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] European Marketscan

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Volume 42 / Issue 64 / April 1, 2010

European products $/mt

Mediterranean cargoes
Data code FOB Med (Italy) Data code CIF Med (Genova/Lavera)
Prem Unl 10ppm AAWZA00 +25.00 790.75 - 791.25 +25.00 AAWZB00 +24.75 800.25 - 800.75 +24.75
Naphtha (1) PAAAI00 +1.25 691.00 - 691.50 +1.25 PAAAH00 +1.00 706.75 - 707.25 +1.00
Jet AAIDL00 +14.25 721.00 - 721.50 +14.25
10ppm ULSD AAWYY00 +13.50 702.25 - 703.25 +13.50 AAWYZ00 +13.50 714.25 - 715.25 +13.50
Gasoil 0.1% AAVJI00 +12.50 684.50 - 685.50 +12.50 AAVJJ00 +12.25 698.00 - 699.00 +12.25
Fuel oil 1.0% PUAAK00 +9.50 486.00 - 486.50 +9.50 PUAAJ00 +9.50 495.50 - 496.00 +9.50
Fuel oil 3.5% PUAAZ00 -4.50 433.00 - 433.50 -4.50 PUAAY00 -4.50 442.50 - 443.00 -4.50
Jet FOB Med premium AAIDN00 1.50 - 2.00

Northwest Europe cargoes


FOB NWE CIF NWE/Basis ARA
Premium gasoline Non Oxy AAVJE00 +20.00 794.50 - 795.00 +20.00
Gasoline 10ppm AAXFQ00 +20.50 811.75 - 812.25 +20.50
Fuel Grade Ethanol CIF T1 AAYDS00 -6.50 491.50 - 492.50 -6.50
Reg Unl Non Oxy AAOVN00 +20.00 791.50 - 792.00 +20.00
Naphtha (May ) PAAAJ00 +5.75 716.50 - 717.00 +5.75
Naphtha PAAAL00 +0.75 712.50 - 713.00 +0.75
Jet PJAAV00 +14.00 729.25 - 729.75 +14.00 PJAAU00 +14.00 739.75 - 740.25 +14.00
ULSD 10 ppm AAVBF00 +15.50 706.75 - 707.75 +15.50 AAVBG00 +15.50 719.75 - 720.75 +15.50
ULSD Flexi (E) AARXM00 +17.25 711.50 - 712.50 +17.25 AARXN00 +17.25 723.50 - 724.50 +17.25
Diesel 10ppm NWE AAWZD00 +17.25 711.50-712.50 +17.25 AAWZC00 +17.25 723.50-724.50 +17.25
Diesel 10 ppm UK AAVBH00 +15.50 723.25 - 724.25 +15.50
Gasoil 0.1% AAYWR00 +15.00 686.00 - 687.00 +15.00 AAYWS00 +15.00 700.75 - 701.75 +15.00
Fuel oil 1.0% PUAAM00 +6.00 475.75 - 476.25 +6.00 PUAAL00 +6.75 487.25 - 487.75 +6.75
Fuel oil 3.5% PUABB00 +2.50 426.50 - 427.00 +2.50 PUABA00 +3.50 440.25 - 440.75 +3.50
Straight run 0.5-0.7% PKABA00 +12.50 555.50 - 556.50 +12.50
VGO 0.5-0.6% AAHMX00 +9.50 595.00 - 596.00 +9.50 AAHMZ00 +9.50 600.00 - 601.00 +9.50
VGO 2% max AAHNB00 +8.50 569.00 - 570.00 +8.50 AAHND00 +8.50 574.00 - 575.00 +8.50

Northwest Europe barges


FOB Rotterdam
ICE futures
Eurobob AAQZV00 +20.50 802.25 - 802.75 +20.50 Platts ICE gasoil assessments*
98 RON gasoline 10 ppm AAKOD00 +19.50 839.25 - 839.75 +19.50 (12:30 London time)
Premium gasoline 10 ppm PGABM00 +19.50 803.25 - 803.75 +19.50
Apr AARIN00 698.25
Fuel grade ethanol T1 AAWUQ00 -6.50 498.50 - 499.50 -6.50
Fuel grade ethanol T2 AAYDT00 +2.50 441.00 - 442.00 +2.50 May AARIO00 695.50
MTBE (5) PHALA00 +8.00 911.75 - 912.25 +8.00 Jun AARIP00 696.50
Naphtha PAAAM00 +0.75 708.50 - 709.00 +0.75
Jet PJABA00 +18.75 741.75 - 742.25 +18.75 ICE gasoil settlements
Diesel 10 ppm AAJUS00 +16.50 710.25 - 710.75 +16.50 Apr 698.25 Jul 702.50
Gasoil 0.1% AAYWT00 +19.25 697.75 - 698.25 +19.25 May 695.50 Aug 706.75
Biodiesel AAWGY00 +7.00 965.50 - 970.50 +7.00
Jun 696.50 Sep 710.75
FAME 0 AAXQL00 921.25 - 926.25
Fuel oil 1.0% PUAAP00 +3.00 479.75 - 480.25 +3.00 —-** NA
Fuel oil 1.5% AASXR00 +4.75 460.75 - 461.25 +4.75 **Value at 12:00 London time will only appear on day of expiry
Fuel oil 3.5% PUABC00 +3.50 444.50 - 445.00 +3.50
Rotterdam bunker 380 CST PUAYW00 +2.00 453.00 - 455.00 +2.00 ICE gasoil GWAVE (Previous day’s values)
VGO 0.5-0.6% AAHNF00 +9.50 595.00 - 596.00 +9.50 Apr 683.50
VGO 2% max AAHNI00 +8.50 569.00 - 570.00 +8.50 May 681.75
1) Naphtha FOB MED is basis East Med. 2) Cargoes CIF NWE Fuel Grade Ethanol T1 in $/CM 3) Barges ICE Brent
FOB Rotterdam Fuel Grade Ethanol T2 in Eur/CM. 4) Barges FOB Rotterdam Fuel Grade Ethanol T1 in
$/CM. * Platts ICE gasoil assessments reflect the closing value of the ICE gasoil contracts at precisely
May AAYES00 83.47
16.30 London time. 5) MTBE FOB Amsterdam-Rotterdam-Antwerp Jun AAYET00 84.00

