Beruflich Dokumente
Kultur Dokumente
Scott Pruitt faced another bruising day on Capitol Hill as his RBOB +4.74 +4.64 +4.64 -0.99
87 conv +4.84 +4.01
critics tried to show he was closely involved in actions that
Ethanol -1.56 -0.85 -0.85 -1.00
have spawned at least a dozen investigations.
Jet fuel +1.65 +1.90 +3.40 +2.02
ULSD +1.90 +1.70 +3.40 +1.77
Bunker fuel $/t +9.50 +2.00 +7.00
Copyright © 2018 Argus Media group Available on the Argus Publications App
Argus US Products Issue 18-94 | Wednesday 16 May 2018
Portland
NYH less Chicago
Portland less SF CBOB +1.50
RBOB +5.50 ULSD +2.25
ULSD +9.50 Chicago New York
5
Industry
0
US distillate exports at 11-week low: EIA
US gasoline stockpiles slide -5 hh
US jet stocks rise for fourth week: EIA
-10
US crude stocks drop, exports hit record: EIA
EPA chief back on defensive over ethics -15
US ethanol stocks fall, output rises: EIA -20
Brazil hydrous consumption jumps in March 14 Feb 16 Mar 17 Apr 16 May
Fuel imports stuck off Venezuela for payment
83.7 Rbob Colonial cash ¢/USG Colonial ULSD vs Group Three ULSD ¢/USG
240 0
230 -1
220 -2
210 -3
200 -4
hh hh
190 -5
180 -6
170 -7
160 -8
14 Feb 16 Mar 17 Apr 16 May 14 Feb 16 Mar 17 Apr 16 May
Gasoline
and barges equal in value. 93 conv inc duty 9.0 Jun +13.55/+14.45 238.54-239.44 +4.51
Boston waterborne
Regular 9.0 RVP CBOB traded at June Nymex -10.85¢/USG
Reg RBOB R2 Jun +2.88/+3.13 227.87-228.12 +4.74
on Buckeye pipeline, while Laurel CBOB remained 0.25¢/USG
Colonial Linden
stronger than New York Harbor. 87 conv M Cycle 22 9.0 Jun -4.50/-3.60 220.49-221.39 +4.84
Premium RBOB differentials increased by 0.25¢/USG with a 89 conv Cycle 22 9.0 226.62-227.90 +4.73
trade heard at June Nymex +13¢/USG, while the forward curve 93 conv V Cycle 21 9.0 Jun +13.00/+15.00 237.99-239.99 +4.51
was flat. Premium 7.8 and 9.0 RVP CBOB were unchanged at Reg CBOB Cycle 23 9.0 Jun -11.00/-10.50 213.99-214.49
June Nymex +13.5¢/USG and +9.5¢/USG, respectively. Reg RBOB Cycle 22 9.0 Jun +5.50/+6.00 230.49-230.99 +4.76
New York barge
Colonial offline F1 was bid and offered on cycle 24 at June
Reg CBOB dead prompt 7.8 Jun -7.00/-6.50 217.99-218.49 +4.51
Nymex +5¢/USG to +5.75¢/USG, respectively, while prompt
Reg CBOB prompt 7.8 Jun -7.00/-6.50 217.99-218.49 +4.51
cycle 22 was considered stronger. Reg CBOB dead prompt 9.0 Jun -11.00/-10.70 213.99-214.29 +4.66
Colonial offline M2 traded on prompt cycle 22 at June Ny- Reg CBOB prompt 9.0 Jun -11.00/-10.70 213.99-214.29 +4.66
mex -3.6¢/USG and was later bid at June Nymex -4.5¢/USG. Reg RBOB dead prompt R2 Jun +0.25/+0.75 225.24-225.74 +4.61
Colonial offline A2 was unchanged on cycle 23 at June Ny- Reg RBOB prompt R2 Jun +0.25/+0.75 225.24-225.74 +4.74
mex -10.75¢/USG, while the market was in contango. Prem CBOB dead prompt 7.8 Jun +13.25/+13.75 238.24-238.74 +4.51
Prem CBOB prompt 7.8 Jun +13.25/+13.75 238.24-238.74 +4.51
The 3-2-1 Brent crack spread in the US Atlantic coast in-
Prem CBOB dead prompt 9.0 Jun +9.25/+9.75 234.24-234.74 +4.51
creased by $2.0561/bl to $15.6935/bl, the highest margin since
Prem CBOB prompt 9.0 Jun +9.25/+9.75 234.24-234.74 +4.51
late January. Prem RBOB dead prompt R2 Jun +12.75/+13.25 237.74-238.24 +4.76
Prem RBOB prompt R2 Jun +12.75/+13.25 237.74-238.24 +4.76
Gulf coast Buckeye
US Gulf coast gasoline prices continued to trend higher Reg CBOB dead prompt 7.8 Jun -7.00/-6.50 217.99-218.49 +4.51
Reg CBOB prompt 7.8 Jun -7.00/-6.50 217.99-218.49 +4.51
Wednesday as the June RBOB Nymex basis posted gains for a
Reg CBOB dead prompt 9.0 Jun -11.00/-10.70 213.99-214.29 +4.66
third consecutive session.
Reg CBOB prompt 9.0 Jun -11.00/-10.70 213.99-214.29 +4.66
Regional differentials on the other hand, were a mixed bag, Reg RBOB dead prompt R2 Jun +0.25/+0.75 225.24-225.74 +4.61
tempering gains across some grades. Reg RBOB prompt R2 Jun +0.25/+0.75 225.24-225.74 +4.74
Fresh data from the US Energy Information Administration Prem CBOB dead prompt 7.8 Jun +13.25/+13.75 238.24-238.74 +4.51
(EIA) showed gasoline production in the US Gulf coast rebound- Prem CBOB prompt 7.8 Jun +13.25/+13.75 238.24-238.74 +4.51
Prem CBOB dead prompt 9.0 Jun +9.25/+9.75 234.24-234.74 +4.51
Prem CBOB prompt 9.0 Jun +9.25/+9.75 234.24-234.74 +4.51
CME Nymex RBOB Prem RBOB dead prompt R2 Jun +12.75/+13.25 237.74-238.24 +4.76
Price Crack spread Prem RBOB prompt R2 Jun +12.75/+13.25 237.74-238.24 +4.76
Laurel
Month ¢/USG ± Month $/bl
Reg CBOB 9.0 Jun -10.75/-10.45 214.24-214.54 +4.66
Jun 224.99 +4.51 Jun +23.01 Prem CBOB 9.0 Jun +9.25/+9.75 234.24-234.74 +4.51
Jul 224.55 +4.10 Jul +22.75 Reg RBOB R2 Jun +0.25/+0.75 225.24-225.74 +4.74
Aug 223.30 +3.63 Aug +22.44 Prem RBOB R2 Jun +12.75/+13.25 237.74-238.24 +4.76
Gasoline
Gasoline
with bids carrying up to +2¢/USG by the end of the session. Midcontinent ¢/USG
Though no trades were detected, bids and offers for VOC- Basis Differential Price ±
RBOB +14¢/USG and +15¢/USG, respectively, keeping valuations Suboctane V 9.0 prompt Jun -9.75/-9.50 215.24-215.49 +4.14
Weighted average -9.64 215.35
close with Tuesday’s assessed midpoint.
