LATIN AMERICAN WIRE

[OIL ]
LATIN AMERICAN WIRE
www.platts.com
Volume 20 / Issue 236 / December 9, 2014
Crude ($/barrel)
(PGA page 280)
Diff to Diff to Futures
Diff to Dated
FOB Crude
Mid Change
WTI strip
Brent strip
Brent strip
PCAGC0060.23–60.27 60.250
+0.305 PCAGO00-3.740AAXBS00-7.350
AAXAX00-6.190
Escalante
Roncador
AAQTL0058.88–58.92 58.900
+0.355 AAQTK00-5.090AAXBT00-8.700
AAXAY00-7.540
AAITD0070.87–70.91 70.890
+0.660 AAITJ006.900AAXBU003.290
AAXAZ004.450
Santa Barbara
Loreto
PCAGH0057.87–57.91 57.890
+0.560 PCAGQ00-6.100AAXBV00-9.710
AAXBG00-8.550
PCADE0057.62–57.66 57.640
+0.560 PCAGU00-6.350AAXBW00-9.960
AAXBH00-8.800
Oriente
Napo
AAMCA0052.62–52.66 52.640
+0.560 AAMCD00-11.350 AAXBX00-14.960AAXBI00-13.800
AAITF0059.38–59.42 59.400
+0.355 AAITL00-4.590AAXBY00-8.200
AAXBJ00-7.040
Marlim
Castilla Blend
AAVEQ0055.18–55.22 55.200
+0.355 AAVEQ01-8.790AAXBZ00-12.400AAXBK00-11.240
AAWFR0054.83–54.87 54.850
+0.355 AAWFS00-9.140AAXCA00-12.750AAXBL00-11.590
Magdalena
Vasconia
PCAGI0060.43–60.47 60.450
+0.355 PCAGR00-3.540AAXCB00-7.150
AAXBN00-5.990
AAITB0065.93–65.97 65.950
+0.355 AAITH001.960AAXCC00-1.650
AAXBO00-0.490
Mesa 30
Latin America WTI strip
AAXBP00 63.990
Latin America Futures Brent strip AAXBQ00 67.600
Latin America Dated Brent strip AAXBR00 66.440
Mexico Crude Postings ($/barrel)
Americas
Maya
Isthmus
Olmeca
Isthmus USWC
(PGA page 1063)
Formula
Formula Value
0.4(WTS + USGC No.6 3%) + 0.1(LLS + Dated Brent)
0.4(WTS + LLS) + 0.2(Dated Brent)
0.333(WTS + LLS + Dated Brent)
0.4(WTS + LLS) + 0.2(Dated Brent)
AAVLO0059.53 AAYCP00-2.80
AAVLP0065.02 AAYCQ00-0.55
AAVLQ0065.13 AAYCR001.00
AAXLZ0065.02 AAXLY00-0.30
PDATS0956.73+0.40
PDATO0964.47+0.59
PDATT0966.13+0.55
AAXKJ0064.72+0.59
Europe
Maya
0.527(Brent) + 0.467(FO 3.5%) – 0.25(FO 1% – FO 3.5%)
Isthmus
0.887(Brent) + 0.113(FO 3.5%) – 0.16(FO 1% – FO 3.5%)
Olmeca(Brent)
AAVLR0058.57 AAYXA00-5.65
AAVLS0064.02 AAYXB00-1.10
AAXNE0066.10 AAXND00-2.15
AAYXE0052.92+0.64
AAYXF0062.92+0.51
AAXNC0063.95+0.40
Asia
Maya
Isthmus
AAVLU0063.01 AAYXC00-10.75
AAVLT0063.01 AAYXD00-4.45
AAYXG0052.26-2.55
AAYXH0058.56-2.55
(Oman + Dubai)/2
(Oman + Dubai)/2
Constant (k)
Spot refined products ($/barrel)
FOB Argentina
Gasoline 84
Gasoil*
FO 0.7%S
PPASJ0067.84–67.86 67.850+1.490
POAFH0084.45–84.47 84.460+3.060
PPARI0057.27–57.29 57.280-0.140
Naphtha
FO 2.2%
AAWVW0052.32–52.34 52.330+1.490
PPASL0050.96–50.98 50.970-0.140
FOB Peru
PAAAS0056.32–56.34 56.330+1.490
PPARJ0059.52–59.54 59.530-0.140
Naphtha
FO 2.0%
FO 1.6%
PPARO0050.58–50.60 50.590+0.120
*Argentina gasoil is assessed CIF Buenos Aires
FOB Colombia
FO 1.75%S
(PGA page 164)
FOB Ecuador
FOB Brazil
FO 0.5-0.6%S
PostingChange
PPARL0053.36–53.38 51.470-0.140
PPARK0051.46–51.48 53.370-0.140
Market Commentary
Crude Oil
(PGA page 288)
Colombia’s heavy sour crude, Castilla Blend, was
assessed by Platts Tuesday at a more than fiveyear low on much weaker global benchmarks Brent
and WTI. The 18.8 API, 1.9% sulfur crude was
assessed Tuesday at $55.20/barrel, or the Latin
ICE Brent strip minus $12.35/b. The last time the
South American crude was assessed at these levels
was in mid-May 2009, Platts price history showed.
Platts assessed Castilla Blend at $54.64/b on
May 19, 2009. Global benchmarks WTI and Brent
have lost more than $43.00/b and $47.00/b,
respectively, since mid-June, Platts data showed.
