a
of India further East. FOB Med premium unleaded Northwest Europe CIF naphtha cracks and spreads trader said. “The ethylene contract price for January
gasoline cargoes rose $29.25/mt from Monday to be fell amid rising oil prices, while Vitol was notably saw a rollover from December and propylene fell
assessed at $995.25/mt. absent from the first Platts Market on Close a tad lower so I would think cracks will be under

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Calendar month averages for December 2012
Code FOB Med cargo (Italy) Mid Code CIF NWE cargo (basis ARA) Mid

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Naphtha* PAAAI03 905.434–905.934 905.684 Naphtha physical PAAAL03 938.224–938.724 938.474
Prem Unl 10ppm AAWZA03 954.908–955.408 955.158 Gasoline 10ppm AAXFQ03 958.566–959.066 958.816
Jet AAIDM00 981.947–982.447 982.197 Jet PJAAU03 1010.079–1010.579 1010.329

Ev
10ppm ULSD AAWYY03 933.487–933.987 933.737 Fuel Grade Ethanol ($/cu m) AAYDS03 681.579–682.579 682.079
Gasoil 0.1% AAVJI03 913.895–914.395 914.145 ULSD 10 ppm AAVBG03 951.408–951.908 951.658
Fuel oil 1.0% PUAAK03 596.816–597.316 597.066 Diesel 10ppm NWE AAWZC03 954.908–955.408 955.158
Fuel oil 3.5% PUAAZ03 565.855–566.355 566.105 Diesel 10 ppm UK AAVBH03 956.224–956.724 956.474
Jet FOB Med premium AAIDO00 8.500/9.000 8.750 Gasoil 0.1% AAYWS03 931.118–931.618 931.368
Fuel oil 1.0% PUAAL03 607.342–607.842 607.592
CIF Med cargo (Genova/Lavera) Fuel oil 3.5% PUABA03 569.355–569.855 569.605
Naphtha
Prem Unl 10ppm
PAAAH03
AAWZB03 969.132–969.632

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927.013–927.513 927.263
969.382
VGO 0.5-0.6%
VGO 2% max
AAHNA00
AAHNE00
750.237–751.237
727.026–728.026
750.737
727.526
PD
Jet AAZBN03 1008.579–1009.079 1008.829
10ppm ULSD AAWYZ03 950.553–951.053 950.803 FOB Rotterdam barges
Gasoil 0.1% AAVJJ03 933.211–933.711 933.461 Naphtha PAAAM03 934.224–934.724 934.474
Fuel oil 1.0% PUAAJ03 612.632–613.132 612.882 Eurobob AAQZV03 943.934–944.434 944.184
Fuel oil 3.5% PUAAY03 581.671–582.171 581.921 98 RON gasoline 10 ppm AAKOE00 1002.013–1002.513 1002.263
Premium gasoline 10 ppm PGABM03 977.592–978.092 977.842
FOB NWE cargo Fuel Grade Ethanol T1** AAWUQ03 693.079–694.079 693.579
Premium gasoline Non Oxy AAVJE03 967.224–967.724 967.474 Fuel Grade Ethanol T2** AAYDT03 634.053–635.053 634.553
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Reg Unl Non Oxy AAOVN03 940.118–940.618 940.368 Fuel Grade Ethanol T2 German Spec** AAVLD03 634.053–635.053 634.553
Jet PJAAV03 995.763–996.263 996.013 MTBE *** PHBFZ03 1219.197–1219.697 1219.447
ULSD 10 ppm AAWZD03 935.658–936.158 935.908 Jet PJABA03 1008.776–1009.276 1009.026
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Diesel 10ppm NWE AAVBF03 932.947–933.447 933.197 Diesel 10 ppm AAJUW00 944.776–945.276 945.026
Gasoil 0.1% AAYWR03 910.592–911.092 910.842 Gasoil 50 ppm AAUQC03 941.500–942.000 941.750
Fuel oil 1.0% PUAAM03 594.671–595.171 594.921 Gasoil 0.1% AAYWT03 923.803–924.303 924.053
Fuel oil 3.5% PUABB03 553.645–554.145 553.895 Biodiesel AAWGY03 1221.500–1226.500 1224.000
Straight run 0.5-0.7% PKABA03 670.237–671.237 670.737 Fame 0 AAXQL03 1069.566–1074.566 1072.066
Ex

