Methodology and Specifications Guide: Crude Oil

www.platts.
com
Methodology and Specifications Guide
TheMcGrawHill Companies
LATEST UPDATE: January 2012
Crude Oil
Introduction 2
North Sea 2
Dated Brent and Brent/Ninian Blend (BNB) 2
Platts cash BFOE assessment methodology 3
Brent CFDs 4
Forties and the de-escalator 4
Other BFOE Grades 5
Other North Sea grades 5
Brent-related crudes, and the forward curve 5
Market on Close 6
West Africa 8
Time cut-offs 8
Grades 8
Mediterranean 10
Timing 10
Assessment Timestamp 10
Time Cut-offs 10
Incrementability 10
Nomination 10
Date range 11
Loading locations 11
Volume 11
Ship acceptability 11
Persian Gulf 15
Dubai and Oman 15
Dubai/Oman partials assessment methodology 16
Other Persian Gulf crudes 17
Asian Dated Brent Strip and Differentials 18
Asia-Pacific 18
The Platts Asian Crude Oil Index 20
United States 20
US domestic grades London close 21
Americas Crude Marker (ACM) 21
Americas Crude Marker Methodology 22
Americas Dated Brent 23
Grades 23
US crude oil postings 24
Latin America 24
Canada 25
Postings-based 25
Spot-based 26
Canadian crude oil postings 26
Unscheduled NYMEX Closures 27
Trading platforms 27
Code list for Crude Oil Marketwire 28
]
METHODOLOGY GUIDE INTRODUCTION / NORTH SEA
2
CRUDE OIL
INTRODUCTION
The following crude specifications guide contains the primary
specifications and methodologies for Platts crude oil cargo and
pipeline assessments throughout the world. The various
components of this guide are designed to give Platts subscribers
as much information as possible about a wide range of
methodology and specification issues.
This methodology is current at the time of publication. Platts
may issue further updates and enchancements to this
methodology and will announce these to subscribers through its
usual publications of record. Such updates will be included in
the next version of the methodology. Platts editorial staff and
managers will usually be ready to provide guidance when
assessment issues require clarification.
Should you need any additional editorial information please feel
free to contact our editorial or sales offices by phone or by using
the free Ask Us editorial questions email service that can be
found on our web site at www.platts.com. You can also reach our
sales team by email at info@platts.com.
NORTH SEA
The window of assessment for North Sea crude grades is typically
10-25 days from date of publication (for dated
Brent/Forties/Oseberg/Ekofisk, the window reflected is 10-25
days Monday-Thursday, and 10-27 days on Friday). North Sea
crude grades are generally traded as a differential to dated Brent
or as a differential to cash BFOE.
All grades are assessed on a Market on Close basis, with
assessment values aligned to 16.30:00 London time precisely. In
order to ensure proper dissemination of market information and
performance, new bids/offers published by Platts on page 3 of its
Platts Global Alert electronic screen service (PGA003) must be
received by Platts no later than the published cut-off periods. For
physical North Sea bids and offers, the cut-off is currently
16.10:00; for CFD bids and offers (outright and rolls) the cut-off
is currently 16.15:00; for outright cash BFOE bids and offers, the
cut-off is currently 16.25:00 London time, for cash BFOE spread
bids and offers, the cut-off is currently 16:28:00. For physical
North Sea bids and offers, prices may be changed incrementally
until 16.25:00 London time, for CFD bids and offers (outright
and rolls) prices may be changed incrementally until 16:25:00,
outright and spreads on cash BFOE bids and offers may be
changed incrementally up until the 16.30:00 close. The time cut-
off for offers of Brent Blend on a ship-to-ship (STS) Scapa Flow
basis is 15.30:00 London time. Please go to
http://www.platts.com/IM.Platts.Content/MethodologyReference
s/MethodologySpecs/timingincrementguidelines.pdf for detailed
guidelines on timings. Please note that the purpose of these time
cut-offs and standards of incrementability and repeatability are
primarily logistical, and designed to ensure orderly price
discovery. As such, they may be changed at short notice if
evolving market conditions require. Please note that up until
October 1, 2005, the North Sea assessments reflected a 17.30:00
London time close and the time cut-offs for submission of new
bids and offers were an hour later than those currently applied.
DATED BRENT AND BRENT/NINIAN BLEND (BNB)
Physical Brent crude oil represents commingled crude from the
Brent and Ninian systems, known in Platts processes since 2007
as Brent/Ninian Blend (BNB), slated to load at the Sullom Voe
terminal. Currently, the API gravity is estimated at 38 degrees
and the sulfur content at 0.45% sulfur, but the qualities of all
crude oils tend to change over time.
Platts no longer assesses a Brent-only price, due to problems
resulting from the decline in its production to a relatively low
level. Beginning in mid-2002, Platts substituted for straight Brent
a combination of Brent/Forties/Oseberg known as BFO. In 2007,
Platts incorporated Ekofisk into the assessment price formation
for physical benchmark Dated Brent, giving rise to BFOE.
However, the nomenclature for Brent did not change, and Platts
still refers to its key wet assessment as Dated Brent, and its key
paper assessments as Brent. Platts also launched a North Sea
Light assessment which is identical to the Brent price
Platts makes three forward assessments for 25-day cash BFOE,
which represent Platts forward Brent assessments. 25-day cash
BFOE is also commonly known as cash BFOE or paper BFOE and
the assessment reflects the value of a cargo with physical
delivery within the month specified in the contract. The name
25-day name stems from the practice of notifying buyers of the
loading dates for their cargoes 25 days in advance of the
delivery. The assessed level reflects the tradeable value for full
and partial cargoes on the 25-day BFOE market.
The front month 25-day BFOE contract expires on the fifth of a
30-day calendar month, but the Platts assessment continues
until the last business day of the preceding calendar month for
legacy reasons. For example, July 25-day BFOE will expire on
June 5 but Platts will assess until June 30. On July 1, August
BFOE becomes the first month, September BFOE becomes the
second month, and October BFOE is added as the third month.
The process will repeat itself on July 31.
Platts publishes in effect synthetic 25-day BFOE assessments for
the front month between the fifth and the end of the preceding
month. Platts assesses the front month 25-day BFOE at a
constant spread to the second month 25-day BFOE from around
the fifth of each calendar month to the end of the month.
For more information on the Market on Close methodology used
to assess BFOE, please see the section below.
Dated Brent is a rolling assessment that reflects the price of physical,
wet Brent-Forties-Oseberg-Ekofisk cargoes loading no less than ten
METHODOLOGY GUIDE NORTH SEA
3
CRUDE OIL
days forward. Specifically, dated Brent cargoes loading 10-25 days
forward will be taken into account Monday through Thursday. On
Friday, dated Brent cargoes loading 10-27 days forward will be taken
into account. Deals done, as well as bids and offers, may be taken
into account for assessment purposes. Changes in spread trade may
also be considered. The cargoes are loaded FOB terminal and may
include stored material at each location. Since January 2001, Platts
may also consider ship-to-ship transfers at Scapa Flow of Brent crude
oil that has been recently loaded at Sullom Voe and remains in its
original condition, and provided the seller agrees to cover all
additional costs incurred by the buyer who agrees to lift the oil on a
STS basis. In September 2006 the ex-ship offer mechanism was
broadened to the evaluation of Forties and Oseberg crude, which
form part of the BFOE complex.
PLATTS CASH BFOE ASSESSMENT METHODOLOGY
In July 2002, Platts broadened its definition of Brent crude oil
and included market activity in Forties and Oseberg crude
markets in the Platts Dated Brent assessment and the Platts
forward cash Brent assessment. Ekofisk was added to the system
in June 2007. Platts daily spot price assessments for forward cash
Brent months include activity in all four North Sea benchmark
grades, Brent, Forties, Oseberg and Ekofisk (BFOE). All aspects of
the BFOE assessment methodology were developed by Platts and
are proprietary to Platts. Platts continues to assess separate spot
values for Oseberg, Forties and Ekofisk.
Rationale for the BFOE combination: The production of Brent
has fallen over time. Given its role as a key benchmark, the
Brent price at times became increasingly disconnected from that
of other similar grades. Platts conducted extensive consultations
with the industry, and came to the conclusion that its Brent
assessment would be more reflective of market fundamentals in
the North Sea if the assessment was broadened to include
Oseberg and Forties crude oil. Platts implemented this change in
July 2002. In 2007 Ekofisk was added to the complex to further
bolster the volume available for assessment. Further changes are
likely if production of the key grades is deemed too low or if
their qualities were to deviate significantly from the norm.
Platts Brent assessments incorporate the values of Brent, Oseberg
and Ekofisk with the most competitive grade setting the price at
the margin. If Brent is the most competitive grade then Brent
will be the most important factor setting the assessment. Brent
has historically been the most competitive grade, with Oseberg,
Forties and Ekofisk typically trading above Brent on a flat price
basis. The methodology operates as a relief valve, with the other
grades influencing the assessment only if the price of Brent
disconnects from those of other North Sea grades.
Most grades in the North Sea are light and low in sulfur, with
Oseberg and Ekofisk fairly close in quality, price and
geographical location to Brent. Oseberg and Forties were
oringally considered the closest grades, add substantial volume
and historically have been worth more than Brent. This allows
them, together with Ekofisk, to act as a price cap on upward
squeezes in the Brent market without causing any flat price
distortions in Brent.
Since the start-up of the Buzzard field in January 2007, the
quality of Forties has changed significantly. With effect from
June 7th, Platts has implemented a quality standard for Forties
crude assessments. Platts, from this date, assesses crude meeting
37 degree API minimum and 0.6 pct sulfur maximum content in
Forties. Platts will continue to review the situation to ensure its
assessments reflect normal and standard grades.
Methodology: The most competitive grade at the margin will
under typical circumstances be the grade reflected in the
assessment. Under normal market conditions, the most
competitive grade has been Brent and the inclusion of Forties,
Oseberg and Ekofisk should not alter the prevailing price of
Brent. However, the inclusion of Buzzard into the Forties stream
has meant Brent is often not the most competitive grade. This
methodology neither adds nor subtracts barrels from the overall
crude oil marketplace, but adds volume to the benchmark to
ensure it continues to reflect supply/demand fundamentals.
Supply and demand remain unchanged.
Platts does not average the price of Brent, Oseberg, Forties and
Ekofisk to set its Dated Brent assessment. The most competitive
grade at the margin will have the greatest degree of influence in
the assessment.
Timing: Backwardation and contango are factored in the
assessment process. If a company offers a cheap cargo loading 10
days forward, the offer would only influence at the most the
Platts assessment for cargoes loading 10 days forward. Platts
would still need to assess days 11 through 25 and publish an
assessment that is inclusive of market value from 10-25 days
forward. The range stretches to 27 days for Friday assessments.
Platts previously had a 7-15 day range. But most other North Sea
grades trade with loading dates further into the future than Brent.
Platts objective was to bring its Dated Brent assessments more in
line with market practice in the North Sea. Hence, Platts
implemented a change to reflect cargoes with loading dates 10-21
days forward, Monday to Thursday, and 10-23 days forward on
Friday. A further decline in production and a further shift forward
in typically traded loading dates led to another change in the dates
reflected in the Platts Dated Brent assessments. On January 6, 2012,
Platts amended the date range reflected in the Dated Brent
assessment to 10-25 days forward from the date of publicataion.
An example:
Forties loading 16-18 July sold at Dated Brent plus
$0.10/bbl
Brent loading 16-18 July sold at August Brent plus
$0.10/bbl
In order to assess these transactions Platts would need to
determine the value of August Brent and the value of the
underlying Brent swap, also known as the CFD, covering the
METHODOLOGY GUIDE NORTH SEA
4
CRUDE OIL
loading period for the Forties cargo. (For more information on
CFDs, see the section entitled Brent CFDs). If as an example, the
value of August Brent is $65.00, then the Brent loading 16-18 July
would be assessed at $65.10/bbl. For the Forties assessment Platts
would then determine the flat price value of the dated Brent CFD
covering the loading/pricing. In this example, the dated Brent
CFD for the pricing period (week of July 15-19) was valued at
August Brent minus 10 cts/bbl to an equivalent of $64.90/bbl.
Platts would then add/subtract the differential at which the Forties
cargo was sold. In this case Forties was sold at a positive
differential of $0.10/bbl, leading to a fixed price equivalent of
$65.00/bbl. The most competitive grade in this example is Forties
and the assessed value for Platts dated Brent would be $65.00/bbl
for cargoes loading around July 17. Platts would still need to assess
all the other days in the 10-21 day range used for the assessment.
Operational tolerance:Platts reflects in its assessments cargoes
loading within 1% plus or minus operational tolerance. Platts
believes that cargoes trading with pre-known tolerances ahead of
the actual cargo loading include an option value that distorts the
true value of the assessed commodity.
Terms & Conditions: Offers/bids/transactions for forward Brent,
Oseberg, Forties and Ekofisk, or BFOE, as previously announced,
are used for assessment purposes in the forward daily Brent
monthly Platts assessments. The bids/offers and transactions are
recognized for assessment purposes provided they meet the
following conditions:
Cargo date nominations are declared 25 days in advance.
Cargoes load under normal terms and conditions.
Normally, Forties cargoes are loaded under BPs terms and
conditions, Brent cargoes are loaded under Shells terms
and conditions, Oseberg cargoes are loaded under Statoils
terms and conditions, and Ekofisk under ConocoPhillips
terms and conditions.
Any partials that are not fully and satisfactorily
recombined into full cargoes of 600,000 bbl would need to
be booked out under normal terms and conditions
currently prevailing for a Brent book out. If a partial is not
commercially booked out, then the partial would need to
be priced out on the Brent assessments on the same basis
as Brent partials are booked out.
If Brent, Oseberg, Ekofisk or Forties is delivered under a
BFOE basis, each cargo size shall be 600,000 bbl.
BRENT CFDS
Brent CFDs (Contract For Difference) are relatively shortterm
swaps, quoted by Platts for each of eight weeks ahead of the
current date at any one time. They also are traded for bi-
monthly and monthly periods in the marketplace. They
represent the market differential in price between the Dated
Brent (BFOE) assessment and a forward month cash contract, i.e.
forward month BFOE (Brent-Forties-Oseburg-Ekofisk) cash
contract, over the period of the swap.
The first weekly balance is on a forward week basis on Thursday
and Friday, and becomes a balance week quotation between
Monday and Wednesday. It is rolled forward every Thursday.
Second week onward assessments are all forward week
assessments. Assessments are quoted as a differential to the
second BFOE cash contract month, e.g on July 23rd, the
assessment would be against September cash BFOE. The relevant
cash month rolls on the first day of the month of each month
e.g. June will become the basis month on April 1.
CFDs are a means for holders of long or short BFOE cash positions
to hedge against or speculate in movements in the dated Brent
market. The CFD swap is between the uncertain or floating price
of the dated Brent differential and a certain or fixed differential
price, which generally is Platts daily dated Brent crude
assessment. CFDs are priced using averages of a particular weeks
worth of daily price assessments as quoted by Platts.
Each trade is an exchange of a fixed for a floating risk in the
Dated to BFOE cash differential.
CFDs are generally traded in clips of 100 lots, i.e. 100,000
barrels. In addition to Dated Brent (BFOE), CFDs are also used
to price crudes which are sold at a differential to Dated Brent.
FORTIES AND THE DE-ESCALATOR
The assessment for Forties blend is based on FOB Hound Point,
UK. Currently, the API gravity of Forties is 40.3 degrees and the
sulfur content is around 0.58%. The assessment reflects values
for cargoes loading 10-25 days forward Monday-Thursday and
10-27 days forward on Friday.
In June 2007 Platts introduced a quality standard into its Forties
assessments when maintenance-led quality disruptions began to
occur. As of July 2, 2007, Platts considers Forties in its assessments
of Dated Brent and related North Sea instruments with a quality
de-escalator applied for deliveries above the base standard of
0.60% sulfur. Platts considers in its assessments bids, offers and
deals where a de-escalator of 25 cents/barrel for every 0.10 per
cent of sulfur above the 0.6% standard is specified. The original
value of the de-escalator was set at 40 cts/b. This was revised to 60
cts/b on June 30, 2008, then to 40 cts/b on October 1, 2008, to 20
cts/b on January 2, 2009, 30 cts/b on February 1, 2011, to 40 cts/b
on April 1, 2011 and then to 25 cts/b on December 1, 2011. The
de-escalator will be effective until the end of the calendar year
unless there is a significant and sustained event in the crude oil
market that would necessitate an interim and open review. The
Forties sulfur de-escalator changes from time to time and current
rates are as published in the Platts Crude Oil Marketwire.
Platts uses three significant figures for determination of sulphur-
related payment. The test reflecting this figure should be the
METHODOLOGY GUIDE NORTH SEA / BRENT RELATED CRUDES, AND THE FORWARD CURVE
5
CRUDE OIL
ASTM-D2622. Forties cargoes and all related instruments,
including cash BFOE cash forwards, bid or offered through the
Platts system must adhere to this standard.
Platts will consider in its assessments bids, offers and deals where
a de-escalator of 25 cts/barrel for every 0.1% of sulfur is
specified. Under the de-escalator, the seller would pay the buyer
this compensatory amount for every 0.1% of sulfur over 0.6% on
a pro-rata basis, as follows:
0.6% No payment to buyer
0.625% Seller pays 6.25 cts/barrel to buyer
0.65% Seller pays 12.5 cts/ barrel to buyer
0.7% Seller pays 25 cts/ barrel to buyer
OTHER BFOE GRADES
Oseberg: The assessment is based on FOB Sture, Norway.
Currently, the API gravity of Oseberg is 37.8 degrees and the
sulfur content is 0.27%. The assessment reflects values for
cargoes loading 10-25 days forward Monday-Thursday and 10-27
days forward on Friday.
Ekofisk: The assessment is based on FOB Teesside, UK. Currently, the
API gravity of Ekofisk is 37.5 and the sulfur content is 0.23%. The
assessment reflects values for cargoes loading 10-25 days forward.
OTHER NORTH SEA GRADES
North Sea Basket: This is a straight average of the price of Dated
Brent, Forties, Oseberg and Ekofisk.
Statfjord: Platts assesses Statfjord crude oil on an FOB-
platform and a CIF Rotterdam basis. Platts launched the CIF
Rotterdam based assessment on January 4, 2010. Both
assessments reflect values for cargoes loading 10-25 days
forward. The API gravity is 39.5, and the sulphur content is
0.22%.
Gullfaks: On January 4, 2010, Platts launched an assessment
based CIF Rotterdam. The assessment reflects values for cargoes
loading 10-25 days forward. The API gravity is 37.5, and the
sulfur content is 0.22%.
Flotta: The price is for barrels loading FOB at the Flotta terminal
in the North Sea. Currently, the API gravity is 36.9 degrees and
the sulfur content is around 0.83%. The assessment reflects
values for cargoes loading 10-25 days forward.
BRENT-RELATED CRUDES,
AND THE FORWARD CURVE
Before 2002, Platts assessed Brent-related crudes from the North
Sea, Africa and the Mediterranean at a differential to the
assessment published for dated Brent on the day. As an example,
if Bonny Light was assessed at dated Brent plus $1.00/bbl on a
particular day, then the assessment for the grade that day would
reflect that days dated Brent assessment plus $1. If the dated
price was $30, Bonny Light would have been $31. However, this
assessment system does not take into account the timing
structure of the market, i.e., the contango or backwardation in
the market.