The differential for Castilla Blend in 2014 has
averaged at the Latin ICE strip minus $12.555/b.
Castilla Blend is exported from the port of Covenas,
Colombia, in Panamax-sized cargoes and occasionally
in VLCC vessels. Typical buyers include US Gulf
Coast refiners as a Mars alternative and European
refiners as a Kirkuk alternative. Asian refiners also
buy Castilla Blend when they seek a heavy sour
crude. Cargoes of Castilla Blend are exported from
Covenas, shipped to the Caribbean for loading on a
VLCC or are shipped to Panama for transport on the
Petroterminal de Panama pipeline, which crosses the
Isthmus of Panama. Cargoes are then loaded out of
the Pacific port of Puerto Armuelles. Castilla Blend
is an alternative to Mexico’s heavy sour crude Maya,
which was calculated to the Americas at $56.73/b,
40 cents/b higher than Monday. Maya has a gravity
of 22 API and 3.3% sulfur. Like Castilla Blend, Maya
hit a more than five-year low on Monday.
LATIN AMERICAN WIRE
Products
(PGA page 495)
Curoil, a supplier of petroleum products in the
southern Caribbean, is seeking low sulfur diesel,
market sources said Tuesday. Curoil is seeking 40,000
barrels of low sulfur RMG 380 fuel oil. The fuel oil
should have maximum 0.95% sulfur, a flash point of
60 degrees Celsius, a vanadium content of 150 ppm,
and a maximum water and sediments content of 0.5%.
The cargo is set for delivery December 17-20 to the
Willemstad, Curacao, port, and offers were due Tuesday.
The price is based on a three-day average of the USGC
waterborne spot price for No. 6 3% fuel oil as published
in Platts Oilgram US Marketscan. In addition, Repsol is
chartering the vessel Gulf Coral loading December 22, a
shipping source said Tuesday. The vessel is loading from
Cartegena to Japan carrying naphtha, the source said.
Bunkers
(PGA page 899)
Latin American bunker fuel prices were mixed Tuesday
as a result of fierce supplier competition for business
at some ports and the impact of Brent crude and fuel
oil values. At the ports of Callao, Peru, Valparaiso, Chile,
and Cartagena, Colombia, high sulfur bunker fuel prices
were assessed $3/mt lower at $471/mt delivered,
$481/mt delivered and $416/mt delivered, respectively.
The assessments were based on price indications that
reflected a delayed reaction to Monday’s crude weakness
in markets where trading was resuming Tuesday after a
long weekend. In Panama, decent demand was reported,
with a wide range of prices heard on both sides of
the Canal. Notional offers for high sulfur bunker fuel
were talked at $369-379/mt ex-wharf, with no fixtures
heard done at those prices. In the low sulfur segment,
a physical supplier was heard offering at $540/mt
ex-wharf amid limited supplies as imports of that product
into Panama are almost non-existent, ahead of the
introduction of the 2015 ECA regulations on emissions.
“We still have some low sulfur bunker fuel and we will
sell it until it is over,” the supplier said. Based on price
december 9, 2014
indications, IFO 380 CST and IFO 380 CST 1%S in
Panama were assessed at $367.50/mt ex-wharf and
$537.50/mt ex-wharf, respectively, both of which were 50
cents higher than on Monday. In other markets assessed
by Platts in Latin America, bunker fuel prices rose as
much as $5/mt based on prices indications and an
increase in the Brent and fuel oil prices Tuesday.
US benchmarks
NYMEX
Fuel oil 3%S
(PGA page 1000)
NYMEX January crude settled 77 cents higher at
$63.82/barrel Tuesday amid a downturn in the recent
surging US dollar. ICE January Brent closed 65 cents
higher at $66.84/b. In products, NYMEX January ULSD
settled 2.91 cents higher at $2.0840/gal. January
RBOB settled up 1.70 cents at $1.7236/gal. “There
really wasn’t any new bearish news today, we had it
all priced in overnight,” Price Futures Group analyst
Phil Flynn said. “The dollar coming was was certainly
part of today’s rebound.” The US Dollar Index on ICE
fell to 88.16 early on in the session, and was trading
around 88.7 around the NYMEX settle. The index had
rallied to 89.55 Monday, the highest since March
2009. A Bollinger Band analysis showed those levels
were likely overdone, according to CQG data, triggering
a slight sell off. Despite Tuesday’s slip, recent trends
suggest a strong dollar is here to stay. “A combination
of a strong US dollar, higher interest rates and
relatively subdued growth should keep commodity
prices in check in 2015,” Francisco Blanch, Bank of
America Merrill Lynch’s head of Global Commodities
and Derivatives Research said in the company’s 2015
outlook released Tuesday. “With OPEC giving up on its
mission of ‘ensuring the stabilization of oil markets’
and allowing the market to ‘balance itself,’ the cartel
has entered a new era — and we believe oil will see
higher volatility and lower prices in 2015,” he said.