Suboctane V 9.0 any May Jun -9.75/-9.50 215.24-215.49 +4.14
Gasoline line space on Colonial’s 28th cycle saw values 91 conv A 9.0 prompt Suboct V +20.50/+21.00 235.87-236.37 +4.14
hold steady on the day, with trades emerging at -1¢/USG and Chicago
-0.75¢/USG. Reg CBOB 9.0 3rd May Jun -8.50/-8.00 216.49-216.99 +4.01
The production of conventional grade gasoline saw the Reg CBOB 9.0 1st Jun Jul -8.50/-7.50 216.05-217.05 +3.85
87 conv 9.0 3rd May Jun -8.50/-8.00 216.49-216.99 +4.01
largest rise in weekly comparison, with an additional 130,000
87 conv 9.0 1st Jun Jul -8.50/-7.50 216.05-217.05 +3.85
b/d being produced last week, a 7.58pc increase. 89 conv 9.0 226.03-226.53 +4.01
Overall gasoline stockpiles in the region posted a draw as 91 conv 9.0 3rd May 87 +27.00/+27.50 243.74-244.24 +4.01
blending component stocks fell by 2.4mn bl to 27.2mn bl. 91 conv 9.0 1st Jun 87 +27.00/+27.50 243.55-244.05 +3.85
US gasoline exports rose by 344,000 b/d to 925,000 b/d, or Reg RBOB R2 3rd May CBOB +15.00/+15.25 231.74-231.99 +4.64
Reg RBOB R2 1st Jun CBOB +15.00/+15.25 231.55-231.80 +4.48
45.1pc higher than the same week last year amid steady refin-
Prem RBOB R2 3rd May RBOB +27.75/+28.25 259.62-260.12 +4.64
ing rates and falling implied US demand. Chicago BCX
Implied national gasoline demand fell by 2.5pc to 9.5mn Reg CBOB 9.0 3rd May Jun -8.25/-7.75 216.74-217.24 +4.26
b/d, flat to last year. Reg RBOB R2 3rd May CBOB +6.25/+6.75 231.24-231.74 +4.26
Chicago Wolverine
Reg CBOB 9.0 3rd May Jun -8.25/-7.75 216.74-217.24 +4.26
Midcontinent
An open arbitrage from the Gulf coast has put Chicago CBOB
West coast ¢/USG
under pressure, though outright prices maintained upward
Basis Differential Price ±
momentum on the back of higher Nymex futures.
Los Angeles
Third-cycle May CBOB in Chicago was offered at June Ny-
Reg CARBOB 5.99 May Jun +1.50/+2.50 226.49-227.49 -0.99
mex -8.25¢/USG for West Shore, down from similar deals done Weighted average +2.00 226.99
at June Nymex -7.75¢/USG on Tuesday. Cash price hit $2.17/ Reg CARBOB 5.99 Jun Jul +3.50/+4.50 228.05-229.05 +0.85
USG, the highest level since August, 2015. Prem CARBOB 5.99 May CARBOB +12.75/+13.75 239.74-240.74 -0.99
Suboctane 9.0 May Jun +0.25/+1.25 225.24-226.24 -0.99
Chicago CBOB rose to 6.38¢/USG over the Gulf coast
Reg AZRBOB 5.7 May CARBOB +1.50/+2.50 228.49-229.49 -0.99
market, marking an open arbitrage on paper for the second
Prem AZRBOB 5.7 May CARBOB +14.75/+15.75 241.74-242.74 -0.99
straight session. The arbitrage spread is close to the widest San Francisco
level in more than two months. This has led to increased book- Reg CARBOB 5.99 May Jun +8.00/+9.00 232.99-233.99 +3.01
ings on the Explorer pipeline, depressing the Chicago market. Prem CARBOB 5.99 May CARBOB +23.50/+24.50 256.99-257.99 +3.01
San Francisco waterbone
CBOB on the Wolverine pipeline and at the Buckeye Com-
Reg CARBOB 6.0 May Jun +9.50/+10.50 234.49-235.49 +3.01
plex rose to a small premium to the generic West Shore/Bad-
Reg CARBOB ex-RVO 6.0
Jun +5.25/+6.25 230.24-231.24 +3.09
ger market, with a Wolverine deal done at June Nymex -8¢/ May
USG. Portland
Suboctane 7.8 May Jun +13.50/+14.50 238.49-239.49 +4.51
RBOB was relatively stronger, with a regrade deal heard
done at +15¢/USG over CBOB. The regrade value was rebid at
+15¢/USG, against offers a penny higher. RBOB at the Buckeye week, with Group Three V grade fetching 5¢/USG or higher
Complex traded at June Nymex +6.5¢/USG. over the Gulf coast.
In Group Three, prompt V grade traded at June Nymex Total gasoline stocks fell by 3pc to 54.3mn bl during the
-9.5¢/USG and -9.75¢/USG, down by 0.25-0.5¢/USG from Tues- week ended 11 May. Stocks are still higher than year-ago lev-
day. The Group Three arbitrage also became workable this els, data from the Energy Information Administration show.
Gasoline
Gasoline
210 210
hh hh
200
200
190
190
180
170 180
14 Feb 16 Mar 17 Apr 16 May 14 Feb 16 Mar 17 Apr 16 May
Distillates
Distillates
Santos, Brazil USGC 611.53 +3.74 Jet 1st Jun Jul +0.75/+2.00 227.05-228.30 +2.87
Itaqui, Brazil USGC 599.60 +4.15 ULSD BCX 3rd May Jun -1.25/-1.00 225.67-225.92 +2.65
Suape, Brazil USGC 602.59 +4.05 Chicago Wolverine
Montevideo, Uruguay USGC 606.83 +3.90 ULSD 3rd May Jun -1.50/-1.25 225.42-225.67 +2.65
Buenos Aires, Argentina USGC 607.96 +3.84
West coast ¢/USG
Basis Differential Price ±
York Harbor ULSD prices rose to 4.98¢/USG on Wednesday, the San Francisco
Carb ULSD May Jun +5.50/+6.50 232.42-233.42 +3.52
widest spread in six days.
EPA ULSD May Jun +5.50/+6.50 232.42-233.42 +3.52
US Gulf coast jet fuel prices rose, reaching a new multi-
Jet May Jun -0.50/+0.50 226.42-227.42 +2.02
year high of 220.55¢/USG as prices increased by 1.9¢/USG with San Francisco waterborne
the stronger June Nymex ULSD futures contract. Carb ULSD May Jun +8.93/+9.93 233.92-234.92 +3.52
Prompt differentials declined for the third consecutive ses- Carb ULSD ex-RVO May Jun +4.68/+5.68 229.67-230.67 +3.60
sion amid the release of EIA data showing regional inventories Portland
ULSD May Jun +14.00/+17.00 240.92-243.92 +0.52
at an 11-week high, trading from June Nymex -6.5¢/USG to
-6.25¢/USG to set the midpoint 0.13¢/USG lower on the day.
The premium over US Gulf coast jet fuel for product in the differentials held stable on scheduling day of the 28th cycle.