Crude cargoes are traded in the spot market for loading
sometime in the near future. Some of the cargoes are traded
using a benchmark as a reference for the base price plus or
minus a differential. The cargoes typically use Dated Brent as the
benchmark for the base pricing. The base is typically an average
over specific dates related to the time when the cargo will load
in the future. For instance, a cargo of Urals can trade on Jan 2
for loading Jan 15. The Urals cargo can be traded at dated Brent
around bill of lading time minus $1.00. Hence, to determine the
correct price for Urals it is key to determine the market value of
the dated Brent assessments around the bill of lading. As an
example, Platts on Jan 2 would need to determine the value of
dated Brent, on a forward basis, around the future bill of lading
dates. There is a market for the forward Dated Brent assessments,
informally known as the CFD market. Platts regularly assesses
the value of CFDs on a weekly basis for 8 weeks ahead of the
date of publication. This gives it a solid base for producing
assessments on Brent-basis cargoes by taking into account the
forward pricing curve.
The assessment methodology used since late 2002 for North Sea
grades, and early 2003 for West African and Mediterranean
grades, takes into account the contango or backwardation in the
marketplace. As an example, if the Bonny Light traded at dated
Brent plus $1.00/bbl and the cargo was due to price on the
assessments published by Platts from April 3-April 14, the
assessment would be calculated on the following basis: current
dated Brent prices, plus CFD differential for the Apr 3-14 time
frame, plus the $1 premium.
Platts will use the future dated Brent value applicable to and
typical for each grade. In the case of Mediterranean grades, Platts
reflects in its assessments cargoes loading 10-25 days forward.
The cargoes typically price 1-5 days after the cargo loads. The
average pricing time is therefore 3 days after bill of lading. In
this case therefore Platts will need to take into consideration the
market value for the dated Brent assessments for days 10-25 plus
an additional 3 days. This results in a dated Brent strip of 13-28
days forward.
For Angolan grades, the window of assessments is 15-45 days
forward with the cargoes pricing 5 days around bill of lading.
Therefore the dated Brent strip Platts needs to take into
METHODOLOGY GUIDE BRENT RELATED CRUDES, AND THE FORWARD CURVE / MARKET ON CLOSE
6
CRUDE OIL
account is 15-45 days forward. For Nigerian grades, the
assessment window is 15-45 days forward, but typically
cargoes price in the period 1-5 days from date of loading.
Thus the applicable dated strip for Nigerian grades is 18-48
days forward. For Canadian cargo-grades, the assessment
window is 28-42 days forward, but typically cargoes price in
the period of 1-5 days from the date of loading. Thus the
applicable dated strip for Canadian cargo-grades is 31-45 days
forward.
Platts assesses three forward months of Brent/BFOE EFPs
(exchange for physical). The relevant assessment deltas refers to
the corresponding month of Platts Brent/BFOE spot price
assessments.
Platts assesses three forward months of Brent/WTI cash spreads.
The assessments are based on the London market close at 4:30
PM. local London time.
MARKET ON CLOSE
In establishing its daily assessment for 25-day cash BFOE and
cash West Texas Intermediate (WTI), cash Mars and all other
crude oil spot price assessments, Platts utilizes a system
commonly known as Market on Close (MOC).
The MOC system seeks to reflect transactable values prevailing
at the respective market close on a normal working day: 4:30
PM local London time for 25-day cash BFOE, and 3:15 PM
local NY time for cash WTI and Mars. Platts derives these
values by tracking market evolution during the respective
assessment window and by making assessments that reflect the
value at which a deal could or did take place at the close of
the market.
To do this, Platts takes into account representative, arms-
length, openly negotiated transactions occurring during the
assessment window and additionally taking into account the
evolution of the bid-offer spread during this period. Platts,
prior to January 2001, produced its assessment from an
arithmetic weighted average of deals done during this period.
Instead it is using the deals, at whatever time they occur
within the window, as a basis for extrapolation to the market-
on-close (MOC) assessment.
In order to enhance further transparency and orderliness in the
European crude oil pricing window, Platts has established the
following timing standards for North Sea physical crude and
associated derivatives, such as cash BFOE, dated Brent and other
crude oil instruments:
Initial physical North Sea cargo bid/offers should be
submitted no later than 16:10:00 local London time. Platts
will consider incremental price changes made to physical
bids and offers up to, but no later than, 16:25:00 local
London time. Changes to bid/offers should typically not
exceed 5 cts/bbl per adjustment.
Initial BFOE cash spread and CFD positions should be
submitted no later than 16:15:00 local London time. Platts
will consider incremental price changes made to BFOE cash
spreads and CFDs up to 16:25:00 local London time.
Initial outright BFOE positions should be submitted no
later than 16:25:00 local London time. Platts will consider
incremental price changes made to BFOE cash positions up
to 16:30:00 local London time.
Separately, the following editorial clarifications were published
since the Market-On-Close roll out:
Clarification in regard to Platts Global Alert PGA 3 & 5
trading positions: In the event that a principal is
bidding/offering a parcel and starts communication with a
counterparty with the aim of executing a transaction, the
initial buyer or seller should either 1) communicate that
the parcel is no longer available, or 2) make it clear that
the parcel is still available to the entire market. If the
parcel is still available, any other principal can execute the
transaction with the original buyer/seller, despite
discussions a seller may have had previously with another
potential buyer. If no communication is made it is assumed
that the parcel is still available to the marketplace.
Furthermore, any transaction originating from a bid or
offer posted transparently must be disclosed.
North Sea cargo offers made with wide loading ranges
where seller holds the option on the actual loading dates
are not used in the assessment process. The standard for
cargoes loading in the North Sea is a three day loading
range. Offers of dated cargoes made for wide loading date
ranges should specify clearly if option resides on seller. Bids
on same basis are typically presumed to grant the
optionality to the seller.
Platts assessments consider bids, offers and transactions
that are transparent and executable by any creditworthy
counterparty. Bids, offers or transactions that are not
transparent will not be considered in the assessment
process. Naturally, bids above transparent offers or offers
below transparent bids are not considered in the
assessment process. Platts considers changes to bids or
offers when those changes are done transparently and in
normal increments. The level of each bid or offer must
stand firm in the marketplace long enough for any
counterparty to hit the bid or lift the offer, otherwise the
bid or offer may be deemed inexecutable. Platts does not
consider bids, offers or transactions that are the result of
market gapping, i.e. changes that are in excess of normal
market practice.
Platts MOC assessment process requires that market
participants bidding and offering in the MOC window
perform on their bid/offer with the first company of
record. In the event of a dispute on the timing, Platts will
review its records and determine which company
communicated to Platts first its intention to execute on a
METHODOLOGY GUIDE MARKET ON CLOSE
7
CRUDE OIL
bid/offer displayed on the Platts systems. All the Platts
systems operate on a first come, first served basis. This
sequence is critical for orderly price discovery
The minimum volume that Platts takes into consideration for
cash BFOE assessment is 100,000 bbl per transaction. For WTI
the minimum is 25,000 bbl with a maximum of 600,000 bbl per
transaction. These minimums and maximums are a reflection of
standard market practices and may be subject to review if market
conditions change.
Platts will assess the market as per the respective London and
New York close, and would use in its assessments any
information deemed reliable and provided on a transparent
basis. In the absence of trade, Platts can use several other
indicators, including bids and offers or spread relationships
versus other crudes such as WTI.
Platts will use in its assessments any transaction concluded
between parties that have expressed their intention to buy or sell
on a transparent basis. Typically, the later a player signals their
intention to buy or sell, the greater is the possibility that any
eventual transaction they engage in is not open or transparent.
Platts confidence in trades evolving from buy-sell intentions
signaled before the start of the assessment window will be much
greater than its confidence in trades concluded abruptly from
late arriving bids and offers, and late signals will therefore be
evaluated on a case-by-case basis.
The philosophy behind MOC is that market values can change
dramatically in a span of 15 minutes. Platts came to the
conclusion that an averaging system for price determination
could result in assessments that lag actual market levels, as deals
done early in an assessment period, at a level that is not
repeatable, could mathematically drag prices down or up.
With an MOC procedure, Platts can reflect market conditions up
to the minute. A methodology that works well in a period of low
or high volatility, and in periods of high or low contango or
backwardation, is a good methodology. A market on close
methodology helps achieve those goals.
The prior practice in the Brent and WTI markets of averaging
can lead to distortions when the price of one commodity is
compared with the price of another, or a price for one month is
compared with that for other months. In essence, averaging of
transactions results in a quotations that lags the actual market.
As an example, Brent/BFOE crude oil has a value, WTI has a
value and the Brent/BFOE versus WTI spread has a value, and
all three make sense when measured on a same-time basis. By
contrast, a system of averages can lead to distortions in the
Brent/BFOE versus WTI spread if the distribution of deals
done for WTI and Brent/BFOE differs over the averaging
period. Thus if WTI trades actively at the beginning of the
assessment window and Brent trades actively at the end of the
window in a rising market, the assessed spread value resulting
from an averaging process will not be reflective of actual
market values.
In a falling market, the averaging would result in a widening of
the apparent spread. This distortion can arise even if the value of
spread trades in their own right has remained constant. The
market on close approach drastically reduces the possibility of
such distortions.
Platts follows several other basic price-reporting principles in its
MOC system:
If a deal is done on a non-transparent basis or in
circumstances where questions may arise as to why a
buyer/seller did not deal in an open environment, where
counterparties had enough time to react, or where
questions may have arisen as to the time of execution,
Platts believes it must take precautions generally to not
take such a deal into account. But Platts does recognize
that there may be market circumstances in which a player
that did not originally intend to trade during the Platts
window finds that rapidly changing market conditions
make it advisable, or even necessary, to enter the market
after the start of the window.
Platts editors always seek direct verification from the
principals to a bid/offer/deal, and will not disintermediate
the actual market-maker, whether a deal is done on- or off-
line.
If only one player is active in the market, Platts would only
use information from that player if the intention to bid or
offer was made on a transparent basis and within the
timing guidelines. Under these circumstances, such a
players bids or offers would clearly be available for
execution by any other potential trading counter party.
Platts is always concerned about the potential effects of
one-off deals on the markets perception of transactable
value. It is common practice among some traders to effect
non-repeatable deals at below- or above-market levels in
the hope that such deals will influence others perceptions
of value and ultimately in the hope that these deals will
affect Platts assessments. A variant on this action is the
practice by supposed sellers of gapping down their offer
to a point well below where a trade might be expected to
occur, or of supposed buyers gapping up their bids. The
test that Platts uses is a process of inquiry to find whether,
for example, an unusually high buyer is willing to pay the
same amount again and again until all the supply created
by his high bid is exhausted. On the reverse side, a seller
would need to supply more barrels until he satisfies all the
demand generated by a low offer. If buyer or seller fails to
satisfy the demand or supply generated in the entire
market place, the transaction could be considered non-
market and would not be used for the assessment.
A player can move its bids/offers by any increments it
believes fits their trading objectives. However, Platts can
only take into consideration those changes in bids and
offers, which occur sequentially and with increments that
are in line with current market practices. In markets with
METHODOLOGY GUIDE MARKET ON CLOSE / WEST AFRICA
8
CRUDE OIL
low volatility, players typically move prices at increments
ranging from 1-5 cts/bbl per step, with the increments
typically growing as the volatility increases. A market
participant can withdraw at any time. However, if a market
participant withdraws after a trading counter party has
indicated that it has interest to buy or sell into the
bid/offer, it would become evident that the original
buyer/seller actually had no interest to trade. Platts views
spurious bids and offers of this kind with concern, and it
takes seriously its responsibility to publish information
only from sources deemed credible.
WEST AFRICA
Beginning in 2003, Platts began taking into account
backwardation/contango in the underlying Dated Brent market.
Prior to the change, Platts West African and Mediterranean grade
price assessments were established by adding/subtracting the
prevailing market differential against the daily Dated Brent
assessment and did not take into account backwardation or
contango. Platts incorporated the market structure into all its
Dated Brent related spot price assessments by correlating
respective loading dates with the corresponding Dated Brent
value. The corresponding Dated Brent value is established
through trading activity in the Brent/BFOE swap market.
West African grades are assessed for cargoes loading 15-45 days
after date of publication. While a cargo size of 950,000 bbl is the
standard in the daily-assessed grades, part-cargoes are
occasionally traded and may be factored into the assessment
process. Underlying market dynamics may also play a role in
determining the value of grades. Market backwardation and
contango within the 15-45 day window will be taken into
account for assessment purposes in Angolan grades and within a
18-48 day window for Nigerian crude. All West African
assessments are on an FOB basis, for loading at each grades
specific terminal.
TIME CUT-OFFS
In its daily assessments of West African crude oil, Platts reflects
cargo bids and offers that are submitted in full to Platts before
15.45 London time. The prices of these bids and offers may be
adjusted at a rate of a maximum of 5 cents/barrel per minute.
The last price change must be submitted to Platts ahead of 16.25
London time. Platts assessments reflect value at 16.30 London
time precisely.
GRADES
Bonny Light: This crude oil is produced in Nigeria from
ChevronTexaco and Shell concessions. ChevronTexacos
exports are throughput and loaded from the Shell-operated
Bonny Terminal, which can accommodate Very Large
Crude Carrier (VLCC) loading. The typical cargo size is 950
thousand barrels. The API gravity for Bonny Light is 35
degrees and the sulfur content is 0.2%. The typical cargo
size for this FOB assessment is 950,000 bbl and the grade
loads at the Shell-operated Bonny Terminal. The current
bbl/mt conversion factor for Bonny Light crude oil is 7.526
and typical output is around 540,000 barrels per day.
Specifications are: API 32.9, S.G. 0.8607, Sulphur 0.16%,
Pour point 19F, TAN 0.28 mg KOH/g, Nickel 3.9 ppm,
Vanadium 0.4 ppm, Visc. (40C) 4.16 cSt.
Qua Iboe: The crude oil is produced from numerous
offshore fields in the Bight of Biafra in south-eastern
Nigeria, east of the Oso field. The crude, from fields, 20 to
40 miles offshore from Nigerias South Eastern region, are
brought to shore via a seabed pipeline system to the Qua
Iboe terminal (QIT). Production currently averages
around 400kbd. ExxonMobil, as field operator, holds 40%
interest in the field production mix with the Nigerian
National Petroleum Corporation (NNPC) having the
remaining 60%. The API gravity for Qua Ibo is 36 degrees
and the sulfur content is 0.1%. The Qua Iboe terminal is
operated by ExxonMobil and output is typically around
520,000 b/d. The current bbl/mt conversion factor for
Qua Iboe crude oil is 7.45. Other specifications are: S.G.
0.8461, Sulphur 0.13%, Pour point 12C, TAN 0.40 mg
KOH/g, Nickel 4.6 ppm, Vanadium 0.5 ppm, Visc. (40C)
3.92 cSt.
Brass River: The crude is a typical Nigerian high-quality
West African gasoline and gasoil - oriented crude. Its
gravity has become heavier over the past few years. Average
production: 180,000 bpd. The loading terminal is Brass
River operated by ENI and has a storage capacity 400,000
bbl. The crude has a low metal content and a high yield of
gasoline and middle distillates with acceptable cetane
index. Naphtha With an N+2A > 70, the naphtha is a good
feedstock for gasoline production. Specifications are: API
36.3, S.G. 0.8434 conversion rate 7.46, Sulphur 0.13 %,
Pour point -12 C, TAN 0.30 mg KOH/g, Nickel 1.9 wppm,
Vanadium 0.2ppm, Visc. (40C) 2.896 cSt.
Escravos: The crude is produced in Nigeria and loaded
from the ChevronTexaco-operated Escravos Terminal,
which can accommodate Very Large Crude Carrier (VLCC)
loading. The typical cargo size is 950 thousand barrels but
alternate cargo sizes can be arranged with advance
planning. The production rate of the contributing fields is
approximately 400 thousand barrels per day. The Escravos
terminal is operated by ChevronTexaco and the standard
output is 475,000 b/d. Other specifications are: API gravity
33, S.G. 0.859 conversion rate 7.54, Sulphur 0.17 %, Pour
point 3 C, TAN 0.61 mg KOH/g, Nickel 4.1 ppm,
Vanadium 0.5 wppm, Visc. (40C) 5.46 cSt.
Forcados: Forcados is a Nigerian crude with a low sulphur
and low metals content. It is rich in distillates and has low
fuel content. Average production: 420,000 bpd. Loading
METHODOLOGY GUIDE WEST AFRICA
9
CRUDE OIL
location is Forcados terminal. This crude has a larger
distillate refining profile. Its API gravity is 24.4 degrees and
has a sulfur content of 0.18% and it loads at the Shell-
operated Forcados Terminal on the Niger Delta. The
current bbl/mt conversion factor for Forcados crude oil is
7.223. Other specifications: Pour point <-36 C, TAN 0.57
mg KOH/g, Nickel 1.9ppm, Vanadium 0.1ppm, Visc. (40C)
11.05 cSt.
Agbami: The grade is produced 70 miles offshore Nigeria
and loads from the Agbami FPSO. Cargoes typically are
typically made up of 975,000 barrel and peak production
in 2010 is set for 250,000 b/d. Agbami is classified as a
light, sweet crude with low acid content. Specifications
are: API 46.3, Sulfur 0.03%, Pour point 9C, TAN <0.05
mg KOH/g, Visc. (40C) 1.8 cSt. Production began in July
2008.
Cabinda: The crude oil is produced in Angola. It is loaded
from the ChevronTexaco-operated Malongo Terminal,
which can accommodate Very Large Crude Carrier (VLCC)
loading. Nemba also loads at Malongo, and combined
cargoes of Cabinda and Nemba on VLCCs are possible.
The typical cargo size is 950 thousand barrels, but alternate
cargo sizes can be arranged with advance planning. The
minimum cargo size is 600 thousand barrels. The
production rate of the contributing fields is approximately
270.000 b/d. This medium sweet Angolan crude represents
commingled material from the Takula and Malongo
systems. Its API gravity is 32.0 with a sulfur content of
0.12%. The typical Cabinda output from Malongo is
approximately 350,000 b/d. The current bbl/mt conversion
factor for Cabinda crude oil is 7.28. Other specifications:
Pour point 16 C, TAN 0.06 mg KOH/g, Nickel 16. wppm,
Girassol: The crude is produced from the Girassol and
Jasmim offshore fields in Angola. In 2007, production from
the Rose field is expected to be brought on stream to keep
production at the same level. The operator is Total and the
loading port is Offshore Angola. Standard cargo size is 1
million barrels (with the option to increase/decrease) and
crude production is 250,000 bbl/day. Girassol is classiefied
as a medium density, low sulphur crude. Specifications are:
API 30.8, S.G. 0.8718 (conversion rate 7.27), Sulphur 0.34,
Pour point -24C, TAN 0.30 mg KOH/g, Nickel 10.0 wppm,
Hungo: The crude is produced from the Hungo and
Chocalho fields. The operator is ExxonMobil and the
loading port is Kizomba A FPSO offhore Angola. Standard
cargo size is 1 million bbl (with the option to
increase/decrease). Crude production is 210,000 bbl/day.
Hungo Blend is classified as a medium density, medium
sulphur, medium TAN crude. Specifications are: API 28.5,
S.G. 0.8844 (conversion rate 7.06), Sulphur 0.71 mass%,
Vanadium 17.0 wppm, Visc. (40C) 12.9 cSt. Hungo Blend
was formerly known as Kizomba A.