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PLATTS EUROPEAN MARKETSCAN APRIL 1, 2010

European products monthly averages $/mt Market Update


Asian and European equities pushed crude futures to 2010 highs
Mediterranean Thursday, as ICE Brent and NYMEX WTI front contracts hit
FOB Med (Italy) CIF Med $83.70/barrel and $84.67/b respectively at 1149 London time.
Genova/Lavera) Gasoline Eurobob barges maintained their slight discount to pre-
Prem Unl 10ppm 756.29 - 756.79 766.88 - 767.38 mium unleaded barges, while arbitrage opportunities out of
Naphtha 707.39 - 707.89 724.63 - 725.13 Europe remained closed. However, talk continued on possible arbi-
Jet 686.66 - 687.16 trage opportunities to the US soon. Diesel markets were stable,
10ppm ULSD 666.71 - 667.71 679.78 - 680.78 as the market balanced refinery turnarounds versus poor storage
Gasoil 0.1% 653.62 - 654.62 668.37 - 669.37 economics. However, gasoil differentials rallied as the balance
Fuel oil 1.0% 463.07 - 463.57 472.93 - 473.43 tipped back into the buyers’ favour. The opportunity to rebuild
Fuel oil 3.5% 433.10 - 433.62 442.97 - 443.47 stocks seemed the most likely source of the demand as, with the
Jet FOB Med premium 1.57 - 2.07 warming weather and the flat price racing back towards $700/mt
on the back of a surge in ICE gasoil contracts, only very motivated
Northwest Europe cargoes
end-user demand looked set to venture into the market. In fuel
FOB NWE CIF NWE/Basis ARA oil, the hi-lo differential continued to rally as high sulfur FO
Premium gasoline Non Oxy 759.12 - 759.62 Northwest Europe shied away from Russian HSFO volumes.
Gasoline 10ppm 775.26-775.76
Reg Unl Non Oxy 755.90 - 756.40
Fuel Grade Ethanol 498.76 - 499.76 Gasoline
Naphtha paper 710.59 - 711.09
Naphtha physical 731.16 - 731.66 Expectations of a strong April abounded in the market Thursday,
Jet 695.97 - 696.47 707.11 - 707.61 although the first day of the month did not bring any conclusive
ULSD 10 ppm 666.50 - 667.50 680.27 - 681.27 evidence either way. “There is a belief that April will be strong,”
ULSD Flexi (E) 669.99 - 670.99 683.07 - 684.07
one trader said, adding: “There are reasons to believe that too.”
Diesel 10ppm NWE 669.95-670.95 683.02-684.02
Summer RBOB is chemically a more expensive grade of gasoline
Diesel 10 ppm UK 683.99 - 684.99
to produce than winter as traders need to make a lower RVP
Gasoil 0.1% 651.92 - 652.92 667.64 - 668.64
fuel, while maintaining a very specific distillation curve. “It isn’t
Fuel oil 1.0% 457.47 - 457.97 467.57 - 468.07
easy, and people haven’t got a huge amount in tank, I would
Fuel oil 3.5% 426.68 - 427.18 439.72 - 440.22
say,” another trader added. More potentially supportive news was
Straight run 0.5-0.7% 534.26 - 535.26
VGO 0.5-0.6% 589.91 - 590.91 594.91 - 595.91
provided by the arbitrage to the US. Uneconomical for several
VGO 2% max 569.76 - 570.76 574.76 - 575.76 months now, recent strength in RBOB and weakness in gasoline
saw the arbitrage become ever more attractive, sources said.
Northwest Europe barges “Cash differentials are still around minus cents 2.275/gallon for
Eurograde, but RBOB strengthened a lot yesterday,” one trader
FOB Rotterdam
said. “[It] looks like the arbitrage potentially might work. Some
Eurobob 761.93-762.43
Northwest European cargoes are now expected to head over,” he
98 RON gasoline 10 ppm 801.22 - 801.72
added. However, if the arbitrage failed to open, traders saw
Premium gasoline 10 ppm 771.11 - 771.61
potential for more offers into the barge market. “The arbitrage to
Fuel Grade Ethanol T1 506.07-507.07
the US is questionable for sure,” one trader said. “Without that
Fuel Grade Ethanol T2 453.07-454.07
arbitrage the barges remain the best netback for sure,” he
MTBE (4) 913.84 - 914.34
Naphtha 727.16 - 727.66
added. “The US is improving, but only for some specific grades
Jet 703.22 - 703.72 and that [arbitrage] is hugely volatile,” another trader said.
Diesel 10 ppm 672.33 - 672.83 Certainly with the arbitrage closed in recent days and weeks car-
Gasoil 0.1% 658.27 - 658.77 goes from the Mediterranean and from Scandinavia were pointing
Biodiesel 969.74 - 974.74 towards the Amsterdam-Rotterdam-Antwerp market. “ARA and the
Fame 0 939.37 - 944.37 US could be in competition in April—it looks like a spicy month
Fuel oil 1.0% 468.54 - 469.04 ahead,” an oil major trader said. In the Platts Market on Close
Fuel oil 1.5% 454.55 - 455.05 assessment process in the Med, Morgan Stanley bid for a
Fuel oil 3.5% 443.70 - 444.20 25,000 mt premium unleaded 10ppm gasoline cargo on an FOB
Rotterdam bunker 380 CST 451.13 - 453.13 basis loading April 22-26. The bid started at $772/mt and rose
VGO 0.5-0.6% 589.91 - 590.91 to $781/mt, the bid was valid at the end of the MOC process.
VGO 2% max 569.76 - 570.76
Gasoline transactions
1) Naphtha FOB MED is basis East Med. 2) Cargoes CIF NWE Fuel Grade Ethanol in
$/CM 3)Barges FOB Rotterdam Fuel Grade Ethanol in Eur/CM 4)MTBE FOB Gasoline MOC deals: Barges 10ppm: Statoil-Shell $802/mt, 1kt FE,
Amsterdam-Rotterdam-Antwerp
Statoil-Vitol$803/mt, 1kt FE, Statoil-Shell $804.75/mt, 1kt FE

