Oil Gram Price Report

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[OIL ]

www.platts.com OILGRAM PRICE REPORTVolume 92 / Number 237 / December 10, 2014 / Prices effective December 9, 2014

World production and consumption balance

Source: US Energy Information Administration

Forecast

-2

-1

0

1

2(million b/d)(million b/d)

80

85

90

95

100

15-Q414-Q413-Q412-Q411-Q410-Q409-Q4

World consumption (left)

World production (left)

Implied stock change

and balance (right)

In its December Short Term Energy Outlook, the EIA

estimated that Brent crude prices will average $68.08/

barrel in 2015, $15 lower than its November forecast and

$33 lower than it projected in October.

WTI prices, meanwhile, are expected to average

$62.75/b in 2015, also down $15 from November.

"The combination of robust world crude oil supply

growth and weak global demand has contributed to rising

global inventories and falling crude oil prices," the EIA said.

"EIA expects global oil inventories to continue to build over

the next year, keeping downward pressure on oil prices."

Global oil stocks should build by 400,000 b/d in 2015.

EIA slashes 2015 crude price forecasts on output riseWashington— The US Energy Information Administration Tuesday slashed is Brent and WTI crude priceforecasts for 2015, predicting a rise in global stocks of 400,000 b/d as production continues to outpace

consumption.

"Stock builds are expected to be concentrated in the

first half of the year, averaging [700,000 b/d] during this

period," the EIA said.

As a result, downward price pressures would be

concentrated in the first half of 2015. Brent, for example,

will average $63/b each month from March through May,

before increasing to an average of $73/b in the fourth

quarter, the EIA said.

Stocks are expected to build as EIA lowered its 2015

global demand forecast by 200,000 b/d to an average 92.3

million b/d, while raising its supply forecast by an equal

(continued on page 33)

Company said in talks with shippers

Analysts say California could use crude But low oil prices could be an obstacle

Houston—Kinder Morgan appears to have resuscitated its

Freedom Pipeline project to bring Texas oil to the West

Coast, giving it a condensate export twist.

"What's changed is, [Kinder is] planning to build a

splitter on the delivery end of the pipeline" to collect

condensate from the growing volumes of light shale crude

flowing into the state, said Martin Tallett, president of

consultant EnSys Energy. The rest of the oil "would be

blended with other crudes."

The 250,000 b/d Freedom proposal was designed torun from Wink, Texas, to San Emidio, California, near

Kinder revisits Texas-West Coast crude line

Bakersfield. It involved a mix of new pipe construction and

utilization of an existing natural gas pipeline. The projectwas announced in April 2013, but withdrawn a month later

due to insufficient shipper interest.

The new pipeline proposal could galvanize shippers,

Tallett said.

"That was a problem with the original proposal: you were

taking 40-42 crude API from Texas to a [West Coast] refinery

taking 27-29 API crude," he said. "It was a huge disparity."

Tom Dobson, project director of Kinder Morgan Pipelines,

said in a presentation that a revived project is envisioned to

include an atmospheric topping unit that would split off

Permian condensate for export, and allow the rest of the oil

to be mixed with heavier crudes.(continued on page 35)

Inside this issue

Market analysis

International crude: Azeri on bear trend 2

Americas crude: Eagle Ford exported to Europe 5

Gasoline: Singapore slumps on low imports 6

Gasoil: Europe in contango 7

Diesel: Chicago resupply sends diffs lower 7

Jet: Gulf Coast price plunges 8

Resid: Europe stronger on export demand 15

Feedstocks: NWE naphtha contango steady 16 Gas liquids: Asian weakness lures buyers 16

Tankers: East VLCCs spike 16

News

Oil complex stems slide amid overbought US dollar 18

Tesoro may face crude slate change 32

Putin puzzled over rising domestic prices 33

Refinery updates 36


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PRICES EFFECTIVE DECEMBER 9, 2014OILGRAM PRICE REPORT

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Data inside this issue

Product price assessments

Asia 9 Indonesia 9 China 9

Arab Gulf 9 Asia product premium/discount assessments 10 Platts Euro denominated product assessments 10 European bulk 10 New York/Boston 11 U.S. Buckeye pipeline 11 USAC CPL Linden 11 Chicago pipeline 12 U.S. Gulf Coast 12 Group Three 12 West Coast pipeline 13 U.S. Gulf Coast pipeline cycles 13 West Coast waterborne 13 Latin America 14 Atlantic resid/contract cargoes posted prices 14 Caribbean product postings 14 Caribbean cargoes 14 Gas liquids 14 Shale Value Chain assessments 14

Crude price assessments

Asia Pacific/Middle East spot crude assessments 19 International 20 Asia 20 North Sea 20 London 20 West Africa 20 Canada 21 Mediterranean 21 Platts Euro denominated crude oil assessments 21 Daily OPEC basket price 21 United States 22 US domestic crude assessments London close 22 Canadian spot crude assessments 22 Crude oil postings 23 Platts Index 23 Daily Canadian crude posting averages 23 Latin America crude 23

Spot tanker rates 24 Platts futures assessments 24 Platts futures assessments Singapore MOC 24 Futures settlements 25 Five-Day Rolling Averages 26 US wholesale posted prices 27 Feeder crudes 29 Weekly crude assessments 31

MARKET ANALYSIS

International crude

January loadings weigh on Azeri

Urals facing Iraqi competition

Waiting for Nigerian grades to clear

Little upside for Asian direct-burn grades

Azeri on bear trend

The Azeri Light price differential tumbled further Tuesday,

weighed down by the continued availability of December

cargoes following the release of the January loading

program for the Turkish port of Ceyhan.

Azeri was assessed at a $1.45/barrel premium to

Dated Brent. That was down 15 cents/b on the day, and

down from a $2.50/b premium December 1.

In the Platts Market On Close assessment process,

Socar offered a 600,000 barrel Azeri Light cargo,

ex-Ceyhan/Supsa, loading December 19-23 CIF basis

Augusta down to Dated Brent plus $1.35/b before being

lifted by Totsa.

Azeri has weakened as the surfeit of prompt light, sweet

crude oil in the region has presented potential end-userswith multiple options. The January program for Ceyhan

– which sees the bulk of Azeri Light exports each month –

proved to be slightly larger than December. Loadings out

of the terminal are set to tick up 200,000 barrels to 23

million barrels in total, making the schedule, at an average

741,935 b/d, the longest for the grade since July.

"There are still more than five cargoes left in

December," a crude trader said.

There was also December volume remaining on the CPC

Blend program. The provisional schedule for January was

expected this week.

Meanwhile, Libyan crude production is around 700,000

b/d, with no timeline on the resumption of the 340,000 b/d

Sharara crude field in the southwest corner of the country,


3/37



where production has been halted since November.

The loss of Sharara in the Mediterranean has done

little to impact market sentiment in the short term given

the ongoing length in both Azeri Light and CPC Blend in

December, sources said.

Med Urals slammed

Urals differentials in the Mediterranean fell heavily in

European trading Tuesday, after one of the few remaining

Black Sea cargoes sold at a substantially lower discount

amid competition from alternative sour crude grades.

In the Platts Market on Close assessment process, a

Stasco offer for an 80,000 mt Urals cargo, ex-Novorossiisk,

loading December 23-27 CIF basis Augusta was offered

down to Dated Brent minus $1.10/barrel before being lifted

by Vitol.

Urals was assessed at minus $1.10/b, down 55

cents/b on the day.

Traders said that while liquidity in the Mediterranean

Urals market has been hampered by the lack of volume

scheduled to load out of Novorossiisk in December –

December's schedule remains the shortest on record –

the influx of Basrah from Southern Iraq and the return of

Northern Iraqi crude to the Mediterranean is likely to put

downward pressure on Urals differentials moving forward.

"There is strong competition from that Kirkuk-Kurdish

oil," a crude trader said, adding that initial indications have

put the density for the grade at or above traditional Kirkuklevels. "It is not impossible to get, and there are [players

other than ENI and Litasco] approaching to load."

The crude that Iraq's state oil marketing agency SOMO

is selling as "Kirkuk" is reportedly crude from the Kurdish

region of Northern Iraq made available to SOMO through a

new accord between Baghdad and Erbil regarding exports.

Traders said that even if cargo loadings of the grade

out of the Turkish port of Ceyhan prove to be limited in

the short-term, the crude is flowing regularly to Tupras

through the Kirkkale pipeline system, decreasing the

Turkish refiner's need to purchase other crudes in the

Mediterranean spot market.

Throughout the prolonged absence of Kirkuk this year,

Tupras bought a larger quantity of crude – both sweet and

sour – via tender.

Differentials were also lower in Northwest Europe amid

continued availability in the December loading program.Also in the Platts MOC, Glencore offered a 100,000 mt

Urals cargo, ex-Primorsk/Ust-Luga, loading December 19-23

CFR basis Rotterdam to Dated Brent minus $1.90/b before

being l ifted by BP.

At least 300,000 mt of volume has been added to the

Baltic Sea loading program in the last several days of

trading, with cargoes still available across much of the

third decade.

Plenty of January Nigerian available

Nigerian crudes remained bearish on weak buying interest

Tuesday, with more than two-thirds of the January loading

program still yet to clear.

In the Platts Market on Close assessment process,

Chevron offered 950,000 barrels of Agbami crude, loading

FOB January 15-16 to Dated Brent minus 30 cents/barrel

without attracting a buyer.

Traders said spot buying had yet to really pick up, though

some volumes had been pulled to fill tenders east from

November, as well as term purchases from some lifters.

However, market sources said the weakness of the

Mediterranean market in December – the Mediterraneanand North Sea markets trade much more promptly than

West Africa – had put buying interest in January Nigerian

barrels on hold.

"There are over forty cargoes left of the Nigerian

program...and that's a good two and a half weeks into the

trading cycle," a crude trader said.

Market sources said demand from the Far East had

now largely moved on to February loading, which is likely

to leave Europe as the only outlet for the bulk of the

Nigerian export schedule.

By contrast, market sources said fewer than 10 cargoes

of Angolan crude were left to sell, with most of the lighter

barrels fully traded. Of the remaining volumes, market

sources said the bulk was comprised of heavier grades like

Pazflor and Saturno, which had failed to sell as quickly as

slightly lighter barrels.

Forties firms up

The North Sea crude oil market firmed up a touch Tuesday,

with Forties bid higher at Dated Brent minus 10 cents/barrel

for January loading, and contracts for difference making gains

across all of December and the first half of January.

"We certainly see OK demand, but margins are getting

worse," said one trader.

The ARA Forties cracking margin closed at $1.70/barrel,

according to Platts data, down from $4.70/b November 17.

On the sweet side, DUC, seen as a winter grade, was

heard to be selling well, with the earliest-loading Chevron

equity cargo sold last week and the first Maersk cargo sold

Monday.

Ekofisk meanwhile was bid for at Dated Brent plus 30

cents/b for early January loading without finding a seller.