Kissanje: The grade is produced from the Kissanje and
Dikanza fields and the operator is ExxonMobil. The
loading port is Kizomba B FPSO offhore Angola. Standard
cargo size is 1 million bbl. Production is 250,000 bbl/day.
Kissanje Blend is classified as a medium density, medium
sulphur, medium TAN crude. Specifications are: API 28.2,
S.G. 0.8858 (conversion rate 7.06), Sulphur 0.44 mass%,
Vanadium 5.7 wppm, Visc. (40C) 15.62 cSt. First cargoes
moved end of July 2005.
Nemba: The grade is produced offshore Angola and loads
at the Malongo terminal, where Cabinda also loads. The
typical cargo size is 950,000 and production typically totals
140,000 b/d. Nemba is categorized as a low density, low
sulfur crude. Specifications are: API 38.6, Sulfur 0.22
mass%, Pour point -6.7C, TAN 0.18 mg KOH/g, Visc.
(40C) 4.15 cSt, Vanadium 3.83 ppm. Production began at
South Nemba in June 1998, with North Nemba following
in August 2001.
Dalia: The grade is produced from Block 17 offshore
Angola and the operator is Total. The loading port is the
FPSO Dalia offshore Angola. Standard cargo size is 950,000
barrels. Production is 240,000 b/d. Daila is classified as a
medium density, low sulfur, medium TAN crude.
Specifications are: API 23.6, Sulfur 0.50 mass%, Pour point
-45C, TAN 1.54 mg KOH/g, Nickel 24 wppm, Vanadium
11 wppm, Visc. (20C) 117.2 cSt. First cargoes moved
December 2006.
In addition to the above grades which are assessed on a daily
basis, we continue to assess on a weekly basis Angolas Palanca,
Gabons Rabi Light and Cameroons Kole. Girassol and Nemba
used to be assessed weekly but this has stopped since the grades
started to be assessed on daily.
Palanca: The crude oil is produced in Angola from five
different concessions. It is loaded from the Total-operated
Palanca Terminal, which can accommodate Very Large
Crude Carrier (VLCC) loading. The typical cargo size is 985
thousand barrels; however, alternate cargo sizes can be
arranged with advance planning. The production rate of
the contributing fields is approximately 140 thousand
barrels per day. Specifications are: API 37.2, S.G. 0.8388
(conversion rate 7.5), Sulphur 0.18 mass%, Pour point 10
C, TAN 0.03 mg KOH/g, Nickel 1.4 wppm, Vanadium 1.1
wppm, Visc. (40C) 4.52 cSt.
Kole: The crude is a blend of several fields: Kole, Betika,
Ekoundou, Asoma and others. Kole is a low sulphur crude
(0.3%S), of medium gravity with a suitable jet cut as well
as suitable cuts for thermal and catalytic operations.
Average production: 70,000 bpd. The terminal is operated
by Elf Serepca. Location: Approx. 100 miles West of Douala
- Cameroon with maximum cargo size 900,000 bbls
(143,000 m3). The crude is naphthenic, low in aromatics
and gives good quality reformer feedstock and middle
distillates with good cold properties. Specifications are: API
METHODOLOGY GUIDE WEST AFRICA / MEDITERRANEAN
10
CRUDE OIL
31.51, conversion rate 7.4, Sulphur 0.35 mass %, Pour
point -9 C, TAN 0.61 mg KOH/g, Nickel 21.2 wppm,
Rabi Light: The crude is produced in Gabon from the fields
of Rabi, Coucal, Avocette Tchatamba and Azile. Rabi light
is a very low sulphur (0.12 %S), light crude (36-37API),
particularly suitable for the production of gasoline in a
complex refinery, as well as jet fuel, high quality gasoil,
lubestocks and very low sulphur fuel oil. Rabi light can be
used for direct burning in power generation or utility
plant. Average production: 90,000 bpd. Loading location is
Terminal Cap Lopez near Port Gentil. The loading berth is
located on the west side of Baie du Prince. Cargo Size
130,000 mt. The crude is paraffinic and has high yields of
very good quality distillates with very good cetane index.
Naphtha With an N+2A of about 56, the naphtha is a very
good feedstock for gasoline production. Specifications are:
API 36.77, conversion rate 7.31, Sulphur 0.12 mass %,
Pour point 20 C, TAN 0.05 mg KOH/g, Nickel 10.0 wppm,
Vanadium 1.2 wppm, Visc. (40C) 29 cSt.
MEDITERRANEAN
TIMING
Beginning in 2003, Platts Mediterranean crude assessments
began taking into account backwardation/contango in the
underlying Dated Brent market. Platts incorporated the market
structure into all its Dated Brent related spot price assessments
by correlating respective loading dates with the corresponding
Dated Brent value. The corresponding Dated Brent value is
established through trading activity in the Brent/BFOE swap
market. Mediterranean crude grades are assessed 10 to 25 days
out, and the forward pricing period applied for Mediterranean
market by means of the forward Med strip is 13 to 28 days out.
Azeri Light and Azeri, the crude coming out of the BTC pipeline,
are assessed 10-30 days out, and the forward pricing period
applied by means of the forward BTC strip is 13-33 days out.
(Please refer to the section on Strips for detailed description of
the strips for the Mediterranean.) Prior to the change, Platts West
African and Mediterranean grade price assessments were
established by adding/subtracting the prevailing market
differential against the daily Dated Brent assessment and did not
take into account backwardation or contango. Starting from June
1, 2006, Platts is assessing BTC crude FOB Ceyhan basis 10-30
days out and the respective BTC strip is 13-33 days out.
ASSESSMENT TIMESTAMP
Platts assessment methodologies for Urals and other crude oils
traded in Europe reflect the prevailing market price at 16.30
London time. Platts also takes into its editorial consideration
bids, offers and transactions seen during the assessment day.
These inputs are analyzed and normalized to reflect a market
value at 1630 London time precisely.
TIME CUT-OFFS
Entry for bids and offers on Urals: Bids and offers may be
submitted at any time during the day with a deadline of
15:45.00 London time. Platts synchronizes its computer clocks
every day precisely, and will compare the time of any submitted
bid/offer or communication by a market participant intending to
transact, against the computer time, in order to ensure that the
cut-off points for new bids and offers, price changes and the
markets close are accurate. Please note that Platts applies the
timing deadlines strictly.
For the purposes of clock synchronization, market participants
may find the following internet link helpful: www.time.gov.
Please note, however, that Platts does not guarantee the accuracy
of this clock. Platts takes steps to ensure its clocks are in line
with true time, and the assessments are synchronized exactly at
16.30 London time.
INCREMENTABILITY
Submitted bids or offers may be changed by market participants
up to 16:25:00 London time. The bids/offers may be changed by
small increments in line with ongoing market practice. In
markets trading in dollars per barrel, typical increments are 5
cents/bbl for normal market conditions. Trading conditions such
as market volatility help determine normal increments.
Changes exceeding those parameters may result in the bids and
offers not being reflected in the assessment process. Where
transactions are concluded at levels that have not been fully
tested by the market because price changes have been non-
incremental, assessors may determine that the actual market
value is somewhere within that price gap, rather that at the
actual level of the transaction.
NOMINATION
Platts considers in its Urals assessment process cargo bids and
offers loading 10-25 days from date of publication. Platts also
considers bids made on a minimum five day loading window
where buyer grants the right to narrow the two day laycan to the
seller. Seller, however, must nominate the actual two day loading
laycan at least 7 calendar days in advance of the first day of the
five day loading range. Seller must also specify at least 7 days in
advance the name of the ship and the loading port.
If the buyer bids for more than five days loading range, the seller
should specify a five day laycan at the time of the trade.
METHODOLOGY GUIDE MEDITERRANEAN
11
CRUDE OIL
Standards are still evolving and further clarifications may be
needed if issues arise.
DATE RANGE
Platts will consider bids that specify a minimum five-day date
range (eg. Jan 21-25), as the per subscriber note dated Nov 19,
2004. However, offers that specify a maximum five- day date
range will be considered for the assessment, based on FOB
loading dates but with CIF pricing terms. Platts had previously
stated a minimum five-day range for offers.
LOADING LOCATIONS
Platts reflects bids, offers and transactions in its Urals
assessments using an inclusive process. If for instance, there are
bids or offers stating Novorossiisk as a loading basis, Platts will
also consider bids and offers from other ports including Yuzhny
and Odessa in the normalization process leading to the CIF Med
Urals assessment.
VOLUME
Platts assesses the Mediterranean crude oil market based on
traded typical loading sizes, whih may vary from one grade to
another. Typical loading sizes may also change over time, and
Platts may review and if necessary change the cargo sizes
reflected in its assessments when this occurs. In such cases, Platts
will advise the industry accordingly.
SHIP ACCEPTABILITY
Bids: For the cargo assessment processes bids may be expressed
with a specific location. Bids with excessive limitations
whether expressed or implied may be deemed atypical and not
considered for assessment purposes.
The name of the buyer and location chosen set the condition for
any potential counterparty considering trading. The implied set
conditions for a CIF bid include:-
Up front conditions Conditions to be met
Name of the buyer Ship must meet vetting conditions of a
reasonable buyer.
Volume Volume delivered must match volume
requested +/- normal tolerances.
PortShip must meet physical limitations of port, eg. Draft, beam
etc. Ship must also meet conditions set
by country of destination.
Offers: Offers may be made into a specific location or to meet a
broad area. CIF offers may be made with a named or unnamed
ship.
Up front conditions Conditions to be met
Name of Ship Buyer to determine if ship is
acceptable to its vetting department.
For assessment purposes, editors will
review quality of vessel to determine if
it should be considered in the
assessment process.
Unnamed ship Seller has the responsibility to meet
the reasonable vetting requirements of
a typical market participant in that
region.The seller is entitled to
substitute vessel with another meeting
the same vettings at any reasonable
time before delivery of the cargo.
If seller offers with named vessel, then buyer can buy subject to
vetting approval and if rejected then the deal is not finalized. For
assessment purposes, editors will review quality of vessel to
determine if it should be considered in the assessment process.
Urals Med (CIF Augusta): This daily spot price assessment
takes into account cargoes loading from typical Black Sea
ports with the assessment reflecting normalization to the
quality coming out of Novorossiisk. The most significant
volumes come out of Novorossiisk, Odessa and Yuzhny,
though in the past Urals has been exported out of
Theodossia, Kavkaz and Kerch, for delivery into the
Mediterranean. The assessment basis is CIF Augusta,
Sicily/Italy. Cargoes delivered to other ports in the
Mediterranean can also be considered, with freight costs
taken into account. Cargoes for delivery within the Black Sea
are not considered. Cargoes of approximately 80-140,000mt
are used for the assessment, however, Platts Urals CIF Med
assessment currently represents the value of 80,000 mt
cargoes, with cargoes of 140,000 mt normalized. The typical
pricing period for cargoes is either three days after bill of
lading or five days after bill of lading. Cargoes pricing on a
different basis can be included in the assessment after an
adjustment. Gravity is approximately 31-33 degrees although
currently qualities typically have been towards the heavier
end of the scale, with a sulfur content of 1.3%. The current
bbl/mt conversion factor for Urals crude oil is 7.240-7.329.
Urals Recombined (RCMB) CIF Augusta: This daily spot
price is an outright price for Urals CIF Augusta and does
not take into account backwardation or contango. This
price is produced by adding or subtracting the prevailing
market differential for CIF August Urals against the daily
Dated Brent assessment. No further adjustments are made.
This assessment is published as an outright price only. The
differential is assessed according to the methodology in the
paragraph above. This quotation for Urals CIF Augusta
Recombined was first published March 1, 2003.
12
CRUDE OIL
Urals ex-Novorossiisk (FOB): This daily spot assessment
takes into account cargoes traded FOB at the Black Sea port
of Novorossiisk. Both small and large cargoes are used for
the assessment (approximately 80-140,000mt). The typical
pricing period for cargoes is either three or five days after bill
of lading. Cargoes pricing on a different basis can be
included with the pricing period taken into account.
Delivered prices may be used in the assessment once
adjusted for freight costs. In periods of spot market
illiquidity in both the delivered and the FOB markets, Platts
typically uses freight rates of a 135,000mt-loader (standard
1-mil bbl ship) to provide a guide for the FOB level, using
Platts spot freight assessments in Dirty Tankerwire report, as
well as the relevant days of delays and demurrage cost for
the Turkish straits, which are also published in the Dirty
Tankerwire. Gravity is approximately 31-33 degrees
although currently qualities typically have been towards the
heavier end of the scale, with a sulfur content of 1.3%. The
current bbl/mt conversion factor for Urals crude oil is 7.240-
7.329. The assessment is published as a high and a low.
Urals ex-Novo (FOB) 80 kt: This daily spot assessment takes
into account cargoes traded FOB at the Black Sea port of
Novorossiisk. Both small and large cargoes are used for the
assessment (approximately 80-140,000mt). The typical
pricing period for cargoes is either three or five days after bill
of lading. Cargoes pricing on a different basis can be
included with the pricing period taken into account.
Delivered prices may be used in the assessment once
adjusted for freight costs. In periods of spot market
illiquidity in both the delivered and the FOB markets, Platts
uses freight rates of an 80,000mt-loader (standard 600,000
bbl ship) to provide a guide for the FOB level, using Platts
spot freight assessments in Dirty Tankerwire report, as well
as the relevant days of delays and demurrage cost for the
Turkish straits, which are also published in the Dirty
Tankerwire. Gravity is approximately 31-33 degrees although
currently qualities typically have been towards the heavier
end of the scale, with a sulfur content of 1.3%. The current
The assessment is published as a high and a low.
Urals ex-Baltic Sea/Urals Rdam (CIF Rotterdam): This
daily spot assessment takes into account cargoes loading
from Baltic Sea ports of Butinge, Russias Primorsk and
Polands Gdansk. Cargoes loading in Russias Barents Sea
port of Murmansk are also taken into account. The
assessment basis is CIF Rotterdam/Netherlands. Typically
100,000 mt cargoes are taken into account. Cargoes
delivered into other ports in North-West Europe can be
considered with freight costs taken into account. The
typical pricing period for cargoes is either three or five days
after bill of lading. Cargoes pricing on a different basis can
be included with the pricing period taken into account.
Gravity is approximately 31-33 degrees although currently
qualities typically have been towards the heavier end of
the scale, with a sulfur content of 1.3%. The current
The assessment is expressed as a high and a low.
Urals ex-Baltic Sea (FOB): Effective December 16, 2002
Platts widened the range of Baltic sea load ports reflected
in tis FOB assessment in the north to include Ventpils,
Butinge and Tallinn. Despite a sharp increase of the
number of cargoes loading from Primorsk, the steep climb
of Worldscale rates in the winter season for cargoes loading
from Primorsk has necessitated the exclusion of Primorsk
in this context. Typical daily assessment is based on the
100kt cargo size. The typical pricing period for cargoes is
either three or five days after bill of lading. Cargoes pricing
on a different basis can be included with the pricing period
taken into account. Delivered prices may be used in the
assessment once adjusted for freight costs. Gravity is
approximately 31-33 degrees although currently qualities
typically have been towards the heavier end of the scale,
with a sulfur content of 1.3%. The current bbl/mt
conversion factor for Urals crude oil is 7.240-7.329. The
assessment is published as a high and a low.
Urals ex-Primorsk (FOB): Effective January 15, 2007 Platts
is publishing a FOB assessment in Northwest Europe for
cargoes loading Urals from the Russian Baltic port of
Primorsk. The typical daily spot assessment is based on the
100kt cargo size. The assessment reflects the Urals CIF
Rotterdam adjusted for freight rates on the day. In winter,
the ice class premium will be included in the assessment
when shipowners add those premiums to their freight
rates. Gravity for Urals is approximately 31-33 degrees with
a sulfur content of 1.3%. The current bbl/mt conversion
factor is 7.3. The assessment is published as a high and a
low.
ESPO (FOB Kozmino): Platts daily spot assessment of
Eastern Siberian Pacific Oil (ESPO) crude oil takes into
account cargoes loaded from the Russias Far East port of
Kozmino. Prices are assessed on an FOB basis and reflect
cargoes from 80,000 mt to 140,000 mt normalized to
100,000 mt. Platts assessment reflects cargoes loading 15 to
45 days ahead from date of publication. The API gravity for
ESPO is approximately 34-35 degrees with a sulfur content
of 0.58-0.65%. The assessment is published as a high and a
low and reflects the transactable value at 430 pm London
time. The published assessments reflect flat price as well as a
differentials versus Dated Brent. This assessment is published
in addition to Platts assessment at the Singapore close.
Kirkuk ex-Ceyhan (FOB): This daily spot assessment takes
into account Iraqi Kirkuk crude loading at Ceyhan in
Turkey. Prices are assessed on an FOB basis. The typical
cargo size is 140,000mt, but both small and large cargoes
are used for the assessment (approximately 80-140,000mt).
The typical pricing period for cargoes is either three or five
days after bill of lading. Cargoes pricing on a different basis
can be included with the pricing period taken into
account. In periods of spot market illiquidity, Kirkuk is
valued as a differential or occasionally a premium to
Mediterranean sour crude benchmark Urals CIF Augusta,
netbacked from Augusta to Ceyhan using the freight rates
for the 135,000mt cargo size as published in Platts Dirty
13
CRUDE OIL
Tankerwire. The API gravity for Kirkuk is 35-36 degrees and
the sulfur content is 2.0%. The bbl/mt conversion factor is
7.418-7.463.
Es Sider (FOB Es Sider): This daily spot assessment takes
into account cargoes loading from the Libyan port of Es
Sider for delivery into the Mediterranean. In periods of
spot market illiquidity, Es Sider is valued as a premium to
Mediterranean sour crude benchmark Urals CIF Augusta,
netbacked from Augusta to Es Sider using the freight rates
for the 80,000mt cargo size as published in Platts Dirty
Tankerwire. This Libyan crude has an API gravity of 36-37
degrees and a sulfur content of 0.40-0.42%. The bbl/mt
conversion factor is 7.463-7.507. The assessment is
published as a high and a low.
Iran Heavy (FOB Sidi Kerir: This daily spot assessment
takes into account cargoes loading from the Egyptian port
of Sidi Kerir for delivery into the Mediterranean. Since Mar
15, 2001, in the absence of any spot market information,
Platts has assessed Iranian crudes in relation to their
Official Selling Prices (OSPs). Iranian OSPs, set monthly by
the National Iranian Oil Company, NIOC, are related to
the IPEs Brent weighted average (BWAVE) and Platts uses
dated to frontline (DFL) swaps in order to obtain a
conversion value between BWAVE and Dated Brent. The
API is 31-32 and the sulfur content is 1.8%. The bbl/mt
conversion factor is 7.240-7.284.
Iran Light (FOB Sidi Kerir): This daily spot assessment is
daily and takes into account cargoes loading from the
Egyptian port of Sidi Kerir for delivery into the
Mediterranean. Since Mar 15, 2001, in the absence of any
spot market information, Platts has assessed Iranian crudes
in relation to their Official Selling Prices (OSPs). Iranian
OSPs, set monthly by the National Iranian Oil Company,
NIOC, are related to the IPEs Brent weighted average
(BWAVE) and Platts uses dated to frontline (DFL) swaps in
order to obtain a conversion value between BWAVE and
dated Brent. The API is 33.5-34.0 and the sulfur content is
1.4%. The bbl/mt conversion factor is 7.351-7.374.