New York Harbor market continued to fall on Wednesday as Cash prices for heating oil rose to 207.55¢/USG, a new
the inter-regional spread narrowed to 3.88¢/USG, its closest in 41-month high.
two months.
The inter-regional spread between prices in the northeast Midcontinent
and those along the US Gulf coast must be at least 5.26¢/USG Midcontinent diesel differentials were mixed, rising in Chicago
to cover the cost of shipping on the Colonial pipeline to the yet falling in Group Three. Cash prices rose for all grades on
company’s Linden, New Jersey terminal in order for the arbi- the back of higher Nymex futures.
trage to be workable on paper. Ultra-low sulphur diesel (ULSD) on the West Shore pipeline
Changes in US Gulf coast heating oil prices matched the traded at June Nymex -1.5¢/USG and possibly -1.75¢/USG,
June Nymex ULSD futures contract on Wednesday as prompt up by 1.25-1.5¢/USG from Tuesday’s market. Cash price for
Distillates
Chicago West Shore ULSD rose to $2.25/USG, the highest level Gulf coast deals
Grade Timing Price Volume
since November, 2014.
The Wolverine market maintained a premium over West Colonial 62 29th Cycle -3.40 25
29th Cycle -3.30 25
Shore and Badger pipelines, with third-cycle May ULSD done at
29th Cycle -3.30 25
June Nymex -1.5¢/USG and -1.25¢/USG. 29th Cycle -3.30 25
In Group Three, prompt ULSD X grade traded at June 29th Cycle -3.30 25
29th Cycle -3.30 25
Nymex +0.25¢/USG for 18 and 20 May, while any month barrels
29th Cycle -3.30 25
transacted at flat to June Nymex. 29th Cycle -3.25 25
ULSD stocks were mostly stable at 29mn bl during the week 29th Cycle -3.25 25
ended 11 May, according to the Energy Information Administra- 29th Cycle -3.25 25
29th Cycle -3.25 25
tion.
29th Cycle -3.25 25
Chicago second-cycle May jet fuel was talked between 29th Cycle -3.25 25
June Nymex +0.75¢/USG to +2¢/USG. Third cycle barrels were 29th Cycle -3.25 25
pegged at a similar level. Group Three jet fuel was unchanged 29th Cycle -3.25 25
29th Cycle C30+0.15 25
at June Nymex -8¢/USG.
Colonial 54 29th Cycle -6.50 25
29th Cycle -6.50 25
West coast 29th Cycle -6.50 25
29th Cycle -6.50 25
US west coast distillates differentials were mixed on Wednes-
29th Cycle -6.50 25
day, while prices rose across the board with stronger Nymex 29th Cycle -6.50 25
futures. 29th Cycle -6.50 25
Los Angeles prompt CARB diesel traded at June Nymex 29th Cycle -6.50 25
29th Cycle -6.50 25
+6.25¢/USG. Cash differentials nudged lower by 0.25¢/USG as
29th Cycle -6.25 25
prices gained 1.8¢/USG to close at $2.33/USG. 29th Cycle C30+0.35 25
San Francisco prompt CARB diesel traded at June Nymex Colonial line space 02 29th Cycle -0.75 50
+6¢/USG, reversing Tuesday’s losses and shifting differentials 29th Cycle -0.65 25
29th Cycle -0.65 25
up by 1.5¢/USG. Cash prices increased by 3.5¢/USG.
29th Cycle -0.60 25
EPA diesel remained valued at a 0.25¢/USG discount to
CARB diesel in Los Angeles, while EPA and CARB diesel were
valued at parity in San Francisco. Assessment rationale
May ULSD in Portland was bid at June Nymex +14¢/USG and The Argus US Atlantic coast prompt Colonial Linden ULSD as-
offered at +17¢/USG. Cash differentials shed 1.5¢/USG as prices sessment was based on an offer level and the forward curve
inched higher by 0.5¢/USG. structure. The low and high values were set at June Nymex
Los Angeles May jet fuel was last seen traded on Tues- +1.5/USG and +1.8¢/USG, respectively.
day at June Nymex +1.5¢/USG. Cash differentials remained The Argus US Atlantic coast prompt Buckeye ULSD assessment
unchanged and prices gained 2¢/USG on the day to close at was based on a prompt Buckeye ULSD trade value and on an
$2.28/USG. Two jet cargoes will arrive in the region this week. offer level. The low and high values were set at June Nymex
The Torm Ragnhild is expected to arrive in Los Angeles on 17 +0.5/USG and +0.75¢/USG, respectively.
May from Mizushima, Japan. The Torm Resilience will arrive in The Argus US Atlantic coast prompt barge ULSD assessment
Long Beach on 19 May from Ulsan, Korea. was based on a prompt Buckeye ULSD trade value as the
Jet fuel inventories along the US West coast declined by delivery modes were deemed at parity, and on an offer level.
1.8pc to a 28-week low of 9.3mn bl as production in the region The low and high values were set at June Nymex +0.5/USG and
slowed to a 27-week low of 411,000 b/d. +0.75¢/USG, respectively.
Distillates
The US Gulf coast ULSD market met the volume minimums Atlantic coast deals
Grade Timing Price Volume
needed to set the low and high prices according to the meth-
odology. The low and high prices for ULSD were set at the ULSD 151e Jun+0.75 25 bpl
June Nymex ULSD contract -3.4¢/USG and -3.25¢/USG. 151e Jun+0.75 32 bpl
ULSH 17-18 May Jun-3.00 50 barge
The US Gulf coast heating oil market did not trade. In the
prompt Jun-2.50 28 barge
absence of liquidity, the market was assessed flat from the
c23 Jun-2.75 25 cpl
previous session, setting the day's range from June Nymex c23 Jun-2.75 25 cpl
ULSD -19.75¢/USG to -19¢/USG c25 Jun-3.00 25 cpl
The Argus US Atlantic coast prompt Colonial Linden ULSH as- Jet 19-21 May Jun-1.50 25 bpl
sessment was based on a polling of the market and its value 19-21 May Jun-2.00 25 bpl
in relation to prompt Buckeye and barge ULSH as the delivery 19-21 May Jun-2.00 25 bpl
19-21 May Jun-2.00 25 bpl
modes were deemed at parity. The low and high values were
c24 Jun-2.25 25 cpl
set at June Nymex -3/USG and -2.5¢/USG, respectively.
The Argus US Atlantic coast prompt Buckeye jet assessment
was based on prompt Buckeye jet trade values. The low and
high values were set at June Nymex -2/USG and -1.5¢/USG, Midcontinent deals
Grade Timing Price Volume
respectively.