There were two cargoes of Flotta in the January

loading program, said traders, and quality was steadily

Urals spreads to Dated Brent

Source: Platts

($/barrel)

-4

-3

-2

-1

0

1

Dec-14Oct-14Aug-14Jun-14Apr-14Feb-14Dec-13

RotterdamMediterranean


4/37



improving as increased volumes of Golden Eagle were

co-mingled with the existing Flotta. From unadulterated

Flotta at an API gravity of about 36.9 degrees and sulfur

content of around 0.83%, the blend is expected to move

towards a "Flotta Gold" quality of 36 degrees API and

0.64% sulfur.With most of the 10-25 day window still reflecting

December loading dates, and Urals still weaker than

during November, Platts assessment of Flotta remained

far below the January offer levels, at Dated Brent minus

$1.10/b.

After Monday's slew of deferrals, there were a few

more on Tuesday. The BG equity Forties cargo 1210 was

deferred to December 17-19, the Suncor equity Forties

cargo 1211 was deferred to December 18-20, the Suncor

equity Forties cargo F1217 was deferred to December

30-January 1.

The one cargo for which Tuesday was the last day of

nomination into the 25-day ahead process, the Eni equity

Forties cargo F0102, was heard in chains on January 3-5,

eventually being kept from chains by BP.

Brent cargo 0101 was heard to have been advanced

a day to January 2-4, and kept from chains by the equity

holder Shell.

PV Oil issues Chim Sao tender

Vietnam's state-owned PV Oil issued a tender to sell two

300,000-barrel cargoes of Chim Sao crude for loading over

February 11-15 and 22-26. The tender closes on December

12 and remains valid until December 16.The Vietnamese oil marketer was last heard to have sold

three 300,000-barrel cargoes of Chim Sao crude for loading

January 7-11, 17-21 and 26-30 at premiums of around $2.60-

3/b to Platts Dated Brent crude assessments.

"It seems that Northeast Asia is bracing for below-

average temperatures this winter, but Japanese demand for

direct-burning grades won't pick up much because they have

plenty of stockpiles," said a second sweet crudes trader.

Elsewhere, Malaysia Petronas also issued a fresh sell

tender offering 1 million barrels of Sudan's Dar Blend crude

for loading January 10-11. The tender closes on December

9 and remains valid until December 12.

Malaysia's state-owned oil company last sold 1 million

barrels of Dar Blend crude for loading over November 25-26

to Unipec at a discount of around $8.50/barrel to Dated

Brent crude assessments on an FOB basis, traders said.

In Thailand, PTT was heard to have purchased, via a

tender, 650,000 barrels of Australia's Cossack crude as

well as a 300,000-barrel cargo each of Malaysia's Kikeh

and Kidurong crudes.

The cargoes are scheduled for delivery over February

2-6 to oil refiner and petrochemicals producer IRPC.

Market talk indicated that PTT may have bought theCossack cargo at a discount of around 30-50 cents/barrel

to Dated Brent on CFR basis and it paid premiums of

around $4.1-$4.3/b and $5.5/b CFR basis, for the Kikeh

and Kidurong cargoes, respectively.

However, the details could not be confirmed.

Elsewhere, trading sources said Australia's BHP has

sold a 650,000-barrel cargo of US condensate for loading

over the first half of January from Houston to Koch Supply

& Trading. Traders said the cargo was destined for Europe,

but further details, including the premium fetched, were

not clear.

Arab exports to West to drop: KPC

Crude oil exports from the Arab nations of the Persian Gulf

to Europe and the US are expected to drop sharply by 2018,

a senior executive at state-owned Kuwait Petroleum

Corporation said Tuesday.Exports from Saudi Arabia, Iraq, Qatar and the UAE

to Europe are expected to fall to just 1 million b/d in

2018 from 2 million b/d in 2013, Abdulaziz Alattar, KPC's

marketing team leader said.

Exports to the US are also expected to fall to 1.75

million b/d from 2 million b/d.

However, losses from these markets will be offset by

sales to the Asia- Pacific region where exports will

increase to 14.5 million b/d in 2018 from 8.96 million

b/d in 2013, Alattar said at the Platts Middle East Crude

Oil Summit in Dubai.

Although cracking margins for Kuwait crude in

Singapore underperformed those in the US Gulf Coast and

Northwest Europe so far this year, they have shown a sharp

improvement since November.

Singapore cracking margins for Kuwait crude have

averaged $4.74/b since November 1, up from near zero

over the whole of 2014 thus far. Kuwait cracking margins on

the USGC, by comparison, have dived from more than $8/b

at the beginning of November to minus $1.69/b on Monday.

USGC Kuwait cracking margins have averaged $3.74/b

so far in 2014.

Platts margin data reflects the difference between acrude's netback and its spot price. Netbacks are based

on crude yields, which are calculated by applying Platts

product price assessments to yield formulas designed by

Turner, Mason & Co.

Kuwait currently exports 2.06 million b/d, Alattar said.

KPC's long-term strategy is to increase its crude oil

production to 4 million b/d by 2020 from around 3 million

b/d, as well as expanding its domestic refining capacity to

1.3 million b/d by 2019 from around 940,000 b/d.

Going forward, Asia will consume 80% of Kuwait's crude

oil, with the US taking 15% and Europe 5%.

Kuwait cracking margins strongest in Singapore

Source: Platts; Turner, Mason & Co.

($/barrel)

-5

0

5

10

DecNovOctSepAugJulJunMay AprMarFebJan

ARA

SingaporeUSGC


5/37



Kuwait hopes to secure long-term outlets for Kuwaiti

crude oil and refined products, with long-term relationships

including investments in Asian refineries, in Vietnam and

China, in particular.

KPC and China's state-owned Sinopec signed an

agreement in June to deepen cooperation in the oil sector,including trading and refining and storage projects.

"The investments have not been formalized yet",

Alattar said.

Talks between Kuwait Petroleum International, a KPC

subsidiary and Sinopec to built a joint venture refinery at

Zhanjiang in China's southern Guangdong province have

stalled since an initial deal was agreed in 2011. The

refinery was to run on imported Kuwaiti crude

Americas crude

BHP Billiton sells Eagle Ford for export

Follows Commerce ruling on condensates

Midland differentials tighten

Eagle Ford exported to Europe

The tanker Nissos Delos is set to load from the US Gulf

Coast on a trans-Atlantic route, carrying one of the first

exports of Eagle Ford condensate from the US, a fixture

report showed Tuesday.

The foreign-flagged Aframax-sized ship, set to load onthe US Gulf Coast on December 15 and chartered by Vitol,

is currently in the Port of South Louisiana, data from Platts

cFlow ship-tracking software showed.

BHP Billiton, a large producer and seller of Eagle Ford

condensate, was heard to have been the seller of this

cargo, US market sources said.

A large amount of BHP's production exists in DeWitt

County, Texas, a company source said previously. The

source also explained that most of BHP's condensate goes

through the Kinder Morgan Crude and Condensate pipeline,

a 300,000-barrel, 24-inch-diameter, gas-to-oil converted

pipeline that runs from Cuero, Texas, in the Eagle Ford

formation to two terminals in Houston – Kinder Morgan

Galena Park and Oiltanking International (OTI). Thus, BHP's

condensate will likely be exported from the Port of Houston.

"BHP has 280,000 barrels of storage at OTI," the source

said. "BHP also has a connection to the Enterprise Pipelinethat ends up at the ECHO Terminal," also in Houston.

He added that most of BHP's production is sold to

a handful of end-users who have refineries and use the

condensate as part of the slate of crudes in their refineries.

HP did not respond a request for comment, but

company spokesman Ruban Yogarajah confirmed in

November that the company was planning to export

condensate from Texas' Eagle Ford that had been

processed through a distillation tower.

Earlier this year, Enterprise Products Partners and

Pioneer Natural Resources received rulings from the

US Department of Commerce to export their processed

condensate, though those rulings remain confidential.

BHP has not received legal backing or a commodity

classification ruling from Commerce to export its processed

condensate. As a result, the company runs the risk of

violating US export law if its processing does not meet the

same standards Enterprise and Pioneer have met.

Despite the risk, BHP on Tuesday sold one 650,000-barrel

cargo of US condensate for loading in the first half of January

to Koch Supply & Trading. Traders said the cargo is destined

for Europe, but further details were not clear. The cargo was

sold at an unknown differential to WTI crude.The Platts Eagle Ford Marker, which represents the

gross product weight of a 47 API Eagle Ford crude barrel,

was assessed at $64.40/barrel Monday. One trader said

Tuesday that condensate is tightening with low 40 API

crude, trading $3-4/b higher than 50-plus API crude.

Permian Basin price spreads narrow

Crude output from the Permian Basin still outpaces

takeaway capacity but differentials are narrowing as pipeline

infrastructure comes online to carry oil from West Texas and

eastern New Mexico to refineries on the US Gulf Coast.

Platts unit Bentek Energy has estimated December

Permian crude production at 1.8 million b/d, with current

pipeline capacity in the region at 1.5 million b/d and local

refinery demand at 400,000 b/d.

The railway will play a negligible role in moving crudeout of the Permian Basin, though there is potential for it to

absorb incremental production if pipelines are unable to run

at or near nameplate capacity.

Crude volumes carried by rail were likely to be sporadic

unless arbitrage opportunities arise for locations not

accessible by pipelines from the Permian Basin, such as

the US West Coast. Prior to the completion of the Bridgetex

pipeline in September, the Permian Basin lacked sufficient

local demand and takeaway capacity, resulting in WTI

ex-Midland trading at a discount of as much as $14.65/b to

WTI ex-Cashing, according to Bentek.

Bridgetex operator Magellan said deliveries on the

300,000 b/d crude line began commercially in September,

but traders said the rate ranged over 110,000-200,000 b/d

initially with full rates anticipated by the end of the year.

"WTI Midland has strengthened steadily since the

Bridgetex pipeline became operational, causing prices to

reach near parity with WTI in the past two weeks," Bentek

Energy analyst Nicole Leonard said.

As less crude is stranded in the Permian Basin, the

spread between WTI out of Cushing and WTI ex-Midland

narrowed. The discount for WTI from the smaller oil hub

of Midland, Texas, averaged $10.52/b in the third quartercompared with barrels out of Cushing, Oklahoma, Platts

data shows. So far in Q4, WTI ex-Midland is trading at an

average discount of $3.55/b to WTI ex-Cushing.

Canadians slip on Nigerian excess

Abundant supply continued to push down Canadian crude

differentials Tuesday, though the source of the weakness

came from an unusual place: West Africa.

More than 40 available cargoes of light sweet Nigerian

crude are still available, pressuring the entire crude


6/37



complex, including a virtually land-locked one on the other

side of the globe.

"There's a lot of alternatives for buyers out there," one

trader said.