Copyright © 2010, The McGraw Hill Companies 2


PLATTS EUROPEAN MARKETSCAN APRIL 1, 2010

Prevailing NYMEX futures (16:30 London time) Naphtha

$/bbl The Northwest European naphtha market shifted into a contango


Front month WTI crude AASCR00 84.50 structure Thursday as prompt dated maturities were weighed
Second month WTI crude AASCS00 84.91 down by ample supplies, the increased availability of competitively
priced liquefied petroleum products and softer signals from Asia,
cents/gal sources said. The CIF NWE open spec naphtha benchmark was
Front month heating oil AASCT00 219.85
assessed at a $5.75/mt discount to the Balance of April swap at
Second month heating oil AASCU00 220.95
$712.75/mt, thereby ending the backwardation that prevailed
Front month unleaded gasoline AASCV00 232.22
Second month unleaded gasoline AASCW00 231.74 since the start of 2010. The forward structure also flattened, with
April/May halving to $1.75/mt. With the naphtha product price
bucking the $1.8/barrel hike of Brent crude futures, the physical
European clean product barge freight rates ($/mt) crack was sent crashing to minus $3.4/b, dragging the April crack
along with it to minus $3.05/b. Trafigura offered in the Platts
ARA Market on Close assessment process two cargoes, one for April
Rotterdam - Rotterdam TCAEI00 2.50 11-15 and April 12-16 delivery respectively at $714/mt each,
Rotterdam - Flushing TCAEJ00 3.50 without attracting any buying interest. Outside the MOC process,
Rotterdam - Ghent TCAEK00 4.00 Lanturno was observed offering a April 22-26 cargo at $724/mt.
Rotterdam - Antwerp TCAEL00 3.00 Despite the prompt weakness, several traders saw the Eastbound
Germany arbitrage as marginally open. One trader said he had observed
Rotterdam - Duisburg TCAEM00 5.50 several trading entities and oil majors working on cargoes for
Rotterdam - Cologne TCAEN00 7.75 Eastbound export: “Some fixed, some on subjects,” but he could
Rotterdam - Karlsruhe TCAEO00 14.50 not provide further details. The relative softness of the prompt
Antwerp - Duisberg TCAEP00 6.00 took some market participants by surprise.
Switzerland Naphtha transactions
Rotterdam - Basel TCAEQ00 17.75
No trades reported.