The Argus US Atlantic coast prompt Colonial Linden jet assess- Group Three X 18 May Jun +0.25 50
ment was based on a prompt Colonial Linden jet trade value 20 May Jun +0.25 25
any May Jun 0.00 50
and on its value in relation to prompt Buckeye jet. The low
Chicago Wolverine ULSD C3 May Jun -1.50 10
and high values were set at June Nymex -2.75/USG and -2.25¢/
C3 May Jun -1.25 25
USG, respectively. Chicago WS ULSD C3 May Jun -1.50 10
The Argus US Atlantic coast prompt barge jet assessment was
based on prompt Buckeye jet trade values as the delivery
modes were deemed at parity. The low and high values were
set at June Nymex -2/USG and -1.5¢/USG, respectively. West coast deals
The US Gulf coast jet fuel market met the volume minimums Grade Timing Price Volume
needed to set the low and high prices according to the meth- SF Carb ULSD May June+6.00 15
odology. The low and high prices for jet fuel were set at the LA Carb ULSD May June+6.25 35
NYH 1.0pc sulphur fuel oil cash $/bl NYH Cbob vs NYH ethanol ¢/USG
170 70
60
160
50
150
40
hh hh
140 30
20
130
10
120 0
14 Feb 16 Mar 17 Apr 16 May 14 Feb 16 Mar 17 Apr 16 May
Chicago Rule 11 railcars shipping this week were heard Biodiesel ¢/USG
traded between 146.75¢/USG and 148¢/USG, falling nearly 1¢/ Differential Price ±
USG from prior session. New York Harbor rail
Iowa Union Pacific railcars for this week shipment were bid B100 SME Jun +76.25/+83.25 303.17-310.17 +0.02
B99 SME Jun -15.00/-8.00 211.92-218.92 +2.52
at 131¢/USG and offered at 133.5¢/USG, but no transactions Houston rail/barge
B100 SME Jun +73.25/+81.25 300.17-308.17 +2.02
B99 SME Jun -18.00/-10.00 208.92-216.92 +4.52
Tier III, 11 May $/mn USG credits
Chicago In-tank transfer Argo
Low High ± B100 SME Jun +76.25/+86.25 303.17-313.17 +2.02
B99 SME Jun -15.00/-5.00 211.92-221.92 +4.52
Early 45.00 55.00 nc
Standard 2000.00 2300.00 nc RINs ¢/RIN
Low High ±
RIN spreads ¢/RIN
Renewable fuel (ethanol)
Today ± Prior day 5-day avg 2017 26.50 27.75 -0.75
2018 32.50 33.75 -0.50
Category spreads, 2017
Weighted average 33.00
Biodiesel D4-ethanol D6 13.13 -0.99 14.13 14.05
Biomass-based diesel
Biodiesel D4-advanced biofuel D5 3.00 nc 3.00 3.00 2017 39.00 41.50 -1.75
Advanced biofuel D5-ethanol D6 10.13 -0.99 11.13 11.05 2018 50.00 51.50 -1.75
Category spreads, 2018 Cellulosic biofuels
Biodiesel D4-ethanol D6 17.63 -1.25 18.88 19.60 2017 236.00 237.00 -0.50
Biodiesel D4-advanced biofuel D5 3.00 nc 3.00 3.00 2018 244.00 245.00 -0.50
Advanced biofuels
Advanced biofuel D5-ethanol D6 14.63 -1.25 15.88 16.60
2017 36.00 38.50 -1.75
Vintage spreads, 2017-2018
2018 47.00 48.50 -1.75
Biodiesel D4 -10.50 nc -10.50 -10.75 Renewable volume obligation (RVO) ¢/USG
Advanced biofuel D5 -10.50 nc -10.50 -10.75 2017 3.54 -0.10
Ethanol D6 -6.00 -0.25 -5.75 -5.20 2018 4.25 -0.08
1.75¢/RIN as they were heard traded at 50¢ and 51.5¢/RIN, 21-31 May 144.75 20
21-31 May 144.75 5
while the B18/E18 spread narrowed by 1.26¢/RIN to 17.62¢/RIN.
21-31 May 144.75 5
The 2017 vintage D4 RINs were traded at 39¢/RIN and 40¢/RIN.
21-31 May 144.75 5
The current year cellulosic ethanol D3 RINs were offered at 21-31 May 144.75 5
245¢/RIN, but no bids surfaced. 21-31 May 144.75 5
21-31 May 144.75 5
Biodiesel 21-31 May 144.75 5
Outright US biodiesel prices rose Tuesday amid rising USLD 21-31 May 144.75 5
21-31 May 144.75 5
prices and stronger B99 SME differentials.
21-31 May 144.75 5
The front month ULSD hit its highest level since 27 Febru-
21-31 May 144.75 5
ary 2015 as gained 2.02¢/USG to 226.92¢/USG. The front month Washigton 17-19 May 156.50 21
CBOT soybean oil futures fell by 0.53¢/lb to settle at 31.59¢/lb.
The current year biomass-based diesel D4 RINs dropped
1.75¢/RIN to settle at 50.75¢/RIN. RINS deals
Grade Timing Price Volume
Blend margins holds as the heating oil/soybean oil (HOBO)
remains at -9¢/USG. Biodiesel 2017 39.00 1000
In Houston, RIN-less and credit-less B99 SME material was 2017 39.00 500
2017 40.00 200
offered at Nymex -10¢/USG, gaining 2.5¢/USG from prior ses-
2018 50.00 200
sion. The B100 biodiesel remained flat at Nymex +77.25¢/USG.
2018 50.50 1000
In Chicago, B99 differentials were talked to either side of 2018 50.50 500
Nymex -10¢/USG, rising 2.5¢/USG. The B100 biodiesel re- 2018 51.50 500
mained flat at Nymex +81.25¢/USG. Ethanol 2017 27.00 2500
In California, RIN-less and LCFS-less B99 SME material was 2017 27.00 2000
offered at Nymex -85¢/USG with a retroactive blender’s tax 2017 28.00 1000
2018 32.50 1000
credit (BTC) split at 50:50.
2018 32.50 225
2018 32.50 1500
Argentina 2018 32.75 1000
Argentinian soybean oil premiums moved down in a light 2018 32.75 1000
trading day, tracking the Chicago’s paper markets downtrend 2018 33.00 1000
throughout the session as softer Asian palm oil markets pres- 2018 33.00 1000
vegoil markets globally and prospects of additional trade barri- LCFS deals
Grade Timing Price Volume
ers between the US and China.
Biodiesel markets posted a sharp loss as RED product fell LCFS Trade 156.50 5,000
$16/t to $649/t fob. Forward (3Q18) 156.50 5,000
California carbon
California Low-Carbon Fuel Standard credits moved slightly running 5¢/USG higher. The range of the day was a wide PLM
higher today, adding 50¢ to finish the day at $156.50/metric +31¢ to +37¢/USG.
tonne after trading twice for a total of 10,000t. Raffinate was up slightly at PLM -21.5¢ to -21¢/USG.
Trades at $156/t and $157/t could not be confirmed.
Trading for California Carbon Allowances (CCAs) focused Assessment rationale
on spread deals with a range of vintages and deliveries. The In the absence of trade, an offer for Houston B99 SME at Ny-
vintage 2018 CCAs for December delivery held at $15/t after mex -10¢/USG or Nymex +81.25¢/USG when including RINs and
trading once at that price for 100,000t. the assessed value for a retroactive blenders’ tax credit (BTC),
The vintage 2019 CCAs for December 2019 delivery re- was used to set the high for the Argus Houston B100 SME as-
mained at $15.61/t and traded once for 100,000t. sessment, while keeping the previous session’s low the same.