Implied volatility in prompt NYMEX crude was around
33.7% around the NYMEX settle Tuesday, well north of
the 16-17% range over much of the summer. Morgans
chief economist Michael Knox said in a recent note
Copyright © 2014, McGraw Hill Financial
US Gulf Coast waterborne products
MidChange
(PGA page 156)
¢/gal
Unleaded 87
No.2 Oil
Jet 54 grade
PGACU00161.61–161.71 161.660 +3.550
POAEE00187.05–187.15 187.100 +7.300
PJABM00189.80–189.90 189.850 -2.950
$/barrel
PUAFZ0052.54–52.56 52.550+0.120
US Gulf Coast FOB cargo products
(PGA page 156)
¢/gal
Export ULSD
Export ULSD ($/mt)
AAXRV00 188.923
+0.947
New York products
(PGA page 152)
AAXRW00 591.141
+2.963
$/barrel
Fuel oil 1%S
Fuel oil 3%S
PUAAO0055.24–55.26 55.250-0.140
PUAAX0054.34–54.36 54.350-0.040
NYMEX 2:30pm Eastern Settlement
(PGA page 701)
$/barrel
Crude Oil (Feb)
AAWS002
63.98 +0.770
¢/gal
Heating Oil (Feb)
RBOB Unleaded (Feb)
AAHS002 206.31
+2.190
AARS002 173.60
+1.640
Crudes 3:15pm Eastern
(PGA page 210 & 214)
$/barrel
WTI 1st month
WTI 2nd month
Mars 1st month
Mars 2nd month
LLS
ANS
Basrah
PCACG0063.76–63.78 63.770+0.660
PCACH0063.91–63.93 63.920+0.670
AAMBR0062.41–62.43 62.420+0.510
AAMBU0062.51–62.53 62.520+0.520
PCABN0066.31–66.33 66.320+0.660
PCAAD0064.68–64.72 64.700+0.670
AAEJH0059.76–59.78 59.770+0.420
Crudes at 16:30 London
Bonny Light
Caribbean FOB Cargoes
¢/gal
Naphtha
Jet Kero
Gasoil
(PGA page 1210)
PCAIC0067.28–67.32 67.300+0.225
(PGA page 162)
MidChange
PAAAB10145.35–145.37 145.360 +4.05
PJAAD10192.39–192.41 192.400
-2.95
POAAU10189.89–189.91 189.900 +7.30
$/barrel
Fuel oil 2.0%
Fuel oil 2.8%
2
PUAAS0050.89–50.91 50.900 +0.07
PUAAV0045.89–45.91 45.900 +0.07
NEW
LATIN AMERICAN WIRE
december 9, 2014
Latin American Bunkers ($/mt)
IFO 380 CST
(PGB page 870)
Mid
Change
IFO 180 CST
Mid
Change
Marine diesel
Mid
Change
Marine gasoil
Mid
Change
Delivered
Buenos Aires
El Callao
Valparaiso
Guayaquil
Libertad
Cartagena
Montevideo
PUAYH00389.45–389.55 389.500
+0.500
PUAYG00443.45–443.55
PUAYP00470.95–471.05 471.000
-3.000
PUAYO00529.95–530.05
PUAYR00480.95–481.05 481.000
-3.000
PUAYQ00566.95–567.05
AAJOC00440.45–440.55 440.500
+0.500
AAJOE00492.45–492.55
PUAYT00439.45–439.55 439.500
+0.500
PUAYS00491.45–491.55
AAJOA00415.95–416.05 416.000
-3.000
PUBAE00458.95–459.05
PUBAQ00465.45–465.55 465.500
+0.500
PUBAR00521.45–521.55
PUBAD00367.45–367.55 367.500
+0.500
PUBAC00500.45–500.55
AAWWQ00537.45–537.55 537.500
+0.500
AAWWP00603.45–603.55
443.500+0.500PBABR001067.45–1067.551067.500+4.000
530.000+5.000PBABW001113.95–1114.051114.000+3.500
567.000-3.000 AANUA00887.95–888.05 888.000
+7.500 PBABX001066.95–1067.051067.000+7.500
492.500+0.500AAJOG001267.95–1268.051268.000+4.000
491.500+0.500PBABY001266.95–1267.051267.000+4.000
459.000-3.000PBACW00973.95–974.05 974.000
+4.000
521.500+0.500PBADA00984.95–985.05 985.000
+4.000
Ex-wharf
Balboa
Balboa LS 1%
Cristobal
Cristobal LS 1%
PUAEF00367.45–367.55 367.500
+0.500
AAWWO00537.45–537.55 537.500
+0.500
500.500+0.500PBACU00798.95–799.05 799.000
-20.000
603.500+0.500
PUABJ00500.45–500.55 500.500
+0.500POABJ00798.95–799.05 799.000
-20.000
AAWWN00603.45–603.55 603.500
+0.500
Petrobras Bunker Postings ($/mt)
IFO 380 CST
PUAYU00366.50-367.50
Paranagua
Santos
PUAYK00361.50-362.50
Rio de Janeiro
PUAYV00356.50-357.50
Salvador
PUAYN00394.50-395.50
(PGB page 876)
Mid Change
IFO 180 CST
367.000
-10.000
PUAYI00385.00-386.00
362.000
-10.000
PUAYJ00383.00-384.00
357.000
-10.000
PUAYL00380.00-381.00
395.000
-10.000
PUAYM00416.00-417.00
that the price of crude will likely rebound to $100/b
once the dollar surge subsides, according to The
Diplomat’s Anthony Fensom. “Once the US dollar ends
this major move, the oil price will go back to being
driven by normal fundamentals of supply and demand,”
Knox said. Meanwhile, Flynn also said that there were
likely a few bulls eyeing recent cutbacks in the global
oil production outlook, including ConocoPhillips’ recent
decision to cut capex by 20% in 2015. Flynn said that
Tuesday’s US Energy Information Administration ShortTerm Energy Outlook also likely triggered some buying,
as despite expectations of higher production, sharply
lower WTI crude prices in 2015 would make targeted
production levels difficult to attain. The December
STEO forecast that US crude oil production would
average 9.32 million b/d in 2015, down from the 9.42
million b/d projected in the November STEO (See story,
1707 GMT). “There are and will be a lot of projects on
hold,” Flynn said. “If you put it all together, there’s just
enough news out there to give the bears some pause.”