VGO 0.5-0.6% AAHMY00 747.447–748.447 747.947 Fuel oil 1.0% PUAAP03 603.592–604.092 603.842
VGO 2% max AAHNC00 724.237–725.237 724.737 Fuel oil 3.5% PUABC03 574.066–574.566 574.316
Rotterdam bunker 380 CST PUAYW03 581.421–582.421 581.921
VGO 0.5-0.6% AAHNG00 747.447–748.447 747.947
VGO 2% max AAHNJ00 724.237–725.237 724.737
*Naphtha FOB is basis east Med. **Ethanol barges in €/cu m. ***MTBE FOB Amsterdam/Rotterdam/Antwerp

Copyright © 2013, The McGraw-Hill Companies 3

 EUROPEAN MARKETSCAN january 2, 2013

pressure if Brent rises further.” At Wednesday’s Subscriber notes (PGA page 1500)

European close, the CIF NWE naphtha January crack

swap was assessed at minus $5.40/barrel, down ■■ Effective January 2, 2013, the Worldscale flat rate used to mt. Comments please to europe_products@platts.com
calculate the netback formulas for FOB Med 1% and 3.5% with a CC to pricegroup@platts.com
from Monday’s minus $4.90/b, Platts data showed.
fuel oil will be $8.33/mt. Unless otherwise proved, for the
Also, sources said Vitol’s buying spree in the Platts ■■ Effective January 1, 2013, Platts will remove a range
CIF NWE1% fuel oil the Worldscale flat rate used to cal-
Market on Close assessment process might come to of biofuel assessments from European Marketscan. The
culate the netback formulas will be $7.25/mt, and for FOB

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a halt in January 2013 after the company was absent Platts MTBE assessment (code PHALA00) will continue
NWE 3.5% fuel oil the Worldscale flat rate will be $8.79/mt.
from the MOC process Wednesday. Previously, Vitol to be published in European Marketscan. From 2013 for-
Comments please to europe_products@platts.com with a

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bought a total of 52 CIF NWE naphtha cargoes, ward, the only Platts publication to carry biofuels will be
CC to pricegroup@platts.com.
Platts Biofuelscan. The codes affected are: Fuel grade eth-
12,500 mt, in December. “It has caught people a
■■ Effective January 2, 2013, the Worldscale flat rate used anol codes AAWUQ00, AAYDT00, AAVLD00, AAYDS00;
little by surprise,” a second trader said of Vitol’s
to calculate the netback formulas for FOB Med 0.1% Biodiesel FAME -10 codes AAWGY00, AAWGH00; FAME
absence as a buyer Wednesday. “At the same time,

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gasoil will be $10.69/mt. For FOB NWE 0.1% gasoil the 0 codes AAXQL00, AAWGI00; Soy Methyl Ester (SME)
though, there is no real end-user spot buying now Worldscale flat rate net back will be $9.56/mt. Comments codes AAUCB00, AAWGJ00; Rapeseed Methyl Ester
at all as much of what Vitol bought in December is

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please to europe_products@platts.com with a CC to (RME) codes AAUCA00, AAWGK00.
likely to be going in to end-users.” pricegroup@platts.com.
■■ ICE has released a document covering Frequently
■■ Effective January 2, 2013, the Worldscale flat rate Asked Questions regarding the transition from swaps

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Naphtha deals (PGA page 5) used to calculate the netback formula for FOB Med to futures effective October 15, 2012. The docu-
10ppm diesel becomes $9.41/mt. The Worldscale flat ment is available at www.theice.com/publicdocs/

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Naphtha deals: MS-Trafigura at $950/mt January 12-16 rate used to calculate the netback formula for FOB Platts_Swaps_to_Futures_FAQ.pdf. The move by ICE to
NWE 10ppm diesel (Le Havre) becomes $8.89/mt. The convert swaps into futures has raised questions over
Jet (PGA page 1497) Worldscale flat rate used to calculate the netback for- whether the change has also affected the nomencla-
mula for the FOB ULSD 10ppm diesel (ARA) becomes ture of Platts assessments. The nomenclature of Platts
The new year started with pressure returning to the $8.66/mt. The Worldscale flat rate used to calculate the assessments in all its publications remains the same