Suez Blend (FOB Ras Sukheir): The spot assessment of this
Egyptian crude is made on a daily basis. Spot cargoes of
Suez Blend may be sold Brent-related FOB Ras Sukheir. The
API is 32-33 degrees and the sulfur content is 1.7%. In
periods of spot market illiquidity the price assessment for
Suez Blend will be valued as a differential to Mediterranean
sour crude benchmark Urals CIF Med, taking into account
the freight and quality difference between the two crudes.
The bbl/mt conversion factor is 7.284-7.329.
Siberian Light (CIF Augusta): This daily spot assessment
takes into account cargoes loading from Black Sea ports for
delivery into the Mediterranean. The assessment basis is
CIF Augusta, Sicily/Italy. Both small and large cargoes are
used for the assessment (approximately 50-140,000mt).
Cargoes delivered to other ports in the Mediterranean can
also be considered, with freight costs taken into account.
Cargoes for delivery within the Black Sea are not taken into
account, but may be considered as a guide in periods of
spot market illiquidity. The typical pricing period for
cargoes is either three or five days after bill of lading.
Cargoes pricing on a different basis can be included with
the pricing period taken into account. The API gravity for
Siberian Light is 35-36 degrees and the sulfur content is
0.6%. The bbl/mt conversion factor is 7.418-7.463.
CPC Blend (CIF Augusta): This daily spot assessment takes
into account cargoes loading from Black Sea port CPC
Terminal for delivery into the Mediterranean. The
assessment basis is CIF Augusta, Sicily/Italy. Both small and
large cargoes are used for the assessment (approximately 80-
140,000mt). Cargoes delivered to other ports in the
Mediterranean can also be considered with freight costs
taken into account. Cargoes for delivery within the Black Sea
are not taken into account. The typical pricing period for
Cargoes pricing on a different basis can be included with the
pricing period taken into account. The API gravity for CPC
Blend is 43.5 degrees and the sulfur content is
approximately 0.5-0.6%. The bbl/mt conversion factor is 7.8.
CPC Blend FOB (CPC Terminal): This daily spot
assessment takes into account cargoes loading from the
CPC terminal on the Black Sea. Both small and large
cargoes are used for the assessment (approximately 80-
140,000mt). The typical pricing period for cargoes is either
three or five days after bill of lading. Cargoes pricing on a
different basis can be included with the pricing period
taken into account. Platts typically uses freight rates of a
135,000mt cargo (standard Suezmax) to provide a guide for
the FOB level, using Platts spot freight assessments in the
Dirty Tankerwire. After the introduction of the so-called
Bosporus clause in November, 2002, restricting passage
for crude oil tankers to the day hours and thereby creating
occasional waiting time at the Turkish Straits, the
estimated demurrage is taken into consideration. The port
charges applicable to Novorossiisk are deducted and the
CPC terminal charges are added in freight calculations.
CPC Blend FOB (CPC Terminal) 80kt: This daily spot
assessment takes into account cargoes loading from the
CPC terminal on the Black Sea. Both small and large
cargoes are used for the assessment (approximately 80-
140,000mt). The typical pricing period for cargoes is either
taken into account. Platts typically uses freight rates of a
80,000mt cargo (standard Aframax) to provide a guide for
the FOB level, using Platts spot freight assessments in the
Dirty Tankerwire. After the introduction of the so-called
Bosporus clause in November, 2002, restricting passage
for crude oil tankers to the day hours and thereby creating
occasional waiting time at the Turkish Straits, the
estimated demurrage is taken into consideration. The port
charges applicable to Novorossiisk are deducted and the
CPC terminal charges are added in freight calculations.
14
CRUDE OIL
Azeri Light (CIF Augusta): This daily spot assessment takes
into account cargoes of Azeri Light into the Mediterranean
on a CIF August basis. Cargoes delivered to other ports in
the Mediterranean will also be considered with freight
costs taken into account. Cargoes for delivery within the
Black Sea are not taken into account. The typical pricing
period for cargoes is either three or five days after bill of
lading. Cargoes pricing on a different basis can be included
with the pricing period taken into account. The API for
Azeri Light is 34-34.5 degrees and the sulfur content is
0.143-0.15%, though gravity has been observed to be
higher recently. The bbl/mt conversion factor is 7.374-
7.395. The assessment is expressed as a high and a low.
Azeri Light FOB Supsa: This daily spot assessment takes
into account cargoes loading from the Black Sea port of
Supsa. The typical pricing period for cargoes is either three
or five days after bill of lading. Cargoes pricing on a
assessment once adjusted for freight costs. Platts uses
freight rates of a 135,000mt cargo (standard Suezmax) to
provide a guide for the FOB level, using Platts spot freight
assessments in the Dirty Tankerwire report. After the
introduction of the so-called Bosporus clause in
November, 2002, restricting passage for crude oil tankers to
the day hours and thereby creating occasional waiting time
at the Turkish Straits, the estimated demurrage is taken
into consideration. The assessment was first published
August 1, 2003. The API for Azeri Light is 34-34.5 degrees
and the sulfur content is 0.143-0.15%, though gravity has
been observed to be higher recently. The bbl/mt
conversion factor is 7.374-7.395. The assessment is
expressed as a high and a low.
Azeri Light FOB Supsa 80kt: This daily spot assessment
takes into account cargoes loading from the Black Sea port
of Supsa. The typical pricing period for cargoes is either
assessment once adjusted for freight costs. Platts typically
uses freight rates of a 80,000mt cargo (standard Aframax)
to provide a guide for the FOB level, using Platts spot
freight assessments in the Dirty Tankerwire report. After
the introduction of the so-called Bosporus clause in
November, 2002, restricting passage for crude oil tankers to
the day hours and thereby creating occasional waiting time
at the Turkish Straits, the estimated demurrage is taken
into consideration. The assessment was first published July
1, 2010. The API for Azeri Light is 34-34.5 degrees and the
sulfur content is 0.143-0.15%, though gravity has been
observed to be higher recently. The bbl/mt conversion
factor is 7.374-7.395. The assessment is expressed as a high
and a low.
BTC (Azeri) crude FOB Ceyhan basis: This daily spot
assessment was introduced on June 1, 2006 and reflects
typical export grade from the BTC pipeline at Ceyhan.
Typical export grade currently reflects Azeri Light crude.
The typical volume is seen at 80,000 mt but export
volumes may change depending on market conditions.
Assessments are based on spot trading activity for cargoes
loading 10-30 days ahead of date of publication. Delivered
prices may be used in the assessment once adjusted for
freight costs. Platts uses the average of freight rates of a
80,000 mt cargo (standard Aframax) and a 135,000 mt
cargo (standard Suezmax) to provide a guide for the FOB
level, using Platts spot freight assessments in the Dirty
Tankerwire report. The assessment is expressed as a high
and a low.
Saharan Blend (FOB): This daily spot assessment takes
into account cargoes loading from Algerian ports Skikda
and Arzew. Prices are assessed on an FOB basis. Both
small and large cargoes are used for the assessment
(approximately 80-140,000mt). The typical pricing
period for cargoes is either three of five days after bill of
lading. Cargoes pricing on a different basis can be
included with the pricing period taken into account. The
API gravity for Saharan Blend is 45-46 degrees and the
sulfur content is 0.1%. The bbl/mt conversion factor is
7.864-7.909.
Syrian Light: This daily spot assessment takes into account
cargoes loading from Banias in Syria. Prices are assessed on
an FOB basis. Both small and large cargoes are used for the
assessment (approximately 80-140,000mt). The typical
pricing period for cargoes is either three or five days after
bill of lading. Cargoes pricing on a different basis can be
included with the pricing period taken into account. . In
April 2003, Syria cut exports by approximately 40 percent,
which has made the market less liquid. So in periods of
spot market illiquidity the price assessment for Syrian Light
will be valued as a differential to Mediterranean sour crude
benchmark, Urals CIF Med, taking into account the quality
difference between the two crudes. As of February 2002
Syrias state oil company Sytrol changed the API baseline
from 35.70-36.30 to 37.40- 38.0 degrees, with sulfur
content of 0.8%. The bbl/mt conversion factor is 7.525-
7.552.
Syrian Heavy (Souedie): This daily spot assessment takes
into account cargoes loading from Tartous in Syria. Prices
are assessed on an FOB basis. Both small and large cargoes
are used for the assessment (approximately 80-140,000mt).
The typical pricing period for cargoes is either three of five
days after bill of lading. Cargoes pricing on a different basis
can be included with the pricing period taken into
account. In April 2003, Syria cut exports by approximately
40 percent, which has made the market less liquid. So in
periods of spot market illiquidity the price assessment for
Syrian Heavy will be valued as a differential to
Mediterranean sour crude benchmark, Urals CIF Med,
taking into account the quality difference between the two
crudes. The API gravity for Souedie is 23-24 degrees and
6.883-6.927.
METHODOLOGY GUIDE MEDITERRANEAN / PERSIAN GULF
15
CRUDE OIL
Zarzaitine: This daily spot assessment takes into account
cargoes loading from La Skhirra in Tunisia, though the
origin of the crude itself is Algerian. Prices are assessed on
an FOB basis. Both small and large cargoes are used for the
assessment (approximately 60-140,000mt). The pricing
period for cargoes is either three or five days after bill of
lading. Cargoes pricing on a different basis can be included
with the pricing period taken into account. In periods of
spot market illiquidity the price assessment for Zarzaitine
will be valued as a premium to Algerias Saharan Blend,
taking into account the quality difference between the two
crudes. The API gravity for this grade is 42-43 degrees and
7.730-7.775.
Kumkol: This daily spot assessment takes into account
cargoes of Kumkol delivered into the Mediterranean on a
CIF Augusta basis. Both small and large cargoes are taken
into account (approximately 30-100,000 mt). Cargoes
delivered to other ports in the Mediterranean will also be
considered with freight costs taken into account. Cargoes
for delivery within the Black Sea are not typically taken
into account, but may be considered as a guide in periods
of spot market illiquidity. The typical pricing period for
Cargoes pricing on a different basis can be included with
the pricing period taken into account. The API is 40-41
degrees and the sulfur content is 0.1-0.2%. The bbl/mt
conversion factor is 7.641-7.686.
PERSIAN GULF
DUBAI AND OMAN
Dubai and Oman assessments, as well as all other Platts daily
Persian Gulf crude assessments, are established following the
completion of a half-hour pricing window conducted out of
Singapore between 4 p.m. and 4:30 p.m. local Singapore time.
For a discussion document of how Platts assesses markets in a
half-hour Market on Close window, please see the section in this
document entitled Market on Close.
Platts assesses physical Dubai and Oman for three forward
months. For instance, in April, Platts will assess June, July and
August liftings for both Dubai and Oman. In May, Platts assessed
July, August and September Dubai and Oman. The rollover of
the assessment coverage occurs on the first working day of the
month. For example, Platts would assess June Dubai and Oman
on April 30, but would roll the coverage of Dubai and Oman
from June to July on May 1. (Please see details of partials
convergence further down)
Oman and Upper Zakum can be nominated for delivery against
Dubai on physical convergence ie, on the completion of 19
partials of 25,000 bbl with a single counterparty): Platts Dubai
assessments reflect market activity in which the Dubai buyer will
accept alternative delivery of an Upper Zakum or Oman cargo.
Hence, the activity of any Dubai market player will be taken into
account only if such trader is willing to accept an Upper Zakum
or Oman cargo delivery in lieu of Dubai. The activity of any
Dubai/Oman seller will be taken into account only if the seller is
willing to declare the grade (Dubai or Upper Zakum or Oman) to
be lifted by the buyer. Such declaration of grade must be made at
the point of executing the transaction (on physical
convergence).
Size: Dubai/Oman assessments reflect 25,000 bbl parcels. Spot
premiums for 500,000 bbl cargoes may be considered or factored
into the assessment, particularly in the event of a wide bid/offer
range.
Oman specifications: Platts will evaluate all market relevant data
to arrive at its Oman assessments. Oman may trade at a
differential versus Dubai or more commonly versus its official
selling price set by the Ministry of Oil and Gas (MOG). Platts
assesses spot Oman two months forward. For example, during
March, Oman loading in May will be assessed through March 31.
On April 1, Oman loading in June will be assessed. The spot
price differential versus the MOG official price and its
relationship to Dubai may be taken into account to determine
the spot price of Oman. Oman can be assessed by tracking
Brent/Oman spreads, MOG swaps plus the spot MOG premium
or discount. The API gravity is 33.0 degrees and the sulfur
content is 1.14%.
The assessment for Oman MOG represents a differential to
Omans retroactive monthly official selling price. Cargoes will
sell on a differential to the expected assessment two to three
months before the price is actually released. Platts Oman MOG
assessment represents the differential as quoted in the spot
market. Deals may take place MOG-related (Ministry of Oil &
Gas official selling price), fixed price, or related to any other
basis. All these deals will be related to a fixed price equivalent.
Omans value reflects the market on close value at 1630
Singapore local time or 0830 GMT.
Example: In trade on March 1, the front-month spot Oman
trading month was for barrels loading in May. Spot Oman was
trading at around flat to the May MOG official selling price. The
spot fixed price front-month Oman assessment is derived as
follows: MAY DUBAI SWAPS + MAY MOG/DUBAI SWAPS
SPREAD + MAY SPOT MOG DIFFERENTIAL
MOG/Dubai spread: The MOG/Dubai spread is a derivative
instrument and is settled by measuring the differential between
Omans official selling price and Dubai for the month
concerned. This spread is traded in the over-the-counter
market and has no physical delivery.
Derivatives/swaps: Platts assesses three forward months for
Dubai swaps. The swaps price out on the Platts Dubai front-
month cash assessments. Dubai swaps typically trade on a
monthly calendar basis, but unlike physical assessments, the
swaps are assessed from one month forward. In January, for
METHODOLOGY GUIDE PERSIAN GULF
16
CRUDE OIL
example, the first month swap assessed is February, followed by
March and April. The rollover date for the Dubai swaps is the 1st
of every calendar month. These swaps are used for hedging and
speculative purposes. The Dubai swaps contract has no physical
delivery. The Dubai swap typically prices out against Platts Dubai
assessments.
DUBAI/OMAN PARTIALS ASSESSMENT METHODOLOGY
Trading volumes assessed: Platts assessments for Dubai and Oman
will be based on a minimum of 25,000 bbl partial cargo
bid/offered or traded, with the market price derived from
increments of 25,000 bbl. The value of 25,000 bbl parcels will
take precedence over larger parcel sizes in the assessment
process. In addition, a trader bid/offering, for example, 100,000
bbl must be willing to trade in 25,000 bbl clips with any
counterparty.
Trading periods assessed: Platts will continue to assess Dubai
and Oman two months forward from date of publication,
with the roll-over date for assessment on the first working
day of each calendar month. For example, the last day that
July 2009 Dubai and Oman partials will be taken into
consideration for the July assessment will be May 31.
Assessments are made at the close of the Singapore day at
1630 local time (0830 GMT).
Cash settlement: Any position amounting to less than 475,000
bbl by the calendar months end is understood to be cash settled,
unless both counterparties mutually agree to deliver/take
delivery of a smaller top-up cargo. Partial contracts will be
settled based on Platts assessments published on the last working
day of each calendar month.
Convergence of partials to a full cargo: Once a principal acquires
nineteen 25,000 bbl parcels of the same grade (Dubai or Oman)
from a single seller within the calendar month, the partials
automatically converge into a physical cargo of 475,000 bbl. This
is equivalent to a full cargo of 500,000 bbl with commercial
tolerance of minus 5%. Neither the seller nor the buyer has the
right to deny delivery or to refuse lifting. However, both parties
may mutually agree to book out of the contract on the basis of
the Dubai or Oman assessment published on the last working
day of the calendar month.
Pricing of terminal operational tolerance: The deviation of up
to 1,000 bbl in operational tolerance, which is subject to
terminal performance for cargoes delivered FOB Fateh
terminal, Dubai will be priced on Dubai assessments
published on the last working day of each calendar month.
For example, the operational tolerance for cargoes loading in
July will be priced off the assessment of May 31. The
deviation of up to 1,000 bbl in operational tolerance for
cargoes delivered FOB Mina Al Fahal terminal, Oman will be
priced on Oman assessments published on the last working
day of each calendar month.
Optionality of Oman delivery: Platts Dubai assessments reflect
market activity in which the Dubai buyer will accept alternative
delivery of an Upper Zakum or Oman cargo. The seller must
declare the grade (Dubai, Upper Zakum or Oman) at the point
physical convergence.
Terms and conditions: Terms and conditions must be declared at
sellers option upon transaction of the nineteenth partial. Only
Omans MOG GT&C or Shells General Terms and Conditions
(GT&C) may be declared for Oman cargoes, as is standard
practice in the physical cargo market. ConocoPhillips GT&C are
required for Dubai cargoes. Any of these terms and conditions,
however, should not allow for further optionality over cargo size.
A physical cargo created by nineteen partial cargoes would be
475,000 bbl min/max (excluding 1,000 bbl in operational
tolerance).
Loading date nominations: Buyers should nominate loading
dates for Dubai or Oman cargoes prior to the last three days
of the calendar month of trading, unless both parties
mutually agree otherwise. This is to avoid B/L slippage (the
risk that end-month loading dates of a cargo will spill over
into the next month with different pricing implications.)
Dubai and Oman partials contracts leading to a full cargo
delivery should contain an assurance of delivery for the
month originally specified. Buyers of nineteen partials
retain the flexibility to negotiate with a seller for differing
volumes for loading in part-cargoes, or to request a book-
out of some or the entire volume, subject to mutual
agreement.
Trading counterparties: Affiliates or closely-related trading
parties will be deemed part of the same parent company for
partials trading considerations. Platts will apply its editorial
judgment to determine whether a transaction is suitably arms-
length. If subsidiaries/offshore entities of parent company A
trade with company B, those partials will be added and
considered as part of the total partials trading position of parent
company A.
Price assessment: To arrive at its Dubai and Oman assessments,
Platts will take into account fixed-price bid/offers for partial and
full cargoes where applicable; inter-month Dubai or Oman
spreads; Dubai or Oman swaps; MOG/Dubai spreads (differentials
to the retroactive monthly official selling price set by Omans
Ministry of Oil and Gas); spot Dubai and MOG premia/discounts;
EFPs or spreads to crude grades such as Brent; and spreads to
published benchmarks. In the event of a wide bid/offer spread,
Platts will not average the bid and offer. Platts will evaluate
market conditions and establish an assessment that in its editorial
judgment reflects the transactable level of Dubai and Oman.
Unusually high or low price deals will be scrutinized by Platts to
discern whether the deal is fit for assessment purposes.
In the event of partials trading activity in the market for
Upper Zakum, the same terms and conditions will apply as for
Dubai and Oman. Dubai cannot be nominated against Upper
Zakum.
METHODOLOGY GUIDE PERSIAN GULF
17
CRUDE OIL
Editorial guidelines for assessments of partials in the
Singapore Market on Close assessment process: Platts
assessments take into consideration bids and offers made up
to no later than 16:00:00:59 hours Singapore time
(08:00:00:59 GMT). Bids and offers with unusual terms and
conditions will typically not be taken into account. Platts
should be informed prior to the assessment window of any
counterparty with which a principal cannot trade for financial
or legal reasons. Bids and offers made by counterparties
unable to trade with each other may cross, allowing other
traders to arbitrage the difference. Platts should be informed
by the principal prior to the assessment window if a broking
house is submitting a bid or offer on the principals behalf.