Mid Change
Marine gasoil
385.500
-10.000PBABS00946.50-947.50
383.500
-10.000PBABT00936.50-937.50
380.500
-10.000PBABU00873.50-874.50
416.500
-10.000PBABV00961.50-962.50
News and Interests
(PGA page 100)
Exploration & Production
Colombian oil patch spending likely
to drop for third straight year: survey
Bogota (Platts) Nearly half of the oil producers in
Colombia plan on reducing their investment in the
country in 2015, with a majority of those saying they
expect to divert capital expenditure to other countries,
mainly Mexico, according to a survey released Tuesday.
According to a poll of 37 members of the Colombian
Petroleum Association, the country’s biggest energy
trade group, producers are scaling back their
investment plans due to fears related to imminent
tax reform, social unrest and delays in obtaining
environmental permits for drilling. Francisco Lloreda,
president of the trade group, told a briefing that the
results of the survey point toward a third straight
Copyright © 2014, McGraw Hill Financial
Mid Change
947.0000.000
937.0000.000
874.0000.000
962.0000.000
Caribbean product postings
(PGA page 466)
Petrotrin
(¢/gal)
AAOCF09172.00
83 Mogas
92 Mogas Unl
AANTB00187.00
95 Mogas Unl
PTADR00196.00
Avgas 100/130
PTAHQ09650.00
Dual Purpose Kero PTAEP09211.00
Gasoil 0.5%S
PTADQ09206.00
Effective Date
02-Dec-14
02-Dec-14
02-Dec-14
02-Dec-14
02-Dec-14
02-Dec-14
($/barrel)
Bunker fuel oil
PTAEM09
70.00
02-Dec-14
Source: Petrotrin
Brazil consumer product prices
Effective: --- $/liter
ARPAO001.32
Unl 80/84 Unl 94/96 ARPAP002.03
Jet Fuel ARPAQ00NA
Kerosene ARPAR001.35
Diesel Oil ARPAS001.12
Heavy Fuel Oil ARPAT00NA
$/kg
LPG
ARPAU001.46
Source: ARPEL
3
(PGA page 474)
LATIN AMERICAN WIRE
annual decline in Colombian oil field investment
in 2015. Such a reduction in investment would
complicate efforts Colombia is making to significantly
increase its oil reserves, which, as of January 1,
totaled 2.44 billion barrels or just 6.6 years worth
of inventory at current production rates. Lloreda said
70% of the companies polled said they were unable
to spend their entire Colombian capex budget in 2014
and said year-long delays in acquiring environmental
permits for drilling were the main factor. “Last year, the
big worry for oil companies in Colombia was the rise
of [rebel] attacks on infrastructure like pipelines. This
year it is delays in permitting. It’s very worrisome,”
Lloreda told the briefing. In 2013, total foreign direct
investment in Colombia’s oil patch totaled $4.9 billion,
compared with $5.4 billion in 2012. Through the
first half of 2014, the trend continued and officials
have said year-on-year investment will decline in
2014 as well. Reduced investment is beginning to
be reflected in Colombian production figures. Lloreda
said output will likely average about 990,000 b/d
in 2014, a decline of 1.7% from the 1.007 million
b/d for all of 2013. This year’s projected decline in
crude output will be the first year-on-year decrease
since Colombia’s oil boom began in 2006. Although
Lloreda said conditions exist for producers to possibly
return to the 1 million b/d level next year, the poll
found that 70% of companies expect to reduce or
maintain current levels of production in Colombia
next year while only 30% plan on increasing output
from 2014 levels. The decline in output, coupled with
the 30% decline in global oil prices, has been a blow
to the Colombian government, which depends on oil
taxes and royalties for one-fifth of its fiscal budget.
The shortfall has helped create a $6 billion hole
in the government’s 2015 budget that the finance
ministry is trying to cover with higher corporate taxes.
As it stands, the new tax proposal would raise the
government “take” on oil revenues to 75% from the
current 70%, a hike that Lloreda said Tuesday would
damage Colombia’s competitiveness.
december 9, 2014
Platts Futures Assessments 3:15 pm ET*
Jan
Feb
Mar
(PGA page 703)
NYMEX light sweet crude ($/barrel)
NYCRM0163.77
Jan
NYCRM0263.92
Feb
NYCRM0364.07
Mar
NYMEX RBOB (¢/gal)
NYRBM01171.96
NYRBM02173.23
NYRBM03175.31
Jan
Feb
Mar
NYMEX NY ULSD (¢/gal)
NYHOM01208.35
NYHOM02206.17
NYHOM03204.57
* These assessments reflect prevailing futures value exactly at 3:15 pm ET. However, on the business day preceding the following holidays, These assessments reflect the
value of futures at precisely 1:30 pm ET: Christmas Day, New Years Day, Fourth of July, and Thanksgiving Day.