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strong premiums, as signs that the tightness in supply netback formula for the CIF 10ppm diesel UK becomes and there are no changes envisioned as a result of the
that had provided support through late December was $2.51/mt. ICE move. Platts methodologies are also unaffected by
PD
ICE changes. For more information about our meth-
starting to relinquish its grip. The heady support that ■■ Effective January 2, 2013 the Worldscale flat rate used
odology please access Platts.com or contact the vari-
jet has enjoyed had seen it see out the end of 2012 to calculate the netback formula for FOB Med naphtha
ous commodity sectors including oil@platts.com and
as the strongest portion of the oil barrel, but traders cargoes becomes $15.39/mt. The Worldscale flat rate
pricegroup@platts.com.
had seen the growing discrepancy between jet and used to calculate the netback formula for CIF Med naph-
diesel--in terms of value--as a potential indication that tha becomes $9.62/mt. An additional $0.97/mt will be ■■ Effective January 2, 2014 and following industry
the jet market looked overdone and that, in lieu of added to the NWE-Med freight rate to calculated port feedback to a previous subscriber note, Platts will to
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fees in Rotterdam. An Additional $3/mt will be added to calculate the CIF Mediterranean naphtha assessment
strong end user demand, an improvement in arrivals
the cross-Med Worldscale rate used to cover additional by only applying the freight value between Alexandria
and refiners maximizing jet production was likely to
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costs. Comments please to europe_products@platts.com, and Lavera to the FOB Med naphtha assessment. This
weigh on premiums. “It’s a case of more product than CC to pricegroup@platts.com. freight value will be calculated using the Platts cross
is required and a good outright price,” one trader said of Med clean tanker assessment for 27,500 mt naphtha
the pressure coming to the barge market particularly. As ■■ Effective January 2, 2013 the Worldscale flat rate
cargoes only. Currently the CIF Med naphtha assess-
evidence of that pressure, barge premiums--which had used to calculate the netback formula for CIF Med pre-
ment is calculated by applying the freight value between
Ex

mium gasoline 10ppm is $8.02/mt. Comments please to

slipped to $2.50/mt below the cargo assessment--saw Alexandria and Lavera plus an allowance of $3/mt for
europe_products with a CC to pricegroup@platts.com
further falls as the market was assessed at $1,022/mt. port costs. Platts proposes to remove the port costs from
That equated to a premium of plus $78.50/mt over the ■■ Effective January 2, 2013, the Worldscale flat rate the calculation of this assessment. Please send feedback
front month gasoil contract, or some $2.75/mt below used to calculate the netback formulas for FOB Med jet and questions to europe_products@platts.com with a cc
the cargo market, which was assessed at a premium will be $13.32/mt. Rotterdam harbor dues will be $1.17/ to pricegroup@platts.com

Copyright © 2013, The McGraw-Hill Companies 4

 EUROPEAN MARKETSCAN january 2, 2013

of plus $81.25/mt. Alongside that, the news that the Subscriber notes (cont.) (PGA page 1500)

US government had avoided plunging headlong over the

fiscal cliff brought solace to crude values, which soared ■■ Following feedback to its proposal published on June following qualities: EU-qualified, 1.00% sulfur, 0.991
27, 2012, Platts confirms that it will discontinue its FOB kg/l density, 380 CST viscosity, 60 ppm aluminium/
to $112/barrel lifting ICE gasoil contracts by close to
NWE Premium Gasoline Non-Oxy and Regular Unleaded silicon, 7% asphaltenes, 30 degrees Celsius pour point,
$20/mt. On a dollar/barrel basis, the fall in premiums
Non-Oxy assessments as planned. The assessments will be 65 degrees Celsius flash point, 15% CCR, 0.1% ash, 0.5%
came as 10 ppm diesel is recovering its feet, raising suspended with effect from January 2, 2013. Platts proposed water, 150 ppm vanadium, 9650 kcal/kg NCV, 0.1% TSP.

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the prospect of jet’s time as the king of the barrel being to suspend the assessment because the quality reflected in This represents a change from Platts current assessment
brought to an abrupt end. According to Platts data, the the two assessments no longer reflects an actively traded or specifications of 0.995 kg/l density, 420 CST viscosity,

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jet FOB Rotterdam assessment equated to a value of supplied grade in northwest Europe. Please send questions 80 ppm aluminium/silicon, 6% asphaltenes and 120
$129.50/b, compared to the FOB Rotterdam 10 ppm and feedback to europe_products@platts.com with a CC to ppm vanadium. All other specifications will remain
assessment which equated to $129.46/b--just four pricegroup@platts.com. Please send any further questions unchanged from the current specification reflected.
cents behind jet. The spread had stood at 78 cents in and feedback to europe_products@platts.com with a CC to Platts will continue to consider other merchantable LSFO

a
jet’s favor on Monday. In the Mediterranean, traders pricegroup@platts.com. specifications in its assessment process, and normalize
saw the strength that has marked out the NWE region to the updated specifications. Please send comments to

