Download - Platts European Market Scan 040913

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

Mediterranean cargoes (PGA page 1114)

FOB Med (Italy) CIF Med (Genova/Lavera)Naphtha* PAAAI00 935.00–935.50 935.250 -4.250 PAAAH00 951.25–951.75 951.500 -4.750Prem Unl 10ppm AAWZA00 995.75–996.25 996.000 -7.250 AAWZB00 1006.00–1006.50 1006.250 -7.500Jet AAIDL00 1004.75–1005.25 1005.000 +1.000 AAZBN00 1024.50–1025.00 1024.750 +0.50010ppm ULSD AAWYY00 979.25–979.75 979.500 -0.250 AAWYZ00 991.50–992.00 991.750 -0.500Gasoil 0.1% AAVJI00 955.75–956.25 956.000 0.000 AAVJJ00 969.75–970.25 970.000 0.000Fuel Oil 1.0% PUAAK00 623.75–624.25 624.000 +1.000 PUAAJ00 635.00–635.50 635.250 +1.000Fuel oil 3.5% PUAAZ00 598.25–598.75 598.500 +3.500 PUAAY00 609.50–610.00 609.750 +3.500Jet FOB Med premium AAIDN00 14.75/15.25 15.000 0.000

*Naphtha FOB Med is basis East Med

Northwest Europe cargoes (PGA page 1110)

FOB NWE CIF NWE/Basis ARANaphtha (Oct) PAAAJ00 946.50–947.00 946.750 -1.250Naphtha PAAAL00 959.50–960.00 959.750 -4.750Gasoline 10ppm AAXFQ00 1042.75–1043.25 1043.000 -9.250Jet PJAAV00 1014.25–1014.75 1014.500 +0.500 PJAAU00 1026.00–1026.50 1026.250 +0.500ULSD 10 ppm AAVBF00 976.50–977.00 976.750 +1.250 AAVBG00 992.00–992.50 992.250 +1.250Diesel 10ppm NWE AAWZD00 979.00–979.50 979.250 +1.250 AAWZC00 994.75–995.25 995.000 +1.250Diesel 10 ppm UK AAVBH00 996.50–997.00 996.750 +1.250Gasoil 0.1% AAYWR00 946.50–947.00 946.750 -1.000 AAYWS00 963.50–964.00 963.750 -1.000Fuel oil 1.0% PUAAM00 618.00–618.50 618.250 +1.000 PUAAL00 627.50–628.00 627.750 +1.000Fuel oil 3.5% PUABB00 581.00–581.50 581.250 +2.000 PUABA00 592.50–593.00 592.750 +1.750Straight run 0.5-0.7% PKABA00 745.50–746.50 746.000 +2.000VGO 0.5-0.6% AAHMX00 795.50–796.50 796.000 +2.000 AAHMZ00 805.50–806.50 806.000 +2.000VGO 2% max AAHNB00 786.00–787.00 786.500 +1.500 AAHND00 796.00–797.00 796.500 +1.500

Northwest Europe barges (PGA page 1112)

FOB RotterdamNaphtha PAAAM00 955.50–956.00 955.750 -4.750Eurobob AAQZV00 1025.75–1026.25 1026.000 -9.25098 RON gasoline 10 ppm AAKOD00 1071.50–1072.00 1071.750 -9.250Premium gasoline 10 ppm PGABM00 1024.75–1025.25 1025.000 -13.000Jet PJABA00 1022.75–1023.25 1023.000 -1.000Diesel 10 ppm AAJUS00 982.50–983.00 982.750 -1.250Gasoil 50 ppm AAUQC00 979.50–980.00 979.750 +1.000Gasoil 0.1% AAYWT00 959.50–960.00 959.750 -0.250Fuel oil 1.0% PUAAP00 618.00–618.50 618.250 +0.750Fuel oil 3.5% PUABC00 597.25–597.75 597.500 +1.750Rotterdam bunker 380 CST PUAYW00 600.00–601.00 600.500 +3.000VGO 0.5-0.6% AAHNF00 795.50–796.50 796.000 +2.000VGO 2% max AAHNI00 786.00–787.00 786.500 +1.500MTBE* PHALA00 1191.75–1192.25 1192.000 -31.000

*FOB Amsterdam-Rotterdam-Antwerp

ICE futures

Platts ICE 1630 London assessments* (PGA page 703)

Gasoil Low Sulfur Gasoil

Sep AARIN00 961.75 Sep AAGL001 982.25Oct AARIO00 962.25 Oct AAGL002 983.25Nov AARIP00 959.25 Nov AAGL003 978.00

Brent Brent NX

Oct AAYES00 115.33 Oct AAXZL00 115.34Nov AAYET00 113.52 Nov AAXZM00 113.53Dec AAXZY00 112.00 Dec AAXZN00 112.01Jan AAYAM00 110.71 Jan AAYAP00 110.72

*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

Sep AAQSG00 960.75 Sep AAGS001 979.75Oct AAQSH00 961.50 Oct AAGS002 981.25Nov AAQSI00 958.50 Nov AAGS003 976.25Dec AAQSJ00 953.00 Dec AAGS004 970.50Jan AAQSK00 949.00 Jan AAGS005 966.75Feb AAQSL00 943.00 Feb AAGS006 960.75Expiry AAQSM00 NA*

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

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

Sept PXAAJ00 961.75 Oct PXAAK00 962.25

NYMEX futures (16:30 London time)

NYMEX WTI (PGA page 703)

$/barrel $/barrel

Oct AASCR00 107.73 Nov AASCS00 107.16

NYMEX heating oil (PGA page 703)

¢/gal ¢/gal

Oct AASCT00 314.33 Nov AASCU00 314.46

NYMEX RBOB (unleaded gasoline) (PGA page 703)

¢/gal ¢/gal

Oct AASCV00 286.75 Nov AASCW00 284.38

EUROPEAN MARKETSCANVolume 45 / Issue 171 / September 4, 2013

ULSD 10ppm barge crack swap ($)

15

20

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SepJulMayMarJanNov

september 4, 2013eUrOpeAN mArKetsCAN

2Copyright © 2013, McGraw Hill Financial

Market Update (PGA page 724)

Crude futures were holding an earlier move to the downside heading into the US trading day, with the market continuing to keep a cautious eye on a possible US-led attack on Syria, while also looking ahead to key macroeconomic indicators heading into the end of the week, as well as upcoming US stock data. “The market will remain rangebound in nervous choppy trading with all attention on developments in Syria,” said VTB Capital commodities strategist Andrey Kryuchenkov. “The highs from last week will serve as short-term upside resistance for now...we believe a limited US strike...would only see a temporary spike provided no supply disruptions elsewhere.” At 1245 GMT, ICE October Brent was down 19 cents (0.16%) at $115.49/barrel, while the front-month NYMEX October crude contract had dropped 21 cents (0.19%) to $108.33/b. The two contracts, meanwhile, have spent the day in the ranges $114.91-116.09/b and $107.63-108.61/b, respectively, while the October Brent premium to October NYMEX crude had a day range of $5.91-$6.40/b. Overnight, members of the Senate Foreign Relations Committee agreed on the wording of a new resolution authorizing US military force against the Syrian government that would permit up to 60 days of military action against the government of Syrian President Bashar al-Assad and give President Barack Obama the option to extend military operations by 30 days pending congressional notification. “Speaker of the House John Boehner is on board and [the] Senate votes today as the noose tightens around Syria’s neck,” said Price Futures Group senior market analyst Phil Flynn. “Even Vladamir Putin says he might be on board with an attack on Syria if it could be proved conclusively that the Assad regime actually used chemical weapons.” Looking ahead, outside of Syria the key event for all markets today is the American Petroleum Institute weekly stock data release scheduled for 2030 GMT, with analysts polled by Platts forecasting a 2.5 million barrel crude draw, a 1 million barrel drop in gasoline stocks and an 800,000 barrel increase in distillates. The US Energy Information Administration releases its official and more definitive data tomorrow at 1500 GMT. “However, the

Foreign exchange rates (PGA page 1151)

September 4, 2013 London 16:30Dollar/Swiss franc BCADC00 0.9352GB pound/Dollar BCADB00 1.5644Dollar/Yen BCACW00 99.5200Euro/Dollar BCADD00 1.3210Dollar/Ruble AAUJO00 33.3370

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

FOB Med CIF Med (Italy) (Genova/Lavera)Naphtha* ABWHE00 707.986 ABWHD00 720.288Prem Unl 10ppm ABWGV00 753.974 ABWGU00 761.734Jet ABWGZ00 760.787 AAZBO00 775.73810ppm ULSD ABWHM00 741.484 ABWHH00 750.757Gasoil 0.1% ABWGQ00 723.694 ABWGO00 734.292Fuel Oil 1.0% ABWGH00 472.369 ABWGF00 480.886Fuel oil 3.5% ABWGM00 453.066 ABWGK00 461.582Jet FOB Med premium ABWHA00 11.355

*Naphtha FOB Med is basis East Med

Northwest Europe cargoes (PGA page 1116)

FOB NWE CIF NWE/ Basis ARANaphtha AAQCE00 726.533Gasoline 10ppm ABWGS00 789.553Jet ABWHB00 767.979 AAQCF00 776.874ULSD 10 ppm ABWHO00 741.294 ABWHI00 753.217Diesel 10ppm NWE ABWHP00 739.402 ABWHK00 751.136Diesel 10 ppm UK ABWHJ00 754.542Gasoil 0.1% ABWGR00 716.692 ABWGP00 729.561Fuel oil 1.0% AAQCG00 468.017 ABWGG00 475.208Fuel oil 3.5% ABWGN00 440.008 ABWGL00 448.713Straight run 0.5-0.7% ABWHG00 564.724

European clean product barge freight rates

ARA ($/mt) (PGT page 1918)

Rotterdam — Rotterdam TCAEI00 1.75 Rotterdam — Flushing TCAEJ00 3.25 Rotterdam — Ghent TCAEK00 3.50 Rotterdam — Antwerp TCAEL00 2.75

Germany ($/mt) (PGT page 1918)

Rotterdam — Duisburg TCAEM00 8.00 Rotterdam — Cologne TCAEN00 15.00 Rotterdam — Karlsruhe TCAEO00 23.75 Antwerp — Duisburg TCAEP00 8.50

Switzerland ($/mt) (PGT page 1918)

Rotterdam — Basel TCAEQ00 31.00

main focus for the week will be on the release of the US employment data on Friday, including the important non-farm payroll figures that will possibly give a clear direction and better insight about the QE program,” said Sucden Financial senior research analyst Myrto Sokou. “The recent strong US economic data increased expectations that the US Federal Reserve Bank will begin reducing its stimulus soon.” For products markets, front-month NYMEX October ULSD was down 68 points (0.22%) at $3.1415/gal, while NYMEX October RBOB had shed 36 points (0.13%) to $2.8610/gal. September ICE gasoil, meanwhile, was $1.50 (0.16%) higher at $961.75/mt.

Gasoline

Market analysis: (PGA page 1399) The Northwest Europe gasoline market retained its relative strength Wednesday, with the main activity concentrated on the barges market, a source said. “The only trades that take place are on barges...as I see it at least” the source said, adding activity on the gasoline blending components market remained light. The gasoline market in the Mediterranean weakened during the trading day underlying weaker demand. On the supply side, a source said: “The middle of September seems

Northwest Europe barges (PGA page 1118)

FOB RotterdamNaphtha ABWHF00 723.505Eurobob ABWGT00 776.68498 RON gasoline 10 ppm ABWGX00 811.317Premium gasoline 10 ppm AAQCH00 775.927Jet ABWHC00 774.413Diesel 10 ppm AAQCI00 743.944Gasoil 50 ppm AAUQF00 741.673Gasoil 0.1% AAYWY00 726.533Fuel oil 1.0% ABWGI00 468.017Fuel oil 3.5% AAQCK00 452.309Rotterdam bunker 380 CST AAUHE00 454.580

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

FOB NY Harbor (€ cent/gal)Unleaded 87 AAPYV00 222.93Unleaded 89 AAPYW00 225.96Unleaded 93 AAPYX00 230.51No. 2 AAPYY00 228.49

Euro/US$ forex rate: 1.3210. 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.



very long”. Another source said a selling tender issued by Hellenic Petroleum for a monthly cargo in September, October and November had been canceled due to “low numbers”, referring to the levels of bids. A source at Hellenic Petroleum was not available to comment. With the spread between September FOB Mediterranean 10 ppm cargo and FOB Rotterdam EBOB barge gasoline being weak, market participants saw the arbitrage opportunity from the Mediterranean to Northwest Europe widening. This, in turn, could provide support for the Mediterranean gasoline market. “I do not think that the Mediterranean-NWE [spread] can go much lower than we have it today, because cargoes are moving to NWE”, a source said. Some sources said the arbitrage economics were hampered by the current market structure and upcoming seasonality changes. “The arbitrage from Mediterranean to NWE is open in principle, but you are sailing against the backwardation”, a source said. “In the middle of September, it is extra tricky due to summer-winter conversion” another source said. Production of summer gasoline could continue in the Mediterranean longer than initially expected, a source said. “Mediterranean refineries will need to stay on summer mogas production for longer than they would like because, when it is difficult to sell, you need to make the better quality to cater for Algeria, etc.” The situation in Egypt remained difficult, a source said. “Egypt is not discharging any cargo after the last wave of free cargoes from the [Middle East countries]. They first of all wait for a new wave of free cargoes,” a source said, adding that while the political situation in Egypt was calming down, financial risks remained.