US West Coast Refinery Yields and Netbacks (Winter) Effective December 9, 2014
US West Coast Crack Yield & Netback
(PGA page 840)
Crack Yield
ANS
Arab Berri
Arab Light
Bakken
Basrah Light
Escalante
Kern River
Line 63
Minas
Oriente
Mixed Light Sweet
Thums
TYAAD00
TYAAT00
TYACX00
TYASK00
TYAGL00
TYAKN00
TYAMV00
TYANX00
TYATC00
TYAQV00
TYARD00
TYASZ00
67.44
70.14
66.82
71.13
66.34
64.29
65.90
67.38
70.66
68.10
94.80
66.56
TDDGL00
TDDAE00
TDDAT00
TDDRT00
TDDBW00
TDDCW00
TDDCW00
TDDGN00
TDDGO00
TDDEC00
TDDGP00
TDDGQ00
Freight
0.00
3.04
3.11
13.00 3.08
7.34
1.38
0.14
5.32
3.22
2.64
0.00
Crack Netback Spot Price
Crack Margin
TNAAD00
67.44
PCAAD0064.700
TNAADMR
2.740
TNAAT00
67.10
AAXCT0065.820
TNAATMR
1.280
TNACX00
63.71
AAXCU0064.020
TNACXMR-0.310
TNASK00
58.13
AASRU0058.080
TNASKMR
0.050
TNAGL00
63.26
AAEJH0059.770
TNAGLMR
6.000
TNAKN00
56.95
PCAGC0060.250
TNAKNMR-3.300
TNAMV00
64.52
PCABJ0056.070
TNAMVMR
8.450
TNANX00
67.24
PCABM0063.440
TNANXMR
3.800
TNATC00
65.34
PCABO0062.110
TNATCMR
3.230
TNAQV00
64.88
PCADE0057.640
TNAQVMR
7.240
TNARD00
92.16
AALRR0056.480
TNARDMR35.680
TNASZ00
66.56
PCACD0058.070
TNASZMR
8.490
US West Coast Coke Yield & Netback
Coke Yield
ANS
TYAAB0070.53 TDDGL00
TYAAR0071.28 TDDAE00
Arab Berri
TYACV0069.30 TDDAT00
Arab Light
TYAGJ0069.11 TDDBW00
Basrah Light
TYAKL0070.08 TDDCW00
Escalante
TYAMT0072.01 TDDGM00
Kern River
TYANV0071.51 TDDGN00
Line 63
TYATA0073.70 TDDGO00
Minas
TYAQT00
70.52
TDDEC00
Oriente
TYARB0090.59 TDDGP00
Mixed Light Sweet
TYASX00
70.16
TDDGQ00
Thums
(PGA page 842)
Freight Coke Netback
Spot Price
Coke Margin
0.00
TNAAB0070.53 PCAAD0064.700
TNAABMR5.830
3.04
TNAAR0068.24 AAXCT0065.820
TNAARMR2.420
3.11
TNACV0066.19 AAXCU0064.020
TNACVMR2.170
3.08
TNAGJ0066.03 AAEJH0059.770
TNAGJMR8.770
7.34
TNAKL0062.74 PCAGC0060.250
TNAKLMR2.490
1.38
TNAMT0070.63 PCABJ0056.070
TNAMTMR14.560
0.14
TNANV0071.37 PCABM0063.440
TNANVMR7.930
5.32
TNATA0068.38 PCABO0062.110
TNATAMR6.270
3.22
TNAQT00
67.30
PCADE0057.640
TNAQTMR
9.660
2.64
TNARB0087.95 AALRR0056.480
TNARBMR31.470
0.00
TNASX00
70.16
PCACD0058.070
TNASXMR12.090
Source: Platts and Turner, Mason & Co.
LATIN AMERICAN WIRE
Volume 20 / Issue 236 / December 9, 2014
Editorial: Richard Swann, Editorial Director, Americas Oil: +1-713-658-3273, Matt Cook, Senior Managing Editor, Americas Clean Products +1-713-658-3208
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Copyright © 2014, McGraw Hill Financial
4
LATIN AMERICAN WIRE
Petrobras’s Rnest not to reach
full capacity until May
Rio de Janeiro (Platts) Brazilian state-run oil company
Petrobras will not complete installation of air-pollution
equipment at the new Refinaria do Nordeste, or Rnest,
until May 2015, likely meaning that production limits at
the 230,000 b/d refinery will remain in place for at least
Subscriber notes
(PGA page 1500)
Platts confirms it will amend its publication schedule
for Friday, December 26, 2014 and not publish any
oil assessments from its offices in the US on that day
in observance of the Christmas holiday. Platts had
proposed waiting for feedback until December 3 prior
to publishing a decision on this proposal. However, in
response to widespread feedback favoring a decision
before the start of the new trading month, Platts is
publishing its decision before the start of December.
Platts will maintain its current publication schedule for
Wednesday, December 24, 2014; Wednesday, December
31, 2014 and Friday, January 2, 2015 on which days its
assessment processes will close early. All assessments and
Market-on-Close processes will be basis 1:30 pm Eastern
time on those days. Please submit any comments to
[email protected] and [email protected]. For
full details of Platts publishing schedule and services
affected, refer to http://www.platts.com/holiday
Platts on November 24, 2014 has launched a new
clean Medium Range tanker freight rate assessment
reflecting flows from US Gulf Coast to North Brazil,
following a proposal to do so published in October.