Euro-denominated assessments Euro/mt Jet


Cargoes CIF NWE/Basis ARA As far as the outlook for the European jet market was con-
Naphtha AAQCE00 527.90 - 528.27 cerned, both sides of the fence were represented Thursday, with
Jet AAQCF00 548.08 - 548.46 market sources seeing the coming Easter holiday bringing full
Barges FOB Rotterdam load capacities and a consequent improvement in aircraft jet fuel
Premium gasoline AAQCH00 595.13 - 595.50 burn. “We’ve seen quite a bit of barge demand, that could be
Diesel 10 PPM AAQCI00 526.23 - 526.60 linked to Easter requirements...is the buying because of the mar-
Gasoil 0.1% AAYWY00 516.97 - 517.34 ket shape or because of demand?” one trader asked. The fact
Fuel oil 3.5% AAQCK00 329.33 - 329.70 that circumstantial evidence suggested plane capacity was
Cargoes FOB NWE improving made for a simple equation—”When they’re full, they
Fuel oil 1.0% AAQCG00 352.49 - 352.86 burn more fuel,” a source said, but a second trader stopped
Conventional cargoes NY harbor (Euro/gallon) short of labelling it as a significant step towards recovery.
Unleaded 87 AAPYV00 164.61 - 164.68 “[Demand] is not picking up as quickly as we’d like to see,” he
Unleaded 89 AAPYW00 167.64 - 167.72 said, with the key fundamental unlikely to gather much solace
Unleaded 93 AAPYX00 172.20 - 172.28 from the sight of ICE gasoil contracts again charging towards
No. 2 AAPYY00 160.96 - 161.11 $700/mt. “Despite the long cold weather, despite the big turn-
Euro/US$ forex rate: 1.3497. Platts Euro denominated European & US product
arounds, jet [volumes] are still building,” he continued.
assessments are based on market values and a Euro/US$ forex rate at 4:30 PM Nonetheless, the Platts Market on Close assessment process
local London time. brought out substantial buying, with three cargo trades as Vitol
scooped up an offer from Morgan Stanley at April plus $44/mt,
while J Aron sold into the company’s Fawley bid at April plus
Foreign exchange rates: April 01 $45/mt. Despite the company tabling an offer, BP also lifted an
Dollar/Swiss franc 1.0513 offer from Total at May plus $44/mt while Morgan Stanley
GB pound/dollar 1.5226 showed a second offer on floating priced basis at average of
Dollar/yen 93.55 April 6-20 dates minus $3/mt, with all the trading activity
Euro/dollar 1.3497 focused on prompt dates. Sellers looked hesitant in the barge
Dollar/Ruble 29.4100 market, with Fina the only company to pick up product, as KLM
Source: Comstock sold to their bid at April plus $43/mt. That took the barge premi-