Gasoline Prem Unleaded 10ppmS FOB Rdam Barge assessment rationale: (PGA page 1383) The Premium unleaded 10ppm market value was assessed at $1025/mt, with a discount at $1/mt to Eurobob barges market value. In the Platts Market On Close assessment process there were four trades concluded, all of them for mid-window dates. The last trade on mid-window dates was Gunvor selling to Totsa at $1027/mt. At the

■■■ As part of its continued commitment to market transparency, Platts has begun publishing assessment rationales for certain key benchmark assessments (See subnotes continued on page 4). These rationales complement existing market analysis and commentar-ies by providing specific details regarding how Platts editors arrived at these published assessments. The new rationales appear in key Platts oil publications and on new pages on Platts Global Alert. Platts began introduc-ing these pages August 1, 2013, in Asia and the US, and August 5 in Europe.

■■■ Platts is opening a consultation on the potential impact on Europe’s jet fuel markets of the European Union’s new Generalized Scheme of Preferences (GSP), announced last October and due to come into effect from January 1, 2014. Platts reflects market conventions in its Jet CIF Northwest European physical cargo assess-ment, and assessments currently reflect EU-qualified jet fuel, free from import taxes. Under the new GSP regime, imports from several key suppliers of jet fuel to Europe will become non EU-qualified, carrying a 4.7% duty from January 1. Platts is studying whether and how its European jet fuel assessment methodology should evolve to reflect these changes in market environment, and wel-comes all comments to [email protected], with a cc to [email protected]. Please send all comments by September 3, 2013. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make com-ments not marked as confidential available upon request. Additionally, Platts intends to create a repository on its jet

fuel microsite -- platts.com/jetfuel -- for those wishing to submit written comments for public view.

■■■ Effective January 2, 2014, and following industry feed-back to a previous subscriber note, Platts will calculate the CIF Mediterranean naphtha assessment by only applying the freight value between Alexandria and Lavera to the FOB Med naphtha assessment. This freight value will be calcu-lated using the Platts cross Med clean tanker assessment for 27,500 mt naphtha cargoes only. Currently the CIF Med naphtha assessment is calculated by applying the freight value between Alexandria and Lavera plus an allowance of $3/mt for port costs. Platts proposes to remove the port costs from the calculation of this assessment. Please send feedback and questions to [email protected] with a cc to [email protected].

■■■ Effective September 6, 2013 Platts will start reflect-ing winter grade gasoline on a pro-rated basis in the Northwest Europe and Mediterranean cargo assessments, with winter grade having an increasinweighting in the assessment towards September 20. Summer grade will continue to be taken into account until September 20 after which only winter grade will be reflected. Effective September 16, 2013 Platts will start reflecting winter grade gasoline on a pro-rated basis in the AR barge mar-ket, with winter grade becoming more representative of the assessment towards September 25. Summer grade will continue to be taken into account until September 25 after which only winter grade will be reflected. A spreadsheet detailing the switch to winter grade gasoline is available on request. Please forward any comments to [email protected].

Subscriber notes (PGA page 1500)

close Gunvor remained offering at $1027/mt for mid-window dates, and at $1022/mt for back-end dates. The Eurobob barges market value was assessed at $1026/mt. The Eurobob barges premium to the front-month swap was assessed at $39/mt, with the October swap being at $987/mt on the Eurobob cracks reported by sources at the close.The above commentary applies to the following market data code: PGABM00

Gasoline 10ppmS CIF NWE Cargo assessment rationale: (PGA page 1389) The CIF NWE gasoline cargo market was assessed at $1043/mt, with the premium to Eurobob barges steady at $17/mt. There were no trades reported in the Platts Market On Close assessment process. The Eurobob barges market value was assessed at $1026/mt. The Eurobob barges premium to the front-month swap was assessed at $39/mt, with the October swap being at



$987/mt on the Eurobob cracks reported by sources at the close.The above commentary applies to the following market data code: AAXFQ00

Gasoline Prem Unleaded 10ppmS FOB Med Cargo assessment rationale: (PGA page 1389) The FOB Mediterranean gasoline cargo market was assessed at $996/mt, lower by $7.25/mt on the day. The FOB Mediterranean gasoline cargo market value was assessed at $5.50/mt premium to September Mediterranean gasoline swap. The September Mediterranean gasoline swap was at $990.50/mt. The discount to Eurobob barges was assessed at $30/mt. In the Platts Market On Close assessment process there were two trades concluded. Gunvor lifted Totsa’s offer of a cargo loading September 15-19 FOB basis one safe port/berth Malta, for 27,000 mt at $996/mt with the balance pricing at $16/mt premium to the three days of the Platts FOB Mediterranean gasoline assessments after B/L. The trade was normalized versus Platts basis port of Santa Panagia Bay. Gunvor lifted Trafigura’s offer of a cargo loading September 14-18 FOB basis one safe port/berth Santa Panagia Bay, for 27,000 mt at $995/mt with the balance pricing at $15/mt premium to the three quotes of the Platts FOB Mediterranean gasoline assessments after B/L. For the assessment for the mid-point of September 21-22 the flat structure was used. The Eurobob barges market value was assessed at $1026/mt. The Eurobob barges premium to front month swap was assessed at $39/mt, with the October swap being at $987/mt on the Eurobob cracks reported by sources at the close.The above commentary applies to the following market data code: AAWZA00

Gasoline Prem Unleaded 10ppmS CIF Med Cargo assessment rationale: (PGA page 1389) The Premium Unleaded CIF Mediterranean cargo assessment was derived as a freight netback from the Premium Unleaded FOB Mediterranean cargo assessment,

Subscriber notes (cont.) (PGA page 1500)

using the following assessments; FOB MED Cargoes: $1042.75-1043.25/mt. Code AAWZA00; Med-Med 30,000 mt clean freight rate spot Worldscale assessment W127.5 The average of the basket of Worldscale flat-rates, calculated for 2013 at: $8.05/mt; The Premium Unleaded CIF Mediterranean cargo assessment was derived as a freight netback from the Premium Unleaded FOB Mediterranean cargo Mediterranean cargoes minus $10.25/mt (cross-Mediterranean freight).The above commentary applies to the following market data code: AAWZB00

Gasoline Barge bids/offers/trades: (PGA page 1384)

■■ 10 ppm BARGE: DEAL SUMMARY: 1) Gunvor-MS for Mid-window dates at $1024/mt for 1kt, 2) Gunvor-MS for Mid-window dates at $1025/mt for 1kt, 3) Gunvor-Totsa for Mid-window dates at 1026/mt for 1kt, 4) Gunvor-Totsa for Mid-window dates at $1027/mt for 1kt,

■■ 10 ppm BARGE MOC: OUTSTANDING INTEREST: ■■ Bids: None■■ Offers: 1) Gunvor offer for Mid-window dates at $1027/mt for 1kt. 2) Kolmar offer for Mid-window dates at $1030/mt for 1kt. 3) Gunvor offer for Back-end dates at $1022/mt for 1kt.

REGION NEW PAGE ASSESSMENT GROUP AFFECTED MARKET DATA SYMBOLSASIA/ME 2295 Middle East crude PCAAT00, PCABS00ASIA/ME 2292 ESPO Crude AASEU00ASIA/ME 2388 Asia naphtha PAAAD00, PAAAP00ASIA/ME 1392 Singapore gasoline PGAEY00, PGAEZ00, PGAMS00ASIA/ME 2494 Singapore jet fuel PJABF00ASIA/ME 2490 Singapore gasoil AAFEX00, AAOVC00, POABC00ASIA/ME 2593 Singapore fuel oil PUAXS00, PUADV00, PPXDK00ASIA/ME 2951 Asia clean tankers TCAAI00, TCABP00US 384 USGC gasoline PGACT00, PGAAB00, AARQU00, AASOB00US 381 USAC gasoline AAMGV00US 388 Midwest gasoline PGACR00, PGACS00, PGABD00US 484 USGC jet fuel PJABO00US 192 USAC jet fuel PJAAW00US 489 USWC jet fuel PJAAP00US 456 USGC ULSD AATGY00US 477 USAC ULSD AATGX00US 463 Midwest ULSD AATHA00, AATHB00US 453 USGC heating oil POAED00US 443 USAC heating oil POAEG00US 590 USGC fuel oil PUAFZ00US 593 USAC fuel oil PUAAO00, PUAAE00, PUAAH00, PUAAU00, PUAAX00US 377 3:15 gasoline futures NYRBM02, NYRBM01US 447 3:15 HO futures NYHOM01, NYHOM02EUROPE 1297 North Sea crude oil PCAAS00,PCAKA00,PCAKC00, PCAKE00, PCAKG00, AAGLU00, AAGLV00, AALCZ00, AALDA00, PCAAP00, PCAAQ00, PCAAR00EUROPE 1287 Urals crude oil PCACE00, PCAFW00, AARWD00, AALDF00EUROPE 1383 Gasoline barges PGABM00EUROPE 1389 Gasoline cargos AAXFQ00, AAWZB00, AAWZA00EUROPE 1386 Naphtha cargoes PAAAL00EUROPE 1492 Jet cargos AAIDL00, PJAAU00EUROPE 1478 Diesel barges AAJUS00EUROPE 1467 Diesel cargos (NWE) AAVBH00, AAWZC00, AAVBG00EUROPE 1456 Diesel cargos (MED) AAWYZ00EUROPE 1427 Gasoil barges AAYWT00EUROPE 1408 50ppm gasoil barges AAUQC00EUROPE 1443 Gasoil cargos (NWE) AAYWR00, AAYWS00EUROPE 1392 Gasoil cargos (MED) AAVJI00, AAVJJ00EUROPE 1592 Fuel oil barges PUAAP00, PUABC00EUROPE 1588 Fuel oil cargos (NWE) PUAAM00, PUAAL00EUROPE 1580 Fuel oil cargos (MED) PUAAJ00, PUAAK00, PUAAY00, PUAAZ00EUROPE 1584 Straight run fuel oil PKABA00



Gasoline Barge exclusions: (PGA page 1384) No market data was excluded from the September 4 10 ppm barge assessment process.

Gasoline Cargo bids/offers/trades: (PGA page 1390)

■■ GASOLINE CARGO: DEAL SUMMARY: ■■ CIF NWE: None■■ FOB Med: 1)TOTSA-Gunvor, $996 /mt fixed for 27 Kt and 0-6 Kt at Platts Fob Med Mean Prem Unl 10 ppm plus USD $16/mt, pricing 3 days after bl where bl=0, of EN228 EU qualified min 95/85 Ron/Mon, 10 ppm S max, 60 Kpa rvp max, reach compliant, 0.755 escalate/de-escalate. 27-33 Kt at buyer’s option, loading 15-19 Sep 2013 FOB basis one safe port/berth Malta. 2)Trafigura-Gunvor, $995 /mt fixed for 27Kt and 0-6Kt buyers option at Platts Mean Fob Med + $15/mt, pricing 3 quotes after B/l date (where B/L =0) of EN228 EU qualified min 95/85 Ron/Mon, 10 ppm S max,RVP 60 Kpa max, reach compliant, 0.755 escalate/de-escalate. Loading 14-18 SEPT FOB basis one safe port/berth Santa Panagia Bay. There will be a premium if port of sale means freight saving to buyer, there will be a discount if port of sale means freight cost to buyer.

■■ GASOLINE CARGO: OUTSTANDING INTEREST: ■■ CIF NWE: None■■ FOB Med: None

Gasoline Cargo exclusions: (PGA page 1390) No market data was excluded from the September 4 Gasoline cargo assessment process.