The new assessment captures newly established
supply trends of refined products out of the region
following significant structural changes to the US
oil industry. The new assessment reflects modern
MR tonnage. The assessment is published on a
Worldscale basis to reflect how this route is most
commonly traded. Platts also publishes a dollars per
metric ton value for this route. US GULF COAST
TO NORTH BRAZIL: This assessment reflects the
US Gulf Coast to North Brazil route for a clean MR
december 9, 2014
Spot Tanker Rates
From
To
Clean Medium Range Tankers West of Suez
Mediterranean
UK Continent
Mediterranean
US Atlantic Coast
MediterraneanMediterranean
UK Continent
UK Continent
UK Continent
US Atlantic Coast
UK Continent
US Gulf Coast
Black Sea
Mediterranean
Cargo size (kt)
Worldscale
$/mt
(PGT page 1910)
PFADCSZ30
PFACWSZ33
PFADBSZ30
PFALYSZ22
PFAMASZ37
PFAMBSZ37
PFABXSZ30
PFADC10215.00
PFACW10201.75
PFADB10205.00
PFALY00235.00
PFAMA00180.00
PFAMB00180.00
PFABX00205.00
Clean Medium Range Tankers East of Suez
TCABA0029.56
TCABC0039.30
TCAAY0012.98
TCABV0015.72
TCABX0029.56
TCACA0035.09
TCAAP0025.99
(PGT page 2920)
Worldscale
PFABMSZ35
PFABM10177.50
Arab Gulf
India
PFABNSZ35
PFABN10122.50
Arab Gulf
Japan
PFAEBSZ30
PFAEB10118.00
SingaporeJapan
Lumpsum
PFAKWSZ30
PFAKW10350
Singapore
Hong Kong
Clean Long Range Tankers East of Suez
TCAAF0014.79
TCAAH0033.98
TCABP0016.04
TCADI0011.67
(PGT page 2922)
Worldscale
PFAEYSZ55
PFAEY10110.00
Arab Gulf
Japan
PFAMTSZ75
PFAMT00103.50
Arab Gulf
Japan
Dirty Panamax Tankers Americas
TCAAI0030.51
TCAAJ0028.71
(PGT page 1962)
Worldscale
PFANZSZ50
PFANZ00147.50
Caribbean
US Gulf Coast
Dirty Aframax Tankers West of Suez and Americas
TDABA0014.17
(PGT pages 1960 and 1962)
Worldscale
PFALTSZ70
PFALT10112.50
Caribbean
US Atlantic Coast
PFAJPSZ80
PFAJP10100.00
MediterraneanMediterranean
PFAJOSZ80
PFAJO1090.00
Mediterranean
US Gulf Coast
PFAKDSZ80
PFAKD10100.00
UK Continent
UK Continent
PFAKESZ80
PFAKE1092.50
UK Continent
US Atlantic Coast
Dirty Suezmax Tankers West of Suez
TDAAY0011.34
TDABL006.54
TDABU0022.12
TDACD007.49
TDACG0014.91
(PGT page 1970)
Worldscale
PFAIASZ130
PFAIA1070.00
West Africa
US Gulf Coast
PFAHNSZ135
PFAHN1062.50
UK Continent
US Gulf Coast
PFAHGSZ135
PFAHG1062.50
Mediterranean
US Gulf Coast
Dirty VLCC Tankers Americas
TDACV0017.97
TDACH0013.69
TDABS0015.36
(PGT page 1972)
Lumpsum
TDAFLSZ270
TDAFL008.30
CaribbeanChina
TDAFNSZ270
TDAFN007.00
CaribbeanSingapore
TDAFPSZ270
TDAFP006.50
Caribbean
West Coast India
Dirty Aframax Tankers East of Suez
(PGT page 2970)
Worldscale
PFAJDSZ80
PFAJD10127.00
Arab Gulf
East
Dirty VLCC Tankers East of Suez
TDAAC0028.70
(PGT page 2980)
Worldscale
PFAOCSZ270
PFAOC0068.00
Arab Gulf
Far East
PFAOGSZ280
PFAOG0032.50
Arab Gulf
US Gulf Coast
Copyright © 2014, McGraw Hill Financial
TDAFK0030.74
TDAFM0025.93
TDAFO0024.07
5
TDAAB0015.37
TDAAN0016.01
LATIN AMERICAN WIRE
Ecuador fuel oil destination
Los Angeles UNITED STATES
Houston
Atlantic
Ocean
Miami
BAHAMAS
Havana
Guadalajara
Mexico City
Persian Gulf crude exports face increased competition in Asian market
Atlanta
Gulf of
Mexico
MEXICO
CUBA
DOM. REP.
JAMAICA HAITI
BELIZE
Caribbean Sea
HONDURAS
6
NICARAGUA
EL SALVADOR
Caracas
COSTA RICA
2 3
PANAMA VENEZUELA
GUATEMALA
1
4
5
Bogota
COLOMBIA
Pacific Ocean
ECUADOR
Quito
PERU
BRAZIL
Esmeraldas, Ecuador
1
2
3
4
5
6
december 9, 2014
Lima
to Los Angeles, California
La Paz
to Puerto Quetzal & San Jose, Guatemala
to Acajutla, El Salvador & San Lorenzo, Honduras
to Corinto, Nicaragua
BOLIVIA
CHILE
to Balboa, Panama
to the Caribbean (not in Ecuadorean ships)
ARGENTINA
Santiago
five months, the company said Monday. Rnest on Saturday
started processing crude oil into diesel, LPG, naphtha and
atmospheric residues that will be used in the refinery’s
delayed coker. But the Brazil’s National Petroleum Agency,
or ANP, and Pernambuco state environment regulators
have limited production at the refinery to 64% of the first
refining train’s 115,000 b/d capacity, or about 73,600
b/d, until the air-pollution equipment is installed and in
perfect working condition. “The Abreu e Lima refinery is
going through the start-up process, with gradual increases
in production,” Petrobras said in an email response to
questions. “The total capacity of Train 1 will be reached
after the sulfur abatement unit, or SNOX, has entered
operation in May 2015.” Petrobras officials had previously
said that the refinery’s first train was expected to reach
Dubai (Platts) Middle East crude exports are facing
increasing competition in the Asian region, the
primary regional market for Persian Gulf producers
in recent years, a leading international oil analyst
said Tuesday. The intensifying market pressure is
being felt due to increasing flows of Latin American
heavy, sour crude to Asia, combined with the large
Asian capacity to process such crude, Energy
Aspects Chief Oil Analyst Amrita Sen told delegates
at the Platts Middle East Crude Oil Summit in Dubai.