The value was calculated using the day’s B18 midpoint of
Blending components 50.75¢/RIN, multiplied by 1.5, adding the assessed BTC 50:50
Reformate cash differentials skyrocketed in the US Gulf coast split value of 15¢ and subtracting the B99 SME offer value.
on Wednesday. The midpoint of a bid/offer spread was used to set the
Octanes are extremely tight due to refinery outages lead- morning high and a verified trade at 144.55¢/USG was set the
ing reformate values to surge 11.5¢/USG higher. Deals were afternoon low for the Argus prompt Argo ITT assessment.
done from US Gulf coast gasoline pipeline mean (PLM) +60¢ to In the absence of trade, a polling of available market par-
+65¢/USG. Yet the material trading at +65¢/USG was of higher ticipants indicated that the May/June barge roll was valued at
quality and indicated an on-spec daily range of PLM +60¢ to +0.75¢/USG, which was used to set the high and the midpoint
+63¢/USG. of a bid/offer spread was used to set the low for the Argus
Alkylate was also significantly stronger with the market New York Harbor barge assessment.
Gulf coast ethanol vs Colonial RBOB ¢/USG NYH ethanol vs Chicago ethanol ¢/USG
0 15
-10 14
-20 13
-30 12
-40 11
hhh hhh
-50 10
-60 9
-70 8
-80 7
14 Feb 16 Mar 17 Apr 16 May 14 Feb 16 Mar 17 Apr 16 May
Fresh negotiations were difficult to detect with most 0.5% cargo Jun +9.50/+10.50 80.99-81.99
0.5% barge Jun +9.50/+9.75 80.99-81.24
participants keeping a low profile amid recent price erosion on
1.0% cargo Jun +9.00/+9.75 80.49-81.24
the barge front. 1.0% barge Jun +8.75/+9.50 80.24-80.99
Early in the day, a Calcasieu-quality low sulphur VGO barge 2.0% cargo Jun +8.25/+9.00 79.74-80.49
was heard to have changed hands at a publication-related 2.0% barge Jun +8.25/+9.00 79.74-80.49
Differential to 70:30 87 conv/heating oil ¢/USG
price, but details were not revealed. This barge was heard
0.5% cargo -21.53/-19.15 192.83-195.21
loading around 20 May.
0.5% barge -21.53/-20.93 192.83-193.43
Talk that a FCC at a Louisiana refinery had gone down 1.0% cargo -22.72/-20.93 191.64-193.43
unexpectedly was rife, but the outage was not verified by the 1.0% barge -23.31/-21.53 191.05-192.83
refiner involved. The refiner was not seen offering VGO on the 2.0% cargo -24.50/-22.72 189.86-191.64
2.0% barge -24.50/-22.72 189.86-191.64
Mississippi River in the aftermath of the reported event.
Differential to 70:30 87 conv/ULSD ¢/USG
Low sulphur VGO trading was still dominant in a thinly at- 0.5% cargo -26.34/-23.96 192.83-195.21
tended session. A refiner that had been steadily offering low 0.5% barge -26.34/-25.74 192.83-193.43
sulphur VGO barges amid prolonged refinery work was still 1.0% cargo -27.53/-25.74 191.64-193.43
a seller. This refiner was heard offering 0.4pc sulphur VGO 1.0% barge -28.12/-26.34 191.05-192.83
2.0% cargo -29.31/-27.53 189.86-191.64
barges at June Nymex +$9.75/bl delivered in Texas. Reports
2.0% barge -29.31/-27.53 189.86-191.64
that the refiner was also offering low sulphur VGO on the Mis- 70:30 formulas ¢/USG
sissippi River at the same level were subsequently refuted. 87 conv waterborne/heating oil +3.40 214.07-214.64
The refiner was also seen tendering to sell a cargo of 87 conv waterborne/ULSD +3.30 218.97-219.37
0.35pc to 0.4pc sulphur material with 0.95 CCR and 1-3ppm Naphtha barge Gulf coast
metals with up to 7-8ppm iron out of Canada. This tender will Basis Differential Price
close on Thursday.
Heavy (40 N+A) ¢/USG 87 NLT 9 RVP -23.50/-22.50 193.24-194.24
Sweet VGO barge buying interest was less defined Wednes- Heavy (40 N+A) $/t 687.93-691.49
day. Buyers were heard willing to transact closer to June Ny- Full range ¢/USG 87 NLT 9 RVP -27.00/-25.00 189.74-191.74
mex +$9.25/bl to +$9.5/bl delivered basis Gulf coast, but there Full range $/t 688.76-696.02
LSR/LV ¢/USG C5 +5.50/+6.50 165.50-169.25
were no new deals located for the day on the barge front.
LSR/LV $/t 658.69-673.62
Low sulphur VGO cargo offers were stagnant at front-month
Natural gasoline ¢/USG 160.00-162.75
Nymex +$10.5/bl, delivered Gulf coast basis. This level had not Natural gasoline $/t 672.00-683.55
been refreshed this week.
Light cycle oil ¢/USG
High sulphur VGO cargo offers had been elusive. Talk that
Basis Differential Price ±
sour VGO cargo offers extended up to front-month Nymex
0.5% sulphur HO pipe +1.50/+2.00 209.05-209.55 +1.77
+$9.5/bl was thinly circulated and not supported by product
2.0 % sulphur HO pipe +1.25/+1.75 208.80-209.30 +1.77
specifications and other details.
High sulphur VGO barge discussions were not readily visible
CME Nymex
as well. Recent negotiations were reported within the June
Price ±
Nymex +$8.25/bl to +$8.75/bl range, but there were no fresh
bids, offers or transactions fielded Wednesday. WTI crude $/bl
Jun 71.49 +0.18
The light cycle oil (LCO) market was stagnant behind el-
Jul 71.56 +0.19
evated ultra-low sulphur diesel (ULSD) and high-sulphur diesel Aug 71.35 +0.20
(HSD) cash values. Henry Hub natural gas $/mmBtu
ULSD and HSD cash prices reached the highest level for the Jun 2.815 -0.02
Jul 2.837 -0.02
year to date and the recent swift uptrend kept LCO differen- Residual fuel oil $/bl
tials poorly defined in thin activity. Price ±
from 16.375¢/USG the day before amid heightened cash prices 0.3% low pour 80.75-80.91 +1.01
0.3% high pour 78.50-78.70 +1.05
for both products.
1% 68.00-68.20 +1.05
3% 67.55-67.75 +1.62
Naphtha Gulf coast waterborne
Heavy N+A naphtha trading interest was difficult to detect in a 3% 66.20-66.52 +0.63
market subdued by the elevated conventional gasoline pricing RMG 67.45-67.75 +0.65
basis. Bunker fuel $/t
Cash prices for the Gulf coast waterborne conventional 9 Price ± Price ±
RVP (GC WBM M2) pricing basis were up by almost 5¢/USG on 180cst 380cst
Wednesday, further suppressing arbitrage out of the US Gulf New York 504.00-508.00 +11.00 440.00-444.00 +9.50
coast to usual outlets. Philadelphia 453.00-457.00 +9.50
The only verified business done was for a 35,000 bl piece Houston 516.00-522.00 +2.00 434.00-439.00 +2.00
of 41.3 N+A naphtha with 2.51 RVP, 59.7 API, +27 color, 160 IBP Los Angeles 545.00-551.00 +8.00 447.00-452.00 +7.00
Seattle 528.00-534.00 +5.00 451.00-456.00 +4.00
and 199 t10 at GC WBM M2 -25¢/USG, fob KMI Pasadena. This
was offered for 17-19 May loading at -23¢/USG, fob basis the
day before. Residual fuel oil swaps ¢/USG
Other heavy virgin naphtha (HVN) values were loosely
mentioned in a similar range of GC WBM M2 -23.5¢/USG to USGC Fuel Oil 3% New York Fuel oil 1%
-22.5¢/USG, delivered basis Gulf coast. Speculations that more 70
business got done on a confidential basis were ultimately not 68
confirmed.