Naphtha

Market analysis: (PGA page 1398) The European naphtha market weakened Wednesday on the back of a narrower East/West spread, a smaller gasoline/naphtha spread and a wider LPG discount to naphtha, trading sources said. The October CIF NWE naphtha crack was heard trading at minus $6.55/barrel during the day, to be assessed at minus $6.35/b at market close, down from minus $5.90/b Tuesday. The September crack

fell to minus $6.68/b from minus $6.05/b and the September/October backwardation softened to $10/mt from $12.50/mt. In the meantime, the September premium of the CFR Japan naphtha cargo swap over the CIF NWE naphtha cargo swap -- the East/West spread -- was pegged between $8/mt and $9.50/mt at 11:30 London time Wednesday, down from around $10/mt Tuesday. The October East/West spread was also heard slipping to $14.25/mt from $15/mt. “It’s a very murky

market,” said a trader. “People are more in favor of LPG as it is the best alternative [to naphtha] and gasoline is not pushing naphtha up,” he added. Wednesday, the Eurobob gasoline/CIF NWE naphtha front-month spread was assessed at $40.25/mt, versus $38.25/mt Tuesday and $44.50/mt Monday, while the October propane discount to naphtha widened to $126.75/mt from $124/mt. “The weaker mogas/naphtha [spread] certainly affects blending economics,” said an industry

Correction

■■■ Please note Platts’ August 6 FOB Singapore, FOB Arab Gulf, FOB Okinawa and FOB Korea HSFO 180 CST and 380 CST physical assessments should read as follows:

■■■ These assessments appear in Platts Asia-Pacific Arab Gulf Marketscan, Platts Global Alert pages 2502, 2510, 2520, 2540, 2004, 2002, 2008 and 0031, and in the Platts price database under the codes listed above.

■■■ Platts September 3 European low sulfur fuel oil barge and cargo assessments were not published in Platts European Marketscan of the same day. The assessments were correctly published on Platts Global Alert pages 1510 and 1520 and Platts price database. Below are correct assessments:

$/mt Low High Midpoint Code

FOB SingaporeHSFO 180 CST 603.59 602.63 602.61 PUADV00HSFO 180 CST spot prem/disc -2.41 -2.37 -2.39 AAGZF00HSFO 380 CST 599.50 599.54 599.52 PPXDK00HSFO 380 CST spot prem/disc -2.19 -2.15 -2.17 PPXDL00

FOB Arab GulfHSFO 180 CST 586.74 586.78 586.76 PUABE00HSFO 380 CST 583.65 583.69 583.67 AAIDC00380/180 spread -3.11 -3.07 -3.09 PPXDM00

C+F JapanHSFO 180 CST 615.73 615.77 615.75 PUACJ00

FOB KoreaHSFO 380 CST 3.5% 606.49 606.53 606.51 PUBDY00

code $/mt low/high mid change

CIF NWE cargo basis ARAFuel oil 1% PUAAL00 626.50-627.00 626.750 +6.000

FOB NWE cargoFuel oil 1% PUAAM00 617.00-617.50 617.250 +6.250

FOB Rotterdam bargeFuel oil 1% PUAAP00 617.25-617.75 617.500 +2.000

FOB cargo Italy Fuel oil 1% PUAAK00 622.75-623.25 623.000 +7.250

CIF cargo Genoa/LaveraFuel oil 1% PUAAJ00 634.00-634.50 634.250 +7.250



source. According to another market participant, a weaker East/West spread is also one reason why the Northwest Europe naphtha paper structure was seen weakening Wednesday. However, some factors were heard bringing support to naphtha, including geopolitical uncertainty, refinery run cuts and a rather balanced physical market. “[Refineries’] margins are at very low levels and continue to decrease so run cuts are a real risk,” said a naphtha trader, adding that the physical market was tight at the front. Meanwhile, the Egyptian General Petroleum Corporation was reported to have issued a tender for seven naphtha cargoes of 25,000 mt each from the Egyptian port of Alexandria to load in the fourth quarter of 2013. According to industry sources, the tender submissions are due to end on September 6.

Naphtha CIF NWE Cargo assessment rationale: (PGA

page 1386) The CIF Northwest Europe naphtha cargo value was assessed at $959.75/mt, down $4.75/mt day on day, and assessed $13/mt over the front month outright swap versus $16.50/mt Tuesday. Four trades took place during the Platts Market on Close assessment process, with Vitol selling to Stasco’s bid at $957/mt for September 24-28 delivery, Morgan Stanley selling to Stasco’s bid at $958/mt for September 24-28 delivery, Gunvor selling to Stasco’s bid at $959/mt for September 24-28 delivery and Dow selling to Stasco’s bid at $959/mt for September 22-26 delivery. At the end of the MOC, BP was bidding $959/mt for September 16-20 dates, Stasco was bidding $959/mt for September 22-26 and four offers were still outstanding: Glencore’s at $962/mt and Totsa’s at $963/mt for September 17-21, Trafigura’s at $960/mt for September 19-23 and Vilma’s at $962/mt for September 25-29. The Trafigura’s offer at $960/mt for September 17-21 dates and the Stasco’s bid at $959/mt for September 22-26 dates were seen to test the market and a backwardation of around 16.67 cents was applied to join these two points. The full 10-25 day forward curve averaged out to $959.75/mt. The above commentary applies to the following market data code: PAAAL00

Naphtha Cargo bids/offers/trades: (PGA page 1387)

■■ NAPHTHA CARGO MOC deals: VITOL-STASCO 12,500 mt CIF NWE cargo delivery September 24-28 at $957/mt; MORGAN STANLEY-STASCO 12,500 mt CIF NWE cargo delivery September 24-28 at $958/mt; GUNVOR-STASCO 12,500 mt CIF NWE cargo delivery September 24-28 at $959; DOW-STASCO 12,500 mt CIF NWE cargo delivery September 22-26 at $959/mt.

■■ NAPHTHA MOC: OUTSTANDING INTEREST: ■■ BIDS: BP BIDS 12,500 mt CIF NWE Naphtha cargo September 16-20 delivery $959/mt; STASCO BIDS 12,500 mt CIF NWE Naphtha cargo September 22-26 delivery $959/mt.

■■ OFFERS: GLENCORE OFFERS 12,500 mt CIF NWE naphtha cargo September 17-21 delivery $962/mt; TOTSA OFFERS 12,500 mt CIF NWE naphtha cargo September 17-21 delivery $963/mt; TRAFIGURA OFFERS 12,500 mt CIF NWE naphtha cargo September 19-23 delivery $960/mt; VILMA OFFERS 12,500 mt CIF NWE naphtha cargo September 25-29 delivery $962/mt.

Naphtha Cargo exclusions: (PGA page 1387) No market data was excluded from the September 4 Naphtha assessment process.

Jet

Market analysis: (PGA page 1497) Balanced-to-long fundamentals persisted in the European jet market Wednesday. Lack of pronounced shorts, healthy cross-regional re-supply volumes and adequate stock levels

in most European systems supported a buyer’s market. The cargo market appeared saturated from the previous arrivals. Volumes for September arrivals looked heavy as well. Activity in the barge market remained muted on a lack of keen buying interest, sources said. “Everybody seems to be covered in the barge market, it is balanced...the demand is slow...there are no shortages,” a trader said. “Given the amount of cargoes arriving, [I] think demand is mostly being met there; so the barges as the marginal molecule are seeing little activity,” a second trader said. The German market appeared adequately supplied despite logistical constraints, sources said. Rhine water levels hit their lowest level of the year Wednesday as warm temperatures across Europe continued, German Federal Waterways data showed. They measured 2.44 meters at eight key locations along the river. Elsewhere, the balance of the September swap differential to front-month ICE 0.1% gasoil futures held its value during intraday trading, with 25,000 mt heard trading for $62.50/mt, ICE data showed. Calendar 14 CIF NWE Jet differentials were heard trading at their lowest levels since May, Platts data showed, trading between $76.50/mt and $77/mt. 2014 quarter swaps were also seen trading through the ICE block at $72.50/mt for Q1, $77.50/mt for Q2 and $77.50/mt for Q3. In downstream news, volumes offtakes from airlines remained healthy, despite subsiding seasonality. It was previously incorrectly reported that Ashley Lady, set at a lump sum of $2.85 million to lift 90,000 mt from Sikka, West Coast of India, on September 25, for delivery into the UK Continent, was chartered by Cargill. The cargo was not

Editorial: Gasoil: +44-20-7176-6364 Diesel: +44-20-7176-3898 Gasoline: +44-20-7176-6161 Jet: +44-20-7176-3709 Naphtha: +44-20-7176-6205 Crude: +44-20-7176-6299 Fuel Oil: +44-20-7176-6278 Feedstocks: +44-20-7176-6104

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 171 / September 4, 2013EUROPEAN MARKETSCAN



chartered by Cargill, a company source said Wednesday. In downstream news, the International Airlines Group -- parent of British Airways and Iberia -- said August traffic rose 10.6% on the previous year, while contracting capacity boosted its load factor. Diverging fortunes remained visible between the two carriers: British Airway’s revenue passenger kilometers -- a proxy for passenger traffic -- was up 2.2%, while Spain’s Iberia saw traffic fall 16.6%.

Jet FOB Rdam Barge assessment rationale: (PGA

page 1489) Platts assessed Jet FOB Rotterdam barges $1,023/mt Wednesday, down $1/mt day on day. That equated to a premium of $61.25/mt to front-month September ICE 0.1% gasoil futures, down $1/mt. Sep 11 was assessed at 60.85/mt, factoring a STR’s second bid and KLM’s offer. STR bid for 3,000mt FOB basis FARAG for Sep 9-13 delivery dates at Platts Cargoes CIF mean minus $2/mt. After normalization for location that calculated to $62.20/mt premium. KLM offered 2,000-2,500mt FOB basis FARAG for Sep 9-13 delivery dates at Sep gasoil plus $58/mt. After volume and location normalization, that calculated to $59.50/mt premium. Sep 14 was assessed at $61.46/mt, 25 cents bellow STR’s first bid. STR bid for 4,000mt FOB basis FARAG for Sep 12-16 delivery dates at CCM minus $2/mt. After volume and location normalization, that calculated to $61.21/mt premium. At 16:30 BST (1530 GMT), September gasoil was assessed at $961.75/mt, stable day on day.The above commentary applies to the following market data code: PJABA00

Jet CIF NWE Cargo assessment rationale: (PGA

page 1492) Platts assessed Jet CIF NWE Cargoes at $1,026.25/mt Wednesday, 50 cents down day on day. That equated to a premium of $64.50/mt to front-month ICE 0.1% gasoil futures, up 50 cents day on day. Sep 16 was assessed at $66.29/mt, factoring STASCO’s first bid and Vitol’s first offer. STASCO bid at CIF basis Shell Haven at Sep gasoil plus $70/mt for Sep 14-18 delivery

(continued on page 9)

Asia products Code Mid Change Code Mid Change

Singapore (PGA page 2002)

FOB Singpore ($/barrel)Naphtha PAAAP00 105.58–105.62 105.600 +0.110Gasoline 92 unleaded PGAEY00 118.50–118.54 118.520 -0.270Gasoline 95 unleaded PGAEZ00 121.58–121.62 121.600 +0.030Gasoline 97 unleaded PGAMS00 124.44–124.48 124.460 +0.090Kerosene PJABF00 126.71–126.75 126.730 +0.740Gasoil 0.05% sulfur AAFEX00 126.30–126.34 126.320 +0.670Gasoil 0.25% sulfur AACUE00 126.17–126.21 126.190 +0.670Gasoil POABC00 126.30–126.34 126.320 +0.670Fuel oil 180 CST 2% ($/mt) PUAXS00 636.82–636.86 636.840 +4.840HSFO 180 CST ($/mt) PUADV00 614.77–614.81 614.790 +6.410HSFO 380 CST ($/mt) PPXDK00 607.39–607.43 607.410 +5.360

Indonesia (PGA page 2516)

FOB Indonesia ($/barrel)LSWR Mixed/Cracked PPAPU00 100.00–100.04 100.020 +0.890

Gasoline components (PBF page 2010)

FOB Singapore ($/mt)MTBE PHALF00 1107.00–1109.00 1108.000 -3.000

Singapore Swaps (PPA page 2654)

October ($/barrel) November ($/barrel)Naphtha Japan ($/mt) AAXFE00 962.50–963.00 962.750 -0.750 AAXFF00 955.00–955.50 955.250 -1.250Naphtha PAAAQ00 104.63–104.67 104.650 +0.150 PAAAR00 103.83–103.87 103.850 +0.100Gasoline 92 unleaded AAXEL00 116.88–116.92 116.900 -0.300 AAXEM00 115.93–115.97 115.950 -0.350Reforming Spread AAXEO00 12.23/12.27 12.250 -0.450 AAXEP00 12.08/12.12 12.100 -0.450Kerosene PJABS00 126.68–126.72 126.700 +0.700 PJABT00 126.34–126.38 126.360 +0.630Gasoil POAFC00 126.26–126.30 126.280 +0.570 POAFG00 125.90–125.94 125.920 +0.520HSFO 180 CST ($/mt) PUAXZ00 620.88–620.92 620.900 +5.150 PUAYF00 622.88–622.92 622.900 +5.000

Middle East (PGA page 2004)

FOB Arab Gulf ($/barrel)Naphtha ($/mt) PAAAA00 927.66–930.16 928.910 +1.340Naphtha LR2 ($/mt) AAIDA00 934.35–936.85 935.600 +1.000Kerosene PJAAA00 123.82–123.86 123.840 +0.760Gasoil 0.005% sulfur AASGJ00 124.83–124.87 124.850 +0.690Gasoil 0.05% sulfur AAFEZ00 123.23–123.27 123.250 +0.690Gasoil 0.25% sulfur AACUA00 122.73–122.77 122.750 +0.690Gasoil POAAT00 123.23–123.27 123.250 +0.690HSFO 180 CST ($/mt) PUABE00 599.74–599.78 599.760 +6.410