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■■ Platts reflects European refined oil product bids, offers
europe_products@platts.com with a cc to
has robbed the region of some of the supply transiting and transactions that stipulate vessel nomination and
pricegroup@platts.com.
through the Mediterranean on the Persian Gulf to NWE narrowing to a 3 day delivery range by the earliest of

a
supply route. “Following the jet strength, we saw interest either 5 clear calendar or 3 clear working days prior to ■■ In preparation for a change to the benchmark
on Med sell tenders, because all the Persian Gulf jet the first day of the actual delivery range. Comments Singapore FOB gasoil assessment, the Gasoil Reg 0.5%

Ev
is going to Northwest Europe,” one trader said of the please to europe_platts@platts.com with a cc to assessment was renamed Gasoil on January 3, 2012. The
situation. Evidence of that was the recent settling of pricegroup@platts.com renamed Gasoil assessment will continue to reflect the
same underlying methodology and quality specifications,
a sell tender for one cargo from Greece’s Hellenic, ■■ Effective January 2, 2013, Platts will reflect an updat-
including a sulfur content of 0.5% sulfur, all through
which traders said had been decided at a “double ed specification in all European cracked LSFO cargoes
calendar year 2012. The specification will change to 500
digit premium” over the Platts FOB Mediterranean in response to changes in supply and demand patterns
ppm sulfur on January 2, 2013. This name change has

F
assessment. No one at Hellenic was available to in the European low sulfur fuel oil market. Under its
now also been made in the Platts European Marketscan.
confirm that level, however. In the Platts Market on revised specifications, Platts assessments will reflect the
PD
Close assessment process, BP showed a cargo to sell
while Vitol and Morgan Stanley maintained their vigil Gasoil (PGA page 1499) Unit margins. In the Platts Market on Close assessment
on the buy side. However, the trading activity shifted to process Gunvor offered to January minus $2/mt FOB
the barge market, with Shell picking up 6,000 mt of jet The 0.1% gasoil barge market in the Amsterdam- ARA before being lifted by STR. Gunvor did not re-offer
A1 from KLM at January plus $78/mt, for delivery on Rotterdam-Antwerp region softened on the first working while STR increased their bid to January minus $2/
January 7-11 dates. day after the new year holiday period with limited local mt. An offer by Vitol was then lowered to match the
rt

or export demand, and good supply volumes from STR bid for front window loading. STR rebid, but Vitol
Jet deals the Baltics as well as refineries in the Amsterdam- did not re-offer. The FOB Rotterdam 0.1% gasoil barge
pe

(PGA page 5)
Rotterdam-Antwerp region. “Demand is not very great, as differential to the front month ICE 0.1% gasoil futures
Jet MOC barge deal summary: KLM-STR, at JAN +$78/ its warmer than average,” a barge trader said referring contract was assessed at minus $1.25/mt, down
mt, 3kt fob farag 7-11/01; KLM-STR, at JAN +$78/mt, to demand for gasoil for heating. “[Export demand $0.50/mt from last assessed Monday, Platts data
3kt fob farag 7-11/01 from] West Africa and Red Sea is not as high as in showed. The ICE 0.1% gasoil January/February spread
Ex

October or November...but there is still some demand at 1630 London time echoed the softening in the gasoil
Jet Index (PGA page 115) from these locations,” the trader added. Other sources market as it was trading $0.75/mt in contango, this
January 1, 2013 Index $/mt added that there was regional demand for high sulfur is from a $0.25/mt contango at 12:30 London time
Europe & CIS PJECI00 344.91 PJECI09 1008.75
gasoil from refineries to top up secondary units such Monday. In the 50 ppm gasoil market had yet to see
MidEast & Africa PJMEA00 369.75 PJMEA09 976.90
Global PJGLO00 349.15 PJGLO09 1006.64 as desulfurization units due to poor Crude Distillation any strong pick up in activity after the holiday period,