Representative broking houses will have similar execution
responsibilities and bear similar exposures as their principals
for non-performance of trading instruments, whether cash
settled or physically delivered.
Platts will take into account changes in price, but not changes to
volume/date/terms & conditions, made to bids and offers up to
16:29 hours Singapore time (08:29 GMT). Platts assessment
guidelines governing the incrementability of price changes for
bids and offers, and the repeatability of deals, will continue to
apply as for all market-on-close assessments (see
<www.platts.com>oil>specifications> for more details on MOC
methodology). Platts does not take into consideration deals done
between company affiliates or between companies with close
working trading relationships.
Platts will typically consider for assessment purposese bids and
offers that are firm until 16:30:00:59 hours Singapore time
(08:30:00:59 GMT) and that are executable by any creditworthy
counterparty. Participants can withdraw their bid/offer at any
time, provided no prior interest has been expressed for this bid
or offer. Any such intention to execute expressed to the
counterparty or to Platts before 1630 hours would be seen as a
valid intention to transact even if the deal was fully finalized
after 1630.
Further Questions: In Singapore, contact Sharmilpal Kaur at
sharmilpal_kaur@platts.com or +65 6530 6575..
In London, you can contact Jorge Montepeque at +44 207 176
6136, jorge_montepeque@platts.com
In the US, you can contact Esa Ramasamy at +1 713 658 3201,
esa_ramasamy@platts.co.m
OTHER PERSIAN GULF CRUDES
Platts publishes spot assessments for other Persian Gulf crudes in
addition to Dubai, Upper Zakum and Oman: Murban, Lower
Zakum, Umm Shaif, Qatar Land, Qatar Marine, Al-Shaheen and
Banoco Arab Medium crudes.
Front-month assessments for the Persian/Arab Gulf grades reflect
cargoes loading two calendar months from date of publication.
For example, in March, the front-month assessments reflect
barrels loading in May. On the first working day of April, the
front-month assessments will rollover to reflect barrels loading
in June.
The assessments in the Persian/Arasb Gulf reflect 500,000 bbl
parcels. Spot premiums for partial cargoes may be considered
or factored into the assessment concerned. Platts assessments
for all Persian/Arab Gulf grades are based on a market on
close principle at 1630 Singapore time or 0830 GMT. Platts
does not take into consideration transaction between
affiliates or between companies with close working trading
relationships.
Murban, Upper Zakum, Lower Zakum and Umm Shaif: These
are crudes from Abu Dhabi of the United Arab Emirates. The
four grades typically trade at a differential to Abu Dhabi
National Oil Cos official selling price for the month
concerned. May loading cargoes would trade at a differential
to ADNOCs May OSP, which is calculated as a differential to
Dubai. The equation used to arrive at a Murban, Upper
Zakum, Lower Zakum or Umm Shaif assessment for May
barrels is as follows: May Dubai swaps + Existing Murban
OSP/Dubai spread + May spot Murban differentials +
expected ADNOC adjustments. In May 2006, a spot market
for Upper Zakum started up with ExxonMobil taking a 28%
stake in Upper Zakum production and selling non
destination restricted cargoes on a term basis. Typically,
ADNOC has sold Upper Zakum as destination-restricted
cargoes. Destination restricted cargoes cannot be nominated
in the event of physical convergence in the partials market.
Platts will monitor future Upper Zakum trading patterns and
make any necessary adjustments to methodologies.
Qatar Land and Qatar Marine: These crudes typically trade at a
differential to Qatar Petroleums official selling price. Qatars OSP
is announced on a retroactive basis and is based on a differential
to Omans OSP. For example, the June OSP would be published
early July. The equation to derive Qatar Land and Qatar Marines
assessment for barrels lifting in May is as follows: May Oman
MOG swaps + existing OSP/Oman OSP spread + spot differentials
+ expected OSP adjustments.
Banoco (Bahrain National Oil Co) Arab Medium: This crude
comes from Bahrain and is similar in quality to Saudi Arab
Medium. Saudi crudes typically do not trade on a spot basis but
Banoco Arab Medium can trade spot, priced as a differential to
Saudi Aramcos Arabian Medium official selling price. Aramcos
OSP is announced one month forward and is based on the
average of front-month Dubai/Oman assessments plus a
differential. Therefore, the July OSP is announced early June. The
equation used to derive Banoco Arab Mediums assessment for
barrels loading in May is as follows: Average of May Oman &
Dubai swaps + existing OSP differential + spot differentials +
expected OSP adjustments.
Dar Blend: Platts has been assessing the value of Dar Blend crude
oil since February 16, 2009. Sudans sweet, acidic Dar Blend
crude from the Melut basin is exported in cargoes of 600,000 up
METHODOLOGY GUIDE PERSIAN GULF / ASIA-PACIFIC
18
CRUDE OIL
to 1-million barrels, typically marketed at a differential to Dated
Brent by state oil firms Sudapet, China National Petroleum Corp
(CNPC) and Malaysias Petronas. Export volumes of Dar Blend
are projected to climb toward 260,000 b/d. Dar Blend has gravity
of 26.4 API, a sulphur content of 0.12%, and TAN of 2.4
mgKOH/g. This crude is evaluated at Asian close (0830 GMT) as
a fixed price and as a differential to Dated Brent, which is
assessed at London close (1630 hours local time).
Ras Gas condensate & Al Shaheen crude: Platts has been
publishing a daily assessment of Qatars Ras Gas condensate and
Al Shaheen crude since January 3, 2005. Spot assessments reflect
barrels loading two calendar months from the date of
publication. For example, on January 3, barrels loading in March
are assessed. These assessments roll over on the first working day
of the month. Spot assessments of Ras Gas and Al Shaheen
consist of a fixed-price assessment and an assessment of the spot
market differential against Platts Dubai assessments.
Assessments take into consideration Ras Gas traded in typical
500,000 bbl cargoes, and Al Shaheen traded in typical 600,000
bbl cargoes.
South Pars condensate: Platts has been publishing a daily
assessment of South Pars condensate since February 16, 2009.
Irans South Pars condensate is produced from gas fields and
exported from the Persian Gulf port of Assaluyeh. After several
new fields come online, production by end-2009 is estimated at
around 412,000 b/d. South Pars has gravity of 54.4 API and a
sulfur content of 0.22%. South Pars condensate is evaluated at
Asian close (0830 GMT) as a fixed price, as a differential to Platts
Middle Eastern crude oil benchmark Dubai, and as a differential
to Dated Brent which is assessed at London close (1630 hours
local time).
Qatar LSC condensate: Platts has been publishing a daily
assessment of the value of Qatar Low Sulphur Condensate (LSC)
since February 16, 2009. Qatar LSC (previously known as
Dolphin condensate) is exported from Ras Laffan port in cargoes
of 500,000 barrels, and typically marketed at a differential to
Platts Middle Eastern crude oil benchmark Dubai, or as a
differential to a basket of Platts FOB AG naphtha, kerosene and
gasoil assessments. Four cargoes of Dolphin condensate are
typically sold each month by Tasweeq (The Qatar International
Petroleum Marketing Co.). Dolphin condensate has gravity of
56.9 API, and a sulphur content of 0.19%. This condensate is
assessed at Asian close (0830 GMT) as a fixed price, as a
differential to Platts Middle Eastern crude oil benchmark Dubai,
and as a differential to Dated Brent which is assessed at London
close (1630 hours local time).
Platts launched effective October 2, 2008 an Asian Dated Brent
(ADB) assessment published on a daily basis, reflecting the value
of Dated Brent at Asian market close (0830 GMT). The ADB
reflects the price prevailing during the close of market in Asia
taking into account the rise or fall in the movement in the cash
BFOE instrument, from the time of assessment of Dated Brent at
the prior trading days European market close at 1630 hours
London time, until Asian close. This movement is determined by
valuation of Brent cash and futures markets by the close in Asia.
Dated Brent reflects loading for cargoes 10-21 days from day of
publication. The Asian Dated Brent is therefore a dated
instrument. The price is underpinned by instruments such as
BFOE and futures which are cyclical in nature and therefore roll
either at the end of the calendar month for BFOE or mid month
for futures.
ASIAN DATED BRENT STRIP AND DIFFERENTIALS
Published differentials to Dated Brent for Asia Pacific grades are
measured against the underlying Dated Brent price for the
corresponding month, or the Asian Dated Brent Strip. The
underlying Dated Brent is calculated using the Brent Frontline
Swap (PGA 611) minus the Brent Dated to Frontline Swaps, or
DFL (PGA 606).
Please refer to the Platts Forward Curve (PFC) methodology for
details of the DFL market, which can be found at:
http://www.platts.com/IM.Platts.Content/MethodologyReference
s/MethodologySpecs/PlattsForwardCurveOil.pdf
In line with the Asian Dated Brent (ADB) assessment, the price
will be time adjusted to reflect 1630 hours Singapore time. This
methodology for calculating differentials against Brent is
effective from August 10, 2009. Prior to this date, the differential
was measured against the prevailing Asian Dated Brent.
ASIA-PACIFIC
Platts implemented several important changes to its Asia-Pacific
crude oil assessment Methodologies on July 9, 2005. From this
date, Platts considers partial cargo trades of 25,000 bbl in its
assessment process for Minas and Tapis crude oils. At the same
time, Platts changed the assessment period for all of its regional
crude oil assessments to a monthly basis, two months ahead,
with a roll-over date of on the 9th day of the month, or the first
business day after. For example, on June 8, Platts would assess
cargoes loading in July, but on June 9, the assessments would
roll to crude loading in August. The specific crudes covered
crudes affected by this change are: Tapis, Minas, Labuan, Miri,
Gippsland, Daqing, Shengli, Griffin, Cossack, Kutubu, Nanhai,
Bach Ho, Nile Blend, Ardjuna, Handil Mix, Senipah, NW Shelf,
Cinta, Duri, Widuri and Belilda. For paper Tapis, the rollover
date is the first day of the month.
Assessments also consider bids/offers, and differentials to other
actively traded crudes, related paper markets and, in the case of
Indonesian crudes, official crude prices (ICPs). Crude markets are
assessed at 1630 Singapore time. The following are details of the
specifications for the crudes reported including loading ports.
Sulfur content and API gravity may vary over time.
Methodology: Platts assesses crude grades on a fixed price basis,
and also where appropriate, the spread to the crude grades
METHODOLOGY GUIDE ASIA-PACIFIC
19
CRUDE OIL
respective benchmarks. Most trade in the Asia Pacific region is
conducted on a floating rather than fixed price basis. The fixed
price assessment reflects the equivalent in fixed price terms of a
floating price transaction. Platts will determine the relevant
benchmark and determine the underlying value of the
benchmark for the loading dates. In a typical example, a Tapis
physical cargo may trade at a premium of 25 cts/bbl over its own
benchmark. Platts will then determine in the swaps market what
is the hedgeable level of the benchmark for the pricing dates and
add the premium transacted. If the paper market around the bill
of lading is $65.00/bbl then the fixed price equivalent is
$65.25/bbl.
The same approach is used for Indonesian crude grades where
they trade in relation to their own ICP, which is only released
after the cargo has loaded. However, the fixed price equivalent of
the transaction can be determined through the swap market for
the ICPs or through values relative to the more liquid crude
grades. In a typical example, a Minas cargo loading in April may
trade at its own ICP plus 50 cts/bbl. If swap market for April
Minas ICPs is at $65.00/bbl, then the fixed price equivalent of
Minas is $65.50/bbl.
Spreads versus ICP: Platts assesses differentials to the Indonesian
Contractual Prices (ICPs) for the following crudes: Minas, Attaka,
Ardjuna, Handil, Cinta, Duri, Widuri and Belida. The
premium/discounts versus the ICP reflect cargoes loading 2
months forward from the date of publication.
Spreads versus Tapis: Platts presently assesses market
premiums or discounts for several Asian and Australian
crudes against Malaysian Tapis. The premiums/discounts
assessed are for the following crudes: Griffin, Cossack,
Kutubu and Nanhai. The premium/discounts reflect cargoes
loading two months forward from the date of publication.
In September 2009, Platts announced plans to discontinue its
assessments of all price differentials to published APPI Tapis
crude oil values. The final assessments for these differentials
will be published on March 31, 2010. The discontinuation
affects published APPI-related differentials for Tapis, Griffin,
Kikeh, Cossack, Kutubu, and Nanhai Light crude oil grades.
Platts also will discontinue assessments of price differentials
to APPI Northwest Shelf (NWS) condensate. Finally, Platts
will also doscontinue assessments of APPI-related swaps and
refined product crack spread derivatives. Platts has noted a
serious decline in the liquidity of paper swaps trading of
Tapis and or NWS, and has observed increasing opacity and
volatility in traded cargo differentials to APPI. Platts will
continue to publish fixed price assessments and Dated Brent-
related differentials for Tapis, Griffin, Kikeh, Cossack,
Kutubu, Nanhai Light and NWS grades. Please email
comments or questions to asia_crude@platts.com and
pricegroup@platts.com.
Northwest Shelf Condensate: The Northwest Shelf
condensate spread is assessed against its own assessment. The
spreads (premium or discounts) are assessments based on
spot transactions and market information on cargoes and
part cargoes loading two months forward from date of
publication.
Sokol crude: Platts assessment of Sokol crude oil reflects cargoes
loading out of the DeKastri terminal on eastern Russias Sakhalin
island. The value published reflects the value of cargoes loading
in the month that falls two months from the date of assessment.
So on April 1, Platts would assess cargoes for loading in the
month of June. In accordance with typical market practice, the
price assessed is a CFR value, for cargoes being delivered to main
ports in Japan and South Korea. Cargoes being delivered
elsewhere, including eastern China, are included in the
assessment process through price normalization. Sokol crude oil
is produced at Russias Sakhalin I oil field, and currently has an
API gravity of 39.7 degrees; a sulfur content of 0.18% and a TAN
rating of 0.12. The standard cargo size for Sokol is 700,000
barrels. Platts has been assessing Sokol crude oil since April 1,
2008.
Vityaz Blend: Platts plans to launch daily assessments of Vityaz
Blend crude oil on April 15, 2009. The crude has evolved since
the original Vityaz crude started to be blended with condensate
in early 2009. Vityaz is produced from the Molikpaq production
platform off the northeast of Sakhalin Island in Russias Far East
and sold by Sakhalin Energy in cargoes of up to 750,000 barrels.
Medium sweet crude grade Vityaz alone has gravity of 34.4 API
and a sulfur content of 0.22%. Production is slated to rise to
Asia-Pacific crudes
Crude API Sulfur Country Location
(%)
Cossack 49 0.04 Australia North West Australia
Gippsland 48 0.1 Australia Westernport
Griffin 55 0.03 Australia Denture, Griffin
North West Shelf 60 0.01 Australia Dampier
Daqing 32.7 0.1 China Luda/Dalian in
Yellow Sea
Nanhai Light 39.5 0.05 China Hui Zhou
Shengli 24 0.9 China Qingdao on Yellow
Sea
Ardjuna 35.1 0.13 Indonesia Ardjuna
Senipah 53.9 0.02 Indonesia Blanglancang
Attaka 44.7 0.04 Indonesia Santan, off
Balikpapan
Belida 46.2 0.02 Indonesia Belida
Cinta 32.7 0.11 Indonesia Cinta
Duri 21.5 0.14 Indonesia Dumai, Sumatra
Handil 33.8 0.07 Indonesia Senipah, off
Balikpapan
Minas 36 0.08 Indonesia Dumai, Sumatra
Widuri 33.3 0.07 Indonesia Widuri
Labuan 31.5 0.08 Malaysia Labuan Island,
off Sabah
Miri 31.9 0.08 Malaysia Lutong in Sarawak,
near Miri
Tapis 46 0.03 Malaysia Kerteh, off Trengganu
Kutubu 44 0.04 New Guinea Kumul terminal
Bach Ho 38.6 0.04 Vietnam Bach Ho terminal
METHODOLOGY GUIDE ASIA-PACIFIC / UNITED STATES
20
CRUDE OIL
150,000 b/d by 2010. Vityaz Blend is to be assessed at the Asian
close (0830 GMT) as a fixed price, as a differential to Platts
Middle Eastern crude oil benchmark and as a differential to
Dated Brent which is assessed at London close (1630 hours local
time).
ESPO (Asia): Platts publishes two assessments for East Siberian
Pacific Oil (ESPO) crude oil exported from the Russian Far East
port of Kozmino at the Singapore close: ESPO and ESPO M2.
Thefirst assessment, simply labelled as ESPO, was launched in
January 2010 and reflects cargoes loading 15 to 45 days ahead
from the date of publication. The second assessment, ESPO M2,
was launched in November 2011 and reflects the value of
cargoes loading 45 to 75 days ahead from the date of
publication. In both cases, prices are assessed on a FOB basis and
reflect cargoes from 80,000 mt to 140,000 mt normalized to
100,000 mt. The API gravity for ESPO is approximately 34-35
degrees with a sulfur content of 0.58-0.65%. The published
assessments reflect flat price as well as a differentials versus
Dubai. These assessments are published in addition to Platts
European ESPO assessment, which is published at the London
close.
Kikeh crude: Platts has been assessing the value of Kikeh crude
oil since July 9, 2008. The assessment reflects cargoes for lifting
on a FOB basis from Sabah, Malaysia. The loading dates reflected
by the Kikeh assessment follow the typical methodology for Asia
Pacific crudes. Cargoes are therefore typically for loading two
months ahead, with a roll-over date on the 9th day of the
month, or the first business day after. So on July 9, Platts would
assess cargoes for loading in September. From August 9, Platts
would roll the assessment forward to reflect cargoes for loading
in October. Kikeh crude oil is produced at the Kikeh oil field off
East Malaysias state of Sabah, and currently has an API gravity
rating of 34.91 degrees; a sulfur content of 0.105% and a Total
Acid Number of 0.08. The standard cargo size for Kikeh is
300,000-600,000 barrels.
Bach Ho & Nile Blend: Platts has been publishing
premium/discount assessments for Vietnams Bach Ho crude and
Sudans Nile Blend crude since January 3, 2005. The FOB Bach
Ho spot differential is a spread to its official selling price while
FOB Nile Blends spot differential is a spread to ICP Minas. FOB
Nile Blend will also have a fixed-price assessment. Both these
assessments are for barrels lifting two months forward from date
of publication and take into account typical cargo sizes Bach Ho
(600,000- 650,000 bbl) and Nile Blend (600,000-650,000 bbl).
Su Tu Den: Platts has been assessing the value of Su Tu Den
crude oil since February 16, 2009. Vietnams Su Tu Den (Black
Lion) crude is blended with Su Tu Vang (Golden Lion) and
exported in cargoes of 450,000 to 600,000 barrels from a
floating, production and storage terminal in the South China
Sea. Export volumes of Su Tu Den blend are about 130,000 b/d
as of end-2008 and will be 140,000 b/d in 2009. Su Tu Den has
gravity of 36 API and a sulfur content of 0.04%. This crude is
evaluated at Asian close (0830 GMT) as a fixed price, as a
differential to Su Tu Den OSP, and as a differential to Dated
Brent which is assessed at London close (1630 hours local time).