Crude volumes from Mexico and Venezuela, which
used to be exported to US Gulf Coast refineries,
are increasingly flowing to Asia, along with new
production from Ecuador, where they are squeezing
out lighter export grades of Persian Gulf crude
produced particularly by Saudi Arabia, Iraq, Kuwait,
the UAE, Oman and Qatar, she added. “The guys
with the lighter crude actually end up being at a
disadvantage,” Sen said. “The Middle East will just
have to deal with this,” she added. While a number
of Persian Gulf oil producers, especially Saudi
Arabia, Kuwait and Oman, are seeking to advance
the development of enhanced oil recovery projects
aimed at extracting heavier crude, much of the future
output from such projects has been ear-marked for
domestic processing in new refineries due to come
on stream in the next few years. International Energy
Agency Director of Energy, Marketing and Security
Keisuke Sadamori told delegates that Middle East
crude exports are expected to decline in absolute
terms over the agency’s medium-term forecast
period of 2013-2019, as more crude would be
consumed close to the wellhead. The IEA projects
a 1.1 million b/d contraction in global crude trade
over that period, he said. The IEA mid-term forecast
also projects that 2.7 million b/d of new refining
capacity will be added globally between 2013 and
2019, with 95% of the additions to be located in
developing countries primarily in Asia, followed
by the Middle East. However, with substantial
global overcapacity now forecast, especially in new
facilities capable of processing heavier, higher-sulfur
crudes, refinery development plans are already
being scaled back, Sadamori said.
full production capacity by January 2015. The SNOX
unit removes sulfur dioxide, nitrogen oxides and other
particulate matter from refinery air emissions. The latest
delays at Rnest mean that Brazilian imports of diesel and
gasoline will not see as much relief as previously expected
with the refinery’s startup, which had been scheduled for
November 4. Petrobras had expected the start of diesel
production at Rnest to cut imports of the costly fuel by
one-third in the second half of 2014. Rnest was seen as
an important move to reduce Brazil’s refining shortfall and
ease reliance on expensive imports of diesel and gasoline
needed to feed Latin America’s largest economy. Petrobras
has imported hefty volumes of the two fuels to meet
domestic demand, but the government forces Petrobras to
sell the imports at a loss amid concerns about the impact
of higher fuel prices on inflation. The government’s opaque
fuel-pricing policy has cost Petrobras more than $20 billion
in losses in the company’s refining division. In November,
the government allowed Petrobras to raise gasoline prices
3% and diesel 5%, largely bringing domestic fuel prices
in line with international benchmarks for the first time in
about three years. A second 115,000 b/d refining train is
expected to come onstream at Rnest in May 2015.
Copyright © 2014, McGraw Hill Financial
Brazil’s Petrobras finds crude oil
in Amazon jungle’s Solimoes Basin
Rio de Janeiro (Platts) Petrobras discovered oil in a
fresh well drilled in the remote onshore Solimoes
Basin in the Brazilian Amazon, data released Tuesday
6
LATIN AMERICAN WIRE
by the National Petroleum Agency, or ANP, on its
website. The oil discovery was made in the 4-BRSA1252-AM well drilled in the SOL-T-171 block, according
to the ANP. The well was drilled by the Queiroz Galvao
V rig. There were no details of the depth of the well.
The SOL-T-171 block is wholly owned by Petrobras.
The latest discovery in Solimoes could give a boost to
plans by Petrobras, independent Brazilian oil producer
HRT Participacoes em Petroleo and the local unit of
Russia’s OAO Rosneft to generate cash from a series
of oil and natural gas finds made in the region in
recent years. In July, the three companies agreed
to study the building of a natural gas liquefaction
plant or gas-fired power plant in the middle of the
Amazon jungle. Petrobras already has experience with
the challenges involved in producing oil and natural
gas in the Solimoes Basin, where the company has
operated the Urucu light oil and condensate field for
more than 25 years. Urucu is Brazil’s largest onshore
natural gas reserve. Initially, the light oil condensate
produced was transported via river barges to the
Amazon city of Manaus. But river depths vary with
the seasons, making access via barge tricky when
water levels are low. The company eventually built a
pipeline to carry natural gas from the field to market,
utilizing the same techniques used to build subsea
pipelines. The pipeline was completed in late 2009.
It is, however, close to capacity. Building transmission
december 9, 2014
Subscriber notes(PGA page 1500)
tanker carrying a cargo of 38,000 mt. The assessment
reflects loadings from Houston and New Orleans and
discharge at ports including Manaus, Belem and Sao
Luis. This new assessment is published in Platts Clean
Tankerwire and Platts Tanker Alert page PGT 1912.
Please send all further comments or questions to
tankers@ platts.com and [email protected]. For
written comments, please provide a clear indication if
comments are not intended for publication by Platts
for public viewing. Platts will consider all comments
received and will make comments not marked as
confidential available upon request.