Japan (PGA page 2006)

C+F Japan ($/mt) Premium/DiscountNaphtha PAAAD00 968.25–970.75 969.500 +1.000Naphtha MOPJ Strip AAXFH00 955.00–955.50 955.250 -1.250 AAXFI00 14.00/14.50 14.250 +2.250Naphtha 2nd 1/2 Oct PAAAE00 971.50–972.00 971.750 +1.000Naphtha 1st 1/2 Nov PAAAF00 970.25–970.75 970.500 +1.000Naphtha 2nd 1/2 Nov PAAAG00 968.25–968.75 968.500 +1.000Gasoline unleaded ($/barrel) PGACW00 120.95–120.99 120.970 -0.270Kerosene ($/barrel) PJAAN00 127.95–127.99 127.970 +0.640Gasoil ($/barrel) POABF00 131.32–131.36 131.340 +0.730HSFO 180 CST PUACJ00 627.58–627.62 627.600 +6.330



US Products: September 3, 2013 Code Mid Change Code Mid Change Code Mid Change

New York harbor (PGA page 152)

CIF cargoes (¢/gal) RVPUnleaded 87 0.3% AAMHG00 294.38–294.48 294.430 -3.530 AAMHGRV 9.0Unleaded-89 0.3% AAMIW00 298.38–298.48 298.430 -3.130 AAMIWRV 9.0Unleaded-93 0.3% AAMIZ00 304.39–304.49 304.440 -2.530 AAMIZRV 9.0Jet PJAAX00 311.29–311.39 311.340 -0.510Low sulfur jet PJABK00 320.04–320.14 320.090 +0.490ULS Kero AAVTH00 348.04–348.14 348.090 +0.490No. 2 POAEH00 302.54–302.64 302.590 +1.640

$/barrel 1% strip NYH cargo vs 1% stripNo. 6 0.3% HP PUAAE00 103.74–103.76 103.750 +0.900 AAUGA00 5.61/5.63 5.620 -0.080No. 6 0.3% LP PUAAB00 108.04–108.06 108.050 +1.000 AAUGB00 9.91/9.93 9.920 +0.020No. 6 0.7% PUAAH00 100.84–100.86 100.850 +0.850 AAUGC00 2.71/2.73 2.720 -0.130No. 6 1.0%** PUAAO00 98.34–98.36 98.350 +0.900 AAUGG00 98.12–98.14 98.130 +0.980 AAUGD00 0.21/0.23 0.220 -0.080No. 6 2.2% PUAAU00 96.37–96.39 96.380 +0.890 AAUGE00 -1.76/-1.74 -1.750 -0.090No. 6 3.0% PUAAX00 95.29–95.31 95.300 +0.950 AAUGF00 -2.84/-2.82 -2.830 -0.030

Residual swaps ($/barrel)No. 6 1.0% paper Bal M AARZS00 98.14–98.16 98.150 +2.600No. 6 1.0% paper 1st month PUAXD00 97.95–98.05 98.000 +0.850No. 6 1.0% paper 2nd month PUAXF00 97.65–97.75 97.700 +0.700No. 6 1.0% paper next quarter PUAXG00 97.63–97.73 97.680 +0.900

Boston cargoes (PGA pages 152)

¢/galLow sulfur jet PJABL00 322.04–322.14 322.090 +0.490ULS Kero AAVTJ00 350.04–350.14 350.090 +0.490No. 2 POAEA00 306.04–306.14 306.090 +1.640No. 6 2.2% ($/barrel) PUAWN00 97.22–97.24 97.230 +0.890

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

FOB Gulf Coast (PGA page 156 & 338)

¢/gal RVPUnleaded 87 PGACT00 288.89–288.99 288.940 -7.020 PGACTRV 7.8Unleaded 89 PGAAY00 302.19–302.29 302.240 -4.120 PGAAYRV 7.8Unleaded 93 PGAJB00 322.14–322.24 322.190 +0.230 PGAJBRV 7.8MTBE PHAKX00 348.45–348.55 348.500 -6.650Alkylate* AAFIE00 18.70/18.80 18.750 -1.750Naphtha PAAAC00 261.14–261.24 261.190 -8.270Jet 54 PJABM00 303.54–303.64 303.590 -4.510Jet 55 PJABN00 303.79–303.89 303.840 -4.510ULS Kero AAVTK00 306.79–306.89 306.840 -4.510No. 2 POAEE00 303.44–303.54 303.490 +0.490Low sulfur No. 2 POAES00 308.54–308.64 308.590 +0.620

*Premium to US Gulf Coast pipeline gasoline $/barrel 3% strip vs 1% stripSlurry Oil PPAPW00 96.01–96.03 96.020 +0.790 AAUGS00 1.42/1.44 1.430 +0.250No. 6 1.0% 6 API PUAAI00 102.57–102.59 102.580 +0.790 AAUGT00 7.98/8.00 7.990 +0.250No. 6 3.0% PUAFZ00 95.56–95.58 95.570 +0.790 AAUGW00 94.58–94.60 94.590 +0.540 AAUGU00 0.97/0.99 0.980 +0.250RMG 380 PUBDM00 97.06–97.08 97.070 +0.790 AAUGV00 2.47/2.49 2.480 +0.250

Residual swaps ($/barrel)No. 6 3.0% paper 1st month PUAXJ00 93.90–94.00 93.950 0.000No. 6 3.0% paper 2nd month PUAXL00 93.65–93.75 93.700 +0.350No. 6 3.0% paper next quarter PUAXN00 93.57–93.67 93.620 +0.500



dates. After normalization for location, that calculated to $66.91/mt premium. Vitol offered CIF basis Rotterdam on Anatoly Kolodkin for Sep 14-20 delivery dates at Platts Cargoes CIF mean plus $2/mt. That calculated to premium of $65.67/mt. Sep 17 was assessed at $65.42/mt, 25 cents below Vitol’s offer. Sep 20 was assessed at $64.78/mt, factoring in the last leg of STASCO’s order-cancels-order bid. BP offered CIF basis Rotterdam on Alburaq for Sep 18-23 delivery dates. BP’s offer was published at CCM plus $1/mt. That calculated to $64.63/mt premium. STASCO bid CIF basis Ghent for Sep 18-22 delivery dates at Sep gasoil plus $68/mt, after normalization for location, that calculated to $64.92/mt. Sep 26-27 period was assessed at $64.085/mt, factoring in BP’s third offer and STASCO’s fourth bid. BP offered CIF basis Rotterdam on Torm Marie for Sep 22-29 delivery dates at CCM flat. That calculated to a premium of $63.64/mt. STASCO bid CIF basis Rotterdam for Sep 24-29 delivery dates at Sep gasoil plus $65/mt. That calculated to a premium of $64.53. The above commentary applies to the following market data code: PJAAU00

Jet FOB Med Cargo assessment rationale: (PGA page

1492) The Jet Aviation Fuel FOB Med cargo assessed was derived as a freight net-back to the Jet CIF NWE cargo assessment, using the following assessments: Jet CIF NWE cargoes: $1,026-1,026.50/mt. Code PJAAU00; Med-UKC 30,000 mt clean freight rate spot Worldscale assessment W152.5 The Worldscale flat-rate, calculated for 2013 at: $13.42/mt and Rotterdam Harbor dues of $1.15/mt; The Jet Aviation FOB Med cargo assessment was derived as a freight net-back to the CIF NWE cargo assessment, using the following calculation: Jet CIF NWE cargoes minus $21.25/mt (Med-UKC freight).The above commentary applies to the following market data code: AAIDL00

Jet Barge bids/offers/trades: (PGA page 1490)

■■ Jet Barge: Deal Summary: No deals reported.■■ Jet Barge MOC: Outstanding Interest:

■■ BIDS: (1) STR1 bids 4kt FOB FARAG 12-16/09, ccm minus $2/mt, 95% pxg 15-30 sep, 5% 1 after BL; (2) STR2 bids 3kt FOB FARAG 09-13/09, ccm minus $2/mt, 95% pxg 15-30 sep, 5% 1 after BL.

■■ OFFERS: (1) KLM offers 2-2.5kt FOB FARAG 9-13/09 at SEP plus $58/mt; (2) BP1 offers 2-3kt Rotterdam 09-19 Sep (buyer to narrow to 5 day window at time of trade) at CCM $0.00/mt, 95% pxg 01-03 Oct bal 1 day after BL (BL=0); (2) BP2 offers 2-3kt Rotterdam 09-13 Sep at CCM $0.00/mt, 95% pxg 01-03 Oct bal 1 day after BL (BL=0).

Jet Barge exclusions: (PGA page 1490) No market data was excluded from the Northwest European jet barge assessment.

Jet Cargo bids/offers/trades: (PGA page 1493)

■■ Jet Cargo: Deal Summary: No deals reported.■■ Jet Cargo MOC: Outstanding Interest:■■ BIDS: (1) Morgan Stanley 1 bids 30KT +/-10% s/option, 27kt @ CCM +3 prx 5-13 September and balance prx 3 days after COD (COD = 0), EU Qualified Jet A1 Defstan 91-91 latest issue, 16-29 Sep 2013 (seller to narrow to 5 day window at time of trade), CIF Basis Oiltanking Ghent + full NWE C/P options on vessel to be BP/Shell/Totsa approved; (2) STASCO 1 bids 30kt +/-10% s/option, 27kt at SEP IPE+70 usd/mt, the balance at CCM+6 over 3 quote days after COD (COD=0), EU Qualified Jet A1 Defstan 91- 91 latest issue, with minimum Shell/BP/Exxon approvals, ISPS compliant, f/p cargo s/option, 14-18 Sep , CIF Shell Haven + full NWE C/P options; (3) STASCO 2 OCO STASCO 3 bids 30kt +/-10% s/option, 27kt at CCM plus 4 usd/mt pricing 05-16 Sep, the Balance 3 days after COD (COD = 0), EU Qualified Jet A1 Defstan 91- 91 latest issue, with minimum Shell/BP/Exxon approvals, ISPS compliant, f/p cargo s/option, 18-22 Sep, CIF Ghent + full NWE C/P options; (4) STASCO 3 OCO STASCO 2 bids 30kt +/-10% s/option, 27kt at SEP IPE+68 usd/mt, the balance at CCM+4 over 3 quote days after COD (COD=0), EU Qualified Jet A1 Defstan 91- 91 latest issue, with minimum Shell/BP/

Exxon approvals, ISPS compliant, f/p cargo s/option, 18-22 Sep, CIF Ghent + full NWE C/P options; ... (5) STASCO 4 bids 30kt +/-10% s/option, 27kt at SEP IPE+65usd/mt, the balance at CCM-3 over 3 quote days after COD (COD=0), EU Qualified Jet A1 Defstan 91- 91 latest issue, with minimum Shell/BP/Exxon approvals, ISPS compliant, f/p cargo s/option, 24-29 Sep (seller to narrow to 5 day window at time of trade) Sep, CIF Rotterdam + full NWE C/P options.

■■ OFFERS: (1) VITOL GENEVA1 OFFER 30 KT +/- 10 PCT S/OPT, 27KT AT CCM PLUS $2.00 PRICING 01-31 OCT, BALANCE AT OCT +$64, EU QUALIFIED JET A1 DEFSTAN 91-91 LATEST ISSUE F/P CARGO S/OPT, 14?20/09, CIF BSS ROTTERDAM, MT ANATOLY KOLODKIN, BUYER TO NOM 5 DAY WINDOW AT TIME OF DEAL; (2) VITOL GENEVA2 OFFER 30 KT +/- 10 PCT S/OPT, 27KT AT CCM PLUS $2.00 PRICING 01-31 OCT, BALANCE AT OCT +$64, EU QUALIFIED JET A1 DEFSTAN 91-91 LATEST ISSUE F/P CARGO S/OPT, 17 ? 29/09, CIF BSS ROTTERDAM, SHELL, BP, EXXON ACCEPTABLE VESSEL, BUYER TO NOM 5 DAY WINDOW AT TIME OF DEAL; (3) VITOL GENEVA3 OFFER 30 KT +/- 10 PCT S/OPT, 27KT AT CCM PLUS $1.00 PRICING 01-31 OCT, BALANCE AT OCT +$63. EU QUALIFIED JET A1 DEFSTAN 91-91 LATEST ISSUE F/P CARGO S/OPT, 14 ? 22/09, CIF BSS LE HAVRE, SHELL, BP, EXXON ACCEPTABLE VESSEL, BUYER TO NOM 5 DAY WINDOW AT TIME OF DEAL; (4) BP 1 offers CCM + $1/mt, 27kt pricing 01-31 Oct, the Balance 3 days after COD (COD=0), 30kt +/- 10% s/option, EU qualified Jet A1 Defstan 91-91 latest issue, BP GT&C apply, ISPS compliant, f/p cargo s/option, 18-23 Sept (Buyer to nom 5 day window at time of booking) CIF Basis Rotterdam + NWE C/P options, on Alburaq or acceptable sub; ... (5) BP 2 offers CCM $0.00/mt, 27kt pricing 01-31 Oct, the Balance 3 days after COD (COD=0), 30kt +/- 10% s/option, EU qualified Jet A1 Defstan 91-91 latest issue, 19-25 Sept (Buyer to nom 5 day window at time of booking) CIF Basis Rotterdam + NWE C/P options, on BP/ KPI/ Totsa approved vessel; (6) BP 3 offers CCM $0.00/mt, 27kt pricing 01-31 Oct, the Balance



3 days after COD (COD=0), 30kt +/- 10% s/option, EU qualified Jet A1 Defstan 91-91 latest issue, BP GT&C apply, ISPS compliant, f/p cargo s/option, 22-29 Sept (Buyer to nom 5 day window at time of booking) CIF Basis Rotterdam + NWE C/P options, on Torm Marie or acceptable sub.