Australia Basin: Platts has been assessing the value of heavy
sweet crude grades Enfield, Stybarrow and Vincent, which are all
produced from fields in the Australian Basin, since February 16,
2009. These three grades are evaluated at Asian close (0830
GMT) as fixed prices and as differentials to Dated Brent, which is
assessed at London close (1630 hours local time). Enfield has
gravity of 22 API, a sulfur content of 0.12% and TAN of 0.43
mgKOH/g. Stybarrow has gravity of 22.8 API, a sulfur content of
0.12% and TAN of 0.67 mgKOH/g. Vincent has gravity of 18.3
API, a sulfur content of 0.55% and TAN of 1.53 mgKOH/g.
THE PLATTS ASIAN CRUDE OIL INDEX
Basis: All index elements are based on Platts daily crude oil spot
price assessments, in the following proportions: Middle East sour
crude represented by Dubai (17%), Oman (17%), Upper Zakum
(17%) and Murban (6%); Asia-Pacific sweet crude represented by
Tapis (10%), Minas (8%) and Duri (2%); West African sweet
crude represented by Bonny Light (5%), Forcados (4%) and
Cabinda (3%); as well as Asian Dated Brent (11%). Each crude oil
benchmark will be considered for retention or exclusion from
the index, on at least an annual basis. For assessment
methodology concerning each of these crude oils, see chapter
headings in this same document.
Timing of assessment: The ACX is assessed at 0830 GMT,
equivalent to 4:30 PM local Singapore time. West African crude
oil grades, assessed at European market close at 1630 hours
London time on the previous trading day, are adjusted to Asian
close timing using Platts Asian Dated Brent (ADB) assessment,
published from October 2, 2008. The ACX will be available on
every Platts Asian publishing day (see
<http://www.platts.com/holiday schedule.jsp>). On scheduled
European holidays when Platts does not publish West African
assessments, the ACX index will normalize West African
assessments from the previous London publishing day using
Asian Dated Brent equivalent values on the day of index
publication in Asia.
UNITED STATES
The spot month for all US domestic pipeline barrels changes on
the first business day after the 25th of the calendar month
except for Alaska North Slope, a US West Coast cargo market,
and except for WTI Calendar Delta. It does not roll with the
expiration of the front month of light sweet crude on the New
York Mercantile Exchange. Rather, it continues for the three
trading days in which the just-expired month continues to trade
in the cash WTI market.
For US domestic pipeline barrels, the roll-over date coincides
with the date US crude oil pipelines require scheduling to be
completed for deliveries in the following month. For instance,
from Jan 26 through Feb 25, the front-month out for all US
domestic pipeline barrels is March.
METHODOLOGY GUIDE UNITED STATES
21
CRUDE OIL
On Feb 26, the front-month out for all US domestic pipeline
barrels switches to April. If the 26th falls on a weekend or
holiday, the next business day marks the beginning of the new
scheduling month. But if the 25th is a Saturday or Sunday,
scheduling is not extended; it closes on the last business day
prior to the 25th. This practice also is followed for California
pipeline crudes. The roll date for ANS crude is the 1st of the
month. In February, the assessment reflects March values. On
March 1, the assessment will roll to April barrels.
The minimum volume for US domestic pipeline grades is 25,000
bbl. All US crude oil assessments reflect market-on-close (MOC)
values at 3:15 PM Eastern Time (ET) An explanation of the MOC
methodology can be found elsewhere in this document. Please
check the table of contents (also see related specifications
document titled Americas crude oil specifications guidelines).
CONSIDERATION OF FIXED, DIFFERENTIAL EXCHANGE FOR
PHYSICAL AND FLOATING PRICE INFORMATION
On May 5, 2009, Platts announced its intention to complete the
process of aligning all pricing elementsfixed price, differentials
and futures inputsin its Americas crude oil and products price
assessments at exactly 3:15 pm Eastern Time, effective June 1,
2009.
In those markets where commodities trade at differentials to
futures, the prevailing futures value as assessed by Platts at 3:15
pm ET will be used in the assessment process. Please click here to
read the methodology statement on determining the value of
the futures at 3:15 pm ET.
Market participants submitting bids and offers on a differential
exchange for physical (EFP) basis to futures during the Platts
Americas oil Market on Close assessment process should be
explicit in their positions, including month of reference for the
EFP.
For any positions submitted as an EFP versus a futures contract
(i.e. July +1.00/barrel), Platts will use the prevailing futures value
at 3:15 pm ET to calculate the flat price for the assessment. If
parties wish to express positions as an EFP to the 2:30 pm ET
same-day settlement value of a futures contract (i.e. todays July
settle +1.00/barrel), Platts will accept this information. The usage
of a differential in this fashion would naturally result in a fixed
price equivalent.
For any floating EFP positions (i.e. EFPs based on an average of
forward settlements around lifting/delivery), Platts will use the
prevailing futures at 3:15 pm ET to calculate the flat price for the
assessment.
Market participants can also express positions on a fixed price
basis, and Platts will consider both fixed prices and EFP
differential positions in its assessment processes.
US DOMESTIC GRADES LONDON CLOSE
Platts launched cash WTI, Light Louisiana Sweet and Mars crude
assessments with a timestamp of 4:30 pm London time on
March 2, 2009. These assessments line up with the close of the
Dated Brent assessment process and are an addition to the
existing set of assessments published in the US reflecting values
at 3:15 pm Eastern Time.
Platts is publishing the prompt month and next forward month
for LLS and Mars, and the three most prompt months for WTI in
the set of assessments. Platts is publishing an outright price as
well as a differential for each of the three crudes an EFP in the
case of cash WTI relative to NYMEX light sweet crude futures,
and a differential to same-month cash WTI in the case of Mars
and LLS.
The underlying methodology and specifications for London
close Mars, LLS, and cash WTI assessments reflect the underlying
methodology for the US close cash WTI, Mars and LLS
assessments, with the exception of the assessment timestamp.
AMERICAS CRUDE MARKER (ACM)
Platts launched the Americas Crude Marker (ACM) assessments
on March 16, 2009, to reflect tradable sour crude values in the
US Gulf Coast. Following a review of the US Gulf Coast pipeline
systems, production and ownership of a number of crude
streams, Platts concluded that the ACM assessments would be
composed of Mars, Southern Green Canyon (SGC), Poseidon and
Thunder Horse. These four sour grades are produced offshore US
Gulf Coast and are transported via pipeline to US Gulf Coast
refineries, where the streams can be delivered readily into an
area in Texas/Louisiana with a refining capacity of 6.3 million
b/d. The US is currently operating at a rate of about 15 million
b/d, implying that the basket of crude could access roughly 42%
of the US actual operating capacity.
The combined production of these streams is roughly 835,000
b/d, as of January 2009. Thunder Horse crude oil is of lower
sulfur content than the other grades, but Platts believes that it
should be part of the basket and would only play a significant
role in times of severe supply distress. This grade acts in a similar
manner to the potential check that Ekofisk plays as a component
of the Brent-Forties-Oseberg-Ekofisk mechanism (BFOE).
Platts Americas Crude Marker assessments incorporate the
values of those four pipeline sour grades (Mars, Poseidon, SGC,
and Thunder Horse), with the assessment reflecting the price of
the most competitive grade (i.e. price at the margin). SGC has
historically been the most competitive grade, with Mars,
Poseidon and Thunder Horse typically trading above SGC on a
flat price basis. The methodology enables other grades to operate
as relief valves, with those crude oils forming the assessment at
times when the most competitive grade is tight or subject to
supply constraints. This approach is extremely important,
22
CRUDE OIL
particularly in situations where there could be weather stress in
the US Gulf Coast.
As stated, most grades produced, imported, and refined in the US
Gulf Coast are medium in API gravity and high in sulfur. The
latest assays for the four grades are as follows:
Sulfur (%) Gravity (API)
Mars: 2.231 29.18
Thunder Horse: 0.65 33.70
SGC: 2.479 28.40
Poseidon: 1.41 33.17
AMERICAS CRUDE MARKER METHODOLOGY
The most competitive grade at the margin will under typical
circumstances be the grade reflected in the assessment. Under
normal market conditions and reflecting current qualities, the
most competitive grade has been Southern Green Canyon (SGC).
The inclusion of Mars, Poseidon, and Thunder Horse ensures
that if there are unusual conditions affecting the price of SGC
then the price at the margin for the ACM would be formed by
the then most competitive grade. For instance, any supply
disruptions offshore Texas (i.e. hurricane, field maintenance)
that could potentially lift the price and disconnect the price of
the most competitive grade above the rest of the ACM basket
would be held in check by the lowest of the remaining four
grades. This would relieve the problem that has been evident
with WTI where, for example, it was observed that WTI soared
above competing and better grades in September 2008, with no
mechanism in place to ensure that the price would be
representative of broader US trading and refining economics.
This relief valve concept is a critical component of pricing as it
prevents unusual conditions from creating a distorting impact
on broader economics in the US Gulf Coast. For example, SGC
traded at a premium to Mars in September 2006 on declining
production volumes, which were attributed to field maintenance
and supply from SGC-producing fields delivering into the
Poseidon blend pool via the Caesar Pipelines link to the
Poseidon pipeline. As heavier crude was diverted into the
Poseidon pool at this time, the quality for SGC improved, also
supporting the grades value relative to other US pipeline sour
crudes. Had the ACM assessment mechanism been in place at
that time, the ACM assessment would have been set by Mars
rather than SGC.
Note that the assessment is formed by the most competitive
grade. Platts does not average the price of Mars, Poseidon,
Thunder Horse, and SGC to set its Americas Crude Marker
assessment. Platts independently assesses the value of all four
crudes, and the most competitive grade at the margin will be the
primary element in the price formation of the assessment.
Three grades in the ACM basket Mars, Poseidon, and
Thunder Horse, are produced offshore Louisiana and arrive
onshore via pipeline. Mars and Thunder Horse are delivered
into Clovelly, Louisana. Poseidon is delivered into Houma,
Louisiana. SGC is produced offshore Texas, and arrives
onshore via pipeline at Nederland, Texas. The diversity of the
producing locations in the ACM prevents local supply
disruptions from distorting the price of the ACM. At the
same time, the majority of US Gulf Coast refiners have access
to all four of the grades either via pipeline (Mars, Poseidon,
SGC and Thunder Horse) or via barge (SGC to Louisiana).
The likelihood of weather conditions such as a hurricane
impacting or simultaneously shutting down for an extensive
period of time all the platforms and all the pipelines appears
remote.
Assessment Time: Platts ACM assessments, like all US crude oil
assessments, reflect market-on-close (MOC) values at 3:15 PM
Eastern Time (ET)
Timing: The timing structure for the ACM mirrors the US
domestic pipeline market, and Platts publishes three months of
the ACM first, second, and third month. The spot month for
all US domestic pipeline barrels changes on the first business day
after the 25th of the calendar month. Note that ACM does not
roll with the expiration of the front month of light sweet crude
on the New York Mercantile Exchange. ACM is a physical
assessment and therefore rolls in line with the physical pipeline
calendar.
For example, starting March 16, Platts will publish the ACM for
April, May and June. On March 26, Platts will roll the ACM
along with the rest of the US domestic market to May as the
prompt month.
Basis and Location: The basis for the ACM is comprised of the
basis and location for the four grades:
Mars: The assessment reflects barrels for delivery into
Clovelly, Louisiana.
Poseidon: The assessment is for barrels delivered to
Houma, Louisiana.
SGC: The assessment is for barrels delivered into
Nederland, Texas.
Thunder Horse: The assessment is for barrels delivered to
Clovelly, Louisiana.
Volume: The minimum volume for ACM basket grades (Mars,
Poseidon, SGC, and Thunder Horse) is 25,000 bbl, the same
minimum for all US domestic grades.
Quality: The API and sulfur content for Mars, Poseidon, SGC,
and Thunder Horse changes on a monthly basis. These
changes will be reported in the relevant publication on a
retroactive basis. (see above chart for latest assays on the four
crudes).
23
CRUDE OIL
Participation in Market on Close Assessment Process: Any
credible market participant willing to participate in the ACM
assessment process could submit information at any time during
the day and/or request publication of transparent bids and offers
in Platts US crude oil market assessment processes for any of the
four grades that comprise the ACM.
Platts will consider bids and offers expressed as flat price or as a
differential to an underlying basis in its assessment process for
ACM. Any market information reported to Platts on a
differential basis will be normalized to a fixed price basis for use
in the ACM assessment process. Note that the ACM assessment
will be published on a fixed and flat price basis.
AMERICAS DATED BRENT
Platts launched March 2, 2009 an Americas Dated Brent
(AMDB) assessment published on a daily basis, reflecting the
value of Dated Brent at Americas market close at 3:15 pm
Eastern Time. The AMDB reflects the price prevailing during
the close of market in the Americas taking into account the
rise or fall in the movement in the cash BFOE instrument,
from the time of assessment of Dated Brent at the European
market close at 1630 hours London time, until the Americas
close. This movement is determined by valuation of Brent cash
and futures markets by the close in the Americas at 3:15 pm
ET. Dated Brent reflects loading for cargoes 10-21 days from
day of publication. The Americas Dated Brent is therefore a
dated instrument. The price is underpinned by instruments
such as BFOE and futures which are cyclical in nature and
therefore roll either at the end of the calendar month for BFOE
or mid month for futures.
GRADES
West Texas Intermediate (WTI): Platts has two separate WTI
assessments: one at Cushing, Oklahoma, and the other at
Midland, Texas. Platts assesses three months of WTI-Cushing
barrels; Cushing assessments note the delivery month, such as
WTI (Dec). Midland prices are noted as WTI (Mid). The delivery
month assessed for WTI-Midland is the same as the first month
assessed for WTI- Cushing. API gravity is typically 38-40 degrees
with sulfur content approximately 0.3%.
Mars: Platts assesses Mars quotes based on the market-on-close
methodology, reflecting the value of the grade at 3:15 PM ET,
taking into account information received/observed during the
day including Platts 30-minute assessment process. The
assessment reflects barrels for delivery into Clovelly, Louisiana,
for three months forward. API gravity is 30 and sulfur content
is 1.83%. The minimum trading volume recognized for
assessment purposes is 25,000 bbl. Both flat-priced and
differential-based positions are considered for assessment
purposes, as the latter can be converted into a fixed and flat
price equivalent.
P-Plus WTI: The assessment reflects the price of WTI sold into
Cushing on the basis of postings plus. P-plus deals are
invoiced at a later date on the basis of a differential to an
average of one or more crude oil postings. For example, a deal
done at P-plus 75 cts would be invoiced at 75 cts more than the
previously agreed-upon postings basis.
WTI Calendar Delta: The assessment reflects the price of
WTI crude oil sold into Cushing/Oklahoma on the basis of
a delta versus a monthly WTI average. WTI Calendar Delta
deals are invoiced at a later date: For instance, March WTI
calendar delta transactions would be based on the average
of the NYMEX WTI front-month during March, plus or
minus a delta, and then versus cash front-month WTI after
the NYMEX WTI front-month expiry. The delta fluctuates
with first/second and first/third month WTI spreads, and
with bids/offers in the market. The Platts WTI Calendar
Delta assessment reflects where the delta is traded and/or
talked in the market. The WTI calendar delta rolls to the
next month after the 25th of the month, like other pipeline
grades.
Effective May 26, 2006, Platts began considering market
activity for its WTI P-Plus crude oil spot price assessment that
is based on any of the following standard company WTI
crude oil postings: Plains, Sunoco, Shell, Murphy and
ConocoPhillips. In addition, Platts will consider transactions
based on the Platts P-5 WTI postings index which
incorporates postings data from Plains, Sunoco, Shell,
Murphy and ConocoPhillips. Previously, WTI P-Plus deals
were based on Koch WTI crude oil postings, but Koch
announced recently that the respective posting will be
discontinued effective July 1, 2006.
West Texas Sour (WTS): The assessment is for barrels delivered
to Midland, Texas, with an API gravity of 32.8 degrees and a
sulfur content of 1.98%.
Light Louisiana Sweet (LLS): The assessment is for barrels
delivered to St. James, Louisiana. API gravity is 34-41 and sulfur
content is 0.4%.
Heavy Louisiana Sweet (HLS): The assessment is for barrels
delivered to Empire, Louisiana. API gravity is 32-33 and sulfur
content is 0.3%.
Eugene Island: The assessment is for barrels delivered to St.
James, Louisiana. The API gravity is 34-36 and the sulfur content
is 0.90-1.20%.
Southern Green Canyon: The assessment is for barrels delivered
into Nederland, Texas. The API is 30.2 API and gravity at 2.3%.
(Southern Green Canyons API & sulfur content changes on a
monthly basis. These changes will be reported in the relevant
publication on a retroactive basis).
Wyoming Sweet: The assessment is for barrels delivered to
Guernsey, Wyoming, with an API gravity of 32 and a sulfur
content of 0.9%.
METHODOLOGY GUIDE UNITED STATES / LATIN AMERICA
24
CRUDE OIL
Bonito: The assessment is for barrels delivered to St James,
Louisiana. API gravity is 35-37 and sulfur content is 0.7-0.9%.
Mars: The assessment is for barrels delivered to Clovelly,
Louisiana. API gravity is 30 and sulfur content is 1.83%. (Mars
API & sulfur content changes on a monthly basis. These changes
will be reported in the relevant publication on a retroactive
basis).
Poseidon: The assessment is for barrels delivered to Houma,
Louisiana. API gravity is 29 and sulfur content is 1.85%.
(Poseidons API & sulfur content changes on a monthly basis.
These changes will be reported in the relevant publication on a
retroactive basis).
Thunder Horse: The assessment is for barrels delivered to
Clovelly, Louisiana. API gravity is 34.50 and sulfur content is
0.62%. (Poseidons API & sulfur content changes on a monthly
basis. These changes will be reported in the relevant publication
on a retroactive basis).
Basrah Light: The assessment is for waterborne barrels of Iraqi
Basrah Light delivered into the US Gulf. The minimum volume
is 500,000 bbl. API gravity is 31-35.5 and sulfur content is 2%.
Basrah Light barrels are priced off the second month cash WTI
assessment.
Alaska North Slope (ANS): This assessment reflects a minimum
volume of 300,000 bbl basis delivered Long Beach, California,
for the prompt month. API gravity is 29-31 and sulfur content is
1.1%
The pricing basis for ANS is a calendar month average of front
month Platts cash WTI assessments in the delivery month. For
example, on October 15, Platts assessments reflect November as
the delivery month, and the ANS basis is an average of all front-
month cash WTI assessments published in calendar November..
Line 63: The assessment is for a blend of crude at 28 degrees API
gravity and sulfur content of 1.02%, delivered at Hynes station,
California on Four Corners pipeline line 63.
P-Plus Line 63: The assessment reflects the price of Line 63 sold
into Hynes Station on Four Corners pipeline on the basis of
Posting Plus. P-Plus deals are invoiced at a later date on the
basis of a differential to an average of one or more crude
postings for Buena Vista crude.
Thums: The assessment is for barrels delivered to Long Beach,
California at 17 degrees API and a sulfur content of 1.5%.
Kern River: The assessment is for barrels delivered commonly to
Texacos station 31 in Kern County, California, at 13 degrees API
gravity with sulfur content of 1.1% The crude is synonymous
with San Joaquin Valley (SJV) heavy.