Canadian light crudes in particular have felt the over-

supply impact.Sweet benchmark Syncrude dropped 75 cents to the

calendar month average of NYMEX light sweet crude (WTI

CMA) minus $4/b, where it traded. The grade has fallen

$1.80/b since December 3.

Spot prices for heavy and medium grades have also

felt an impact from the start of Enbridge's 850,000 b/d

Flanagan South pipeline, which carries mostly heavy crudes

from the US Midwest to the storage hub in Cushing,

Oklahoma.

Heavy benchmark Western Canadian Select also fell 75

cents/b to WTI CMA minus $17.90/b on a deal.

Gasoline

Indonesia lines up fewer barrels

Six day rise in Gulf Coast

Low stocks bolster Midwest

Singapore slumps on low imports

The FOB Singapore 92 RON gasoline crack to Brent edged

higher Tuesday, but remained under pressure from a drop in

Indonesian imports.

The 92 RON crack closed at $5.78/barrel, up from

$5.66/b Monday, but down from $9.64/b November 26.

Indonesia, by far Asia's largest importer of the motor

fuel, lined up significantly less volume for its December

and January buying program, leading to oversupply of the

product in the region.

State-owned oil and gas company Pertamina, through its

trading arm Petral, lined up to 7.6 million barrels of 88 RON

gasoline for January, down from 9.5 million barrels of the

grade in December, and 11.6 million barrels in November.

Despite the fall in the outright FOB Singapore 92 RON

gasoline cargo prices, retail prices of 88 RON gasoline, the

most commonly used grade in Indonesia, has risen as the

government hiked the price of subsidized fuel in the country,

leading to shrinking domestic consumption of the product.

In November, Indonesia increased the price of 88 RONgasoline by 30.7% to Rupiah 8,500/liter and cut the price

of 92 RON gasoline to below Rupiah 10,000/liter.

As a result, demand has shifted to the higher-octane

grade, leading traders to believe Pertamina will buy more 92

RON gasoline on a spot basis.

Even so, volumes were still sharply lower as demand

in the country typically dips the end of the year due to the

monsoon season.

Meanwhile, other regions were seeing little stimulus in

demand as higher taxes negated the fall in outright prices.

In November, China increased the consumption tax on

gasoline for the first time since 2009, from the current Yuan

1 ($0.16)/liter to Yuan 1.12/liter (68 cents/gal), while India

has raised basic excise taxes on gasoline by Rupees 1.50

($0.016)/liter.

Adding to the supply-demand imbalance, broader refinery

margins – although sliding – were still healthy, leaving little

incentive to cut production.

Moreover, concerns over the supply tightness in

December following an outage at Formosa's 84,000 b/d

refinery in Mailiao eased as cargo delays were not as bad

as expected. Three cargoes had their loading dates pushed

back from December to January, less than the over four

cargoes anticipated delayed by market participants.

Sources said that with the excess in supply in the

region, cracks may continue the descent.

"The crack does have some room to fall further," a

trader said.

Bargain hunters boost Gulf Coast

Gulf Coast conventional gasoline differentials rose

Tuesday for a sixth straight trading day as bargain hunters

flooded the buy side.

A cadre of sellers brave enough to test the market

favored prompt deals over long-term ones, market sources

said. Differentials also rose in the Midwest Group 3 and

Chicago gasoline cash markets.

Gulf Coast conventional gasoline at 13.5 RVP (M4) was

assessed at NYMEX January RBOB futures minus 12.5cents/gal, up 2.45 cents from Monday and 6.9 cents from

December 1.

The M4 market found support in Colonial Pipeline's 70th

through 72nd cycles this year and the first and second cycles

in 2015. Contango through the second cycle developed at

about 6 points/day, compared with about 1 point/day during

the next week. Support at the back end of the pipeline market

gave the prompt trade a boost, market sources said.

The Group 3 suboctane cash differential rallied 2 cents

to be assessed at NYMEX January RBOB minus 12 cents/

gal. The suboctane cash differential is up 10.25 cents since

December 1.

Market sources have cited low gasoline inventories in the

Midwest, a weak NYMEX futures contract and recent strength

in Gulf Coast gasoline for the strength in suboctane.

"Prices are low because crude is low, not because of

weak demand in products," a Midwest source said.

The second-cycle Chicago CBOB cash differential jumped

4.75 cents to be assessed at NYMEX January RBOB minus

10 cents/gal, where it was last heard to trade.

Market sources have cited the strength in Chicago

gasoline spot market to strong buying by Marathon

Petroleum, which owns three refineries in the Midwest. A

Marathon spokesman was not available for comment.

After the MOC process, CBOB was heard to be bid at

minus 9 cents/gal. Second-cycle Chicago RBOB jumped

3.75 cents to be assessed at minus 5 cents/gal.

The Los Angeles CARBOB cash differential fell 2.75

cents to be assessed at NYMEX January RBOB minus

9.75 gal, after 50,000 barrels were heard to trade at that

level and rebid. Los Angeles CARBOB against the February

futures contract was heard to trade at minus 5 cents/gal.

"It's oversupplied," a West Coast source said, "That is

why I would think we should see run cuts or exports."


7/37



Gasoil

Europe in contango

A supply overhang caused by an influx of gasoil from the US

as well as a decrease in exports continued to weigh onEuropean physical and futures gasoil Tuesday.

Traders cited an accumulation of stocks in the

Amsterdam-Rotterdam-Antwerp hub. This in turn has

weakened the barge market in the region, with sellers

offering physical barges at steep discounts to screen levels

for the last several weeks.

The ICE gasoil front/twelfth month spread has been

in contango since the summer, amid limited export

opportunities. The spread closed at minus $39.25/mt

Tuesday, down from plus $9.75/mt in mid-June, and plus

$17.50/mt last year.

In November, firming exports to destinations including North

America and South America, West Africa and the Mediterranean,

combined with less resupply from the Baltic region, led to a draw

in ARA stocks, and tightened the contango.

But this trend was offset in the second half of

November and into the start of December following an open

arbitrage of high sulfur gasoil from the US on the back of

weak prices in North America and new regulations limiting

the use of higher sulfur gasoils.

Some traders had expected further tightness in the

gasoil market in December in anticipation of a fall in

resupply of volumes from the Baltic.

Monthly volumes of Russian gasoil exported from theports of Ventspils and Riga fell to their lowest levels of the

year in November, according to shipping and market

sources, with traders attributing this to changes to Russia's

export tax regime and the general upgrade of the country's

products sector.

Late in November, Russia signed into law new tax

legislation that would see a sharp drop in the export duties

for crude and products and a simultaneous increase in the

mineral extraction tax.

At that time, several traders said the lower export duty

in January would incentivize Russian exporters to store

products until the new year.

However, traders later said exports of gasoil from the

Baltic remain steady on the month, with substantial volumes

still being stored in ARA.

"There's decent supply and Russian exports are

stronger than anticipated after the tax maneuver had little

impact," said one market source.

BPC to start importing from Turkey

Turkey has emerged as the latest country to supply 0.05%

sulfur gasoil to Bangladesh after the Turkish Petroleum

International Company completed negotiations with state-

owned Bangladesh Petroleum Corporation to supply 60,000

mt of the grade in 2015, BPC Chairman Mohammad

Eunusur Rahman told Platts Tuesday.

He said TPIC would supply two parcels of 30,000 mt to

BPC in January-December, 2015.

If the gasoil is required during January-June, the

premium for the 0.05% sulfur gasoil will be $4.60/barrel to

Mean of Platts Arab Gulf gasoil assessments, Rahman said.

A new premium will be fixed if the gasoil is imported

during July-December 2015, he said.

BPC has decided to start importing 0.05% sulfur gasoil

instead of 0.25% from the start of 2015 to reduce air

pollution in Bangladesh.

All international gasoil suppliers except Kuwait

Petroleum Corp, have already confirmed to BPC that they

will start providing 500 ppm sulfur gasoil from January2015, Rahman told Platts earlier.

KPC is BPC's main gasoil supplier, which has been

supplying around 1.0 million mt/year of 0.25% sulfur gasoil

or one-third of the country's overall gasoil requirement in

the past several years.

BPC might not able to acquire all the 0.05% sulfur

gasoil from 2015 due to the fall in supply from KPC.

The company imports around 3.5 million mt/year of

0.25% gasoil to meet domestic demand.

Diesel

Chicago resupply sends diffs lower

The Chicago ULSD differential tumbled 4 cents/gal Tuesday

as supply from the US Gulf Coast as supply in the region

has replenished with barrels coming from the US Gulf Coast

and refinery production returning near normal rates.

Platts assessed the Chicago ULSD differential at NYMEX

January ULSD futures minus 9 cents/gal. This is the lowest

Chicago ULSD has been since it was minus 15.25 cents/

gal on January 24.

Traders said supply in the region has returned following

fall turnarounds and barrels coming from the US Gulf Coast.

Midwest stocks for the week ended November 28 shot

up 1.771 million barrels to 22.892 million barrels while

production catapulted 93,000 b/d to 1.151 million b/d,

according to US Energy Information Administration data

released Wednesday.

Group 3 ULSD fell 1.65 cents to minus 11.20 cents/gal.

The Gulf Coast ULSD differential dipped 20 points to

minus 17.75 cents/gal, the lowest level ever.

Gulf Coast ULSD typically drops on end-of-year tax

ICE gasoil 1-mo/12-mo spread

Source: ICE

($/mt)

-50

-25

0

25

50



8/37



selling. However, when that happens, barrels typically make

their way to Europe. Without the demand from Europe this

winter, the differential has plummeted.

In New York Harbor, the ULSD differential rallied 3

cents/gal to plus 5.50 cents/gal following stronger ultra low

sulfur heating oil demand. ULSHO and ULSD are the samespecification and the only difference is designated use.

Therefore when ULSHO demand kicks up due to seasonality,

ULSHO follows.

At 3:15 pm EST Platts assessed the NYMEX January

ULSD futures contract at $2.0835/gal, up 2.8 cents/gal.

NWE barges steady

Diesel barge values strengthened further Tuesday, as strong

buying interest emerged as ICE 0.1% gasoil futures briefly

moved into contango for the first time since October.

10 ppm Rotterdam barges differentials rose $3 to

$16.50/mt. Barges are up from just a $9/mt premium on

November 21.

Despite the stronger buying interest in barges, cargo

markets were expected to see more length in coming weeks,

with some earlier tightness in smaller cargoes now mitigated

by flows out of Russia as well anticipated arrivals of larger US

and East volumes amid healthy product margins.

10 ppm cargoes rose just 25 cents to $15.50/mt.

About 266,000 mt of diesel has loaded from the Baltic

port of Primorsk so far in December on four Flexis and five

Medium Range tankers, according to shipping sources.

"It seems the market has lower demand and destocking

for year-end, so the second half of December will be dead, I

think," a trader said. "Despite the US arbitrage being closed,

you will still see cargoes coming this way as there are no

alternatives...you lose less money than selling in Latin

America. So, for me, the market is not really that short."