Despite the stronger gasoline pricing basis, market partici- 66
pants seemed poised for HVN offers to be firm or even higher hhhh
64
near the end of the week.
62
Full-range N+A naphtha talk was again elusive, leaving the
grade pegged approximately 3¢/USG below the heavy N+A. 60
The light naphtha market yielded a single deal as well. A
58
trade was reported for 50,000 bl of 13.78 RVP light naphtha
May 18 Jul 18 Sep 18 Nov 18 Jan 19 Mar 19 May 19
with 26ppm sulphur, 74 RON and 111 t50 changed hands at a
6¢/USG premium to natural gasoline (C5), fob KMI Galena Park — Argus US Refined Products Forward Curves
on a pump-over. This price was consistent with numbers talked
for the light grade earlier this week.
other at $67.75/bl. The assessment gained by 65¢/bl.
Fuel oil A 3pc sulphur residual fuel oil barge lot traded hands in
Fuel oil prices traced crude higher amid steady demand on the New York Harbor at $67.65/bl, moving the assessment up by
Gulf and Atlantic coasts on Wednesday. $1.63/bl. The deal fell within the range of Gulf coast RMG lev-
There were two 3.5pc sulphur residual fuel oil barge lots els, but the New York Harbor 3pc assessment midpoint finished
heard sold for loading in the Gulf, one at $67.45/bl; and the the day at a 5¢/bl premium compared with the Gulf.
Marine fuels respectively. MGO was also heard indicated there as high as at
North American bunker demand was low as rising prices kept $730/t ex-wharf, but nothing was reported sold at these levels.
most buyers on the sidelines. Gulf coast demand was low but heavy bunker indications
West coast bunker assessments were mixed, with heavy gained with crude. High-sulphur 380cst was offered ex-wharf
bunkers gaining and MGO pegged flat-to-lower on the back at $439/t in Houston and at $459/t in New Orleans. MGO was
of fresh demand. Los Angeles MGO was indicated at around indicated ex-wharf at $685/t and $675/t in Houston and New
$740/t delivered and a bigger lot sold there at $725/t deliv- Orleans, respectively.
ered, moving the assessment down by $18/t. High-sulphur
380cst was being offered in Los Angeles at $452/t ex-wharf. In Assessment rationale
San Francisco, a 500t high-sulphur 380cst lot was indicated at NYH 1pc sulphur residual fuel oil was assessed at $68.00-
around $464/t ex-wharf. An inquiry for around 100t MGO was 68.20/bl tracing a $1.05/bl increase in NYH 1pc sulphur
quoted there at $810-815/t ex-wharf, but was rumored sold at residual fuel oil front month swaps prices. There were no bids,
around $800/t ex-wharf. Vancouver high-sulphur 380cst and offers or deals heard.
MGO were indicated at $449-450/t and $800-805/t ex-wharf, USG 3.5pc sulphur residual fuel oil was assessed at $67.45-
respectively. 67.75/bl based on two 3.5pc sulphur residual fuel oil barge lots
In New York Harbor a combined clip for 300t high-sulphur heard sold for loading in the Gulf, one at $67.45/bl, and the
380cst with 135t MGO sold at $442/t and $715/t ex-wharf, other at $67.75/bl.
New York ethanol ¢/USG Physical Chicago vs CBOT ethanol futures ¢/USG
164 3
162 2
160 1
0
158
-1
156
hhh -2 hhh
154
-3
152 -4
150 -5
148 -6
14 Feb 16 Mar 17 Apr 16 May 14 Feb 16 Mar 17 Apr 16 May
Infrastructure news
Phillips Wood River process unit upsets to a filing to state hazardous materials monitors. The cause of
A process unit upset led to increased flaring yesterday at the upset and the unit involved were not identified.
Phillips 66’s 356,000 b/d joint-venture Wood River refinery in Phillips 66 operates the refinery in a joint venture with
Roxana, Illinois. Canadian integrated firm Cenovus.
The unit malfunctioned at 12:45pm ET on 15 May, according
Industry news
US distillate exports at 11-week low: EIA late December. Exports rose sharply amid steady refining rates
US distillate exports slowed to an 11-week low during the week and falling implied US demand, while US distillate activity was
ended 11 May, Energy Information Administration (EIA) data flat.
released today showed. Crude throughputs at US refineries were flat at 16.6mn b/d,
Elevated distillate prices amid persistently low US stocks lower by 2.9pc compared to the same week last year. Mid-
and multi-year highs in crude contributed to the drop in distil- continent refiners increased crude processing by 4.2pc from
late exports of 34pc from the preceding week to 899,000 b/d. the previous week to 4mn b/d, the highest level since early
Distillate exports were 41pc lower than the same week in September. Ultra-low sulfur diesel (ULSD) production in the
2017 and at their third-lowest since the beginning of 2018. region increased by 5.1pc from the previous week to 1.2mn
US distillate stocks are at their lowest since November 2014 b/d, a record volume 13.7pc higher than the same week last
and production is largely flat year-on-year after a winter that year. Gasoline production increased by 4.2pc to 2.7mn b/d, its
saw demand reach its highest in nearly 10 years in January. highest level since last June.
Tight supplies provide a backdrop for a period which has Implied national gasoline demand fell by 2.5pc to 9.5mn
seen US diesel prices hit multi-year highs. b/d, flat to last year. Gasoline exports increased by 344,000
This trend is especially visible along the US Gulf coast, b/d to 925,000 b/d, or 45.1pc higher than the same week last
where the majority of US distillates are produced and ex- year.
ported. Implied US ULSD demand fell by 2pc to 4.2mn b/d, roughly
US Gulf coast prices have hit successive highs in recent flat to year-ago levels. Exports of the fuel fell by 33.7pc to
weeks, peaking at a 41-month high of 212.1¢/USG during the 899,000 b/d, 40.8pc lower than the same week of 2017.
week ended 4 May, when most cargoes loading during the US total distillate and ULSD inventories were roughly flat,
week ended 11 May would have been booked. at 114.9mn bl and 102.1mn bl, respectively. No region reported
Prices have only continued to rise since then, reaching a change in inventories in either direction larger than 400,000
219.7¢/USG on 11 May and 221.9¢/USG yesterday. bl. US Gulf coast ULSD inventories fell by 303,000 bl to 30.7mn
The previous low in weekly export volumes of 892,000 b/d, bl, while west coast ULSD inventories increased by 390,000 bl
reached during the week ended 23 February, coincided with to 11.8mn bl.
a period of refinery maintenance that sent refinery utiliza- US midcontinent gasoline inventories led the decline, fall-
tion and distillate production to five-month lows, constraining ing by 2.8pc to 54.3mn bl. Conventional gasoline blendstocks
exports. accounted for most of the draw, lower by 3.5pc, or 1.3mn bl,
from the previous week to 34.9mn bl. Total midcontinent gaso-
US gasoline stockpiles slide line inventories remained 1.6pc higher than the same week
US gasoline stockpiles fell by the largest seven-day draw in last year.
more than two months following steep declines east of the
Rocky Mountains, according to the Energy Information Admin- US jet stocks rise for fourth week: EIA
istration. US jet fuel inventories grew for the fourth consecutive week
US gasoline inventories fell in the week ended 11 May by to reach a nine-week high during the week ended 11 May, ac-
1.6pc, or by 3.8mn bl, to 232mn bl, the lowest volume since cording to the Energy Information Administration (EIA).