Following a period of industry feedback that ended
November 3, Platts confirms it will no longer publish
its daily spot assessment of marine diesel oil (MDO)
lines to carry electricity generated at the wellhead
is an attractive alternative for Brazil. Oleo e Gas
Participacoes, the financially troubled oil firm created
by entrepreneur Eike Batista and formerly known as
OGX, used a similar model successfully at the Gaviao
Real gas field in the Parnaiba Basin. HRT and Rosneft
Brasil hold rights to 19 exploration and production
concessions in the Solimoes Basin. Rosneft Brasil is
the operator with a 51% stake in the blocks and HRT
holding the remaining 49%.
Copyright © 2014, McGraw Hill Financial
delivered in Valparaiso, Chile, with effect from May
1, 2015. The discontinuation, which was proposed on
September 29, reflects the shift in the Chilean market
away from marine diesel oil and to the consumption
of marine gasoil. Platts will continue to publish a daily
assessment of MGO delivered Valparaiso, Chile. The
MDO assessment is currently published on Platts Global
Alert page 870, in Platts Bunkerwire, and in the Platts
price database under code AANUA00. Please send any
further feedback to [email protected] and
[email protected]. For written comments, please
provide a clear indication if comments are not intended
for publication by Platts for public viewing. Platts will
consider all comments received and will make comments
not marked as confidential available upon request.
News Briefs
■■ Mexico City (Platts) Salina Cruz, the only crudeloading port on Mexico’s Pacific Coast, reopened
to shipping early Tuesday after being closed
for two days by bad weather, the Ministry of
Communications and Transportation said. All
Mexico’s other oil and petrochemicals ports are on
the Gulf Coast, where weather conditions posed no
threat to operations.
7
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15th Annual
Information on Attending:
Cynthia Rugg
Tel: 781-430-2105
[email protected]
Caribbean Energy
Sponsorship and Exhibit Opportunities:
Lorne Grout
Tel: 781-730-2112
[email protected]
Media Inquiries:
Khushi Bhatia
Tel: 781-430-2109
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Enabling Project Development—
Reforms, Reality Checks, Fuel and Renewable Choices, Grid Firming
www.platts.com/caribbean
Benefit from the Experience
of Industry Experts:
Freddy Obando, AES Dominicana
Jean Ballandras, Akuo Energy
Vera A. Rechsteiner, Andrews Kurth LLP
Don Hubbard, Antillean Gas Ltd
Buddy Crill, Barrick Gold Corporation
January 29-30, 2015 • El San Juan Resort & Casino • San Juan, Puerto Rico
Hear Power Developers, Utility Executives, Regulators, and Advisors, including:
Vahan Gevorgian,
National Renewable Energy Laboratory
Maxine Alexander Nestor,
Organization of Eastern Caribbean
States Secretariat
Juan F. Alicea Flores,
Puerto Rico Electric Power Authority
Bruce Levy, BMR Energy
Janine Migden-Ostrander,
The Regulatory Assistance Project
Andrew Rovito, BMR Energy
Carl Kukkonen, Viaspace Inc.
Justin Locke, Carbon War Room
Hugo V. Hodge, Jr.,
Virgin Islands Water & Power
Authority
Allison Jean,
Caribbean Electric Utility Service
Corporation
How to Register:
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Eduardo Garcia, VITOL
Marcos C. Cochón Abud,
Compañía de Electricidad de Puerto
Plata S.A.
Rodney George, Wärtsilä Caribbean, Inc.
Jed Bailey, Energy Narrative
Daniel Bustos, Excelerate Energy L.P.
Paul B. Smith,
Wärtsilä Development & Financial
Services
Juan Fanjul, GE Power and Water
Mark Konold, Worldwatch Institute
Alexis George, Government of Dominica
Robert Blenker, WRB Energy
Raúl Carral, Wärtsilä North America, Inc.
Maxine Nestor,
OECS
Bruce Levy,
BMR Energy
Juan Alicea Flores,
PREPA
Share Insights on Issues Impacting Power
Development in the Region:
• Enabling Project Development — Reassessing
expectations, bidding processes, bureaucracy, fiscal
policies, barriers to entry, credit worthiness, and
opportunity costs
• Need for Energy Sector Reform — Potential
solutions to the problems of monopoly utilities, lack
of independent regulatory oversight, inefficient
operations, politicized price setting, and subsidies
• Fuel Choices and Challenges — Access to supply,
financing, logistics, small scale distribution, and plant
conversion for LNG and LPG
• Integrating Renewables — Balancing intermittent
wind, solar, and hydro, baseload geothermal, ocean
thermal, biomass, and hydrocarbons to achieve grid
stability
Freddy Obando,
AES Dominicana
Hugo Hodge,
VI WAPA
Take Away Useful Lessons from Projects in
Development:
• Antillean Gas — San Pedro de Macoris LNG terminal
in the DR
• Excelerate Energy — Aquirre floating LNG regas
terminal in Puerto Rico
• AES Dominicana — Transshipping LNG
• VI WAPA — USVI propane conversion project
• Barrick Gold — Quisqueya I conversion to flexible
units in the DR
• Akuo Energy — NEMO ocean thermal in Martinique
•Viaspace — Contributions to biomass in US VI,
Jamaica, and Guyana
•Dominica — Geothermal development progress
• WRB Energy — Solar/PV in Jamaica
• BMR Energy — Wind farm development in Jamaica