Another trader said that demand in December

seasonally drops off and runs are going up, although we

have not seen US cargoes on offer and there are still some

shorts in December and January.

"So, I do not really see the arb having much effect so

far," he said.

The US Gulf Coast ULSD differential dipped Monday,

down 2.45 cents/gal to minus 17.55 cents/gal as traders

could not find a home for excess barrels with the arbitrage

to Europe being closed.

The Platts assessment of Gulf Coast ULSD differentialwas at the lowest level recorded.

"A lack of export demand coupled with higher domestic

output is the big reason why," one US broker said.

The differential typically falls in December as traders

look to unload barrels for end-of-year tax selling. The US

exported a near record 33.472 million barrels of ULSD last

December, with much of that going to Europe.

This year, the excess barrels are piling up as the high

freight cost makes the arbitrage increasingly unworkable.

The European ULSD cargo assessment was $27.822/mt

over the US ULSD cargo, with the $36.51/mt trans-Atlantic

freight making the arbitrage unworkable.

"Export barrels are backing up into the pipe, causing the

spot market to fall," a second US broker said.

Jet

Supply glut on Gulf Coast

With Colonial full, hard to work arb

Tax concerns hamper storage

Gulf Coast price plungesThe Gulf Coast jet differential plunged 5.75 cents on a

scheduling day with few sales outlets, pulling the outright

price to a more than 5-year low.

Platts assessed benchmark Gulf Coast jet at NYMEX

January ULSD futures minus 20.25 cents/gal, on a deadline

day to schedule barrels for Colonial Pipeline movement. Such

scheduling days tend to intensify movements, especially in

December with extra selling for year-end tax reasons.

The flat price dropped to $1.881/gal, the lowest level

since October 9, 2009.

"Airlines must absolutely be loving this," one jet trader

said. "We saw that outright GC price fall below $2 for

the first time I can remember on Friday, and it's just kept

dropping this week."

New York barges slipped 1.25 cents to plus 75 points/

gal, but the so-called "up-down" from the Gulf Coast widenedto 21 cents/gal, more than four times the cost of shipping

along Colonial Pipeline from Houston to New York Harbor.

The pipeline, however, has been fully allocated for

more than three years, and is especially tight in the winter

when demand grows sharply for heating oil and ULSD,

other products that share space on the 1.16 million b/d

distillates line.

The same story holds true for shipping it up north, with

Group 3 out of Oklahoma 75 points higher at plus 4 cents/

gal Tuesday, and Chicago jet unchanged at plus 20.25

cents/gal. Traders said pipelines such as Explorer Pipeline

from the Gulf Coast to Chicago, are mostly allocated,

making it hard to ship fresh barrels north.

The second source noted that the Gulf Coast is lacking

good pipeline outlets at a time when production is typically

strong to handle the busy holiday air travel season. Instead,

he said, "The Gulf is just tanking today. They're getting way

more than they can handle."

Exports are a typical means to relieve the pressure, and

demand has been as strong, with Peru the latest to tender

a cargo. But freight costs have spiked and stymied any rally

in the cargo market.

"The market has definitely peaked for freight," a

shipping source said.

Storage remains a key option as the steep fall created

a contango market that more than makes up for the cost of

storing barrels.

But traders may have a stronger disincentive to put

barrels in storage at the end of the year when the tax bill is

tallied, especially for ad valorem taxes in the Gulf Coast.

"I would have thought the contango would bring out

buyers," the trader said. "But people just don't want to hold

inventory."

(continued on page 15)


9/37



PRODUCT PRICE ASSESSMENTS

Asia, Dec 9

Mid Change

Singapore (PGA page 2002)

($/barrel)Naphtha PAAAP00 58.25–58.29 58.270 -2.040

Jet kerosene PJABF00 80.88–80.92 80.900 -2.070

Gasoil POABC00 79.25–79.29 79.270 -2.180

Gasoil 10 ppm AAOVC00 81.02–81.06 81.040 -2.200

Gasoil 50 ppm AAPPF00 80.63–80.67 80.650 -2.190

Gasoil 0.05% S AAFEX00 79.25–79.29 -2.180 -2.180

Gasoil 0.25% S AACUE00 78.74–78.78 78.760 -2.170

Gasoil 50 ppm disc/prem AAPPH00 1.32–1.36 1.340 -0.050

Mogas 92 unl PGAEY00 71.30–71.34 71.320 -2.330

Mogas 95 unl PGAEZ00 73.33–73.37 73.350 -2.310

Mogas 97 unl PGAMS00 74.80–74.84 74.820 -2.310

Naphtha pap. (bal month) AAPLD00 58.03–58.07 58.050 -2.050

Naphtha pap. (Jan) PAAAQ00 58.08–58.12 58.100 -2.000

Naphtha pap. (Feb) PAAAR00 57.98–58.02 58.000 -2.000

Kerosene pap. (bal month)AAPLE00

80.65–80.69 80.670 -2.080Kerosene pap. (Jan) PJABS00 80.71–80.75 80.730 -2.030

Kerosene pap. (Feb) PJABT00 80.86–80.90 80.880 -1.900

Gasoil pap. (bal month) AAPLF00 79.25–79.29 79.270 -2.170

Gasoil pap. (Jan) POAFC00 79.35–79.39 79.370 -2.100

Gasoil pap. (Feb) POAFG00 79.64–79.68 79.660 -2.040

Mid Change

Singapore (PGA pages 2002 & 2655)

($/mt)FO 180 CST 2% PUAXS00 375.83–375.87 375.850 -16.230

HSFO 180 CST PUADV00 367.56–367.60 367.580 -15.870

180 CST disc/premium AAGZF00 3.45–3.49 3.470 -1.010

HSFO 380 CST PPXDK00 366.28–366.32 366.300 -14.700

HSFO 180 CST pap. (bal month) AAPML00 364.98–365.02 365.000 -15.750

HSFO 180 CST pap. (Jan) PUAXZ00 362.98–363.02 363.000 -13.500

HSFO 180 CST pap. (Feb) PUAYF00 362.73–362.77 362.750 -13.250

MTBE PHALF00 734.00–736.00 735.000 -24.000

C&F Japan (PGA page 2006)

($/barrel)

Jet kerosene PJAAN00 82.67–82.71 82.690 -2.050

Mogas unl PGACW00 73.52–73.56 73.540 -2.350

Gasoil POABF00 82.75–82.79 82.770 -2.250

($/mt)

Naphtha PAAAD00 543.25–543.75 543.500 -18.500

Nph 2nd 1/2 Jan PAAAE00 543.50–544.00 543.750 -18.500

Nph 1st 1/2 Feb PAAAF00 543.25–543.75 543.500 -18.500

Nph 2nd 1/2 Feb PAAAG00 543.25–543.75 543.500 -18.500

HSFO 180 CST PUACJ00 385.27–385.31 385.290 -16.030

C+F Australia (PGA page 2004)

($/barrel)

Mogas 92 unl AACZF00 76.02–76.06 76.040 -2.380

Mogas 95 unl AACZH00 78.05–78.09 78.070 -2.360

Jet kerosene AAFIY00 85.95–85.99 85.970 -2.130

Gasoil 10 ppm AAQUD00 86.40–86.44 86.420 -2.260

Indonesia, Dec 9 (PGA page 2516)

($/barrel) FOB Indonesia Mid Change

LSWR mixed/cracked PPAPU00 62.200–62.240 62.220 -2.250

Spot prem/disc

LSWR mixed/cracked AAHXR00 8.650–8.690 8.670 -0.070

China, Dec 9 (PGA page 2010)

($/mt) Mid Change

South China FOB

Unl 90 RON AAICU00 602.00–606.00 604.000 -20.000

Unl 93 RON AAICW00 614.50–618.50 616.500 -19.750

South China, C&F

Jet kerosene PJABQ00 648.75–652.75 650.750 -16.500

Gasoil 0.2% AALEK00 589.25–593.25 591.250 -15.750

Gasoil POAFA00 592.75–596.75 -15.750 -15.750

Hong Kong

Fuel oil 180 CST PUACC00 384.50–385.50 385.000 -14.000

Fuel oil 380 CST PUAER00 381.50–382.50 382.000 -14.000

Arab Gulf, FOB, Dec 9 (PGA page 2004)

($/mt) Mid Change

Naphtha PAAAA00 508.48–508.98 508.730 -19.290

Naphtha LR2 AAIDA00 512.02–512.52 512.270 -18.050

HSFO 180 CST PUABE00 346.71–346.75 346.730 -15.700

HSFO 380 CST AAIDC00 345.43–345.47 345.450 -14.530

($/barrel)

95 RON unleaded AAICY00 70.47–70.51 70.490 -2.310

Kerosene PJAAA00 78.35–78.39 78.370 -2.120

Kerosene LR2 AAKNZ00 78.48–78.52 78.500 -2.040

Gasoil 0.05% S AAFEZ00 76.56–76.60 76.580 -2.240

Gasoil 0.25% S AACUA00 75.96–76.00 75.980 -2.240

Gasoil POAAT00 76.56–76.60 76.580 -2.240

Gasoil LR2 AAKBT00 76.70–76.74 76.720 -2.150


10/37




Asia product premium/discount assessments

Dec 9 Mid Change

MOP* Singapore (PGA page 2002)

($/barrel)

Jet PJACU00 0.18/0.22 0.200 -0.020Gasoil 0.25% S AACQI00 -0.57/-0.53 -0.550 -0.030Gasoil POAIC00 -0.06/-0.02 -0.040 -0.040Naphtha PAADC00 -0.65/-0.55 -0.600 -0.850

($/mt)

380 CST PPXDL00 6.11/6.15 6.130 -0.190

MOP* Arab Gulf (PGA page 2004)

($/barrel)

Jet PJACV00 1.26/1.30 1.280 0.000

Gasoil 0.25% S AACUC00 0.78/0.82 0.800 0.000Gasoil POAID00 1.38/1.42 1.400 0.000380 CST** PPXDM00 -1.30/-1.26 -1.280 +1.170

($/mt)

HSFO 180 CST AAXJA00 9.50/10.00 9.750 +0.250

HSFO 380 CST AAXJB00 9.50/10.00 9.750 +0.250

MOP* Japan (PGA page 2006)

($/barrel)Naphtha PAADI00 -1.25/-0.75 -1.000 -0.500

MOP* West India (PGA page 2012)

($/mt)

Gasoline (92 RON) AARBQ00 590.470 -19.810

Gasoline (95 RON) AAQWI00 600.390 -19.400

Naphtha AAQWK00 516.950 -18.500

Jet kero AAQWM00 623.360 -16.350Gasoil (10 ppm) AAQWO00 601.770 -16.770Gasoil (500 ppm) AAQWQ00 574.810 -16.240

Gasoil (2500 ppm) AAQWS00 571.010 -16.170

($/barrel)

Gasoline (92 RON) AARBP00 69.470 -2.330

Gasoline (95 RON) AAQWH00 71.480 -2.310Naphtha AAQWJ00 57.440 -2.050

Jet kero AAQWL00 78.910 -2.070Gasoil (10 ppm) AAQWN00 78.970 -2.200

Gasoil (500 ppm) AAQWP00 77.160 -2.180

Gasoil (2500 ppm) AAQWR00 76.650 -2.170

*Mean of Platts. **=Differential to FOB Arab Gulf HSFO 180 CST.