Copyright © 2010, The McGraw Hill Companies 3


PLATTS EUROPEAN MARKETSCAN APRIL 1, 2010

um back above the cargo for the first time since March 16—the Diesel
day ICE gasoil contracts first showed backwardation.
Mediterranean ultra low sulfur cargo differentials continued to
Jet transactions weaken Thursday, as available cargoes continue to meet a lack-
Jet MOC cargo deals: JARON-Vitol Geneva at Apr ICEGO + $45: 40 KT luster demand market, traders said. Med cargo differentials
+/- 10 pct S/OPT EU Qualified Jet A1 DEFSTAN 91-91 Latest Issue F/P slipped back $1.50/mt Thursday, according to Platts data.
Cargo S/OPT 12-16 Apr CIF Bss Fawley with N.W.E C/P Options BP / During the Platts Market on Close assessment process,
EXXON / KPI Appvd Vessel with mv serengeti; Mercuria demonstrated availability of two Med cargoes without
TOTSA - BP May ICEGO + 44 :30 KT +/- 10 % seller option, F/P cargo attracting any buyers. “There is still some product on storage
seller option on M/T Summit Asia or acceptable sub, CIF basis Le and product coming from Greece and Italy, it is there to be had,”
Havre with full CP options, 13/17 april, EU Qualified JET A-1 MEETING one Med cargo trader said. “It has been an interesting week in
DEFENSE STANDARD 91-91 LATEST ISSUE PLUS JOINT FUELLING SYS- the Med, there is some tender material to come to the market
TEM CHECK LIST LATEST ISSUE (current at bill of lading) with possible and bits and pieces hanging over, but SARAS is still struggling
exception of electrical conductivity (Stadis to be provided on board in to produce diesel and it not clear when they will be back,”
drums), standard Platt’s nomination details, ISPS compliant, Totsa another trader said. In the Northwest European cargo market,
GTCs; Thames-based cargo interest was again the concentration of
Morgan Stanley - Vitol Apr ICEGO + 44 30kt +/- 10% S/O EU Qualified activity. Traders said that the Thames cargo market was current-
Jet A1 Defstan 91-91 Latest Issue, F/P Cargo S/O 11-15/4 CIF Basis ly one of the easiest locations to move out floating storage
Le Havre + NWE EXCL Scandi CP Options, Exxon/Shell/Statoil approved material. The diesel barge market activity was relatively sub-
vessel; dued Thursday, differentials were largely unchanged from
Jet MOC barge deal: KLM- Fina at Apr + $43/mt 2kt FARA 08-12/April Wednesday, however some buy interest manged to nudge levels
up on the close with two ARA barges trading at $12/mt over
Gasoil April ICE Gasoil futures. “Consumption in Germany is still not
good, in France I even have end users asking for delays on
“It’s very quiet on the end-consumer side,” one trader said of the there term deliveries, no one has high stocks, but no-one is ask-
Northwest European gasoil market Thursday, as a $15/mt ing for it immediately, so [there are] not many spot sales,
upward lurch on ICE gasoil contracts took the April contract at demand is just not that good,” a barge trader said.
the 1230 London time close to within cents of the $700/mt lev-
el. However the stronger tone was no incentive for end-users to Diesel transactions
buy. Otherwise, traders’ attention was turned towards the late
Diesel MOC cargo deal: Stasco - Vitol May + 29 for 20kt+/- 10% french
August return of German end-user buying, although opinion was
summer ULSD (csr402a) C&B 0.842 density max, cif basis havre 11-
divided on the extent of demand for 0.1% as the country turns
15/4, Repsol/Conoco/Exxon Approved vessel, CP options Hamburg -
towards lower sulfur, 50ppm gasoil. “It depends a little on
bord+ north spain + portugal , all else as per flexi.
region. Along the Rhine it’ll probably stay 0.1%, but in the north
Diesel MOC barge deals: NSP-AIC, Apr+ 12, 1-2 kt, ulsd 10 pppm, fob
and east, it’ll be 50ppm,” a source said. Selling interest looked
ARA, 11-15/4; TOTSA-BP Apr +$12, 10ppm, 1-2kt Fob ARA, 8-12/4.
hesitant through the Platts Market on Close assessment
process, with traders perhaps eyeing the upward move on ICE
gasoil contracts which continued to drive upwards into the late Biodiesel
afternoon, as the April gasoil punched through to $701.75/mt at
1400 London time. Mabanaft was the main buyer, picking up four Biodiesel premiums to gasoil continued to be under pressure
barges from BP, Shell and Petroplus at April minus $1/mt. Thursday, dragged down by a narrowing spread between raw
“Gasoil is completely dead now. With a few hundred tonnes in material soybean oil and gasoil futures contracts, trading
tank I will be able go through until the end of April. I’ll be waiting sources said. Summer-grade FAME 0 biodiesel, which was being
now to buy most of my product for the winter when the summer discussed at around a premium of $250/mt to gasoil
comes,” another trader said. “The high prices are not a great Wednesday morning, was Thursday being quoted at between
incentive to buy,” the first trader continued. The cargo market $220-235/mt. Winter biodiesel grade RME values also fell, with
saw very little action, although Gunvor returned to the sources pegging offers at premiums of under $290/mt to gasoil
Mediterranean as a seller, reaching to April plus $1/mt without Thursday, from $295-300/mt early Wednesday. Premiums started
finding any buying interest. falling Wednesday afternoon after the opening of the Chicago
Board of Trade, as soybean oil futures dropped and gasoil
Gasoil transactions gained. “BO/GO is crashing and [biodiesel] premiums are drop-
ping more,” a source told Platts Wednesday after the opening of
Gasoil MOC 0.1% barge deals: STR-Mabanaft BV, at Apr minus $1/mt, the Chicago Board of Trade. Soybean oil futures were dragged
GO0,1% 2kt fob ARA 8-12 april loading; Petroplus-Mabanaft BV, at Apr down by falling soybean values, after the US Department of
minus $1/mt, GO0,1% 2kt fob ARA 8-12 april loading; STR-Mabanaft BV, Agriculture pegged soybean stocks at 1.27 billion bushels March
at Apr minus $1/mt, GO0,1% 2kt fob ARA 8-12 april loading; BP- 1, above expectations of 1.12 billion bushels. “Providing some
Mabanaft BV, at Apr minus $1/mt, GO0,1% 2kt fob ARA 8-12 april loading additional weight on soybeans was news that the Argentine port