Copyright © 2013, The McGraw-Hill Companies 5

 EUROPEAN MARKETSCAN january 2, 2013

sources said. However CustomWeather data showed $21/mt, Platts data shows. Market sources said to a $3.75/mt discount on Monday. This was based
that the predicted temperatures for Berlin over the next that the European diesel market was showing feel on bids from BP and Trafigura, and offers from Vitol
week are going to be up to 11 degrees above the usual the absence of the typical flow of arbitrage cargoes for FOB Antwerp LSFO cargoes in the Platts Market
for this time of year, therefore bearish for heating oil from the US as more localized supply is beginning to on Close assessment process. However, earlier in
demand. The news on Monday that Egyptian oil company tighten. Worsening refinery margins and substantial the day trading activity had been thin and the market
EGPC had tendered for two spot 0.1% gasoil cargoes volume commitments from selling in previous weeks lacked direction, said traders. “Hopefully in the next

n
for delivery January 9-11 into the ports of Alexandria from some has meant local diesel barge supply is few days we’ll be able to jump on a moving train,”
and El Dekhelia, had limited supportive impact on the tightening up, sources said. “I do not think there is said one trader. “A lot of firms had a bad year in

tio
0.1% Med gasoil value. “It was expected that EGPC much in ARA,” one trader said. The trader also added 2012, so people are waiting for some direction before
would require around 5-6 cargoes [per month] for the that flows from India were also reduced compared taking out big positions at this point.” Another trader
Q1. However they tendered for 3-4 cargoes [per month], to previous months. With jet holding as the stronger agreed, saying “It’s the same as December, not long
and then went on with spot tenders to suffice what performer of the middle distillates pack refiners not short...no-one’s looking to sell deep into contango

a
they wanted,” a trader said. However other sources are optimizing Jet output over diesel and this has at cheap numbers”. Pembroke cargoes, of close to
felt that the demand into Egypt combined with other seen exports from India sway toward a Jet, sources RMG specification, had been offered only at “expensive

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North African demand was more than enough to bolster said. In the Mediterranean there was steady buying levels” said a third trader. On the buying side, Northern
the 0.1% CIF Med cargo market. “Given you had the demonstrated on the day into Italy and Turkey. utility demand was at standard pace, said the trader,

a
specification change lately in the Black Sea, and this is “[Turkey] is seeing a bit more activity...people are while in the Mediterranean some island shorts were
s structural change...supply of 0.1% gasoil in the Med coming back to market after a long holiday period, covered for January already, and some not. “It’s

Ev
is going to be tough,” a second trader said referring I don’t expect any significant rise [in demand of looking pretty balanced,” said the trader.
to the move to increased exports of 10 ppm diesel cargoes], but January may be busy,” a Med cargo
in the Black sea and a reduction of gasoil exports. In trader said. Fuel Oil deals (PGA page 5)
the MOC process Stasco bid for a cargo basis Skikda,
while Trafigura offered a cargo of Greek specification Diesel deals (PGA page 5)
HSFO barge MOC deals: 1) Aegean-Gunvor $590/mt,

F
gasoil into Thessaloniki, neither indication traded. The 2kt, FOB Rdam, BE; 2) Aegean-Gunvor $592/mt, 2kt,
0.1% CIF Med differential was assessed at a $10.75/ No deals reported. FOB Rdam, MW; 3) Litasco-Gunvor $593/mt, 2kt, FOB
PD
mt premium to the front month ICE 0.1% gasoil futures Rdam, MW; 4) Chemoil-Gunvor $593/mt, 2kt, FOB
from last assessed Monday at $10.25/mt, Platts data Fuel oil (PGA page 1599)
Rdam, MW; 5) Koch-Nioc $590.5/mt, 2kt, FOB Rdam,
showed. This is a premium of $5.25/mt to the CIF NWE FE; 6) OWnv-Gunvor $593.5/mt, 2kt, FOB Rdam, BE;
cargo value, Platts data showed. In the Northwest European low sulfur fuel oil market 7) OWnv-Gunvor $593.5/mt, 2kt, FOB Rdam, MW; 8)
Wednesday, physical differentials to swaps recovered Aegean-Gunvor $593/mt, 2kt, FOB Rdam, BE; 9) Koch-
Gasoil deals sharply, with FOB NWE 1% cargoes assessed at a Litasco $590.5/mt, 2kt, FOB Rdam, FE; 10) Mercuria-
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(PGA page 5)
$2.50/mt premium over the January swap, compared Vitol $592/mt, 2kt, FOB Rdam, FE.
Gasoil 0.1% barge MOC deals: Gunvor-STR 1.7kt, FOB
pe

ARA loading 07-11 at Jan minus 2 /MT; VSA- STR 2kt

FOB ARA 7-11 at Jan minus 2.