European bulk, Dec 9

($/mt) Mid Change Mid Change

(PGA page 1114)

Cargoes FOB Med basis Italy Cargoes CIF Med basis Genoa/Lavera

Prem unl 10 ppm AAWZA00 607.25–607.75 607.500 +4.000 AAWZB00 623.25–623.75 623.500 +4.000Naphtha physical PAAAI00 480.00–480.50 480.250 +5.500 PAAAH00 500.75–501.25 501.000 +5.500

Jet av. fuel AAIDL00 639.25–639.75 639.500 +3.750 AAZBN00 669.00–669.50 669.250 +3.750

ULSD 10 ppm AAWYY00 604.00–604.50 604.250 +3.000 AAWYZ00 623.25–623.75 623.500 +3.000

Gasoil 0.1% AAVJI00 586.75–587.25 587.000 +2.500 AAVJJ00 608.25–608.75 608.500 +2.500

1% fuel oil PUAAK00 350.50–351.00 350.750 +0.750 PUAAJ00 365.75–366.25 366.000 +1.250

3.5% fuel oil PUAAZ00 332.75–333.25 333.000 +3.250 PUAAY00 348.00–348.50 348.250 +3.750

(PGA page 1110)

Cargoes FOB NWE Cargoes CIF NWE basis ARA

Gasoline 10 ppm AAXFQ00 604.75–605.25 605.000 +4.500

Naphtha swaps PAAAJ00 520.50–521.00 520.750 +2.250

Naphtha physical PAAAL00 516.50–517.00 516.750 +5.500

Jet kerosene PJAAV00 655.00–655.50 655.250 +4.000 PJAAU00 670.50–671.00 670.750 +3.750

ULSD 10 ppm AAVBF00 599.00–599.50 599.250 +3.750 AAVBG00 619.00–619.50 619.250 +3.250

Diesel 10 ppm NWE AAWZD00 602.00–602.50 602.250 +3.500 AAWZC00 622.75–623.25 623.000 +3.250

Diesel 10 ppm UK AAVBH00 625.00–625.50 625.250 +3.250

Gasoil 0.1% AAYWR00 587.25–587.75 587.500 +3.000 AAYWS00 609.50–610.00 609.750 +2.500

1% fuel oil PUAAM00 345.75–346.25 346.000 +1.250 PUAAL00 357.00–357.50 357.250 +1.250

3.5% fuel oil PUABB00 321.25–321.75 321.500 +4.250 PUABA00 334.50–335.00 334.750 +4.250

0.5%-0.7% straight run PKABA00 407.00–408.00 407.500 +7.000

(PGA pages 1112 & 1380)

Barges FOB Rotterdam

98 RON unl AAKOD00 652.75–653.25 653.000 +4.500

Prem unl PGABM00 606.75–607.25 607.000 +8.250

Reformate AAXPM00 628.000 +4.500

Eurobob AAQZV00 587.75–588.25 588.000 +4.500

MTBE (1) PHALA00 805.75–806.25 806.000 +21.000

Naphtha physical PAAAM00 512.50–513.00 512.750 +5.500

Jet kerosene PJABA00 664.75–665.25 665.000 +4.000

Diesel 10 ppm AAJUS00 620.00–620.50 620.250 +6.000

Gasoil 50 ppm AAUQC00 608.75–609.25 609.000 +4.250

Gasoil 0.1% AAYWT00 601.75–602.25 602.000 +3.500

1% fuel oil PUAAP00 347.75–348.25 348.000 +1.750

3.5% fuel oil PUABC00 340.50–341.00 340.750 +4.250

3.5% 500 CST fuel oil PUAGN00 328.50–329.00 328.750 +4.250

380 CST PUAYW00 344.00–345.00 344.500 +1.000

1) MTBE FOB Amsterdam-Rotterdam-Antwerp

Platts Euro denominated product assessments, Dec 9

Mid Change

Cargoes CIF NWE/basis ARA (€/mt) (PGA page 1116)

Nap phy AAQCE00 416.03–416.43 416.230 +0.512Jet AAQCF00 540.07–540.48 540.274 -2.091

Cargoes FOB NWE (PGA page 1116)

1% AAQCG00 278.49–278.90 278.695 -1.635

Mid Change

Barges FOB Rotterdam (€/mt) (PGA page 1118)

Prem unl AAQCH00 488.72–489.13 488.925 +2.05710 ppm AAQCI00 499.40–499.80 499.597 +0.126Gasoil 0.1% AAYWY00 484.70–485.10 484.897 -1.7673.50% AAQCK00 274.27–274.67 274.466 +0.8443.50% 500 CST PUAGO00 264.60–265.00 264.801 +0.937

Mid Change

Conventional cargoes NY harbor (€¢/gal) (PGA pages 1350 & 1450)

Unleaded 87 AAPYV00 144.27–144.35 144.309 -1.414Unleaded 89 AAPYW00 154.02–154.10 154.056 -1.189Unleaded 93 AAPYX00 168.63–168.71 168.667 -0.865No. 2 AAPYY00 153.34–153.42 153.379 -0.914

Euro/US$ forex rate: 1.2415 .Platts Euro denominated European & US product assessments are based on market values and a Euro/US$ forex rate at 4:30 P M local London time.


11/37




New York/Boston, Dec 9 (PGA page 152)

Mid Change Mid Change Mid Change

New York

Cargo (¢/gal) RVP Barge (¢/gal) RVP Cargo ex-duty (¢/gal)* RVP

Unl 87 AAMHG00 178.65–178.75 178.700 +1.110 AAMHGRV 15.0 AAMIT00 177.66–177.76 177.710 +1.100 AAMITRV 15.0 AASAA00 171.26–171.36 171.310 +1.000 AASAARV 15.0Unl 89 AAMIW00 190.75–190.85 190.800 +1.110 AAMIWRV 15.0 AAMHJ00 189.76–189.86 189.810 +1.100 AAMHJRV 15.0 AASAB00 183.34–183.44 183.390 +1.000 AASABRV 15.0Unl 93 AAMIZ00 208.89–208.99 208.940 +1.110 AAMIZRV 15.0 AAMHM00 207.91–208.01 207.960 +1.100 AAMHMRV 15.0 AASAC00 201.46–201.56 201.510 +1.000 AASACRV 15.0CBOB AAWBK00 173.29–173.39 173.340 +0.750 AAWBKRV 15.0 AAWBL00 172.31–172.41 172.360 +0.750 AAWBLRV 15.0 AASAD00 165.91–166.01 165.960 +0.650 AASADRV 15.0Prem CBOB AAWLD00 206.39–206.49 206.440 +0.860 AAWLDRV 15.0 AAWLC00 205.41–205.51 205.460 +0.850 AAWLCRV 15.0 AASAE00 198.96–199.06 199.010 +0.750 AASAERV 15.0Unl RBOB AAVKS00 173.29–173.39 173.340 +1.050 AAVKSRV 15.0 AAMGV00 172.31–172.41 172.360 +1.200 AAMGVRV 15.0 AASAF00 165.91–166.01 165.960 +0.950 AASAFRV 15.0Prem RBOB AAVKT00 206.39–206.49 206.440 +0.860 AAVKTRV 15.0 AAMGY00 205.41–205.51 205.460 +0.850 AAMGYRV 15.0 AASAG00 198.96–199.06 199.010 +0.750 AASAGRV 15.0Jet fuel PJAAX00 208.05–208.15 208.100 +1.550 PJAAW00 209.05–209.15 209.100 +1.550LS jet kero PJABK00 218.30–218.40 218.350 +1.800 PJABJ00 219.30–219.40 219.350 +1.800ULS kero AAVTH00 236.30–236.40 236.350 +1.800 AAVTI00 237.30–237.40 237.350 +1.800

No. 2 POAEH00 191.30–191.40 191.350 +3.050 POAEG00 192.30–192.40 192.350 +3.050

ULSD AATGW00 213.80–213.90 213.850 +5.800 AATGX00 213.80–213.90 213.850 +5.800

ULS heating oil AAXPX00 211.350 +6.550

($/barrel) 1s strip ($/barrel) Differential vs 1s strip ($/barrel)No. 6 0.3% S hi pr PUAAE00 73.39–73.41 73.400 -0.140 AAUGA00 18.37–18.39 18.380No. 6 0.3% S lo pr PUAAB00 74.89–74.91 74.900 -0.140 AAUGB00 19.87–19.89 19.880

No. 6 0.7% S max PUAAH00 58.74–58.76 58.750 -0.140 AAUGC00 3.72–3.74 3.730No. 6 1% S max PUAAO00 55.24–55.26 55.250 -0.140 AAUGG00 55.01–55.03 55.020 +0.250 AAUGD00 0.22–0.24 0.230No. 6 2.2% S max PUAAU00 54.49–54.51 54.500 -0.040 AAUGE00 -0.53–-0.51 -0.520No. 6 3.0% S max PUAAX00 54.34–54.36 54.350 -0.040 AAUGF00 -0.68–-0.66 -0.670No. 6 1.0% S max FOB AAWLG00 54.89–54.91 54.900 -0.140 AAWLG20 -0.13–-0.11 -0.120Fuel oil RMG 380 AAWLF00 56.34–56.36 56.350 -0.140 AAWLF20 1.32–1.34 1.330No. 6.1 S max pap bal M AARZS00 55.09–55.11 55.100 +0.250

No. 6 1.0% S pap 1st M PUAXD00 54.70–54.80 54.750 +0.250

No. 6 1.0% S pap 2nd M PUAXF00 54.90–55.00 54.950 +0.250

No. 6 1.0% S pap qtrly PUAXG00 54.90–55.00 54.950 +0.250

*These assessments reflect gasoline cargoes sold on a delivered, ex-duty basis New York, excluding import duty and import taxes/fees.