Copyright © 2010, The McGraw Hill Companies 4


PLATTS EUROPEAN MARKETSCAN APRIL 1, 2010

Asia products $/bbl strike may be winding down, with an agreement


possible today,” Barclays said in a research report
Singapore published Thursday. Overall, biodiesel flat-prices
FOB Singapore May Paper Jun Paper were supported by higher gasoil values. At 1230
Gasoline 97 unleaded +94.63 - 94.67+ London time, April ICE gasoil futures had risen
Gasoline 95 unleaded +93.31 - 93.35+
$15/mt to be assessed at $698.25/mt, while the
Gasoline 92 unleaded +91.23 - 91.27+
Gasoline 92 unleaded +90.58/90.62+ +90.33/90.37+ May contract had risen by the same value to
Naphtha +80.91 - 80.95+ -79.37 - 79.41- -79.07 - 79.11- $695.50/mt. The winter grades also saw some
Reforming Spread +11.44 - 11.48 +11.19 - 11.23 +11.24 - 11.28 support from higher rapeseed oil values. At 1300
Naphtha Japan 723.75/724.25 721.00/721.50 London time, the Dutch rapeseed oil FOB exmill
Kerosene +90.72 - 90.76+ +91.80 - 91.84+ +92.40 - 92.44+
had rised Eur7/mt to Eur670/mt for the
Gasoil 0.05% sulfur +91.38 - 91.42+
Gasoil 0.25% sulfur +91.03 - 91.07+ May10/July 10 contract.
Gasoil Reg 0.5% sulfur +90.60 - 90.64+ +91.53 - 91.57+ +91.89 - 91.93+
MTBE ($/mt) +865.00 - 867.00+ Biodiesel transactions
Fuel oil 180 CST 2% ($/mt) +477.16 - 477.20+
HSFO 180 CST ($/mt) +472.91 - 472.95+ +477.93 - 477.97+ +480.18 - 480.22+ No deals reported.
HSFO 380 CST ($/mt) +462.25 - 462.29+
LSWR Mixed/Cracked * +69.18 - 69.22+
* FOB Indonesia Fuel oil
Arab Gulf / Japan
FOB Arab Gulf C+F Japan Premium/Discount The high sulfur fuel oil market continued to be
Gasoline unleaded +92.78 - 92.82+ characterized by an over supply of M-100 from
Naphtha LR2 ($/mt) +709.00 - 712.25- Russia, despite the approach of turnaround sea-
Naphtha ($/mt) +704.22 - 707.47- +731.00 - 734.25- son in the region, sources said Thursday. The
Naphtha MOPJ Strip 721.00 - 721.50 11.13 - 11.63
movement of M-100 into Rotterdam was also
Naphtha 2nd 1/2 May ($/mt) -737.50 - 738.00-
Naphtha 1st 1/2 Jun ($/mt) -733.75 - 734.25- attracting discounts heard around mean of Platts
Naphtha 2nd 1/2 Jun ($/mt) +731.00 - 731.50+ minus $3-4/mt on a CIF Rotterdam basis. “The
Kerosene +88.80 - 88.84+ +92.18 - 92.22+ only good thing is the Mediterranean/Northwest
Gasoil 0.005% sulfur +90.22 - 90.26+ Europe spread narrowing, with some in the South
Gasoil 0.05% sulfur +89.47 - 89.51+
sniffing around the North for product, now provid-
Gasoil 0.25% sulfur +89.02 - 89.06+
Gasoil +88.57 - 88.61+ +92.15 - 92.19+ ing a little bit of support,” one trader said. Moving
HSFO 180 CST ($/mt) +457.42 - 457.46+ +486.83 - 486.87+
* FOB Jebel Ali Fuel Oil transactions

US products effective March 31 cts/gal HSFO barge deals: 3.5% Brg BPBV-CARGILL $443.5 2kt
FE;3.5% Brg KOCH-STR $443.75 2kt FE;3.5% Brg GLEN-
New York spot CIF cargoes CORE-CARGILL $444.5 2kt MW;3.5% Brg GLENCORE-
Unleaded-87 0.3% 15.0 RVP +219.57 - 219.67+ FRISOL $444.5 2kt MW;3.5% Brg KOCH-VERBEKE
Unleaded-89 0.3% 15.0 RVP +223.67 - 223.77+
$443.75 2kt FE;3.5% Brg GLENCORE-CARGILL $444.5
Unleaded-93 0.3% 15.0 RVP +229.82 - 229.92+
Jet +222.07 - 222.32+ 2kt MW;3.5% Brg KOCH-STR $443.75 2kt FE;3.5% Brg
Low sulfur jet +224.32 - 224.82+ MERCURIA-FRISOL $444 2kt FE;3.5% Brg KOCH-PNED
ULS Kero +232.57 - 233.07+ $443.75 2kt FE;3.5% Brg LITASCO-WPI $446 2kt
No. 2 +214.97 - 215.17+ BE;3.5% Brg KOCH-VERBEKE $443.75 2kt FE;3.5% Brg
Low sulfur No. 2 +220.57 - 221.07+ KOCH-WPI $446 2kt BE;3.5% Brg KOCH-PNED $443.75
No. 6 0.3% HP ($/bbl) +76.20 - 76.30+ 2kt FE;3.5% Brg KOCH-PNED $443.75 2kt FE;3.5% Brg
No. 6 0.3% LP ($/bbl) +78.05 - 78.15+
GLENCORE-PNED $444.25 2kt MW.3.5% Brg BPBV-
No. 6 0.7% ($/bbl) +75.70 - 75.80+
No. 6 1.0%** ($/bbl) +74.00 - 74.10+ PNED $443.75 2kt FE;3.5% Brg BPBV-VERBEKE
No. 6 2.2% ($/bbl) +72.50 - 72.60+ $443.75 2kt FE;3.5% Brg KOCH-WPI $446 2kt BE;3.5%
No. 6 3.0% ($/bbl) +72.50 - 72.60+ Brg BPBV-PNED $443.75 2kt FE;3.5% Brg KOCH-WPI
No. 6 1.0% paper Bal M NA - NA $446 2kt BE;3.5% Brg KOCH-PNED $443.75 2kt
No. 6 1.0% paper 1st month ($/bbl) +73.95 - 74.05+ FE;3.5% Brg GLENCORE-WILJO $444 2kt FE;3.5% Brg
No. 6 1.0% paper 2nd month ($/bbl) +74.45 - 74.55+ TOTSA-PNED $443.75 2kt FE;3.5% Brg BPBV-VERBEKE
No. 6 1.0% paper next quarter ($/bbl) +74.45 - 74.55+
$444 2kt FE; 3.5% Brg BPBV-STR $444 2kt FE;3.5% Brg
Boston cargoes BPBV-PNED $443.75 2kt FE;3.5% Brg TOTSA-PNED
Low sulfur jet +226.32 - 226.82+
$443.75 2kt FE;3.5% Brg GLENCORE-STR $444 2kt
ULS Kero +234.57 - 235.07+
No. 2 +216.97 - 217.67+ FE;3.5% Brg KOCH-WPI $446 2kt BE;3.5% Brg BPBV-WPI
Low sulfur No. 2 +223.32 - 223.82+ $445 2kt BE;3.5% Brg BPBV-ARGOS $444 2kt FE; 3.5%
No. 6 2.2% ($/bbl) +72.75 - 72.85+ Brg GLENCORE-VERBEKE $444 2kt FE;3.5% Brg BPBV-
NY/Boston numbers include duty. **This assessment reflects 150 max al+si. PNED $443.75 2kt FE.