Jet Cargo exclusions: (PGA page 1493) No market data was excluded from the Northwest European jet cargo assessment.

Jet Index (PGA page 115)

September 3, 2013 Index $/mtEurope & CIS PJECI00 350.42 PJECI09 1024.88MidEast & Africa PJMEA00 374.52 PJMEA09 989.51Global PJGLO00 351.67 PJGLO09 1013.89

Gasoil

Market analysis: (PGA page 1499) Physical gasoil premiums in the ARA barge market were mixed Wednesday, with 0.1% gasoil weakening despite improved buying interest, while 50ppm was supported amid a better offered market. Low Rhine water levels hit barge sizes transacted in Germany, sources said. With around 1,300-1,400 mt now seen prevalent, traders were cautious about the ability to meet minimal operational tolerances in their transactions. Meanwhile, in the NWE cargo market a few cargoes were heard fixed for flows to West Africa despite arbitrage out of the European region being closed. BP was reported to have the Seabreeze fixed for a 42,000 mt cargo loading from Amsterdam to West Africa, while Addax was reported to have fixed the Georgia for a 36,300 mt cargo loading from Fawley and also destined for the West African region. In Asia, refinery woes in Malaysia and Taiwan put a floor on bearish sentiment in the gasoil market and provided support to the market. However, a weak Asian gasoil market on ample supplies of 500ppm gasoil, compared with Europe, had led to traders sending clips from the West coast of India, South Korea, Singapore and Taiwan to the UK Continent and West Africa.

Gasoil .1%S (1000ppm) FOB ARA Barge assessment rationale: (PGA page 1427) 0.1% barges were assessed at September ICE gasoil minus $2.00/mt, for September 9-19 loading. For September 9-13 loading (front window) the market was assessed at September ICE Gasoil minus $2.13/mt on the back of AST’s untraded bid at September ICE gasoil minus $2.50/mt, and Vitol’s untraded offer at September ICE gasoil minus $2.25/mt. ARA options were normalized by $0.50/mt as were bids for higher volumes of 2-3kt. For deferred dates, a daily contango structure of $0.03/mt, was applied.The above commentary applies to the following market data code: AAYWT00

Gasoil .005%S (50ppm) FOB ARA Barge assessment rationale: (PGA page 1408) 50 ppm barges was assessed at September ICE gasoil plus $18.00/mt, for September 9-19 loading. For September 9-13 loading (front window) the market was assessed at September ICE Gasoil plus $17.75/mt on the back of Morgan Stanley’s untraded bid at September ICE Gasoil plus $17.50/mt. For September 12-16 loading (mid window) the market was assessed at September ICE Gasoil plus $17.75/mt on the back of Trafigura’s untraded offer at September ICE Gasoil plus $18.00/mt. For September 15-19 loading (back window) the market was assessed at September ICE Gasoil plus $18.25/mt on the back of STR’s untraded bid at September ICE Gasoil plus $18.00/mt. The above commentary applies to the following market data code: AAUQC00

Gasoil 0.1%S FOB NWE Cargo assessment rationale: (PGA page 1443) The Gasoil 0.1% Cargo FOB NWE cargo assessment was derived as a freight netback from the Gasoil 0.1% Cargo CIF NWE cargo assessment, using the following assessments: UKC-UKC 22,000 mt clean freight spot Worldscale assessment W175. The average of the basket of Worldscale flat-rates, calculated for 2013 at: $9.56/mt. The Gasoil 0.1% FOB NWE cargo assessment was derived as a freight netback from the Gasoil 0.1% CIF NWE cargo assessment, using the following calculation; Gasoil 0.1% CIF NWE cargo minus

$17/mt. (UKC-UKC freight plus $0.25/mt insurance).The above commentary applies to the following market data code: AAYWR00

Gasoil 0.1%S CIF NWE Cargo assessment rationale: (PGA page

1443) 0.1% CIF NWE cargoes was assessed at September ICE gasoil plus $2.00/mt, for loading September 14-29. With no bids/offers in the Market on Close assessment process, the relationship between the physical assessment and the Mean of Platts London strip was maintained.The above commentary applies to the following market data code: AAYWS00

Gasoil 0.1%S FOB Med Cargo assessment rationale: (PGA page 1392) The Gasoil 0.1% Cargo FOB Mediterranean cargo assessment was derived as a freight netback from the Gasoil 0.1% Cargo CIF Mediterranean cargo assessment, using the following assessments: Black Sea-Mediterranean 30,000 mt clean freight rate spot Worldscale assessment W127.5. The average of the basket of Worldscale flat-rates, calculated for 2013 at: $10.74/mt. The Gasoil 0.1% FOB Mediterranean cargo assessment was derived as a freight netback from the Gasoil 0.1% CIF Mediterranean cargo assessment, using the following calculation; Gasoil 0.1% CIF Mediterranean cargo minus $14/mt. (Black Sea-Med freight plus $0.25/mt insurance).The above commentary applies to the following market data code: AAVJI00

Gasoil .1%S (1000ppm) CIF Med Cargo assessment rationale: (PGA page 1392) 0.1% CIF Med cargoes was assessed at September ICE gasoil plus $8.25/mt, for loading September 14-29. For September 24-28 loading the market was assessed at September ICE gasoil plus $8.00/mt (rounded) on the back of the Mean of Platts London strip as Glencore’s untraded bid at CCM minus $1.50/mt, was deemed uncompetitive, relatively. For more prompt dates, a daily backwardated structure of $0.08/mt was applied. September 21-29 reflected winter specification gasoil.The above commentary applies to the following market data code: AAVJJ00



Gasoil 0.1% Barge bids/offers/trades: (PGA page 1428)

■■ GASOIL: DEAL SUMMARY: 9 trades reported: 1)Gunvor-BP at Sept minus 2.25, Sept 9-13, ARA, 3kt; 2)VSA-BP at Sept minus 2.25, Sept 9-13, ARA, 3kt; 3)VSA-AST at Sept minus 2.25, Sept 9-13, ARA, 3kt; 4)VSA-BP at Sept minus 2.50, Sept 9-13, AR, 2kt; 5)VSA-Van Raak at Sept minus 2.50, Sept 9-13, ARA, 2kt; 6)VSA-BP at Sept minus 2.25, Sept 9-13, ARA, 2kt; 7)VSA-AST at Sept minus 2.25, Sept 9-13, ARA, 3kt; 8)VSA-BP at Sept minus 2.25, Sept 9-13, ARA, 2kt; 9)VSA-AST at Sept minus 2.25, Sept 9-13, ARA, 3kt.

■■ GASOIL MOC: OUTSTANDING INTEREST:■■ BIDS: MS bids at Sept -3, Any 5 days, ARA, 1-3kt 1) AST bids at Sept -2.50, Sept 9-13, ARA, 1-2kt 2) AST bids at Sept -3, Sept 12-16, ARA, 1-2kt; Belgomine bids at Sept -5, Sept 9-13, ARA, 1-2kt

■■ OFFERS: STR offers at Sept -2, Sept 10-14, ARA, 1-2kt; Gunvor offers at Sept -2, Sept 9-13, ARA, 1-3kt; VSA offers at Sept -2.25, Sept 9-13, ARA, 1-2kt

Gasoil 0.1% Barge exclusions: (PGA page 1428) No market data was excluded from the Rotterdam 0.1% gasoil barge assessment.

Gasoil Barge 50ppm bids/offers/trades: (PGA page 1409)

■■ GASOIL: DEAL SUMMARY: 2 trades reported: 1) VSA-MS at Sept +18, Sept 9-13, ARA, 1.3kt; 2)VSA-MS at Sept +18, Sept 9-13, ARA, 1.5kt.

■■ GASOIL MOC: OUTSTANDING INTEREST:■■ BIDS: MS bids at Sep +17.50, Sept 9-13, ARA, 1-3kt; STR bids at Sep +18, Sept 15-19, ARA, 1-3kt;

■■ OFFERS: 1) Trafigura offers at Sep +18, Sept 9-13, ARA, 1-3kt 2) Trafigura offers at Sep +18, Sept 12-16, ARA, 1-3kt; VSA offers at Sep +19, Sept 9-13, ARA, 1-3kt

Gasoil Barge 50ppm exclusions: (PGA page 1409) No market data was excluded from the Rotterdam 50 ppm gasoil barge assessment.

Gasoil NWE Cargo bids/offers/trades: (PGA page 1444)

■■ GASOIL: DEAL SUMMARY: No Deals.

■■ GASOIL MOC: OUTSTANDING INTEREST:■■ BIDS: No Bids.■■ OFFERS: No Offer.

Gasoil NWE Cargo exclusions: (PGA page 1444) No market data was excluded from the Northwest European 0.1% gasoil cargo assessment.

Gasoil Mediterranean bids/offers/trades: (PGA page 1393)

■■ GASOIL: DEAL SUMMARY: No Deals.■■ GASOIL MOC: OUTSTANDING INTEREST:■■ BIDS: Glencore bids CCM -$1.50, on 0.845 density, for 25-30kt (s.o), 0.1% Gasoil Spanish B+C Summer spec, CIF basis Genoa for delivery Sept 24-28. Vessel Approvals: Erg/ Eni/Total. CP Options: Euromed, Neobig + Croatia + Slovenia + Egyptian med + Algeria + Tunisia + Libya but excluding y/fyugo/toc + other options as available. Pricing: 25kt over Sept 6-10, Balance 5 quotes after COD.

■■ OFFERS: No Offers.

Gasoil Mediterranean exclusions: (PGA page 1393) No market data was excluded from the Mediterranean gasoil cargo assessment.

Diesel

Market analysis: (PGA page 1498) Ultra low sulfur diesel barge prices came under renewed pressure Wednesday as water levels on the river Rhine continued to fall, hampering the flow of diesel from the ARA refining hub to Germany, France, Switzerland and other countries in central Europe, traders said. Water levels were measured 2.44 meters at eight key locations along the river, the lowest seen all year. “The Rhine is open but there is less and less water...we are forced to underlift and freight is moving up,” a trader said. A second source said: “We have had to take 650 tonnes less than originally anticipated on my barge loading in early September...we have come to an agreement with the company selling us the products.” In cargo markets, demand was more robust and premiums rose,

with traders citing the refinery maintenance season in Europe. CIF ARA cargoes were assessed $9.50/mt above FOB Rotterdam barges, one of the widest spreads this year, according to Platts data. “The diesel premium could go up with the turnaround season and low stocks...and I am not even including geopolitical concerns and the possibility of war,” a trader said.