Boston

Cargo (¢/gal)

Unl RBOB (Boston) AAVPV00 176.04–176.14 176.090 +0.800LS jet/kero (Boston) PJABL00 220.80–220.90 220.850 +1.800ULS kero (Boston) AAVTJ00 238.80–238.90 238.850 +1.800

No.2 (Boston) POAEA00 196.30–196.40 196.350 +3.050ULSD (Boston) AATHD00 215.80–215.90 215.850 +5.800

($/barrel)

No. 6 2.2% S max (Bstn) PUAWN00 55.34–55.36 55.350 -0.040

USAC CPL Linden*, Dec 9 (PGA page 410)

(¢/gal) Mid Change Cycle

Jet kero 54 AAXPV00 209.100 +1.550 AAXPVCY 66ULS heating oil AAXPU00 211.350 +6.550 AAXPUCY 65

ULSD AAXPW00 213.850 +6.050 AAXPWCY 65*Assessments reflect shipments on the next full pipeline cycle after the prompt cycle

U.S. Buckeye pipeline, Dec 9 (PGA page 310)

(¢/gal) Mid Change RVP

Unl RBOB AAMHB00 172.31–172.41 172.360 +1.200 AAMHBRV 15.0Prem RBOB AAMHZ00 205.41–205.51 205.460 +0.850 AAMHZRV 15.0CBOB AAPSY00 172.31–172.41 172.360 +0.750 AAPSYRV 15.0CBOB prem AAPSZ00 205.41–205.51 205.460 +0.850 AAPSZRV 15.0No. 2 AAJNP00 192.30–192.40 192.350 +3.050

ULSD AATHF00 213.80–213.90 213.850 +5.800

Jet fuel AAJNL00 209.05–209.15 209.100 +1.550

LS jet/kero AAJNN00 219.30–219.40 219.350 +1.800

(¢/gal) Mid Change RVP

Laurel

Unl CBOB AAUAS00 172.06–172.16 172.110 +0.750 AAUASRV 15.0Prem CBOB AAUAT00 205.16–205.26 205.210 +0.850 AAUATRV 15.0Unl RBOB AASSM00 172.06–172.16 172.110 +1.200 AASSMRV 15.0Prem RBOB AASSN00 205.16–205.26 205.210 +0.850 AASSNRV 15.0

All RVP references are after ethanol


12/37




NEW

Chicago pipeline, Dec 9 (PGA page 160)

(¢/gal) Mid Change RVPUnleaded 87 PGACR00 162.91–163.01 162.960 +5.850 PGACRRV 15.0Unleaded 89 PGAAX00 182.51–182.61 182.560 +5.850 PGAAXRV 15.0Prem. unl 91 PPASQ00 211.91–212.01 211.960 +5.850 PPASQRV 15.0

CBOB AAREL00 161.91–162.01 161.960 +5.850 AARELRV 15.0PBOB AAUEU00 216.91–217.01 216.960 +4.850 AAUEURV 15.0RBOB PPARH00 166.91–167.01 166.960 +4.850 PPARHRV 15.0Jet fuel PJAAF00 228.55–228.65 228.600 +2.800ULSD AATHA00 199.30–199.40 199.350 -1.200ULS No. 1 PJACD00 244.30–244.40 244.350 -1.200

Group Three, Dec 9 (PGA page 160)

(¢/gal) Mid Change RVPSub-octane AAXIX00 159.91–160.01 159.960 +3.100 AAXIXRV 15.0Prem. unleaded PGABD00 198.66–198.76 198.710 +3.100 PGABDRV 15.0ULSD AATHB00 197.10–197.20 197.150 +1.150

Jet fuel PJAAI00 212.30–212.40 212.350 +3.550ULS No. 1 PJACB00 252.10–252.20 252.150 +1.150

U.S. Gulf Coast, Dec 9 Mid Change Mid Change

(PGA page 156)

Waterborne (¢/gal) RVP Pipeline (¢/gal) Cycle RVPUnl 87 PGACU00 161.61–161.71 161.660 +3.550 PGACURV 13.5 PGACT00 159.86–159.96 159.910 +3.550 PGACTCY 69 PGACTRV 13.5Unl 89 PGAAZ00 168.03–168.13 168.080 +3.270 PGAAZRV 13.5 PGAAY00 166.28–166.38 166.330 +3.270 PGAAYCY 69 PGAAYRV 13.5Prem unl 93 PGAIX00 177.66–177.76 177.710 +2.850 PGAIXRV 13.5 PGAJB00 175.91–176.01 175.960 +2.850 PGAJBCY 69 PGAJBRV 13.5CBOB 87 AAWES00 157.41–157.51 157.460 +2.850 AAWESRV 13.5 AARQU00 155.66–155.76 155.710 +2.850 AARQUCY 69 AARQURV 13.5CBOB 93 AAWET00 177.56–177.66 177.610 +1.750 AAWETRV 13.5 AARQV00 175.81–175.91 175.860 +1.750 AARQVCY 69 AARQVRV 13.5Jet/kero 54 PJABM00 189.80–189.90 189.850 -2.950 PJABO00 188.05–188.15 188.100 -2.950 PJABOCY 69

Jet/kero 55 PJABN00 193.30–193.40 193.350 -2.950 PJABP00 191.55–191.65 191.600 -2.950 PJABPCY 69ULS kero AAVTK00 204.05–204.15 204.100 -2.950 AAVTL00 202.30–202.40 202.350 -2.950 AAVTLCY 69ULSD AATGZ00 192.80–192.90 192.850 +2.600 AATGY00 190.55–190.65 190.600 +2.600 AATGYCY 69No. 2 POAEE00 187.05–187.15 187.100 +7.300 POAED00 173.30–173.40 173.350 +7.300 POAEDCY 69ULS heating oil AAXFD00 185.80–185.90 185.850 +2.800 AAXFDCY 69RBOB 83.7 AAMFB00 157.66–157.76 157.710 +3.350 AAMFBCY 69 AAMFBRV 13.5RBOB 91.4 AAMNG00 175.86–175.96 175.910 +0.800 AAMNGCY 69 AAMNGRV 13.5Atl. CBOB 87 AAWRV00 155.66–155.76 155.710 +2.850 AAWRVCY 69 AAWRVRV 13.5Atl. CBOB 93 AAWRW00 175.81–175.91 175.860 +1.750 AAWRWCY 69 AAWRWRV 13.5 Mid Change

($/barrel) Differential vs 3S strip ($/barrel) 3S strip ($/barrel)Slurry oil PPAPW00 53.59–53.61 53.600 +0.070 AAUGS00 0.89–0.91 0.900 -0.080No. 6 1.0% S 6 API PUAAI00 57.24–57.26 57.250 +0.020 AAUGT00 4.54–4.56 4.550 -0.130No. 6 3.0% S PUAFZ00 52.54–52.56 52.550 +0.120 AAUGU00 -0.16–-0.14 -0.150 -0.030 AAUGW00 52.69–52.71 52.700 +0.150RMG 380 PUBDM00 53.81–53.83 53.820 +0.040 AAUGV00 1.11–1.13 1.120 -0.110No. 6 3.0% S pap bal M AARZT00 52.69–52.71 52.700 +0.150No. 6 3.0% S pap. 1st M PUAXJ00 52.50–52.60 52.550 +0.250No. 6 3.0% S pap. 2nd M PUAXL00 52.80–52.90 52.850 +0.250No. 6 3.0% S pap. qtrly PUAXN00 52.80–52.90 52.850 +0.250

FOB Cargo (¢/gal) FOB Cargo ($/mt)Export ULSD AAXRV00 188.923 +0.947 AAXRW00 591.141 +2.963 (PGF page 760)

Waterborne (¢/gal) Diff vs USGC waterbourne 87 (¢/gal) Diff vs USGC pipeline 87 (¢/gal)MTBE PHAKX00 237.00–237.10 237.050 +5.900Alkylate AAXBA00 197.990 +3.690 AAFIE00 36.000 0.000 AAXBD00 37.750 0.000Raffinate AAXBB00 135.240 +3.690 AAJMU00 -26.750 0.000 AAXBE00 -25.000 0.000Reformate AAXBC00 223.740 +3.690 AAJMV00 61.750 0.000 AAXBF00 63.500 0.000FOB Naphha Cargo AAXJP00 151.61–151.71 151.660 +4.050FOB Naphha Cargo ($/mt) AAXJU00 530.79–530.89 530.840 +14.180Naphtha PAAAC00 149.61–149.71 149.660 +4.050 AAJNC00 -12.000Naphtha barge AALPG00 150.61–150.71 150.660 +4.050 AASGZ00 -11.000Heavy naphtha AAKWL00 152.36–152.46 152.410 +3.550 AASHC00 -9.250Heavy naphtha barge AALPI00 153.36–153.46 153.410 +3.550 AASHD00 -8.250Paraffinic naphtha (barge) ($/mt) AAYEU00 464.90–465.00 464.950 -5.500Paraffinic naphtha diff.** AAYEW00 3.750 -2.000FOB LSR Naphtha Parcel AAXQK00 126.000 -1.500FOB LSR Naphtha Parcel ($/mt) AAXQM00 505.260 -6.020

FOB LSR Naphtha Parcel diff** AAXQN00 3.000 -2.000LSR = Light Straight Run. **= Diff to Mont Belvieu non-Targa natural gasoline.


13/37




U.S. Gulf Coast pipeline cycles, Dec 9 (PGA page 156)

(¢/gal) Pipeline Mid Cycle RVP

Gasoline

Unl-87 AAELC00 159.86–159.96 159.910 AAELCCY 69 AAELCRV 13.5

Unl-87 AAELD00 159.91–160.01 159.960 AAELDCY 70 AAELDRV 13.5Unl-87 AAELE00 160.26–160.36 160.310 AAELECY 71 AAELERV 13.5Unl-87 AAELF00 160.61–160.71 160.660 AAELFCY 72 AAELFRV 13.5Unl-87 AAELG00 160.98–161.08 161.030 AAELGCY 1 AAELGRV 13.5Unl-87 AAELH00 161.33–161.43 161.380 AAELHCY 2 AAELHRV 13.5Prem 93 AAELI00 175.91–176.01 175.960 AAELICY 69 AAELIRV 13.5Prem 93 AAELJ00 175.96–176.06 176.010 AAELJCY 70 AAELJRV 13.5Prem 93 AAELK00 176.31–176.41 176.360 AAELKCY 71 AAELKRV 13.5Prem 93 AAELL00 176.66–176.76 176.710 AAELLCY 72 AAELLRV 13.5Prem 93 AAELM00 177.03–177.13 177.080 AAELMCY 1 AAELMRV 13.5Prem 93 AAELN00 177.38–177.48 177.430 AAELNCY 2 AAELNRV 13.5

Distillates

Jet kero AAELQ00 188.05–188.15 188.100 AAELQCY 69Jet kero AAELR00 190.55–190.65 190.600 AAELRCY 70Jet kero AAELS00 191.80–191.90 191.850 AAELSCY 71Jet kero AAELT00 193.05–193.15 193.100 AAELTCY 72