Bakken Blend: Platts launched daily spot assessments for Bakken
Blend crude injected at Guernsey, Wyoming and Clearbrook,
Minnesota on May 3, 2010. Trades with a minimum 1,000 b/d
quantity will be taken into account for both assessment, and
smaller volumes will be normalized to this volume basis. Both
assessments will reflect injection in the first forward month, and
will roll over on the 20th of each month to the next forward
month. These assessments will be published as a differential to
the calendar month average of front-month NYMEX crude
futures for the month of injection at 3:15 pm Eastern Time.
The two Bakken Blend assessments reflect Bakken crude injected
at Guernsey, Wyoming (basis ex-Guernsey) and at Clearbrook,
Minnesota (basis ex-Clearbook). Bakken Blend ex-Guernsey
reflects sulphur content of 0.2% and API gravity of 38-40
degrees, while Bakken Blend ex-Clearbrook reflects sulphur
content of 0.5% and API gravity of 38-40 degrees. Effective July
19, 2011, Bakken Blend ex-Clearbrook will reflect sulphur
content of 0.2%
WTI CMA: Effective July 1, 2011, Platts will begin Platts will
begin publishing the calendar month average of NYMEX light
sweet crude. This CMA is currently used as the basis for Platts
Canadian pipeline crude assessments, Bakken Blend crude
assessments, and Alaska North Slope crude assessments. This
calculation will be labeled WTI CMA (1st month), and reflects
the average of the front-month NYMEX light crude values (at
3:15 pm Eastern Time) for the month of injection.
US CRUDE OIL POSTINGS
US crude oil postings Platts publishes daily US Gulf Coast crude
oil posted prices on Platts Global Alert (PGA) pages 172 and 179,
and in Platts North American CrudeWire, posted by the
following companies: ChevronTexaco, ConocoPhilips, Valero,
Link, Shell, ExxonMobil, Koch, Murphy, Plains, and Sunoco.
Published prices reflect postings as of 5:30 p.m. local New York
time.
Platts publishes daily US West Coast crude oil posted prices on
Platts Global Alert (PGA) pages 159 and 446, posted by the
following companies: ChevronTexaco, ExxonMobil, Shell, and
Union76. Published prices reflect postings as of 3:15 p.m. local
New York time.
LATIN AMERICA
Platts assesses Latin American crude grades and publishes the
differentials to their benchmark. Most transactions are
concluded on a differential to WTI.
The rollover of the WTI benchmark is done on the first day after
the 25th day of every month. Platts uses WTI 2nd line for all
Latin crude assessments.
All Latin crude oil assessments reflect market-on-close (MOC)
values at 3:15 PM Eastern Time . An explanation of the MOC
methodology can be found elsewhere in this document. Please
METHODOLOGY GUIDE LATIN AMERICA / CANADA
25
CRUDE OIL
check the table of contents (also see related specifications
document titled Americas crude oil specifications guidelines).
Price assessments for Latin crudes are basis FOB the loading
terminal, and do not include top-off charges. The minimum
cargo volume is 350,000 bbl. The assessment window for all
Latin American crudes is 15-45 days forward from date of
piblication.
Canadon Seco: Platts discontinued its spot Canadon Seco
assessment on March 1, 2009.
Cano Limon: The assessment is for barrels commonly sold FOB
Covenas, Colombia with API gravity of 29 and sulfur content of
0.5%.
Castilla Blend: The assessment reflects FOB Covenas, Colombia,
minimum volume of 500,000 bbls, and has an API gravity of
18.8 and sulfur content of 1.96%.
Cusiana: Platts discontinued its spot Cusiana assessment on
April 1, 2009.
Escalante: The assessment is for barrels commonly sold FOB
Caleta Cordoba, Argentina with API gravity of 24.1 and sulfur
content of 0.25% .
Loreto: The assessment is for barrels commonly sold FOB Puerto
Bayovar, Peru with API gravity of 19.5 and sulfur content of
1.3%.
Medanito: Platts discontinued its spot Medanito assessment on
August 1, 2008.
Oriente: The assessment is for barrels commonly sold FOB
Esmeraldas, Ecuador with API gravity of 24.0 and sulfur content
of 1.4%
Vasconia: The assessment is for barrels commonly sold FOB
Covenas, Colombia with API gravity of 24.5 and sulfur content
of 1.1%.
Santa Barbara: The assessment is for barrels commonly sold
FOB Venezuela with API gravity of 36 and sulfur content of
0.95%.
Napo: The assessment is for barrels commonly sold FOB
Esmeraldas, Ecuador with API gravity of 19 and sulfur content of
2.01%.
Marlim: The assessment is for barrels commonly sold FOB Sao
Sabastiao, Brazil with API gravity of 19.2 and sulfur content of
0.78%.
Roncador: Platts launched a new assessment for Brazils
Roncador crude oil on May 1, 2009. The assessment is for barrels
commonly sold basis FOB Angra dos Reis, with sulfur content of
0.58% and API gravity of 28.3.
Mesa 30: The assessment is for barrels commonly sold FOB
Venezuela, with API gravity of 30 and sulfur content of 0.9% sulfur.
Mexican Crude Assessments: Mexican crude oil term prices to
Western destinations are FOB and based on the following
formulas:
To US Gulf Coast:
Maya: 0.4(WTS + USGC No. 6 3%S) + 0.1(LLS+Dated
Brent) +/- constant
Isthmus: 0.4(WTS+LLS) + 0.2(Dated Brent) +/- constant
Olmeca: 0.333(WTS+LLS + Dated Brent) +/- constant
To Europe:
Maya: 0.527(Dtd Brent)+0.467(No.6 3.5%)-0.25(No.6.1%-No.6
3.5%) +/- constant
Isthmus: 0.887(Dtd Brent)+0.113(No.6 3.5%)-0.16(No.6.1%-No.6
3.5%) +/- constant
To Asia:
Maya : (Oman+Dubai)/2 +/- constant
Isthmus: (Oman+Dubai)/2 +/- constant
Maya: The assessment is for barrels commonly sold FOB Dos
Bocas and FOB Cayo Arcas with API gravity of 22 and sulfur
content of 3.3%.
Isthmus: The assessment is for barrels commonly sold FOB Dos
Bocas with API gravity of 33.6 and sulfur content of 1.3%.
Olmeca: The assessment is for barrels commonly sold FOB Dos
Bocas and FOB Pajaritos with API gravity of 39.3 and sulfur
content of 0.8%.
A calculation of each days prices can be found on Platts Global
Alert and in Platts Latin American Wire.
CANADA
POSTINGS-BASED
The following Canadian postings assessments are based on an
average of two or more posted prices. These assessments are
quoted in both Canadian dollars per cubic meters, and an
equivalent price in US dollars per barrel.
Par Crude: The assessment is for sweet crude delivered at
Edmonton, Alberta with 40.02 API gravity and 0.3% sulfur.
METHODOLOGY GUIDE CANADA
26
CRUDE OIL
Posted prices from Esso (Imperial), Suncor, and Shell are totaled
and averaged for the assessed value of Par crude. Effective August
7, 2009, Platts removed PetroCanadas crude posted price from
Platts Canadian Postings Derived Crude Assessments for Par
Crude (Edmonton Light Sweet). This price is being removed
from the average because Suncor and PetroCanada, having
recently merged, will be posting the exact same price.
Mixed Light Sour: The assessment is for mixed light sour
delivered at Edmonton, Alberta. The posted price for Suncor-
with 29.3 API gravity and 1.6% sulfur and the posted price
for Petrocanada-with 31.0 API gravity and 1.0% sulfur are
totaled and averaged for the assessed value of Mixed Light
Sour.
Bow River/Hardisty: The assessment is for medium sour crude
delivered at Hardisty, Alberta. The posted prices for Petrocanada,
Esso, and Flint Hills (formerly Koch) are averaged for the value
of Bow River/Hardisty.
Cromer Light Sour: The assessment is for light sour delivered at
Cromer. The posted prices for Sunoco, Petrocanada, Esso, Koch
and Shell with an average posted API gravity of 35.05 and an
average sulfur content of 1.2% are averaged for the assessed
value of Cromer Light Sour.
Sour at Edmonton: The assessment is for Koch light sour
delivered at Edmonton, Alberta. The posted prices for
Petrocanada, Esso, Koch and Shell with an average posted API
gravity of 32.51 and an average sulfur content of 1.0% are
averaged for the assessed value of Sour at Edmonton.
Cromer Midale: The assessment is for medium, sour delivered
at Cromer. The posted price for Sunoco, Esso, Koch and Shell
with an average posted API gravity of 29.30 and an average
sulfur content of 2.0% are averaged for the assessed value of
Cromer Midale.
SPOT-BASED
The following spot assessments are calculated on a NYMEX
crude oil calendar-month average (CMA) basis. Crudes will be
assessed for injection in the first forward month. The WTI CMA
is the average of the front-month NYMEX light crude values (at
3:15 pm Eastern Time) for the month of injection. Platts
outright assessments are made up of the prevailing spot
differentials plus or minus the WTI CMA.
All Canadian crude oil assessments reflects market-on-close
(MOC) values at 3:15 PM Eastern Time. An explanation of the
MOC methodology can be found elsewhere in this document.
Please check the table of contents (also see related specifications
document titled Americas crude oil and oil products editorial
guidelines and methodologies). Trades with a minimum 1,000
b/d quantity will be taken into account for assessment of
Canadian pipeline crudes. Smaller volumes will be normalized to
this volume basis.
Effective June 20, 2011, Platts will roll its Canadian pipeline
assessments to the next front month on the date pipeline
nominations are due. Platts will follow the nomination due dates
published by Crude Oil Logistics Committee on its website.
Lloyd Blend: The assessment is for barrels injected at Hardisty,
Alberta. API gravity is 21.8 and sulfur content is 3.36%.
Mixed Sweet: Injection at Edmonton. Gravity is 38.8 and sulfur
content is 0.47%.
Light Sour Blend: Injection at Cromer. API gravity is 34-36 and
sulfur content is 1.2-1.4%
Condensates: Injection at Edmonton. API gravity is 50.0 and
sulfur content is 0.20%.
Syncrude Sweet Blend: Injection at Edmonton. API gravity is 31-
33 and sulfur content is 0.1-0.2%.
Western Canadian Select (WCS): Injection at Hardisty. API
gravity is 19-22 and sulfur content is 2.8-3.2%.
Cold Lake: Injection at Hardisty. API gravity is 19.9 and sulfur
content is 3.25%.
Midale: Platts launched daily spot assessments for Midale Blend
medium sour crude injected at Cromer, Manitoba on September
1, 2010. API gravity is 30 and sulfur content is maximum 2.35%.
The following Canadian cargo assessments are based on spot
transactions for cargoes loading 6 to 8 weeks forward from the
date of publication. The outright price is derived from the
forward value of Dated Brent with pricing typically 1-5 days after
loading. The typical cargo voluume is about 675,000 bbl for
Hibernia and Terra Nova, and 900,000 bbl for White Rose.The
Canadian cargo markets are assessed up to 11:30 a.m. Eastern
Time.
Hibernia: The assessment is for barrels loading FOB terminal
basis Whiffenhead, Newfoundland, Canada. The API gravity is
36.0 and the sulfur content is 0.4%.
Terra Nova: The assessment is for barrels loading FOB terminal
basis Whiffenhead, Newfoundland, Canada. The API gravity is
32.9-33.4 and the sulfur content is 0.48%
White Rose: This assessment reflects barrels loading FOB
terminal b Sea Rose, Newfoundland, Canada. The API gravity is
30.56 degrees and sulfur content of 0.28%.
CANADIAN CRUDE OIL POSTINGS
Platts publishes daily crude oil posted prices on Platts Global
Alert (PGA) pages 149 and 435, and in Platts North American
CrudeWire, posted by the following companies: Esso (Imperial),
Suncor, PetroCanada, Shell, and Flint Hills. Published prices
METHODOLOGY GUIDE CANADA / UNSCHEDULED NYMEX CLOSURES / TRADING PLATFORMS
27
CRUDE OIL
reflect postings as of 3:15 p.m. Eastern Time. Platts daily
Canadian Postings Derived Crude Assessments are derived from
the averages of all postings for each crude assessed as of 3:15
p.m. Eastern Time.
UNSCHEDULED NYMEX CLOSURES
In the event that the New York Mercantile Exchange is closed
unexpectedly, all US crude assessments will be produced. Platts
believes there will be adequate OTC trade in the Brent/WTI
market and the market for grade differentials to produce an
accurate assessment. That policy also will apply to Latin
American crudes. Based on past history, Platts does not believe
there will be adequate flat price OTC trade in the markets for
light ends in the US Gulf Coast, US Atlantic Coast and the US
Midcontinent to serve as a substitute for an outright NYMEX
settlement.
Instead, those markets will be assessed by adjusting the prior
days NYMEX settlement up or down by an amount equivalent
to the equalized per gallon price of the $/bbl movement in the
Platts WTI assessment for Gulf Coast and Midcontinent, and its
15-day Brent assessment for the US Atlantic Coast. New
assessments of market differentials will then be applied against
those prices to determine the final assessment. West Coast light
ends, residual fuel, bunker fuel, LPG, MTBE and other
blendstocks will be produced as normal.
Platts also reserves the right to suspend assessments should there
be a major calamity, such as the events of
September 11.
TRADING PLATFORMS
Platts treats firm trading positions and deals from Internet
platforms exactly as it does any other information from
principals or from intermediaries such as voice brokers. Platts
cannot make any guarantee in advance about how and whether
the information will be incorporated in its final assessments. All
trading positions and deals submitted to Platts need to meet
general requirements on openness and transparency. Platts
market specialists then make an assessment based on published
assessment parameters using all the information available.
METHODOLOGY GUIDE CODE LIST FOR CRUDE OIL MAARKETWIRE
28
CRUDE OIL
CODE LIST FOR CRUDE OIL MARKETWIRE
Key benchmarks ($/bbl)
Brent (M1) PCAAP00 WTI (M1) PCACG00 Mars (M1) AAMBR00
Brent (M2) PCAAQ00 WTI (M2) PCACH00 Mars (M2) AAMBU00
Brent (M3) PCAAR00 WTI (M3) AAGIT00 Mars (M3) AAMBX00
Brent (Dated) PCAAS00 Brent/Dubai AAJMS00 BTC Dated Strip AAUFI00
Dated North Sea Light AAOFD00 Mediteranean Dated Strip AALDF00 Angola Dated Strip AALGM00
North Sea Dated Strip AAKWH00 West Africa Dated Strip AALDH00
Canada Dated Strip AALDJ00 Sulfur De-escalator AAUXL00
Dtd Brent swap
CFD 1wk PCAKA00 CFD 2wk PCAKC00
AAJNV00 AAJOS00
CFD 3wk PCAKE00 CFD 4wk PCAKG00
AAJOU00 AAJOW00
CFD 5wk AAGLU00 CFD 6wk AAGLV00
AAJPC00 AAJPE00
CFD 7wk AALCZ00 CFD 8wk AALDA00
AALAW00 AALAX00
Dubai (M1) PCAAT00 Oman (M1) PCABS00 Oman (M1) MOG PCABT00
Dubai (M2) PCAAU00 Oman (M2) AAHZF00 Oman (M2) MOG AAIHO00
Dubai (M3) PCAAV00 Oman (M3) AAHZH00 Oman (M3) MOG AAIHP00
MEC (M1) AAWSA00 Upper Zakum AAOUQ00
MEC (M2) AAWSB00
MEC (M3) AAWSC00
MOG Swap Diff (M1) AALHU00
MOG Swap Diff (M2) AAIHJ00 Dubai Swap (M1) AAHZJ00 MOG Swap (M1) AAHZP00