Copyright © 2010, The McGraw Hill Companies 5


PLATTS EUROPEAN MARKETSCAN APRIL 1, 2010

US products cts/gal

FOB Gulf Coast


Unleaded 87 7.8 RVP -219.87 - 220.37- No. 2 +213.62 - 214.07+
Unleaded 89 7.8 RVP -224.87 - 225.37- Low sulfur No. 2 +216.57 - 217.07+
Unleaded 93 7.8 RVP -234.97 - 235.47- Slurry Oil +70.30 - 70.40+
MTBE -258.00 - 259.00- No. 6 1.0% 6°API ($/bbl) +71.20 - 71.30+
Alkylate * 20.00 - 21.00 No. 6 3.0% ($/bbl) +70.15 - 70.25+
Naphtha -204.87 - 205.37- No. 6 3.0% paper 1st month ($/bbl) +70.95 - 71.05+
Jet 54 +219.07 - 219.17+ No. 6 3.0% paper 2nd month ($/bbl) +71.75 - 71.85+
Jet 55 +220.32 - 220.42+ No. 6 3.0% paper next quarter ($/bbl) +71.60 - 71.70+
ULS Kero +221.57 - 222.07+ *Premium to US Gulf Coast pipeline gasoline.

against recent market trends the high sulfur markets in the Med Total bid for dates April 11-14 and April 23-27 with the latter
were well offered, with both Lia and Galaxy showing cargo avail- dates bid to Dated Brent minus $0.35/b while Shell bid for
ability. Galaxy offered on a CIF basis to $443/mt, but failed to dates April 11-17 to Dated Brent minus $0.40/b. An offer from
attract any buying interest. The hi-lo differential climbed $4/mt BP for dates April 15-17 at Dated Brent minus $0.35/b was with-
since Monday, with April assessed at $27.5/mt on the close. drawn. The market in Europe was seen as steady with refining
Traders believed it was now entering a wide enough range to sup- margins and demand largely unchanged. But there was talk of a
port renewed blend margins in the LSFO pool. “When the hi-lo is potential rise in flows to the US, despite some trading sources
so high, refineries that produce naturally low sulfur product now describing the market there as being over-supplied. “The US Gulf
has a value as you can blend it into nice RMG,” a trader said. is seeing a lot of offers but in theory earlier in the week [the
arbitrage] did work,” a source said. Nevertheless, of Vitol’s VLCC
and Suezmax loading at Hound Point in early April, the latter was
VGO sailing to the US Gulf Coast sources said. Further offers of
Forties in the US Gulf Coast were also said to have been shown
VGO: Vacuum gasoil cracks in Northwest Europe continued their earlier in the week, despite slow demand. “The expectation is
downward trend with lower values in the US Gulf Coast continu- that as refiners start to come out of turnaround, margins are
ing to have a knock-on effect in the NWE market, sources said looking good and the gasoline crack spread is holding up we will
Thursday. “NWE is softer on the back of the US...A lot of cargoes see those barrels clear pretty quickly,” one trading source said.
arrived in the US,” a trader said. Low sulfur VGO cracks were On other grades, differentials appeared to remain steady.
also under pressure with the wide spread between the two ConocoPhillips sold a cross-month Ekofisk cargo at Dated Brent
grades narrowing, another trader said. “Sweets will follow shortly, plus $0.60/b.
it will come off,” the trader said. “Supply has increased dramati-
cally,” he added. In the Platts Market on Close assessment
process Total offered a 15,000 mt high sulfur VGO maximum LSSR
2.3% sulfur cargo on a CIF Antwerp basis, for delivery April 12-
16. The offer started at May ICE Brent futures plus $1/barrel Low sulfur straight run cargoes in Northwest Europe were
and fell to May ICE Brent futures plus $0.80/b. assessed at $556/mt Thursday. Overall availabilities in NWE
remained limited, trading sources said. “There is not much
VGO transactions around...There is no Libyan [being] offered into Europe,” a trader
said. BP reportedly sold a 30,000 mt maximum 0.7% sulfur car-
No deals reported.
go with a maximum density of 0.940 and a maximum viscosity of
300 CST at 50 degrees C to Total, around May ICE Brent futures
North Sea crude minus $1.55/barrel. BP was reportedly offering a 0.6% maximum
sulfur, 15,000 mt cargo to the market.
The Forties differential to forward Dated Brent increased to
minus $0.35/barrel Thursday as bidding interest across a large LSSR transactions
part of the 10-25 day assessment period failed to attract sellers. No deals reported.