Diesel
] EUROPEAN MARKETSCAN Volume 45 / Issue 1 / January 2, 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
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(PGA page 1498) 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,
The premium over the front-month ICE 0.1% 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-
gasoil futures contract for diesel barges loading ter system or otherwise redistributed without prior written authorization from Platts. Platts is a trademark of The McGraw-Hill Companies Inc.Information has been
in Rotterdam was up $2.25/mt Wednesday, to be 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
assessed at January ICE 0.1% gasoil futures plus such information. See back of publication invoice for complete terms and conditions.

Copyright © 2013, The McGraw-Hill Companies 6

 EUROPEAN MARKETSCAN january 2, 2013

VGO (PGA page 1597) Asia products

Low and high sulfur vacuum gasoil differentials each Code Mid Change Code Mid Change
edged up 10 cents for a third straight trading day Singapore (PGA page 2002)

Wednesday, as the light trading pattern of the last FOB Singpore ($/barrel)
Naphtha PAAAP00 105.67–105.71 105.690 +2.010
couple of weeks continued into the start of 2013. Platts Gasoline 92 unleaded PGAEY00 120.90–120.94 120.920 +0.750
assessed LSVGO for cargoes and for barges at February Gasoline 95 unleaded PGAEZ00 123.67–123.71 123.690 +1.210

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ICE Brent futures plus $0.95/barrel, and HSVGO for Gasoline 97 unleaded PGAMS00 125.61–125.65 125.630 +1.550
Kerosene PJABF00 126.08–126.12 126.100 +0.760
cargoes and for barges at February minus $1.90/b. Gasoil 0.05% sulfur AAFEX00 125.89–125.93 125.910 +1.020

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Though market participants streamed back to the Gasoil 0.25% sulfur AACUE00 124.91–124.95 124.930 +1.020
Gasoil POABC00 125.89–125.93 125.910 +3.480
office, actual spot trading remained slight, as expected
Fuel oil 180 CST 2% ($/mt) PUAXS00 633.62–633.66 633.640 +5.870
early-year refinery buying failed to materialize on the HSFO 180 CST ($/mt) PUADV00 618.20–618.24 618.220 +5.630
day following the new year’s. This light buying occurred HSFO 380 CST ($/mt) PPXDK00 613.29–613.33 613.310 +7.770

a
despite most VGO inventories being on the light side. Indonesia (PGA page 2516)

The current environment of weak refining margins were FOB Indonesia ($/barrel)

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LSWR Mixed/Cracked PPAPU00 107.73–107.77 107.750 +0.890
expected to boost feedstock demand, though US FCC
Gasoline components (PBF page 2010)
margins were steadily weakening, keeping a lid on
FOB Singapore ($/mt)

a
demand in that region. MTBE PHALF00 1184.00–1186.00 1185.000 0.000
Singapore Swaps (PPA page 2654)

Ev
VGO deals (PGA page 5) February ($/barrel) March ($/barrel)
Naphtha Japan ($/mt) AAXFE00 942.75–943.25 943.000 +3.000 AAXFF00 929.25–929.75 929.500 +1.000
Naphtha PAAAQ00 102.28–102.32 102.300 -1.900 PAAAR00 100.93–100.97 100.950 -2.000
No trades reported.
Gasoline 92 unleaded AAXEL00 118.38–118.42 118.400 -0.400 AAXEM00 117.18–117.22 117.200 -0.350
Reforming Spread AAXEO00 16.08/16.12 16.100 +1.500 AAXEP00 16.23/16.27 16.250 +1.650
Kerosene PJABS00 125.58–125.62 125.600 +0.230 PJABT00 125.25–125.29 125.270 +0.530
North Sea crude (PGA page 1299)

F
Gasoil POAFC00 125.78–125.82 125.800 +0.920 POAFG00 125.51–125.55 125.530 +0.840
HSFO 180 CST ($/mt) PUAXZ00 624.98–625.02 625.000 +10.250 PUAYF00 627.98–628.02 628.000 +8.950
As the Forties crude differential to Dated Brent Middle East (PGA page 2004)
PD
continued to climb Wednesday, other North Sea FOB Arab Gulf ($/barrel)
differentials fell, reacting to poor demand on the back of Naphtha ($/mt) PAAAA00 912.54–920.79 916.665 +10.300
Naphtha LR2 ($/mt) AAIDA00 925.15–933.40 929.275 +10.250
what most traders described as weak refining margins.
Kerosene PJAAA00 123.06–123.10 123.080 +0.810
The Forties crude differential--and by extension Dated Gasoil 0.005% sulfur AASGJ00 123.29–123.33 123.310 +1.630
Brent--was assessed in relatively strong territory at a Gasoil 0.05% sulfur AAFEZ00 122.69–122.73 122.710 +1.630
Gasoil 0.25% sulfur AACUA00 121.69–121.73 121.710 +1.630
premium of $0.975/barrel, up $0.40/b from Monday’s
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Gasoil POAAT00 122.69–122.73 122.710 +3.530