Jet kero AAELU00 193.62–193.72 193.670 AAELUCY 1Jet kero AAELV00 194.12–194.22 194.170 AAELVCY 2ULSD AAUJV00 190.55–190.65 190.600 AAUJVCY 69ULSD AAUJW00 192.05–192.15 192.100 AAUJWCY 70ULSD AAUJX00 193.05–193.15 193.100 AAUJXCY 71ULSD AAUJY00 194.05–194.15 194.100 AAUJYCY 72ULSD AAUJZ00 194.37–194.47 194.420 AAUJZCY 1ULSD AAUKD00 194.67–194.77 194.720 AAUKDCY 2No. 2 AAELW00 173.30–173.40 173.350 AAELWCY 69No. 2 AAELX00 174.05–174.15 174.100 AAELXCY 70No. 2 AAELZ00 174.55–174.65 174.600 AAELZCY 71No. 2 AAEMA00 175.05–175.15 175.100 AAEMACY 72No. 2 AAEMB00 174.87–174.97 174.920 AAEMBCY 1No. 2 AAEMC00 175.37–175.47 175.420 AAEMCCY 2ULS heating oil AAXFJ00 185.80–185.90 185.850 AAXFJCY 69ULS heating oil AAXFK00 187.30–187.40 187.350 AAXFKCY 70ULS heating oil AAXFL00 188.30–188.40 188.350 AAXFLCY 71

ULS heating oil AAXFM00 189.30–189.40 189.350 AAXFMCY 72ULS heating oil AAXFN00 189.37–189.47 189.420 AAXFNCY 1ULS heating oil AAXFP00 189.87–189.97 189.920 AAXFPCY 2

West Coast pipeline, Dec 9 (PGA page 158)

Mid Change RVP

California

(¢/gal) Los Angeles

Unl 84 AAUHA00 161.16–161.26 161.210 -1.650 AAUHARV 13.5Prem unl 88.5 PGABG00 181.16–181.26 181.210 -1.650 PGABGRV 13.5CARBOB unl AAKYJ00 162.16–162.26 162.210 -1.650 AAKYJRV 12.5CARBOB prem AAKYL00 170.16–170.26 170.210 -1.650 AAKYLRV 12.5Jet fuel PJAAP00 200.30–200.40 200.350 +2.800ULS (EPA) diesel POAET00 198.55–198.65 198.600 +4.300CARB diesel POAAK00 199.55–199.65 199.600 +4.300

($/mt)

180 CST PUAWR00 409.95–410.05 410.000 +0.500380 CST PUAWX00 357.45–357.55 357.500 +0.500

(¢/gal) Differential to NYMEX

CARBOB AANVX00 -9.80/-9.70 -9.750 -2.750Jet fuel AANVY00 -8.05/-7.95 -8.000 0.000ULS (EPA) diesel AANVZ00 -9.80/-9.70 -9.750 +1.500CARB diesel AANWA00 -8.80/-8.70 -8.750 +1.500CARBOB paper 1-mo AAKYR00 -4.05/-3.95 -4.000 -2.000CARBOB paper 2-mo AAKYS00 12.95/13.05 13.000 -1.350

(¢/gal) San FranciscoUnl 84 PGADG00 153.91–154.01 153.960 -1.900 PGADGRV 14.0Prem unl 88.5 PGABO00 173.91–174.01 173.960 -1.900 PGABORV 14.0CARBOB unl AAKYN00 154.91–155.01 154.960 -1.900 AAKYNRV 14.0CARBOB prem AAKYP00 162.91–163.01 162.960 -1.900 AAKYPRV 14.0Jet Fuel PJABC00 200.30–200.40 200.350 +2.800ULS (EPA) diesel POAEY00 198.30–198.40 198.350 +2.800CARB diesel POAAL00 199.30–199.40 199.350 +2.800

($/mt)

180 CST PUBDA00 465.95–466.05 466.000 +0.500380 CST PUBCY00 425.95–426.05 426.000 +0.500

Other West

(¢/gal) Phoenix

CBG/RBOB unl AADDP00 163.91–164.01(a) 163.960 +1.100 AADDPRV 8.0CBG/RBOB prem PPXDJ00 171.91–172.01(b) 171.960 +1.100 PPXDJRV 8.0

Northwest

(¢/gal) Seattle

Unl 84 AAXJE00 151.26–151.36 151.310 +0.100 AAXJERV 15.0Prem unl 90 AAXJF00 171.26–171.36 171.310 +0.100 AAXJFRV 15.0Jet fuel PJABB00 200.30–200.40 200.350 +2.800ULS (EPA) diesel AAUEX00 199.15–199.25 199.200 +1.300

($/mt)

180 CST PUAWT00 479.45–479.55 479.500 -10.000380 CST PUAWZ00 414.45–414.55 414.500 -10.000

(¢/gal) Portland

Unl 84 AAXJC00 152.41–152.51 152.460 +0.100 AAXJCRV 15.0Prem unl 90 AAXJD00 172.41–172.51 172.460 +0.100 AAXJDRV 15.0ULS (EPA) diesel AAUEY00 200.30–200.40 200.350 +1.300

($/mt)

180 CST PUAWV00 537.95–538.05 538.000 +0.500380 CST PUAXB00 502.95–503.05 503.000 +0.500(a)=84 octane; (b)=88.5 octane

West Coast waterborne, Dec 9 (PGA page 158)

Mid Change

(¢/gal)

Unl 87 PGADI00 160.66–160.76 160.710 -1.650Jet fuel PJABI00 199.30–199.40 199.350 +2.800

($/barrel)

No. 6 0.5% S PUAGD00 59.29–59.31 59.300 +0.080No. 6 1.0% S PUAAQ00 58.79–58.81 58.800 +0.080No. 6 2.0% S AABGP00 56.29–56.31 56.300 +0.080


14/37




Shale Value Chain assessments, Dec 9 (PGN page 590)

¢/gal Change $/MMBtu Change

Gulf Coast ethane fractionation spread SCAAJ00 -5.726 +0.818 SCAAD00 -0.861 +0.123

Gulf Coast E/P mix fractionation spread SCAAG00 -6.726 +0.818 SCAAA00 -1.011 +0.123

E/P mix Midcontinent to Rockies SCAAH00 -6.626 +0.718 SCAAB00 -0.996 +0.108

fractionation spread

E/P mix Midcontinent fractionation spread SCAAI00 -6.526 +0.885 SCAAC00 -0.981 +0.133

National raw NGL basket price SCAAL00 50.798 +1.270 SCAAF00 5.524 +0.159

National composite fractionation spread SCAAK00 27.822 +0.838 SCAAE00 2.069 +0.094

The methodology for these assessments is available at:

www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/shale-value-chain.pdf

Latin America, FOB , Dec 9 (PGA page 164)

($/barrel) Mid Change

Argentina

Gasoline84 PPASJ00 67.840–67.86 67.850 +1.490

Gasoil* POAFH00 84.45–84.47 84.460 +3.060FO 0.7% S PPARI00 57.27–57.29 57.280 -0.140

Brazil

FO 0.5-0.6% S PPARJ00 59.52–59.54 59.530 -0.140

Colombia

FO 1.75% S PPARO00 50.58–50.60 50.590 +0.120

Ecuador

Naphtha AAWVW00 52.32–52.34 52.330 +1.490FO 2.2% S PPASL00 50.96–50.98 50.970 -0.140

Peru

Naphtha PAAAS00 56.32–56.34 56.330 +1.490FO 2.0% S PPARL00 51.46–51.48 51.470 -0.140FO 1.6% S PPARK00 53.36–53.38 53.370 -0.140

*Argentina gasoil is assessed CIF Buenos Aires

Atlantic resid/contract cargoes posted prices, Dec 9 (PGA page 564)

($/barrel) No. 4 Fuel No. 6 Fuel

Global

Boston 0.5% PRALB00 104.00 PRAMN00 96.10Boston 1.0% PRALD00 94.70 PRAMD00 80.50Boston 2.2% PRAMI00 66.75Portland 1.5% PRAKV00 94.90 PRALX00 70.70

Caribbean product postings (¢/gal), Dec 9 (PGA page 466)

Prices effective Dec 2 Petrotrin

Avgas 100/130 PTAHQ09 650.0095 Oct. unl PTADR00 196.0092 Oct. unl AANTB00 187.0083 Oct. unl AAOCF09 172.00Dpk/jet PTAEP09 211.00

45 cet 0.5%S gasoil PTADQ09 206.00Heavy fuel oil ($/barrel) PTAEM09 70.00

Caribbean cargoes, FOB, Dec 9 (PGA page 162)

($/mt) Mid Change

Naphtha PAAAB00 514.54–514.61 514.575 +14.340Jet kerosene PJAAD00 644.51–644.57 644.540 -9.885Gasoil POAAU00 579.16–579.23 579.195 +22.265

(¢/gal)

Naphtha PAAAB10 145.35–145.37 145.360 +4.050Jet kerosene PJAAD10 192.39–192.41 192.400 -2.950Gasoil POAAU10 189.89–189.91 189.900 +7.300

($/barrel)

No. 6 2.0% S PUAAS00 50.89–50.91 50.900 +0.070No. 6 2.8% S PUAAV00 45.89–45.91 45.900 +0.070

Gas liquids (¢/gal), Dec 9 (PGA page 780)

Mid Change Mont BelvieuEthane/propane PMUDA05 16.20–16.30 16.250 +1.250Ethane/propane Mo.2 AAWUB00 16.60–16.70 16.650 +1.150

Ethane purity PMUDB05 17.20–17.30 17.250 +1.250Ethane mo. 2 AAWUC00 17.60–17.70 17.650 +1.150Propane PMAAY00 52.20–52.30 52.250 +2.250Propane LST PMABQ00 52.45–52.55 52.500 +2.500Propane mo. 2 AAWUD00 53.35–53.45 53.400 +2.150Propane mo. 2 LST AAWUE00 53.60–53.70 53.650 +2.400Normal butane non-LST PMAAI00 72.95–73.05 73.000 0.000Butane LST PMABR00 68.95–69.05 69.000 0.000N-Butane mo. 2 AAWUF00 73.35–73.45 73.400 -0.350Isobutane PMAAB00 73.20–73.30 73.250 +0.500Isobutane LST AAIVD00 73.20–73.30 73.250 +0.500Natural gasoline LST AAIVF00 124.20–124.30 124.250 +0.750Natural Targa PMABW05 122.20–122.30 122.250 +0.500Natural non-Targa PMABY05 122.95–123.05 123.000 +0.500Nat gasoline mo. 2 non-Targa AAWUG00 124.35–124.45 124.400 +0.650 ConwayEthane/propane PMAAO00 16.20–16.30 16.250 +1.250

Propane PMAAT00 51.10–51.20 51.150 +1.150Normal butane non-LST PMAAD00 79.45–79.55 79.500 +1.250Isobutane PMAAA00 82.20–82.30 82.250 -0.750Natural gasoline PMAAQ00 124.85–124.95 124.900 +0.900 Other hubsBushton propane AALBE00 51.10–51.20 51.150 +1.150Hattiesburg propane AALBC00 55.20–55.30 55.250 +2.250River natural gasoline AALBG00 130.95–131.05 131.000 +0.500 ($/mt)Waterborne FOB Houston propane AAXIM00 303.99–304.01 304.000 +25.890FOB Houston propane vs. Mt Belvieu AAXIO00 28.65–28.67 28.660 +14.330VLGC freight rates Houston to NWE AAXIQ00 69.99–70.01 70.000 0.000VLGC freight rates Houston to Japan AAXIS00 219.99–220.01 220.000 0.000 (¢/gal)Waterborne FOB Houston propane AAXIN00 58.34–58.36 58.350 +4.970FOB Houston propane vs. Mt Belvieu AAXIP00 5.45–5.55 5.500 +2.750VLGC freight rates Houston to NWE AAXIR00 13.43–13.44 13.435 0.000VLGC freight rates Houston to Japan AAXIT00 42.22–42.24 42.230 0.000


15/37



Europe on bull streak

European jet price differentials continued to rise Tuesday on

sustained buying interest into Le Havre, despite a healthy

number of cargoes heard offered.Northwest Europe CIF cargoes were assessed at a $67/

mt premium to ICE gasoil, up 75 cents/mt on the day, and

up from a $61.75/mt premium December 1.