MOG Swap Diff (M3) AAIHL00 Dubai Swap (M2) AAHZL00 MOG Swap (M2) AAHZR00
MOG Swap Diff (M4) AAIHN00 Dubai Swap (M3) AAHZN00 MOG Swap (M3) AAHZT00
Brent/WTI 1st AALAT00 Brent EFP (M1) AAGVW00 WTI EFP (M1) AAGVT00
Brent/WTI 2st AALAU00 Brent EFP (M2) AAGVX00 WTI EFP (M2) AAGVU00
Brent/WTI 3st AALAV00 Brent EFP (M3) AAGVY00 WTI EFP (M3) AAGVV00
Platts euro-denominated crude oil assessments
European crude oil benchmarks (euro/bbl)
Dated Brent AAPYR00
Urals Mediterranean AAPYS00
US crude oil benchmarks (euro/bbl)
WTI (M1) AAPYT00
Mars(M1) AAPYU00
North Sea spot crude assessments
spread vs fwd Dated Brent
BNB AAVJA00 AAVJB00
Forties PCADJ00 AAGWZ00
Statfjord PCAEE00 AAGXD00
Flotta PCACZ00 AAGXH00
Ekofisk PCADI00 AAGXB00
Oseberg PCAEU00 AAGXF00
North Sea Basket AAGIZ00
29
CRUDE OIL
West African spot crude assessments
$/bbl spread vs fwd Dated Brent
Bonny Light PCAIC00 AAGXL00
Qua Iboe PCAID00 AAGXN00
Forcados PCABC00 AAGXP00
Escravos AAEIZ00 AAGXR00
Brass River AAEJB00 AAGXV00
cabinda PCAFD00 AAGXT00
Girassol AASNL00 AASJD00
Hungo AASLJ00 AASJF00
Kissanje AASLK00 AASJE00
Mediterranean spot crude assessments
Urals (Rotterdam) PCAFW00 AAGXJ00
Urals (Mediterranean) PCACE00 AAGXX00
Urals (Ex-Novorossiisk) AAGZS00 AAHPH00
Urals (Ex-Novo) FOB 80kt AAOTH00 AAOTI00
Urals (Ex-Baltic) AAGZT00 AAHPI00
Urals (Primorsk) AAWVH00 AAWVI00
Urals RCMB (Recombined) AALIN00
Siberian Light CIF AAGZW00 AAHPK00
CPC Blend CIF AAGZU00 AAHPL00
Azeri Light CIF AAGZX00 AAHPM00
BTC FOB Ceyhan AAUFH00 AAUFJ00
Suez Blend PCACA00 AAGYD00
Es Sider PCACO00 AAGYH00
Kirkuk AAEJD00 AAGYF00
Iranian Light (Sidi Kerir) PCABI00 AAGXZ00
Iranian Heavy (Sidi Kerir) PCABH00 AAGYB00
Saharan Blend AAGZY00 AAHPN00
Zarzaitine AAHMO00 AALOY00
Kumkol AAHMP00 AALOW00
Syrian Light FOB AAHMM00 AALOU00
Syrian Heavy FOB AAHMN00 AALOV00
$/bbl Dtd Brent swap
Urals Med CFD 1st mth (M1) AAMDR00 AAMDU00
Urals Med CFD 2st mth (M2) AAMDX00 AAMEA00
Platts Ruble-denominated Russian crude oil assessments
Russian crude oil benchmarks (Ruble/bbl)
Urals FOB Novorossiisk AAUJP00
Urals FOB Ventspils AAUJQ00
Urals FOB Novorossiisk 80kt AAUJR00
Urals FOB Mediterranean AAUJS00
Urals FOB Rotterdam AAUJT00
Canadian spot crude cargo assessments
Terra Nova AAJUH00 AAJUJ00
Hibernia AAJKK00 AAJKM00
White Rose AAVJX00 AAVJY00
US domestic spot crude assessments
P-Plus WTI PCACI00
WTI-Delta AAEJK00
P-5 WTI AAFEN00
30
CRUDE OIL
$/bbl spread vs 1st line WTI
WTI (Midland) PCACJ00 AAGVZ00
WTS (M1) PCACK00 AAGWB00
WTS (M2) AAURG00 AAURH00
Eugene PCAFC00 AAGWD00
Bonito PCAIE00 AAGWF00
SGC AASOI00 AASOJ00
Poseidon AABHK00 AAGWL00
LLS (M1) PCABN00 AAGWN00
LLS (M2) AAURC00 AAURD00
HLS (M1) PCABD00 AAGWP00
HLS (M2) AAURE00 AAURF00
Wyoming Sweet PCACM00 AAGWR00
Thunder Horse AAWZK00 AAWZL00
Mars/WTI (M1) AAGWH00
Mars/WTI (M2) AAKTH00
Mars/WTI (M3) AAMBO00
Delivered US Gulf Coast spot price
Basrah Light AAEJH00 AAGWV00
Latin American spot crude assessment
Cano Limon PCADM00 PCAGV00
California spot crude assessment
Lyne 63/Hynes PCABM00
Thums/Long Beach PCACD00
Kern River PCABJ00
P-Plus Line 63 PCAFV00
ANS/Long Beach PCAAD00 AAGWX00
Canadian spot crude assessments
C$/CM USD/BBL spread vs Canada
Lloyd Blend AALRM00 AALRK00 AALRP00
Mixed Sweet AALRT00 AALRR00 AALRV00
Light Sour Blend AALRZ00 AALRX00 AALSD00
Condensates AALSH00 AALSF00 AALSJ00
Syncrude Sweet AASOL00 AASOK00 AASOM00
WCS Hardisty AAPPO00 AAPPN00 AAPPP00
Cold Lake Hardisty AASZY00 AASZX00 AASZZ00
Canadian crude oil postings derived assessments
C$/CM USD/BBL
Par Crude PCAEZ00 PCAEJ00
Mixed Light Sour PCAFA00 PCAEL00
Bow River/Hardisty PCAEY00 PCAFB00
Light/Sour Cromer PCAII00 PCAIK00
Sour - Edmonton PCAIM00 PCAIO00
Midale Cromer PCAIQ00 PCAIS00
31
CRUDE OIL
Latin American assessments
$/bbl sprea vs WTI
Canadon Seco PCAGN00 PCAGB00
Escalante PCAGO00 PCAGC00
Cusiana PCAGT00 PCAGL00
Santa Barbara AAITJ00 AAITD00
Loreto PCAGQ00 PCAGH00
Oriente PCAGU00 PCADE00
Napo AAMCD00 AAMCA00
Marlim AAITL00 AAITF00
Castilla Blend AAVEQ01 AAVEQ00
Cano Limon PCAGV00 PCADM00
Vasconia PCAGR00 PCAGI00
Mesa 30 AAITH00 AAITB00
Pacific Rim / Arab Gulf spot
$/bbl spread vs Tapis
Tapis PCACB00 PCAHA00
Kikeh AAWUH00 AAWUI00
Cossack PCAGZ00 PCAHC00
Griffin PCAGW00 PCAHE00
Kutubu PCAFJ00 PCAHB00
Nanhai PCAFR00 PCAHG00
Paper Tapis (M1) PCAFG00
Paper Tapis (M2) PCAFH00
Labuan PCABL00
Miri PCABQ00
Gippsland PCACP00
spread vs NW Shelf
NW Shelf PCAGX00 PCAIA00
spread vs ICP
Minas PCABO00 PCABP00
Sokol AASCJ00 AASCK00
Attaka PCAAJ00 PCAAK00
Ardjuna PCACQ00 PCACR00
Handil Mix PCABE00 PCABF00
Cinta PCAAX00 PCAAY00
Duri PCABA00 PCABB00
Widuri PCAFE00 PCAFF00
Belida PCAFL00 PCAFM00
Senipah AAEOE00 AAEOK00
spread vs OSP
Murban AAKNL00 AAKUB00
Lower Zakum AAKNN00 AAKUF00
Upper Zakum AAOUQ00 AAOUR00
Umm Shaif AAOUO00 AAOUP00
Qatar Land AAKNP00 AAKUJ00
Qatar Marine AAKNR00 AAKUH00
Banoco Arab Medium AAKNT00 AAKUD00
Ras Gas AAPET00 AAPEU00
Al Shaheen AAPEV00 AAPEW00
Nile Blend AAPLC00 AAPEX00
Daqing PCAAZ00
Shengli PCABY00
Bach Ho PCAHY00 AAPEY00
Asia close Brent and WTI spot
Brent (M1) PCAJE00
Brent (M2) PCAJG00
Brent (M3) PCAJI00
WTI (M1) AAFFU00
WTI (M2) AAFFW00
WTI (M3) AAFFY00
32
CRUDE OIL
Asian Dated Brent and Asian Crude
Asian Dated Brent (ADB) AAXPG00
Asian Crude Index (ACX) AAXIL00
Daily OPEC Basket Price
AAFAE00
Daily US$ vs EURO exchange rate
Forex rate at 04:30 PM local time AAFCW00
Crude futures settlements
Nymex
M1 M2 M3 M4 Volume
AACMH00 AACMI00 AACMJ00 AADWE00 AADUV00
DME Oman
M1 M2 M3 M4 Volume
DUM2629 DUM2630 DUM2631 DUM2632 DUM0126
DME Oman Asian Settle
XDOA001 XDOAV01
ICE/IPE WTI
M1 M2 M3 M4 Volume
ICE/IPE Brent
M1 M2 M3 M4 Volume
AACNF00 AACNG00 AACNQ00 AADWV00 AADUV00
ICE/IPE Mideast Crude
M1 M2 M3 M4 Volume
ICE/IPE BWAVE
M1 M2
AADRP00 AADRM00
Volume AAEFS00 AAEFT00
Products futures settlements
Nymex RBOB unleaded gasoline
M1 M2 M3 M4 Volume
DUMRB01 DUMRB02 DUMRB03 DUMRB04 DUMRB05
Nymex No. 2
M1 M2 M3 M4 Volume
AACMK00 AACMO00 AACMP00 AADWH00 AADUW00
Nymex Natural Gas
M1 M2 M3 M4 Volume
AACMZ00 AACNA00 AACNB00 AADWS00 AACUI00
ICE/IPE Gasoil
M1 M2 M3 M4 Volume
AACNX00 AACNZ00 AACOA00 AADXE00 AADUW00
33
CRUDE OIL
Yields and Netbacks
ARA Singapore US Gulf Coast US Midcontinent
Yield Freight Netback Yield Freight Netback Yield Freight Netback Yield Freight Netback
Arab Light (Most recent FOB spot: N.A.)
Cracking TYABT00 TDDAV00 Yield-Freight TYACF00 TDDAW00 Yield-Freight TYACP00 TDDAR00 Yield-Freight TYACT00 TDDAS00+1.19 Yield-Freight
Coking TYACN00 TDDAR00 Yield-Freight TYACR00 TDDAS00+1.19 Yield-Freight
Visbreaking TYABV00 TDDAV00 Yield-Freight TYACH00 TDDAW00 Yield-Freight
Arab Medium (Most recent FOB spot: N.A.)
Cracking TYACZ00 TDDBD00 Yield-Freight TYADL00 TDDBE00 Yield-Freight TYADV00 TDDAZ00 Yield-Freight
Coking TYADT00 TDDAZ00 Yield-Freight
Visbreaking TYADB00 TDDBD00 Yield-Freight TYADN00 TDDBE00 Yield-Freight
Arab Heavy (Most recent FOB spot: N.A.)
Cracking TYAAV00 TDDAN00 Yield-Freight TYABH00 TDDAO00 Yield-Freight TYABR00 TDDAJ00 Yield-Freight
Coking TYABP00 TDDAJ00 Yield-Freight
Visbreaking TYAAX00 TDDAN00 Yield-Freight TYABJ00 TDDAO00 Yield-Freight
Arab Berri (Most recent FOB spot: N.A.)
Cracking TYAAL00 TDDAC00 Yield-Freight TYAAP00 TDDAD00+1.19 Yield-Freight
Coking TYAAJ00 TDDAC00 Yield-Freight TYAAN00 TDDAD00+1.19 Yield-Freight
Attaka (Most recent FOB spot:N.A.)
Cracking TYADX00 TDDBG00 Yield-Freight
Visbreaking TYADZ00 TDDBG00 Yield-Freight
Azeri Light (Most recent FOB spot: N.A.)
Cracking TYAEB00 TDDBI00 Yield-Freight
Visbreaking TYAED00 TDDBI00 Yield-Freight
Basrah Light (Most recent CIF Gulf Coast spot: N.A.)
Cracking TYAFP00 TDDBU00 Yield-Freight TYAGD00 TDDBS00 Yield-Freight TYAGH00 TDDBT00+1.19 Yield-Freight
Coking TYAGB00 TDDBS00 Yield-Freight TYAGF00 TDDBT00+1.19 Yield-Freight
Visbreaking TYAFR00 TDDBU00 Yield-Freight
BCF 17 (Most recent FOB spot: N/A)
Cracking TYAEP00 TDDBJ00 Yield-Freight
Coking TYAEN00 TDDBJ00 Yield-Freight
Cracking TYAFB00 TDDBL00 Yield-Freight
Coking TYAEZ00 TDDBL00 Yield-Freight
Cracking TYAFJ00 TDDBO00 Yield-Freight
Coking TYAFH00 TDDBO00 Yield-Freight TYAFL00 TDDBP00+1.13 Yield-Freight
Bonny Light (Most recent FOB spot: N.A. )
Cracking TYAGR00 TDDBX00 Yield-Freight TYAGT00 TDDBY00+1.19 Yield-Freight
Bow River (Most recent FOB spot: N.A.)
Coking TYAGV00 DUM0665 Yield-Freight
Brass (Most recent FOB spot: N.A.)
Cracking TYATS00 DUM0957 Yield-Freight TYAHD00 TDDCA00 Yield-Freight
Brent (Most recent FOB spot: N.A.)
Cracking TYAHF00 TDDCD00 Yield-Freight TYAHT00 TDDCB00 Yield-Freight
Coking TYAHR00 TDDCB00 Yield-Freight
Visbreaking TYAHH00 TDDCD00 Yield-Freight
Cabinda (Most recent FOB spot: N.A.)
Cracking TYAIF00 TDDCF00 Yield-Freight TYAIJ00 TDDCG00+1.19 Yield-Freight
Coking TYAID00 TDDCF00 Yield-Freight TYAIH00 TDDCG00+1.19 Yield-Freight
Cano Limon (Most recent FOB spot: N.A.)
Cracking TYAIR00 TDDCJ00 Yield-Freight TYAIV00 TDDCK00+1.19 Yield-Freight
Coking TYAIP00 TDDCJ00 Yield-Freight TYAIT00 TDDCK00+1.19 Yield-Freight
Cusiana (Most recent FOB spot: N.A.)
Cracking TYAJH00 TDDCM00 Yield-Freight TYAJL00 TDDCN00+1.19 Yield-Freight
Coking TYAJF00 TDDCM00 Yield-Freight TYAJJ00 TDDCN00+1.19 Yield-Freight
Dubai (Most recent FOB spot: N.A.)
Cracking TYAJN00 TDDCQ00 Yield-Freight
Visbreaking TYAJP00 TDDCQ00 Yield-Freight
Duri (Most recent FOB spot: N.A.)
Cracking TYAJR00 TDDCR00 Yield-Freight
Visbreaking TYAJT00 TDDCR00 Yield-Freight
Ekofisk (Most recent FOB spot: N.A.)
Cracking TYAJV00 TDDCT00 Yield-Freight
Visbreaking TYAJX00 TDDCT00 Yield-Freight
Escalante (Most recent FOB spot: N.A.)
Cracking TYAKJ00 TDDCV00 Yield-Freight
Coking TYAKH00 TDDCV00 Yield-Freight
Flotta (Most recent FOB spot: N.A.)
Cracking TYAKP00 TDDCX00 Yield-Freight
Visbreaking TYAKR00 TDDCX00 Yield-Freight
34
CRUDE OIL
Forcados (Most recent FOB spot: N.A.)
Cracking TYAKX00 TDDCY00 Yield-Freight TYAKZ00 TDDCZ00+1.19 Yield-Freight
Forties (Most recent FOB spot: N.A.)
Cracking TYALB00 TDDEZ00 Yield-Freight
Visbreaking TYALD00 TDDEZ00 Yield-Freight
Gullfaks (Most recent FOB spot: N/A)
Cracking TYALF00 TDDDC00 Yield-Freight
Visbreaking TYALH00 TDDDC00 Yield-Freight
Iran Heavy (Most recent FOB spot, Sidi Kerir: N.A.)
Cracking TYALV00 TDDDG00 Yield-Freight
Visbreaking TYALX00 TDDDG00 Yield-Freight
Iran Light (Most recent FOB spot, Sidi Kerir: N.A.)
Cracking TYAMD00 TDDDI00 Yield-Freight
Visbreaking TYAMF00 TDDDI00 Yield-Freight
Isthmus (Most recent FOB spot: N.A.)
Cracking TYAMR00 TDDDJ00 Yield-Freight
Coking TYAMP00 TDDDJ00 Yield-Freight
Kirkuk (Most recent FOB spot: N.A.)
Cracking TYATU00 TDDGH00 Yield-Freight
Kuwait (Most recent FOB spot: N.A.)
Cracking TYAMX00 TDDDM00 Yield-Freight TYANF00 TDDDN00 Yield-Freight TYANL00 TDDDL00 Yield-Freight
Coking TYANJ00 TDDDL00 Yield-Freight
Visbreaking TYAMZ00 TDDDM00 Yield-Freight TYANH00 TDDDN00 Yield-Freight
LLS (Most recent FOB spot: N.A.)
Cracking TYANP00 DUM0663 Yield-Freight TYANT00 DUM0666 Yield-Freight
Coking TYANN00 DUM0663 Yield-Freight TYANR00 DUM0666 Yield-Freight
Marlim (Most resent FOB spot: N.A.)
Cracking TYAUG00 TDDGK00 Yield-Freight
Coking TYAUE00 TDDGK00 Yield-Freight
Mars (Most recent FOB spot: N.A.)
Cracking TYAOB00 DUM0664 Yield-Freight
Coking TYANZ00 DUM0665 Yield-Freight
Maya (Most recent FOB spot: N.A.)
Cracking TYAOJ00 TDDDP00 Yield-Freight
Coking TYAOH00 TDDDP00 Yield-Freight TYAOL00 TDDDQ00+1.19 Yield-Freight
Merey (Most recent FOB spot: N/A)
Cracking TYAOZ00 TDDDT00 Yield-Freight
Coking TYAOX00 TDDDT00 Yield-Freight
Mesa (most recent FOB spot: 46.37 )
Cracking TYAPL00 TDDDV00 Yield-Freight TYAPP00 TDDFC00+1.13 Yield-Freight
Coking TYAPJ00 TDDDV00 Yield-Freight TYAPN00 TDDFC00+1.13 Yield-Freight
Minas (most recent FOB spot: N.A.)
Cracking TYAPR00 TDDDX00 Yield-Freight
Visbreaking TYAPT00 TDDDX00 Yield-Freight
Mixed Light Sour (Most recent FOB spot: N.A.)
Cracking TYAPX00 DUM0668 Yield-Freight
Coking TYAPV00 DUM0668 Yield-Freight
Mixed Light Sweet (Most recent FOB spot: N.A.)
Cracking TYAQZ00 DUM0669 Yield-Freight
Coking TYAQX00 DUM0669 Yield-Freight
Murban (most recent FOB spot: N.A.)
Cracking TYATQ00 DUM0956 Yield-Freight TYAPY00 TDDCQ00 Yield-Freight
Visbreaking TYAQA00 TDDCQ00 Yield-Freight
Qatar Dukhan (most recent FOB spot: N.A.)
Cracking TYARA00 TDDBE00 Yield-Freight
Visbreaking TYARC00 TDDBE00 Yield-Freight
Qatar Marine (most recent FOB spot: N.A.)
Cracking TYARE00 TDDBE00 Yield-Freight
Visbreaking TYARG00 TDDBE00 Yield-Freight
Umm Shaif (most recent FOB spot: N.A.)
Cracking TYATK00 TDDCQ00 Yield-Freight
Visbreaking TYATM00 TDDCQ00 Yield-Freight
Zakum (Lower) (most recent FOB spot: N.A.)
Cracking TYANS00 TDDCQ00 Yield-Freight
Visbreaking TYANU00 TDDCQ00 Yield-Freight
Olmeca (most recent FOB spot: N.A.)
Cracking TYAQF00 TDDDY00 Yield-Freight TYAQJ00 TDDDZ00+1.19 Yield-Freight
Coking TYAQD00 TDDDY00 Yield-Freight TYAQH00 TDDDZ00+1.19 Yield-Freight
Yields and Netbacks
35
CRUDE OIL
Oman (most recent FOB spot: N.A.)
Cracking TYAQL00 TDDEB00 Yield-Freight
Visbreaking TYAQN00 TDDEB00 Yield-Freight
Rabi (most recent FOB spot: N/A)
Cracking TYARP00 TDDEE00 Yield-Freight
Coking TYARN00 TDDEE01 Yield-Freight
Saharan Blend (Most recent FOB spot: N.A.)
Cracking TYATY00 TDDGI00 Yield-Freight
Statfjord (most recent FOB spot: N.A.)
Cracking TYASD00 DUM0658 Yield-Freight TYASR00 TDDEN00 Yield-Freight
Coking TYASP00 TDDEN00 Yield-Freight
Visbreaking TYASF00 DUM0658 Yield-Freight
Soyo/Palanca (most recent FOB spot: N/A)
Cracking TYASB00 TDDEH00 Yield-Freight
Coking TYARZ00 TDDEH00 Yield-Freight
Syncrude (Most recent FOB spot: N/A)
Cracking TYAUR00 1.53 Yield-Freight
Tapis (Most recentFOB spot: N.A.)
Cracking TYAST00 TDDEO00 Yield-Freight
Visbreaking TYASV00 TDDEO00 Yield-Freight
Troll (most recent FOB spot: N/A)
Cracking TYATL00 TDDEP00 Yield-Freight
Coking TYATJ00 TDDEP00 Yield-Freight
Urals (Most recent CIF ARA spot: N.A.)
Cracking TYATN00 TDDET00 Yield-Freight TYAUK00 DUM1679 Yield-Freight
Coking TYAUI00 DUM1679 Yield-Freight
Visbreaking TYATP00 TDDET00 Yield-Freight
WTI (most recent FOB spot: N.A.)
Cracking TYATX00 DUM0713 Yield-Freight TYAUB00 DUM0670 Yield-Freight
Coking TYATV00 DUM0713 Yield-Freight TYATZ00 DUM0670 Yield-Freight
WTS (Most recent CIF spot: N.A.)
Cracking TYAUJ00 DUM0671 Yield-Freight
Coking TYAUH00 DUM0671 Yield-Freight
Zuetina (Most recent FOB spot: N.A.)
Cracking TYAUC00 TDDGJ00 Yield-Freight
Yields and Netbacks

Methodology and Specifications Guide: Crude Oil

Uploaded by

Copyright:

Available Formats

Methodology and Specifications Guide: Crude Oil

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Methodology and Specifications Guide: Crude Oil

Uploaded by

Copyright:

Available Formats

www.platts.

You might also like