Industry news
National inventories grew by 517,000 bl or 1.3pc to 41.3mn 89pc from 2016, according to Census data.
bl during the week, falling to 3.9pc below where levels stood US crude exports in March 2018 averaged 1.7mn b/d with
during the comparable week in 2017 while remaining above China surpassing Canada as the top destination, according to
the five-year average. the most recent Census trade figures.
Inventories grew despite a 6.5pc increase in domestic US refiners processed 16.6mn b/d last week, up by 149,000
demand to 1.7mn b/d and higher export volumes, which in- b/d from the previous week, according to the EIA. Refineries
creased by 19pc to a three-week high of 216,000 b/d. operated at 91.1pc of capacity.
US jet fuel import volumes grew by 85pc during the week, Domestic oil production increased by 20,000 b/d to
to 137,000 b/d. 10.72mn b/d, continuing an upward trend. US crude output
Imports into the US Atlantic coast more than doubled, ris- has been increasing to record levels in recent months, pushed
ing to 64,000 b/d. US West coast imports increased by 72pc to by shale drilling. The US rig count rose by 13 to 1,045, gaining
74,000 b/d. for a sixth week as producers continued to step up drilling,
Inventories along the US Atlantic coast were steady, according to Baker Hughes.
increasing by 0.4pc to 9.7mn bl. Production in the region was US imports last week rose by 278,000 b/d to about 7.6mn
largely unchanged, increasing slightly to 122,000 b/d. b/d. Imports have averaged 8mn b/d over the past four weeks,
US Gulf coast jet fuel stocks grew by 4.5pc or 621,000 bl down by 4.3pc from a year earlier.
to an 11-week high of 14.4mn bl as production in the region Stocks at Cushing, Oklahoma, last week rose by just 53,000
increased by 3.6pc to a seven-week high of 979,000 b/d. bl to stay at 37.2mn bl.
Jet fuel stocks in the US midcontinent were unchanged at Total US gasoline inventories fell by 3.8mn bl to 232mn bl.
7.2mn bl. Production in the region slowed by 2.7pc to 256,000 Total distillate fuel stocks eased by about 100,000 bl to stand
b/d, a three-week low. at 114.9mn bl.
In the Rocky Mountain region, stocks grew by 4.2pc to
692,000 bl despite a 12.5pc drop in production, to 35,000 b/d. EPA chief back on defensive over ethics
Inventories along the US West coast declined by 1.8pc to a US Environmental Protection Agency (EPA) administrator Scott
28-week low of 9.3mn bl as production in the region slowed to Pruitt faced another bruising day on Capitol Hill as his crit-
a 27-week low of 411,000 b/d. ics tried to show he was closely involved in actions that have
spawned at least a dozen investigations.
US crude stocks drop, exports hit record: EIA Pruitt was more conciliatory today about controversies he
US crude stocks fell by 1.4mn bl last week to 432.4mn bl as ex- is facing over his close ties to lobbyists, lavish travel arrange-
ports reached a record high, according to the Energy Informa- ment and attention to secrecy, saying in hindsight he would
tion Administration (EIA). have done some things differently. But he continued to deflect
Crude exports in the week ended 11 May increased by blame for many actions and said some of the criticism came
689,000 b/d to about 2.6mn b/d, according to the EIA esti- from those who opposed his policies.
mates. That total surpasses the previous record high of 2.2mn “I share your concerns about some of these decisions, I
b/d in the week ended 30 March. want to rectify those going forward,” he said at a hearing in
The US Census Bureau releases more definitive US export the US Senate. “I also want to highlight to you that some of
trade data on a roughly one-month lag. the criticism is unfounded and I think exaggerated.”
US exports have been buoyed in recent weeks by a wider Democrats spent much of the hearing probing if Pruitt was
price spread between the benchmarks Brent and WTI. The July more involved than he has said publicly. Pruitt said he did “not
futures Brent-WTI spread yesterday was $7.06/bl at closing. recall” ever encouraging his security detail to use vehicle si-
The rise in US exports has been swift since the since the rens and lights to expedite travel in non-emergency situations.
US lifted 40-year-old restrictions on most crude exports in Senator Tom Udall (D-New Mexico) moments later released an
December 2015. email from former security chief Pasquale Perrotta indicating
Domestic oil exports averaged 1.1mn b/d in 2017, up by he had.
Industry news
“Lights and Sirens,” the email subject line reads. “Adminis- over week to 21.5mn bl amid an uptick in ethanol blending.
trator encourages the use.” Year over year, inventories were lower by 1.91mn bl, or by 2pc.
Pruitt continued to argue it was not him but career law en- Midcontinent inventories ended an eight week free fall as
forcement officials who recommended that he have an around- they gained 127,000 bl, or 1.6pc, to 7.77mn bl. Regional inven-
the-clock security detail that has already cost nearly $3mn. tories were lower by 321,000 bl, or 3.9pc, compared to the
Senator Chris Van Hollen (D-Maryland) said that conflicts with same period last year.
a report from EPA’s inspector general that said the decision Atlantic coast inventories fell to their lowest point in one
to provide that security came in response to a request from month as they dropped by 852,000 bl, or 11pc, to 6.79mn
Pruitt. bl, accounting for all of the US inventory decline. In yearly
Senator Patrick Leahy (D-Vermont) said Pruitt’s actions comparison, stocks were lower by 1.52mn bl, or 18.2pc, from
in office have turned him into a “laughingstock.” And Udall 8.3mn bl last year.
said actions such as renting a room from a lobbyist and other Gulf coast stocks recovered from an 11-week low to a
actions were the type of “swampy behavior” that President six-week high after surging by 404,000 bl, or 11pc, to reach
Donald Trump promised to end. 4.07mn bl. Gulf coast inventories were higher by 10,000 bl
“You have used your office to enrich yourself at the ex- compared to the prior year.
pense of the American taxpayer and public health,” Udall said. US ethanol production rose for the third consecutive week
Republicans have largely stood by Pruitt. But a few seem as it gained by 18,000 b/d, or 1.7pc, to average 1.06mn b/d. In
to be losing their patience over the string of controversies and a yearly comparison, output was higher by 31,000 b/d, or 3pc,
what some see as a lack of commitment to the Renewable from 1.03mn b/d.
Fuels Standard. Senator Chuck Grassley (R-Iowa) yesterday said Midcontinent production was at a three-month high as it
that if Pruitt pushes changes that cut ethanol consumption by gained by 26,000 b/d to average 978,000 b/d. Midcontinent
billions of gallons he would call for him to resign.