Opportunities to fix marginal barrels to Europe from

the Persian Gulf for next month arrival were, on balance,

looking more appealing as pressure in the Singapore market

continued to ease.

FOB Arab Gulf jet premiums to Mean of Platts Arab

Gulf (MOPAG) fell to $1.28/barrel, their lowest level since

July 29, while freight for 65,000 mt clean vessels on the

PG-UKC route was also looking more appealing at $27.69/

mt, or $1.8 million lump sum.The rise in the swaps and future market and shift to

contango on the jet forward curve was also more favorable

for front-month arrival of spot cargoes.

In the ARA barge market, airlines continued to offer

additional term length. Good appetite for barges bolstered

differentials, however.

Asian traders watching Japan

Market participants continued to stay on sidelines awaiting for a

clearer picture on the Asian jet fuel/kerosene market Tuesday.

Many are expecting to see a surge in demand for

kerosene from Japan over the next few weeks as winter has

set in in the country.

This week's Petroleum Association of Japan data on

Japaneses kerosene stocks will be watched closely to see if

demand has picked up.

Jet fuel/kerosene flows from North Asia to the US have

eased from October and November, said traders. The flows

to the US earlier created some support for the market,

which has eased now.

Much of the arbitraged flow moved to the US Gulf Coast,

sources said.

Reflecting weakness, the FOB Singapore jet fuel/

kerosene cash differential fell Tuesday, assessed at a 20

cents/b premium to Mean of Platts. That was down from a

94 cents/b premium November 18.

In tenders, Tanzania's PIC issued a spot buy tender for15,065 mt of jet fuel and 1,150 mt of kerosene for delivery

into Dar es Salaam over February 17-19. The tender closes

December 16 with validity expiring 15 days later.

PIC last bought via tender 21,526 mt of jet fuel and

725 mt of kerosene for January 17-19 delivery into Dar es

Salaam at a premium of $47.70/mt to Mean of Platts Arab

Gulf jet fuel/kerosene assessments for both jet fuel and

kerosene, on a CFR basis from Addax Energy SA.

Vietnam Air Petrol Co. is seeking as much as 486,000

m of jet fuel via a 2015 term tender into the various

airports in Vietnam. The term tender closed late Monday.

Resid

Europe stronger on export demand

Northwest European HSFO barges strengthened Tuesday as

arbitrage players scrambled to secure volumes to send to

Singapore.

In addition to the Saiq VLCC heard to be on subjects,

loading December 14 on the Rotterdam-Singapore route,

a fresh VLCC fixture – the Front Queen – from Litasco was

seen on shipbroker's subjects list Tuesday. Cargill declined

to comment, but was active in Platts Market on Close HSFO

barge assessment process Tuesday, buying 38,000 mt of

3.5% FOB Rotterdam barges.

"The arb is open, so despite good supplies in Europe,

it's taking the pressure off a bit ... expect quite a few

fixtures in December," one trader said.

As a result of this strong buying interest, the 3.5% FOB

Rotterdam barges climbed to a $2.75/mt premium over the

front-month swap.

With significant length in the east Mediterranean and

little uncovered demand in the west Mediterranean, the

physical Med/North softened $1/mt to minus $7.75/mt.

High sulfur fuel oil values in Singapore continued to

head south, dragged down mainly by steep declines in

Western crude benchmarks and in anticipation of the arrival

of arbitraged cargoes.India's IOC has re-issued its tender for up to 35,000 mt

of 380 CST HSFO with a maximum sulfur content of 4.5%

for loading December 29-31. The tender closes December

11 and its validity expires a day later.

The state-owned refiner had canceled its tender for a

similar cargo loading over December 20-22 due to a

refinery problem.

The IOC had last sold a similar cargo for loading over

December 8-10 from Chennai to Glencore at an unknown

discount to the IOC formula on an FOB basis.

South Korea's East-West Power has issued a buy tender

for 30,000 mt of 540 CST HSFO with maximum sulfur contentof 2.5%, for delivery over January 5-9. The tender closes

December 12, according to a tender document seen by Platts.

EWP last bought via tender 50,000 mt of similar

product for August 16-20 delivery into Ulsan from Hyundai

Corporation at a $23.69/mt premium to the August average

of MOPS 180 CST HSFO assessments on a CFR basis.

Arab Gulf-Europe jet arb open?

Source: Platts

($/mt)

-20

0

20

40

60


Northwest Europe/Arab Gulf jet spreadArab Gulf-UKC LR1 rate

(continued from page 8)


16/37



Feedstocks

NWE naphtha contango steady

The European naphtha market was steady Tuesday with

traders cautious amid volatile crude futures, theapproaching year-end, and ample supply of material in

Europe, Asia and the US, sources said.

"The market is quieter...with the volatility, those who

do not have to buy or sell prefer to sit tight and wait," a

trader said.

In the paper market, the January CIF NWE crack swap

was at minus $9.05/barrel versus, from minus $9.10/b

Monday, the December/January CIF NWE contango narrowed

to $4.25/mt from $5.25/mt, and the January/February

contango was unchanged at $4.25/mt.

"The widening of the paper contango [Monday]

explains why the naphtha stays in tank," an end-user said."There is some production going to Asia from the Med.

So, the Med looks rather tight, but there is still plenty of

naphtha around in NWE."

Both the CIF NWE propane cargo and the CIF butane

cargo fell Monday to their lowest level in 5-1/2 years, Platts

data showed.

Trading sources partly attributed the current weakness

of the northwest European naphtha market to steam

crackers' alternative feedstock – LPG – remaining

exceptionally cheap for the time of year, meaning

petrochemical end-users were using both.

On Monday, the discount of front-month CIF propane to the

equivalent CIF NWE naphtha swap was assessed at a $128.50/

mt discount, compared with a five-year average of a $28/mt

premium. The discount was pegged at $125/mt Tuesday.

A lack of heating demand has left olefin producers as

the main outlet for a propane supply overhang caused by

increasing US exports into Northwest Europe.

Similarly, muted winter gasoline blending demand has

struggled to support regional butane values, while cracker

outages, including Shell's 900,000 mt/year Moerdijk

steam cracker and maintenance at Valero's 270,000 b/d

Pembroke, have stripped significant demand for the product.

However, not everyone had a bearish outlook on naphtha.

"The arb is still opened from the Med to Asia, the Med is

balanced, more or less, and I do not see the north European

market that long or at least getting longer," a trader said.

"Gasoline blending demand has been slow. So, if thisimproves I think the [naphtha] market will feel much better,"

another trader said.

According to yet another trader, there was a bit more

demand for heavy naphtha grade N+A.

"You can try to send your [N+A] cargo to the US

because this arbitrage is workable," he said.

The front-month mogas/naphtha spread – the premium of

the front-month Eurobob gasoline swap to the equivalent CIF

NWE naphtha swap – was little changed around $70/mt.

Gas liquids

Asian weakness lures buyers

Asian LPG prices weakened further Tuesday, pounded by the

slide in crude futures.

However, low prices were attracting some demand from

Northeast Asia, especially the petrochemical sector.

The price of propane cargoes for delivery along the

Singapore-Japan route 30-45 days forward, or in H1

January, was assessed down $8/mt at $467/mt, the

lowest since July 15, 2009.

The discount between the January FEI propane swap

and Mean of Platts Japan naphtha assessments widened

to $61/mt from $59/mt. This prompted interest from the

petrochemical sector, with Taiwan's Formosa Petrochemical

Corp. buying via tender 22,000 mt of propane at a discount

in the low $100s/mt to January Mean of Platts Japan for

delivery over January 11-31, DES Mailiao.

The tender attracted five offers, a trade source said.

In contrast, Formosa last bought via tender 22,000 mt of

propane for October 16-25 delivery DES Mailiao at a discount

in the low $70s/mt to the October MOPJ, DES Mailiao.

Another Taiwanese refiner, state-run CPC Corp. issued a

tender seeking a 22,000 mt evenly split parcel for delivery

over January 20-29 ex-ship Shen Ao/and or Kaohsiung.

Tankers

Tight Persian Gulf VLCC tonnage boosts Asia rates

Med Aframax rates again break to the upside

Ex-USGC clean demand on the wane

Persian Gulf-Taiwan clean routes go at premium

East VLCCs spike

Market participants Tuesday said PTT placed on subjects

the Marina with owners option for the Ithaki for a Persian

Gulf-Thailand voyage, loading December 26, at w69 basis

Holiday notice

Platts Oilgram Price Report will not be published onDecember 25 and December 26, 2014, and January 1,2015, because of public holidays.

Platts amended its publication schedule for Friday,December 26, 2014 and not publish any oil assessmentsfrom its offices in the US on that day in observanceof the Christmas holiday. As Platts will also not bepublishing any oil assessments globally December 26,Oilgram Price Report will not be published on that day.

Please submit any comments to [email protected]

and [email protected]. For full details of Plattspublishing schedule and services affected, refer tohttp://www.platts.com/holiday

Correction

In the December 9, 2014 Oilgram Price Report, Volume92, Number 236 (prices effective December 8, 2014),under Product Price Assessments, European Bulk, ULSD10 ppm Cargoes FOB Med basis Italy should haveread 601.00-601.50, Mid, 601.250 and ULSD 10 ppmCargoes CIF Med basis Genoa/Lavera should have read620.25-620.75, Mid, 620.500.


17/37



270,000 mt.

This was a step up from a fixture reported placed on

subjects Monday night, in which SPC was heard to have

placed the Genmar Zeus on subjects for a PG-Singapore

voyage, loading December 25, at w66.75 basis 270,000 mt.

Market sources said owners were not expected toaccept below w70 after w69 was placed on subjects for

PTT's cargo.

"The VLCC tonnage has been trimmed and is short

enough for owners to feel that the market is hot, so there

is

Documents

Oil Gram Price Report