assessment. Shell continued to show an appetite HSFO 180 CST ($/mt) PUABE00 603.09–603.13 603.110 +5.620
for crude, bidding for both Forties and BNB crude in Japan (PGA page 2006)
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the Platts Market on Close assessment process. But C+F Japan ($/mt) Premium/Discount
ultimately the Dutch major sold the January 26-28 Naphtha PAAAD00 955.50–963.75 959.625 +10.000
Naphtha MOPJ Strip AAXFH00 929.25–929.75 929.500 +6.750 AAXFI00 29.88/30.38 30.130 +3.250
Forties cargo, parcel F0115, to Vitol while withdrawing Naphtha 2nd 1/2 Feb PAAAE00 972.00–972.50 972.250 +14.000
their own interest to buy. Shell still owned seven of the Naphtha 1st 1/2 Mar PAAAF00 963.25–963.75 963.500 +10.250
Ex

Naphtha 2nd 1/2 Mar PAAAG00 955.50–956.00 955.750 +9.750

10 cargoes eligible for the 10-25 assessment window,
Gasoline unleaded ($/barrel) PGACW00 123.80–123.84 123.820 +0.740
with Vitol now holding two and Morgan Stanley one. Kerosene ($/barrel) PJAAN00 128.03–128.07 128.050 +0.700
Chevron also showed bidding interest for Forties crude, Gasoil ($/barrel) POABF00 128.03–128.07 128.050 +0.510
HSFO 180 CST PUACJ00 631.83–631.87 631.850 +5.580
though at a relatively unaggressive level. In bidding for
(continued on page 9)

Copyright © 2013, The McGraw-Hill Companies 7

 EUROPEAN MARKETSCAN january 2, 2013

US Products: December 31, 2012

Code Mid Change Code Mid Change Code Mid Change
New York harbor (PGA page 152)
CIF cargoes (¢/gal) RVP
Unleaded 87 0.3% AAMHG00 283.23–283.33 283.280 +0.830 AAMHGRV 15.0
Unleaded-89 0.3% AAMIW00 295.44–295.54 295.490 +0.830 AAMIWRV 15.0
Unleaded-93 0.3% AAMIZ00 313.77–313.87 313.820 +0.840 AAMIZRV 15.0

n
Jet PJAAX00 310.32–310.42 310.370 -1.040
Low sulfur jet PJABK00 317.82–317.92 317.870 -1.190
ULS Kero AAVTH00 336.82–336.92 336.870 -1.190

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No. 2 POAEH00 304.07–304.17 304.120 -1.690
$/barrel 1% strip NYH cargo vs 1% strip
No. 6 0.3% HP PUAAE00 106.55–106.65 106.600 +0.400 AAUGA00 8.30/8.40 8.350 0.000
No. 6 0.3% LP PUAAB00 112.70–112.80 112.750 +0.400 AAUGB00 14.45/14.55 14.500 0.000

a
No. 6 0.7% PUAAH00 101.95–102.05 102.000 +0.400 AAUGC00 3.70/3.80 3.750 0.000
No. 6 1.0%** PUAAO00 98.20–98.30 98.250 +0.400 AAUGG00 98.24–98.26 98.250 +0.400 AAUGD00 -0.05/0.05 0.000 NANA
No. 6 2.2% PUAAU00 93.68–93.73 93.705 -0.150 AAUGE00 -4.57/-4.52 -4.545 -0.550

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No. 6 3.0% PUAAX00 92.93–92.98 92.955 -0.150 AAUGF00 -5.32/-5.27 -5.295 -0.550
Residual swaps ($/barrel)
No. 6 1.0% paper Bal M AARZS00 NA–NA 0.000 NANA

a
No. 6 1.0% paper 1st month PUAXD00 98.20–98.30 98.250 +0.400
No. 6 1.0% paper 2nd month PUAXF00 98.20–98.30 98.250 +0.400
No. 6 1.0% paper next quarter PUAXG00 98.20–98.30 98.250 +0.400