Trump last week said he still has confidence in Pruitt. But
that might change depending on the outcome of by one count Argus Assessment Rationale Database
16 pending investigations being led by the agency’s inspec- For prices used in financial benchmarks, Argus publishes
tor general, the US Government Accountability Office and daily explanations of the assessment rationale with sup-
the White House. Pruitt today confirmed reports that a legal porting data. This information is available to permissioned
defense fund has been set up on his behalf. subscribers and other stakeholders.
US ethanol stocks fall, output rises: EIA Subscribers to this report via Argus Direct or MyArgus may
access the database here.
US ethanol inventories hit a one-month low as output neared a
three-month high for the week ended 11 May, according to the
Other subscribers may request access here or contact us
Energy Information Administration (EIA).
by email at sales@argusmedia.com.
Total US ethanol inventories tumbled by 459,000 bl week
Announcement
Industry news
production rose by 37,000 b/d, or nearly 3.9pc, compared to b/d El Palito refinery in Carabobo state and its 190,000 b/d
the year prior. Puerto La Cruz refinery in Anzoategui.
Implied gasoline demand eased off a three-week high after The PdV executive identified the five tankers holding
falling by 244,000 b/d, or 2.5pc, to 9.53mn b/d. In a yearly 300,000 bl gasoline cargoes as the Alpine Eternity, Alpine Ma-
comparison, gasoline demand was higher by 79,000 b/d, or rina, Iver Experience, Atlantic Grace and Marlin Ammolite.
3.9pc. Two more tankers holding a combined 1mn bl of heavy
Ethanol blending hit a four-month high as ethanol blending virgin naphtha – Nave Cielo and Nave Cetus – are anchored in
surged by 19,000 b/d to average 942,000 b/d, while blending Pozuelos Bay near PdV’s Jose terminal.
was 9,000 b/d lower when compared with the prior year. A further two tankers holding 264,000 bl of alkylate and
Imports have not been reported for the 23rd straight week. 240,000 bl of MTBE – Marine Tuntiga and Nordic Army – are
The last import of the blendstock was on 1 December 2017. waiting near the 305,000 b/d Cardon refinery and nearby
635,000 b/d Amuay refinery, which comprise PdV’s 940,000 b/d
Brazil hydrous consumption jumps in March CRP refining complex.
Brazil's hydrous ethanol consumption climbed by 36pc year on The CRP currently is operating at barely 21pc of its com-
year in March to 1.37bn liters (278,518 b/d). Early harvesting bined nameplate capacity, the energy ministry acknowledged,
boosted supply of the biofuel, pushing down prices and allow- after oil union officials warned that it could be nearing a
ing it to continue to gain market share from gasoline, accord- complete shutdown of its crude processing units because of
ing to oil regulator ANP. equipment breakdowns and shortages of crude feedstock.
March hydrous ethanol sales also increased by 10pc over If the CRP stops operating, Venezuela’s local vehicle mar-
February, when sales reached 1.24bn l. ket would become completely dependent on imported gasoline
In the first quarter, hydrous ethanol sales jumped by 44pc and diesel, since PdV’s El Palito and Puerto La Cruz refineries
to 3.99bn l, compared to 2.76bn I in first quarter 2017. are also “barely operational,” an energy ministry official said.
With hydrous ethanol sales rising, March gasoline sales fell PdV likely will reroute another tanker, Atlantic Lily holding
by 8pc year on year to 3.62bn l. Hydrous ethanol is expected 120,000 bl of naphtha, from the Aruba terminal to its Jose ter-
to remain competitive this year because of rising gasoline minal to prevent its seizure by US independent ConocoPhillips,
prices, which have been driven higher by international oil the marketing and supply executive said. The Aruba storage
prices and the weakening of the Brazilian real in comparison facility is operated by PdV´s US refining unit Citgo.
to the US dollar. Mills will also be maximizing ethanol output
at the expense of sugar, because the global sugar glut has Ecuador awards key highway contract to Verdu
pushed down prices of the sweetener. Ecuador awarded a 20-year $303mn highway concession con-
Hydrous ethanol demand remained strong in April, with tract to local firm Verdu.
domestic sales from center-south mills reaching 1.33bn l, up by The company will repair and build complementary services
nearly 39pc from the 961.9mn l sold in April 2017, according to infrastructure for a 162km highway known as Guayaquil-Sali-
Brazilian sugar and ethanol producers' association Unica. nas, which runs to a proposed new deepwater port at Posorja,
Brazil's total fuel sales reached 11.7bn l in March, down some 120km south of Guayaquil.
slightly from the 11.8bn l sold in March 2017. In first quarter The public-private partnership contract with Verdu also
2018, total fuel sales are up by 1.1pc year on year. includes the complementary road Progreso-Playas.
Verdu will finance 30pc of the expenditure with its own
Fuel imports stuck off Venezuela for payment capital and the remaining 70pc with credit lines from Andean
Nine tankers holding a combined 3mn bl of imported refined investment bank CAF, the International Development Bank
products are anchored at state-owned PdV’s Venezuelan ter- and the Inter-American Corporation for Infrastructure Finance,
minals awaiting payment before the cargoes are offloaded, a according to Ecuador’s transportation deputy minister Boris
company marketing and supply executive told Argus. Palacios.
Five tankers holding 1.2mn bl of 91 RON gasoline and In June 2016, Ecuador signed a 50-year concession with
600,000 bl of 95 RON gasoline are anchored near PdV’s 146,000 Dubai’s DP World for the construction of the 128-hectare
Industry news
Posorja port that will feature a 15.5m quay with capacity to DP World says Posorja has the potential to become a re-
dock Panamax and post-Panamax vessels and handle 2.5mn gional hub for container storage, transfer and distribution.
containers per day.
Announcements
Change to USMC gasoline pricing bases currently assessed against 87 conventional. In Group Three 91
Argus is proposing to change the pricing basis to Nymex RBOB conventional is currently assessed against sub-octane.
futures for several US midcontinent RBOB and high-octane For a full list of affected assessments, please contact data-
gasoline assessments. help@argusmedia.com.
Under this proposal, Argus would use the Nymex RBOB Argus will be accepting comments on this change up to
contract as the pricing basis for several of its gasoline assess- 31 May. To discuss comments on this proposal, please contact
ments in Chicago: regular RBOB, premium RBOB and 91 octane David Ruisard at david.ruisard@argusmeida.com or +1 713 429
conventional, and one assessment in Group Three: 91 conven- 6306.
tional. Formal comments should be marked as such and may be
Argus is proposing these changes to reflect the predomi- submitted via email to houstonproducts@argusmedia.com or
nant pricing bases seen in spot market trades, bids and offers. by post to David Ruisard at Argus Media, 292 Allen Parkway,
Argus currently assesses these gasolines using other Suite 700, Houston, Texas, 77019 and received by 31 May.
gasoline grades as the pricing basis. In Chicago regular RBOB Please note, formal comments will be published after the con-
is currently assessed against regular CBOB, premium RBOB is sultation period unless confidentiality is specifically requested.
currently assessed against regular RBOB and 91 conventional is
Petroleum
illuminating the markets