Subscriber notes
DIESEL SUBSCRIBER NOTE: Following industry consultation, Platts is planning to incorporate clear and bright specification standards into
its Market on Close assessment process for ultra low sulfur diesel CIF Northwest Europe and CIF Mediterranean with effect from April 1,
2010. Comments please to pricegroup@platts.com and Europe_products@platts.com.

Copyright © 2010, The McGraw Hill Companies 6


PLATTS EUROPEAN MARKETSCAN APRIL 1, 2010

Subscriber notes (continued)

SUBSCRIBER NOTE: Effective July 1, 2010 Platts proposes to discontinue the publication of refined product arbitrage calculations on the
following Platts Global Alert pages: PGA 539 Gasoline Arbs; PGA 540—Naphtha Arbs; PGA 541—Jet Arbs; PGA 542—Gasoil Arbs; PGA
543—Fuel oil Arbs. Comments please to dave_ernsberger@platts.com with a CC to europe_products@platts.com

SUBSCRIBER NOTE: Platts reminds subscribers that there will be no EMEA crude oil, refined products, petrochemical or shipping assess-
ments on Friday, April 2 and Monday April 5, 2010 due to the Easter holiday weekend. Subscribers are also reminded that the Platts
Market on Close assessment process will close at 1230 London time on Thursday, April 1, 2010, with all window cut-offs and timings con-
gruent to a close at this time. For more information on Platts holidays, please visit www.platts.com/HolidayHome.aspx

SUBSCRIBER NOTE: Effective April 1, 2010, Platts will display monthly averages for European refined oil products assessments in a new
format. Under the revised layout, PGA pages 270 and 271 will be reorganized to mirror the presentation of daily assessments on PGA
pages 259 and 8 respectively. The monthly averages found on PGA 413 will be moved to PGA 269. The monthly averages found on 269
will mirror the daily assessments from PGA 9. New page PGA 272 will be introduced to mirror assessments from PGA 10. For questions
and comments please contact teresa_reveley@platts.com.

DIESEL BARGE SUBSCRIBER NOTE: Effective February 15, Platts started reflecting intermediate grades of 10ppm sulfur diesel on a pro-
rated basis in its 10ppm barge FOB ARA assessments. Effective March 31, Platts proposes to start reflecting summer grades of 10ppm sulfur
diesel on a pro-rated basis in its 10ppm barge FOB ARA assessments. Intermediate spec will be given a progressively lighter weighting up to
April 9. A spreadsheet detailing the changes is available on request. Any comments please to europe_products@platts.com

FUEL OIL SUBSCRIBER NOTE: Effective July 1, 2010 and in line with changing requirements for the content of sulfur in fuel oil consumed
by ships in European waters, Platts will discontinue the fuel oil 1.5% FOB Rotterdam barge assessment. Platts introduced the 1.5% assess-
ment on April 1, 2006 in response to new regulations by the International Convention for the Prevention of Pollution from ships
(Marpol). As of July 1, 2010 the Marpol regulations limit sulfur in fuel oil used in bunkers to a maximum of 1% in designated areas includ-
ing the Baltic Sea. Accordingly, Platts will continue to assess fuel oil 1% barges in the ARA region, but from January 4, 2010, Platts will
amend the location basis of the 1.0% assessment from Antwerp to Rotterdam in line with bunker fuel consumption patterns. Comments
should be directed to europe_products@platts.com and pricegroup@platts.

] European Marketscan Volume 42 / Issue 64 / April 1, 2010


Editorial: Gasoil: +44 (0)20 7176 6166 Diesel: +44 (0)20 7176 6684 Gasoline: +44 (0)20 7176 6120 Jet: +44 (0)20 7176 6206 Naphtha: +44 (0)20 7176 3144
Crude: +44 (0)20 7176 6114 Fuel Oil: +44 (0)20 7176 6104 Feedstocks: +44 (0)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: + 54-11-4804-1890, E-mail: support@platts.com
Copyright © 2010 The McGraw-Hill Companies. 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 The McGraw-Hill Companies Inc.Information has been 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 such information. See back of publication invoice for complete terms and conditions.

Copyright © 2010, The McGraw Hill Companies 7


Registration is
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