ULSD 10ppmS FOB Rdam Barge assessment rationale: (PGA page 1478) Rotterdam barges were assessed at $982.75/mt FOB Wednesday, down $1.25/mt, in line with a lower physical premium. Morgan Stanley’s bids number one and two, Shell’s bid number one, as well as BP’s offers one, two and four all figured prominently in the assessment. BP’s offer number four, in particular, showed intermediate specification diesel to have little difference with the summer specification.The above commentary applies to the following market data code: AAJUS00

ULSD 10ppmS CIF NWE Basis UK Cargo assessment rationale: (PGA page 1467) The Diesel 10ppm (UK) CIF NWE cargo assessment was derived as a freight net-forward from the ULSD 10ppm ARA cargo assessment, using the following assessments: ULSD 10ppm ARA Cargo: $992-992.5/mt. Code AAVBG00; UKC-UKC 22,000 mt clean freight rate spot Worldscale assessment W175 The average of the basket of Worldscale flat-rates, calculated for 2013 at: $2.51/mt; The Diesel 10ppm (UK) CIF NWE cargo assessment was derived as a freight net-forward from the ULSD 10ppm ARA cargo assessment, using the following calculation: ULSD 10ppm ARA cargoes plus $4.5/mt.The above commentary applies to the following market data code: AAVBH00

ULSD 10ppmS CIF NWE Basis Le Havre Cargo assessment rationale: (PGA page 1467) The Diesel 10ppm CIF NWE (Le Havre) cargo assessment was derived as a freight net-forward from the ULSD 10ppm ARA cargo assessment, using the following assessments: ULSD 10ppm ARA Cargo: $992-992.5/mt. Code AAVBG00;



UKC-UKC 22,000 mt clean freight rate spot Worldscale assessment W175 The average of the basket of Worldscale flat-rates, calculated for 2013 at: $1.64/mt; The Diesel 10ppm CIF NWE (Le Havre) cargo assessment was derived as a freight net-forward from the ULSD 10ppm ARA cargo assessment, using the following calculation: ULSD 10ppm ARA cargoes plus $2.75/mt.The above commentary applies to the following market data code: AAWZC00

ULSD 10ppmS CIF NWE Cargo assessment rationale: (PGA page 1467) Northwest European cargoes rose Wednesday for a second straight day to $992.25/mt CIF ARA, buoyed by a higher physical premium rather than a take-up in outright ICE gasoil future prices, which were stable on-day. The premium was assessed at September ICE gasoil future prices plus $30.50/mt, up $1.25/mt from Tuesday, with a higher bid from Glencore into the UK’s Grangemouth in the Platts Market on Close assessment process. An offer from Vitol into France’s Le Havre towards the end of the assessment curve showed winter specification diesel to be almost in line with summer specification.The above commentary applies to the following market data code: AAVBG00

ULSD 10ppmS CIF Med Cargo assessment rationale: (PGA page 1456) Mediterranean cargoes were assessed at $991.75/mt CIF Lavera Wednesday, down 50 cents/mt with the lower physical premium. A sole offer from OMV in the Platts Market on Close assessment process did not prove challenging against the Mean of Platts strip.The above commentary applies to the following market data code: AAWYZ00

Diesel Barge bids/offers/trades: (PGA page 1479)

■■ ULSD: BARGE DEAL SUMMARY: BP-STR summer spec at Sep +22, Sep 10-14, Rott, 1kt; BP-STR summer spec at Sep +22, Sep 10-14, Rott, 1.2kt; JPM-STR summer spec at Sep +22, Sep 9-13, AR, 1.2kt; BP-MS summer spec at Barges mean -0.50, 95% pricing 05-09 Sep, balance 3 quotes after b/l, Sep

9-13, ARA, 2kt; Trafigura-STR inter spec at Sep +22, Sep 9-13, ARA, 1.5kt; BP-STR summer spec at Sep +21.50, Sep 10-14, Rott, 1.5kt; VSA-STR summer spec at Sep +21, Sep 9-13, FARAG, 2kt; BP-MS summer spec at Barges mean -1.00, 95% pricing 05-09 Sep, balance 3 quotes after b/l, Sep 9-13, ARA, 2kt; BP-MS summer spec at Sep +22, Sep 9-13, ARA, 1.9kt; BP-STR inter spec at Sep +22, Sep 15-19, ARA, 2kt; BP-MS summer spec at Barges mean -1.00, 95% pricing 05-09 Sep, balance 3 quotes after b/l, Sep 9-13, ARA, 2kt; BP-STR summer spec at Sep +21, Sep 10-14, Rott, 1kt; BP-STR inter spec at Sep +22, Sep 15-19, ARA, 1.5kt; BP-STR summer spec at Sep +21, Sep 10-14, Rott, 1.2kt; BP-STR inter spec at Sep +22, Sep 15-19, ARA, 1.2kt; Noble-MS summer spec at Sep +22, Sep 9-13, ARA, 1.2kt

■■ ULSD: BARGE OUSTANDING INTEREST:■■ OFFERS: Litasco offers summer spec at Sep +22, Sep 11-15, FARA, 1-2kt; Litasco offers summer spec at Sep +21, Sep 9-13, FARA, 1-2kt; Litasco offers summer spec at Sep +21, Sep 9-13, FARA, 1-2kt; 5) VSA offers at barges mean flat, ULSD Summer fob ARA 1-2kt lifting 9 ? 14 Sept (buyer to declare 5 day window at time of booking) , 95% pricing 5-9 Sept, balance 3 quotes after b/l; 3) VSA offers at Sep +23, ULSD Inter FOB ARA 1-2KT, 14? 19 Sept (BO) ; 2) VSA offers at Sep +23, ULSD Summer fob ARA 2-3kt, 9-14 Sept (BO) ; 1) VSA offers at Sep +23, ULSD Summer fob ARA 1-2kt, 9-14 Sept (BO) ; 4) BP offers inter spec at Barges mean -1.00, 95% pricing 05-09 Sep, balance 3 quotes after b/l, load 15-19, ARA, 1-2kt.

■■ BIDS: 2) MS bids inter spec at Sep +22, Sep 15-19, ARA, 1-3kt; 1) STR bids summer spec at Sep +21.50, Sep 10-14, AR, 1-3kt; 2) STR bids summer spec at Sep +20, Sep 13-17, ARA, 1-3kt; 3) STR bids inter spec at Sep +22, Sep 15-19, ARA, 1-3kt; 4) STR bids inter spec at Barges flat, Sep 15-19, ARA, 1-3kt, 95% pricing 15-19/09 balance 3 quotations after BL.

Diesel Barge exclusions: (PGA page 1479) No market data was excluded from the Rotterdam diesel barge assessment.

Diesel NWE Cargo bids/offers/trades: (PGA page 1468)

■■ ULSD: NWE CARGO DEAL SUMMARY: None■■ ULSD: NWE CARGO OUSTANDING INTEREST:■■ OFFERS: 1) Oco 2) oco 3) Vitol OFFERS 10ppm cif new high (havre quote) +3.00, 20KT +/- 10% ULSD FRENCH SUMMER C&B CIF BASIS havre , 0.842 density max, 15-20 Sept (buyer to declare 5 days window at time of booking) bp/lukoil/p66 acceptable, hamb-bdx +n.spain+ecuk, BP 2007 GT&CS , 18kt pricing as per 5 day window , bal 3 quotes after final cod date; 2) Oco 1) and 3) Vitol OFFERS 10ppm cif new high (harve quote) +1.50, 20KT +/- 10% ULSD FRENCH winter C&B CIF BASIS havre , 0.842 density max, 23-29 (buyer to declare 5 days window at time of booking) Sept bp/lukoil/p66 acceptable, hamb-bdx +n.spain+ecuk, BP 2007 GT&CS , 18kt pricing as per 5 day window , bal 3 quotes after final cod date; 3) Oco 1) and 2) Vitol OFFERS 10ppm cif new high (harve quote) +3.00, 20KT +/- 10% ULSD FRENCH winter C&B CIF BASIS havre , 0.842 density max, 21-26 Sept (buyer to declare 5 days window at time of booking) stasco/lukoil/p66 acceptable, hamb-bdx +n.spain+ecuk, BP 2007 GT&CS, 18kt pricing as per 5 day window , bal 3 quotes after final cod date;

■■ BIDS: Stasco1 bids HCIF ARA -1.00, for 20 kt +/- 10pct SO UK Summer spec 10 ppm ulsd,C+B, max 842 dens, cif bss Thames (Vopak Thames Terminal Thurrock Jetty2 ? 45kt dwt max ? 10.3m draft max) for 19-29 sep (seller to nom 5d laycan at time of booking). Cp options to include hburg ? bdx + nspain + ecuk. Vsl to be shell/totsa/p66 acceptable. with 18 kt pricing as per nominated 5d laycan and bal cargo 3 quotes after cod.; Stasco2 bids SEP ipe + 28.00, for 20 kt +/- 10pct SO French Summer spec 10 ppm ulsd,C+B, max 842 dens, cif bss Thames (Vopak Thames Terminal Thurrock Jetty2 - 45kt dwt max ? 10.3m draft) for 19-29sep (seller to nom 5d laycan at time of booking). Cp options to include hburg ? bdx + nspain + ecuk. Vsl to be shell/totsa/p66 acceptable. ; 1) OCO 2) Glencore bids at Sep +32.00, for 20kt+/-10% ULSD10 UK summer spec (0.842 max density, clear and bright) CIF basis Grangemouth



14 - 18/9 hamb-bdx+n.spain+ecuk+belfast and other cp options as available on total/bp/shell approved vessel ; 2) OCO 1) Glencore bids at ULSD CIF (BASIS ARA QUOTE) +$1.00, for 20kt+/-10% ULSD10 UK summer spec (0.842 max density, clear and bright) CIF basis Grangemouth 14 - 18/9 hamb-bdx+n.spain+ecuk+belfast and other cp options as available on total/bp/shell approved vessel, 18kt pricing 12-16/9, balance pricing 3 quotes after final COD; BP bids at sep +30.00 for 10-12kt ULSD10 UK summer spec (0.842 max density, clear and bright) CIF basis Thames 14-18/9 hamb-bdx+n.spain+ecuk+belfast and other cp options as available on total/bp/shell approved; Gunvor bids HCIF ARA -$1.00, for 20 kt +/- 10pct SO French Summer spec 10 ppm ulsd,C+B, max 842 dens, cif bss Thames (Vopak Thames Terminal Thurrock Jetty 2 45kt dwt max 10.3m draft max) for 16-20 sep Cp options to include hburg bdx + nspain + ecuk. Vsl to be shell/totsa/p66 acceptable. with 18 kt pricing as per nominated 5d laycan and bal cargo 3 quotes after cod;

Diesel NWE Cargo exclusions: (PGA page 1468) No market data was excluded from the Northwest European diesel cargo assessment.

Diesel Mediterranean bids/offers/trades: (PGA page 1457)

■■ ULSD: MED CARGO DEAL SUMMARY: None■■ ULSD: MED CARGO OUSTANDING INTEREST:■■ OFFERS: 1) OMV OFFERS AT CIF MED 10PPM CARGOES HIGH QUOTE PLUS $1.00, 25-30KT IN S.O ULSD 10 PPM MEETING FRENCH WINTER SPEC (C+B) , CIF BASIS ALIAGA, (POAS TERMINAL) 23 SEPT TO 27 SEPT ARRIVAL, VESSEL TO BE ENI / OMV / LUKOIL APPROVED, WITH OPTIONS EUROMED, NEOBIG, EXCL , Y,FY, ALB, SYRIA AND TOC BUT INCLUDING CROATIA + SLOVENIA + TURKISH MED + SOM + OTHER OPTIONS AS AVAILABLE, PRICE : 25KT PRICING 20 TO 27 SEPT, WITH BALANCE PRICING 3 CONSECUTIVE QUOTES AFTER FINAL COD (COD=0);

■■ BIDS: None

Diesel Mediterranean exclusions: (PGA page 1457) No market data was excluded from the Mediterranean diesel cargo assessment.

Fuel Oil

Market analysis: (PGA page 1599) The European high sulfur fuel oil market was stronger in the Mediterranean than in the North Wednesday with the continued softness of Rotterdam prices, traders said. The Rotterdam barges continued to trade at a low differential to the front-month swap despite talk of fresh VLCCs for arbitrage East. Maersk Sara and Gulf Sheba were two vessels heard this week put on subjects for the key Rotterdam-Singapore route, but the charterer was not confirmed by the end of day Wednesday. The Singapore market -- the major demand hub for European HSFO -- has also been relatively weak in the past weeks with some traders saying the arbitrage was not entirely open. “Singapore doesn’t need oil, if you look at the arb it doesn’t make that much sense [economically], maybe on a VLCC, but oil has to go somewhere [from Rotterdam where local demand is weak],” one trader said. The relative weakness of the Rotterdam market has been prompting opportunities for flows to the West Mediterranean, traders said. In the low sulfur fuel oil market Wednesday, bunker demand for 1% in Northwest Europe was reported to be a bit higher, with shipowners trying to get ahead of the rising physical hi-lo spread seen over the last few weeks, according to one buyer and several bunker suppliers. However LSFO cargo demand was still far from exciting, and the swaps structure remained in contango. Shell’s purchase of an LSFO cargo from Total Tuesday at unexpectedly high levels (flat to Platts floating prices for the rest of this month) could have been due to the ongoing maintenance at the secondary units of its 400,000 b/d Pernis refinery in Rotterdam, said a trader. A Shell trader declined to comment on what the purchase was for. On the derivatives side the hi-lo swap was being supported by utility hedging, according to one trader, as opposed to actual demand. “The hi-lo is only strong because people

are buying against gas contracts,” he said. “After they stop buying the hi-lo will go to $15/mt where the Cal 15 hi-lo is. If I look at my own plants they are not burning anything and peak season is over. So there is more supply than demand.” Despite large scale de-linking of European utilities’ long-term gas import contracts from oil prices over the last two years, significant chunks of these contracts are still priced on LSFO, hence several utilities entered the physical LSFO market last year to get a handle on this exposure. In the Mediterranean, low sulfur bunker demand was weak according to most bunker suppliers surveyed Wednesday, but there were pockets of buying out there. “LSFO demand at Gibraltar has risen during the past few weeks, with good volumes either alone or combined with HSFO,” said one bunker trader.