Ev
Boston cargoes (PGA pages 152)
¢/gal
Low sulfur jet PJABL00 319.82–319.92 319.870 -1.190
ULS Kero AAVTJ00 338.82–338.92 338.870 -1.190
No. 2 POAEA00 306.82–306.92 306.870 -1.690
No. 6 2.2% ($/barrel) PUAWN00 94.28–94.33 94.305 -0.150

F
NY/Boston numbers include duty. **This assessment reflects 150 max al+si
FOB Gulf Coast (PGA page 156 & 338)
PD
¢/gal RVP
Unleaded 87 PGACT00 261.78–261.88 261.830 -4.010 PGACTRV 13.5
Unleaded 89 PGAAY00 275.78–275.88 275.830 -2.310 PGAAYRV 13.5
Unleaded 93 PGAJB00 296.78–296.88 296.830 +0.240 PGAJBRV 13.5
MTBE PHAKX00 378.95–379.05 379.000 -6.150
Alkylate* AAFIE00 34.95/35.05 35.000 +0.250
Naphtha PAAAC00 285.78–285.88 285.830 -9.010
Jet 54 PJABM00 302.12–302.22 302.170 +1.960
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Jet 55 PJABN00 307.12–307.22 307.170 +1.960

ULS Kero AAVTK00 317.12–317.22 317.170 +1.960
No. 2 POAEE00 299.57–299.67 299.620 -1.140
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Low sulfur No. 2 POAES00 300.82–300.92 300.870 -0.940

*Premium to US Gulf Coast pipeline gasoline
$/barrel 3% strip vs 1% strip
Slurry Oil PPAPW00 95.14–95.16 95.150 +0.280 AAUGS00 0.31/0.34 0.325 -0.005
No. 6 1.0% 6 API PUAAI00 98.69–98.71 98.700 +0.280 AAUGT00 3.86/3.89 3.875 -0.005
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No. 6 3.0% PUAFZ00 94.99–95.01 95.000 +0.280 AAUGW00 94.82–94.84 94.830 +0.290 AAUGU00 0.16/0.19 0.175 -0.005
RMG 380 PUBDM00 96.69–96.71 96.700 +0.280 AAUGV00 1.86/1.89 1.875 -0.005
Residual swaps ($/barrel)
No. 6 3.0% paper 1st month PUAXJ00 94.65–94.75 94.700 +0.350
No. 6 3.0% paper 2nd month PUAXL00 93.90–94.00 93.950 +0.300
No. 6 3.0% paper next quarter PUAXN00 94.07–94.17 94.120 +0.320

Copyright © 2013, The McGraw-Hill Companies 8

 EUROPEAN MARKETSCAN january 2, 2013

a cargo of BNB to Dated Brent plus $0.95/b without cuts to occur then, with differentials for most North Sea fundamentals increasingly favor LSSR as a key
attracting a seller, Shell suggested value for the grade sweet crudes continuing to fall in the remaining days of feedstock, sources said. “If margins...keep coming
was still above Forties, though the delta between the two the December 31-January 4 week. in, people should go back to VGO and straight run,” a
key BFOE grades had narrowed considerably. While the market source said. That demand had yet to materialize
Forties differential to Dated Brent was up, other North LSSR (PGA page 1598)
despite the low inventories, particularly among US
Sea crudes were weaker Wednesday compared with refiners. “They’ve not come out today,” a market source

n
Monday. “Typically what you tend to see when margins Low sulfur straight run differentials rose to a near said of LSSR buyers. The potential in dampening that
are weaker, and when Dated Brent and Forties are strong, two-month high Wednesday, climbing 25 cents, as demand was the narrow LSVGO-LSSR spread, which was

tio
is differentials weaken,” one North Sea crude trader said. persistently weak refining margins were expected to assessed at $7.50/b.
Following this, most traders expected some form of run boost straight run demand. Platts assessed LSSR
cuts in the coming days, if they had not already been for cargoes at February ICE Brent futures minus LSSR deals (PGA page 5)
enacted by some refiners already. Some expected fresh $6.55/barrel, the strongest since November 7. With

a
refinery economics to be run January 7 and for a slew of rising crude placing a squeeze on refining margins, No trades reported.

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PD
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Copyright © 2013, The McGraw-Hill Companies 9