FO 1%S FOB Rdam Barge assessment rationale: (PGA

page 1592) LSFO BARGE RATIONALE: Shell bought seven of BP’s front and mid-window offers at $619/mt, while Vitol bought two. However, these offers did not appear aggressive versus the previous day’s physical/swaps differential, and BP’s back-end offer at $619/mt did not trade, suggesting a lower value for more prompt dates in a contango market. Value was assessed $0.25/mt below this at $618.75/mt at the back end. Using a 13 cents/day contango from the swaps structure from this point was disproven by a mid-window bid from Vattenfall at $618/mt, showing a flatter contango. The overall barge window came to $618.25/mt, up $0.75/mt day on day.The above commentary applies to the following market data code: PUAAP00

FO 3.5%S FOB Rdam Barge assessment rationale: (PGA

page 1592) The front-end window was offered at $598/mt Wednesday and Platts assessed the dates $0.25/mt below the offer. The mid-window as also assessed just below the offer and just above a bid at $597.50/mt. The implied backwardated structure was drawn between the two dates. The structure between the mid- and back-window as assessed in a steeper backwardation, with the back-end trading off an offer just at the close at



$597/mt. That meant that barges were assessed in a $1.25/mt discount to the front-month swap, down from previous $0.50/mt discount.The above commentary applies to the following market data code: PUABC00

FO 1%S CIF NWE Cargo assessment rationale: (PGA

page 1588) The 1% CIF Northwest European cargo assessment was derived as a freight net-forward to the 1% FOB Northwest European cargo assessment, using the following assessments: 1% FOB Northwest European cargoes: $618-618.5/mt. Code PUAAM00; Cross-UKC 30,000 mt dirty freight rate spot Worldscale assessment W130. Code TDADY00; The average of the basket of Worldscale flat-rates, calculated for 2013 at: $7.25/mt. The 1% CIF Northwest European cargo assessment was derived as a freight net-forward to the 1% FOB Northwest European cargo assessment, using the following calculation: 1% FOB Northwest European cargoes plus $9.5/mt (cross-UKC freight). 1% CIF Northwest European cargoes: $627.5-628/mt. Code PUAAL00.The above commentary applies to the following market data code: PUAAL00

FO 1%S FOB NWE Cargo assessment rationale: (PGA page

1588) LSFO CARGO RATIONALE: Total had one FOB Antwerp cargo of RMG 2010, 1% sulfur on offer for September 18-22 loading, priced on H2 September FOB NWE 1% assessments minus $0.50/mt, which did not trade. BP offered a FOB Antwerp cargo at balance month minus $2.00/mt, of the standard specification reflected in Platts assessments (1.00% sulfur, 0.991 density, 30c pour point, 65c flash point, 9650 NCV, 60 aluminum and silicon, 150 vanadium, 0.5 water, 15 CCR, 7 asphaltenes) except with higher viscosity, at 500 CST. This was normalized by $3.50/mt based on figures given from blenders on the relative value of the two grades. Neither offer was aggressive versus the previous day’s physical/swaps differential, leaving that as the basis for the assessment of $618.25/mt, up $1.00/mt day on day.The above commentary applies to the following market data code: PUAAM00

FO 1%S CIF Med Cargo assessment rationale: (PGA page

1580) The 1% CIF Med/FOB NWE spread was assessed unchanged at $17/mt, based on reports from bunker suppliers of weak low sulfur demand in Algeciras, Gibraltar and Piraeus, implying less need for the Mediterranean to draw in cargoes from the North.The above commentary applies to the following market data code: PUAAJ00

FO 1%S FOB Med Cargo assessment rationale: (PGA page 1580) The 1% FOB Mediterranean cargo assessment was derived as a freight netback to the 1% CIF Mediterranean cargo assessment, using the following assessments: 1% CIF Mediterranean cargoes: $635-635.5/mt. Code PUAAJ00; Cross-Mediterranean 30,000 mt dirty freight rate spot Worldscale assessment W135. Code TDAEA00; The average of the basket of Worldscale flat-rates, calculated for 2013 at: $8.41/mt. The 1% FOB Mediterranean cargo assessment was derived as a freight netback to the 1% CIF Mediterranean cargo assessment, using the following calculation: 1% CIF Mediterranean cargoes minus $11.25/mt (cross-Mediterranean freight). 1% FOB Mediterranean cargoes: $623.75-624.25/mt. Code PUAAK00.The above commentary applies to the following market data code: PUAAK00

FO 3.5%S CIF Med Cargo assessment rationale: (PGA

page 1580) There were no HSFO cargo bids or offers in the Platts Market on Close assessment process Wednesday, leaving the previous trading session’s $2.84/mt physical-to-swaps premium to be used for the assessment. This flipped the Mediterranean/north differential to a $1/mt premium from a previous minus $0.75/mt. The narrower Med/north spread comes with a relative weakening of the with FOB Rotterdam barges.The above commentary applies to the following market data code: PUAAY00

FO 3.5%S FOB Med Cargo assessment rationale: (PGA page 1580) The 3.5% FOB Mediterranean cargo assessment was derived as a freight net-back to the

3.5% CIF Mediterranean cargo assessment, using the following assessments: 3.5% CIF Mediterranean cargoes: $609.5-610/mt. Code PUAAY00; Med-Med 30,000 mt dirty freight rate spot Worldscale assessment W135 The average of the basket of Worldscale flat-rates, calculated for 2013 at: $8.41/mt; The 3.5% FOB Mediterranean cargo assessment was derived as a freight net-back to the 3.5% CIF Mediterranean cargo assessment, using the following calculation: 3.5% CIF Mediterranean cargoes minus $11.25/mt (cross-Mediterranean freight).The above commentary applies to the following market data code: PUAAZ00

Fuel Oil Barge bids/offers/trades: (PGA page 1593)

■■ HSFO BARGE MOC: OUTSTANDING INTEREST: OFFERS: BPBV Offer $597.50/mt for 2kt BE, KCEL Offer $597.75/mt for 2kt BE, KCEL Offer $597.75/mt for 2kt BE; LITASCO Offer $600.00/mt for 2kt BE, LITASCO Offer $601.00/mt for 2kt BE; OWBNL Offer $600.50/mt for 2kt BE, TOTSA Offer $599.00/mt for 2kt BE; VITOL Offer $598.00/mt for 2kt BE, KOCHSARL Offer $601.50/mt for 2kt FE; LITASCO Offer $598.50/mt for 2kt FE, LITASCO Offer $598.25/mt for 2kt FE; OWBNL Offer $601.50/mt for 2kt FE, VITOL Offer $598.50/mt for 2kt FE; BPBV Offer $599.00/mt for 2kt MW, KOCHSARL Offer $599.00/mt for 2kt MW; KOCHSARL Offer $597.75/mt for 2kt MW, LITASCO Offer $599.00/mt for 2kt MW; LITASCO Offer $600.00/mt for 2kt MW, OWBNL Offer $600.50/mt for 2kt MW; VITOL Offer $598.00/mt for 2kt MW.

■■ HSFO BARGE MOC: OUTSTANDING INTEREST: BIDS: ARGBUNK Bid $595.00/mt for 2kt BE; BPBV Bid $595.00/mt for 2kt BE, GUNVORSA Bid $596.00/mt for 2kt BE, GUNVORSA Bid $596.75/mt for 2kt BE, LITASCO Bid $595.00/mt for 2kt BE, LITASCO Bid $596.00/mt for 2kt BE, OWBNL Bid $595.25/mt for 2kt BE, WILJO Bid $595.00/mt for 2kt BE, ARGBUNK Bid $597.50/mt for 2kt FE, GUNVORSA Bid $595.00/mt for 2kt FE, GUNVORSA Bid $597.75/mt for 2kt FE, KOCHSARL Bid $595.50/mt for 2kt



FE, LITASCO Bid $595.50/mt for 2kt FE, LITASCO Bid $594.00/mt for 2kt FE, OWBNL Bid $595.75/mt for 2kt FE, WILJO Bid $595.00/mt for 2kt FE, ARGBUNK Bid $596.00/mt for 2kt MW, BPBV Bid $595.00/mt for 2kt MW, GUNVORSA Bid $597.25/mt for 2kt MW, GUNVORSA Bid $596.00/mt for 2kt MW, KOCHSARL Bid $595.00/mt for 2kt MW, LITASCO Bid $594.00/mt for 2kt MW, LITASCO Bid $595.50/mt for 2kt MW, OWBNL Bid $595.25/mt for 2kt MW, WILJO Bid $595.00/mt for 2kt MW.

■■ HSFO barge MOC deal summary: HSFO barge MOC deal summary: 1)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE, 2)OWBNL-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 3)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 4)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 5)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 6)LITASCO-KCEL, $597.75/mt, 2kt, FOB Rdam, FE 7)LITASCO-KCEL, $597.75/mt, 2kt, FOB Rdam, FE 8)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 9)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 10)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 11)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 12)VITOL-GUNVORSA, $598/mt, 2kt, FOB Rdam, FE 13)VITOL-MERCURIASA, $598/mt, 2kt, FOB Rdam, FE 14)BPBV-GUNVORSA, $597.25/mt, 2kt, FOB Rdam, MW 15)VITOL-KOCHSARL, $598/mt, 2kt, FOB Rdam, FE 16)VITOL-KOCHSARL, $598/mt, 2kt, FOB Rdam, FE 17)LITASCO-KCEL, $597.75/mt, 2kt, FOB Rdam, FE 18)LITASCO-KCEL, $597.75/mt, 2kt, FOB Rdam, FE 19)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 20)TOTSA-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 21)VITOL-BPBV, $598/mt, 2kt, FOB Rdam, FE 22)LITASCO-GUNVORSA, $597.75/mt, 2kt, FOB Rdam, FE 23)VITOL-GUNVORSA, $597.5/mt, 2kt, FOB Rdam, MW 24)KCEL-GUNVORSA, $597.25/mt, 2kt, FOB Rdam, BE 25)VITOL-MERCURIASA, $598/mt, 2kt, FOB Rdam, FE 26)VITOL-BPBV, $598/mt, 2kt, FOB Rdam, FE 27)VITOL-BPBV, $598/mt, 2kt, FOB Rdam, FE, 28)KOCHSARL-MERCURIASA, $597/mt, 2kt, FOB Rdam, BE 29)KOCHSARL-GUNVORSA, $597.25/mt, 2kt, FOB Rdam, BE 30)KOCHSARL-

GUNVORSA, $597/mt, 2kt, FOB Rdam, BE 31)VITOL-GUNVORSA, $597.5/mt, 2kt, FOB Rdam, MW 32)BPBV-MERCURIASA, $597/mt, 2kt, FOB Rdam, BE 33)KOCHSARL-GUNVORSA, $597.25/mt, 2kt, FOB Rdam, BE 34)VITOL-ARGBUNK, $597.5/mt, 2kt, FOB Rdam, MW 35)KOCHSARL-MERCURIASA, $597/mt, 2kt, FOB Rdam, BE 36)KCEL-GUNVORSA, $597.5/mt, 2kt, FOB Rdam, BE 37)VITOL-ARGBUNK, $598/mt, 2kt, FOB Rdam, FE 38)KCEL-GUNVORSA, $597.5/mt, 2kt, FOB Rdam, BE 39)LITASCO-BPBV, $598/mt, 2kt, FOB Rdam, FE 40)LITASCO-GUNVORSA, $598.25/mt, 2kt, FOB Rdam, FE 41)VITOL-GUNVORSA, $598/mt, 2kt, FOB Rdam, FE 42)KOCHSARL-GUNVORSA, $597/mt, 2kt, FOB Rdam, BE.

■■ LSFO BARGE MOC: OUTSTANDING INTEREST: OFFERS: BPBV Offer $619.00/mt for 1kt BE.

■■ LSFO BARGE MOC: OUTSTANDING INTEREST: BIDS: OWBNL Bid $611.00/mt for 1kt BE; NUO Bid $618.00/mt for 1kt BE, NUO Bid $616.00/mt for 2kt BE, WILJO Bid $616.00/mt for 2kt BE, AEGEAN Bid $613.25/mt for 3kt FE, OWBNL Bid $611.00/mt for 1kt FE, NUO Bid $610.00/mt for 1kt FE, NUO Bid $611.00/mt for 2kt FE, WILJO Bid $616.00/mt for 2kt FE, OWBNL Bid $611.00/mt for 1kt MW, NUO Bid $618.00/mt for 2kt MW, NUO Bid $616.00/mt for 1kt MW, WILJO Bid $616.00/mt for 2kt MW.

■■ LSFO barge MOC deal summary: LSFO barge MOC deal summary: 1)BPBV-STR, $619/mt, 1kt, FOB Rdam, FE, 2)BPBV-STR, $619/mt, 1kt, FOB Rdam, MW, 3)BPBV-STR, $619/mt, 1kt, FOB Rdam, FE, 4)BPBV-VITOL, $619/mt, 1kt, FOB Rdam, MW, 5)BPBV-VITOL, $619/mt, 1kt, FOB Rdam, FE 6)BPBV-STR, $619/mt, 1kt, FOB Rdam, FE, 7)BPBV-STR, $619/mt, 1kt, FOB Rdam, MW, 8)BPBV-STR, $619/mt, 1kt, FOB Rdam, FE, 9)BPBV-STR, $619/mt, 1kt, FOB Rdam, MW.

Fuel Oil Barge exclusions: (PGA page 1593) There were no exclusions in the September 4 Northwest European fuel oil barge assessment process.

Fuel Oil NWE Cargo bids/offers/trades: (PGA page 1589)

■■ LSFO NWE CARGO MOC: OUTSTANDING INTEREST:

TOTSA offer Platts LSFO NWE Crg FOB bss Antwerp September 18-22; 1% FOB NWE cargoes Half Mnth H2 Sep $-0.50 for 25000-25000.; Optol: 0-5kt in buyers options pricing as per main volume differential with 3 quotes after b/l. EU Qualified, RMG 2010 with 1% sulphur max.; BP offer Platts LSFO NWE Crg FOB bss Antwerp September 20-24; 1% FOB NWE cargoes BalMnth Next Day $-2.00 for 25000-25000.; Optol: 0-5kt: (pricing 3 quotes after BL) differential as per main volume. Spec: 1.00% sulf/0.991 dens/500cst visco /30c pour/65c flash/9650 NCV/60 alu+sil/150 vanadium/0.5 water/15 ccr/7 asph/0.10 TSP&TSE&TSA/0.10 ash/2 H2S.Oil to contain no ULO.

■■ LSFO NWE CARGO MOC: DEAL SUMMARY: none

Fuel Oil NWE Cargo exclusions: (PGA page 1589) No market data was excluded from the September 4 Northwest European LSFO cargo assessment process.

Fuel Oil Mediterranean bids/offers/trades: (PGA page 1581)

■■ HSFO MED CARGO MOC: DEAL SUMMARY: No deals.■■ HSFO MED CARGO MOC: OUTSTANDING INTEREST: None.

■■ LSFO MED CARGO MOC: DEAL SUMMARY: No deals.■■ LSFO MED CARGO MOC: OUTSTANDING INTEREST: None.

Fuel Oil Mediterranean exclusions: (PGA page 1581)

No market data was excluded from the September 04 Mediterranean fuel oil cargo assessment process.

VGO (PGA page 1597)

In the Northwest European vacuum gasoil market Wednesday, low sulfur VGO cargoes were assessed against November Brent crude futures at plus $2.85/b, down $0.05/b from Tuesday. Sources said the picture in Europe was getting weaker as soft US demand was pressuring on LSVGO differentials, and Europe was already oversupplied. “Both [LSVGO and HSVGO] are pretty under pressure right now...US demand is very very slow...I have the impression that with this [US] shale oil



local supply, feeds have to be even more competitive versus crude processing,” a source said. In tender news, Ivory Coast’s Societe Ivoirienne de Raffinage issued a LSVGO sell tender for 30,000 mt of low sulfur vacuum gasoil with metals content of 2ppm FOB Abidjan Terminal for late-September loading. Sources said the tender closed Wednesday with results expected by the end of the week. In fixtures, sources said the Panamax Cape Troy was placed on subjects on a Northwest Europe to the US Gulf Coast route for September 11 loading, while the Anichkov Bridge carrying a 44,000 mt VGO cargo was fixed on a Malmo to Northwest Europe route at Worldscale 120 for September 7 loading.

VGO DEALS (PGA page 5)

■■ No trades reported.

North Sea crude

Market analysis: (PGA page 1299) The North Sea crude oil market remained close to selling out completely Wednesday, with the fresh North Sea programs due out Friday. Traders said that attention was now focused on Forties, with most other grades now having traded for September. “The sweet market is obviously doing very well,” one trader said. “Forties is now the last half-sweet barrel left to trade.” Another trader said: “The Forties market has remained active with Shell selling Forties cargoes. The loss of cargoes from the end of the month has definitely had an impact. Ongoing deferrals are starting to become a recurring issue.” Traders in the North Sea were discussing the possibility of refiners switching from more expensive sweet grades to sourer crude such as Urals. However, this was constrained by individual refining systems and planning crude purchases. “The sweet to sour switch is not really something you can do on a single cargo basis,” a refiner said. “You really need to plan ahead quite a bit, and the feasibility will vary from refiner to refiner. It’s certainly something that people are talking about though.” Despite an unusually wide spread

between sweet and sour differentials in Europe, traders also said that margins were poor for both sweet and sour grades. “Certainly sweet margins have fallen away a bit,” a trader said. “It’s all due to the strength in Dated Brent and in the grades. You can’t replace these grades with crude from outside the region either, as it is all quite expensive.” Another trader said: “Refining margins for both sweet and sour crudes are both poor. Sour is even worse than sweet, as naphtha is holding up while the fuel oil crack has dropped sharply.” With refinery maintenance now fast approaching, traders said that some refiners could continue to run at high levels. “Margins are not great,” one trader said. “However, we are currently in a low stock environment, [even though it is also] a low crude supply environment, and turnarounds are coming up soon.” A second trader said that the effect of refinery turnaround season was so far limited in NWE. “Most European refinery maintenance will be starting only in the second half of September,” he said. “It is coming up but not here yet.” Traders were also debating the impact of refinery turnarounds across Europe on crude oil supply. “Urals is currently cheap because of Russian refinery turnarounds,” a refiner said. “The question is whether it will change once the refinery maintenance is over. Urals exports have been down a lot recently, so value is currently all about what European refinery turnarounds will do.” Meanwhile, there was one cargo for which Wednesday was the final day of eligibility for nomination into the 25-day nomination procedure. However, no cargoes were heard entered over the course of the day.

Dated Brent assessment rationale: (PGA page 1297) Two of the four BFOE grades were seen in the Platts Market on Close assessment process Wednesday. Forties was the most competitive grade for September 14-27, while Brent/Ninian Blend was the most competitive for September 29. The two grades were jointly the most competitive for September 28. In the Forties market, Shell was offering a cargo loading September 17-19 at November Cash BFOE plus $2.00/barrel without attracting buying interest. The midpoint of the offer was

equivalent to Dated Brent plus $0.305/b and average value for the three days was assessed $0.005/b below this level. The assessment for each of the three days was also below the equivalent offer level for each day. Gunvor was bidding for a cargo loading September 23-27 at Dated Brent plus $0.75/b without attracting selling interest. Value for September 23 was assessed immediately above this bid at Dated Brent plus $0.76/b. In the BNB market, Mercuria was bidding for a cargo loading September 28-30 at Dated Brent plus $1.05/b. Value for September 28 was assessed immediately above this, at Dated Brent plus $1.06/b, with the market assessed in a mild differential contango.The above commentary applies to the following market data code: PCAAS00

BFOE assessment rationale: (PGA page 1297) November Cash BFOE was assessed at $113.69/barrel, in line with the only trade seen in the MOC, from a bid which traded five seconds from the close. There were no outstanding bids or offers. Despite a subsequent rise in November ICE Brent Futures, no repeat buying interest was seen for the November contract, suggesting value had not risen by the close. October was assessed at $115.49/b, in line with an October/November EFP roll of minus $0.01/b and an October/November ICE Brent spread of $1.81/b. This was also above an outstanding bid at $115.29/b. December was assessed at $112.17/b, in line with a November/December ICE Brent spread of $1.52/b and a flat November/December EFP roll.The above commentary applies to the following market data codes: PCAAP00, PCAAQ00, PCAAR00

CFD assessment rationale: (PGA page 1297) The September 23-27 CFD was assessed at November plus $1.35/b, in line with four trades, the last three of which were from offers, demonstrating convergence. Before the three trades from offers at $1.35/b, the contract was offered at that level while September 16-20 was trading at November plus $1.50/b. With value for September 23-27 judged to have strengthened again



at the close to November plus $1.35/b, September 16-20 was assessed at November plus $1.51/barrel, above four trades seen in the MOC from offers but below an outstanding offer at November plus $1.60/b. These two assessments implied a CFD roll of $0.16/b, below an outstanding offer for the same roll of $0.25/b. September 30-October 4 was assessed at November plus $1.07/b, in line with a September 23-27/September 30-October 4 CFD roll heard during the day at $0.28/b. This was also below an outstanding offer for September 30-October 4 at November plus $1.10/b. September 9-13 was assessed at November plus $1.94/b, in line with a September 9-13/September 16-20 CFD roll trade of $0.43/b from a bid, and above an outstanding bid for the roll of $0.40/b. An outstanding September 19-25 CFD bid of November plus $1.50/b was normalized due to being a non-standard instrument.The above commentary applies to the following market data codes: PCAKA00, PCAKC00, PCAKE00, PCAKG00, AAGLU00, AAGLV00, AALCZ00, AALDA00

North Sea bids/offers/trades: (PGA page 1290)

■■ NSEA CRUDE MOC: DEAL SUMMARY: No deals.■■ NSEA CRUDE MOC: OUTSTANDING INTEREST: Shell offers Forties Sep 17-19 Nov Cash BFOE +200 cts; Mercuria bids BNB Sep 28-30 Dtd +105 cts; Mercuria bids Forties Sep 23-25 Dtd +70 cts; Gunvor bids Forties Sep 23-27 Dtd +75 cts.

■■ NSEA CRUDE MOC: WITHDRAWN: None.■■ BFOE CFD MOC: DEAL SUMMARY: Shell-Mercuria Sep 19-25 CFD Nov +145 cts; Sep 23-27 Nov +1.35 x100 Hetco-Phillips66; Sep 16-20 Nov +1.5 x100 Shell-Mercuria; Sep 16-20 Nov +1.5 x100 Shell-BP;

Sep 16-20 Nov +1.5 x100 Shell-BP; Sep 16-20 Nov +1.5 x100 Shell-Phillips66; Sep 23-27 Nov +1.35 x100 Shell-Gunvor; Sep 23-27 Nov +1.35 x100 Shell-Mercuria; Sep 23-27 Nov +1.35 x100 Shell-Gunvor; Sep 9-13/Sep 16-20 +0.43 x100 Total-Mercuria.

■■ BFOE CFD MOC: OUTSTANDING INTEREST: Sep 16-20 (Nov): Total offers 1.60; Standard Chartered offers 1.65; Sep 23-27 (Nov): Gunvor bids 1.30; Mercuria bids 1.30; Phillips66 bids 1.30; Standard Chartered bids 1.25; ENI offers 1.40; Total offers 1.45; Sep 30-Oct 4 (Nov): Standard Chartered offers 1.10; Total offers 1.15; Sep 9-13/Sep 16-20: Mercuria bids 0.40; Sep 16-20/Sep 23-27: Mercuria offers 0.25; Sep 19-25 (Nov): Mercuria bids +1.50.

■■ CASH BFOE: MOC DEAL SUMMARY: Nov 113.69 x100 Shell-Total.

■■ CASH BFOE MOC: OUTSTANDING INTEREST: Oct: Hetco bids 115.27.

North Sea exclusions: (PGA page 1290) No market data was excluded from the Sep 4 North Sea crude assessment process.

LSSR

Market analysis: (PGA page 1598) In the Northwest Europe low sulfur straight run market, differentials against ICE November Brent futures fell $0.05/b to minus $3.35/barrel Wednesday as activity stayed on the low side. LSSR differentials against Brent crude futures have fallen sharply this week as fundamentals remained very weak. While sources had said a lack of LSSR from Libya’s Ras Lanuf could support the market, supplies have stayed on the high side because of weak demand.

“Some support was provided by a stronger picture on LSSR, with Libya missing. But I think an offer this week proved that there was no real tightness on that front.” Also weighing on the market were reports that refiners were looking to buy more VGO instead of LSSR as the latter’s values have weakened considerably in the past month.

Straight Run 0.5-0.7%S FOB NWE cargo assessment rationale: (PGA page 1584) The outright FOB NWE LSSR 0.5-0.7% barge value was assessed at $746 mt Wednesday, up from $744 mt the previous day. The outright price rose despite a fall in the FOB NWE LSSR differentials against the November ICE Brent crude contract, as crude futures rose slightly. The FOB NWE LSSR cargoes were assessed down $0.05/barrel day on day against the November ICE Brent crude contract at a minus $3.35/b differential as demand continued to be very weak, and a declining LSVGO complex was also putting pressure on values. November 16:30 ICE Brent crude was assessed at $113.52/b Wednesday, from $113.20/b on Tuesday. The outright LSSR price was derived using the dollars per barrel to metric per tonne conversion factor of 6.77 for LSSR.The above commentary applies to the following market data code: PKABA00

LSSR Cargo bids/offers/trades: (PGA page 1585)

■■ LSSR CARGO MOC: DEAL SUMMARY: No deals.■■ LSSR CARGO MOC: OUTSTANDING INTEREST: None

LSSR Cargo exclusions: (PGA page 1585) No market data was excluded from the September 4 Northwest European LSSR cargo assessment process.

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