NORTH AMERICAN CRUDE AND PRODUCTS SCAN - …

[Pages:11]NORTH AMERICAN CRUDE AND PRODUCTS SCAN

Volume 6 / Issue 149 / August 3, 2018

US GULF COAST WATERBORNE

Gasoline (?/gal) (PGA page 330) Change

RVP

Unl 87 Unl 89 Unl 93 CBOB 87*

PGACU00 205.75?205.85 205.800 -0.510

PGACURV

9.0

PGAAZ00 211.25?211.35 211.300 -0.510

PGAAZRV

9.0

PGAIX00 219.50?219.60 219.550 -0.510

PGAIXRV

9.0

AAWES00 200.00?200.10 200.050 -1.060

AAWESRV

9.0

*RVP after 10% ethanol blend

Middle Distillates (?/gal) (PGA page 430)

Jet Kero 54 Jet Kero 55 Jet Kero ULS ULSD Gasoil No.2

PJABM00 PJABN00 AAVTK00 AATGZ00 POAEE00

210.64?210.74 210.89?210.99 213.89?213.99 210.04?210.14 202.14?202.24

210.690 210.940 213.940 210.090 202.190

-1.470 -1.470 -1.470 -0.840 -0.990

Heavy Ends ($/barrel) (PGA page 530)

Slurry Resid 1% USGC HSFO RMG 380

PPAPW00 PUAAI00 PUAFZ00 PUBDM00

66.81?66.83 68.31?68.33 63.81?63.83 63.81?63.83

66.820 68.320 63.820 63.820

-0.400 -0.400 -0.400 -0.400

US BLENDSTOCKS (?/gal) (PGF page 760)

USGC FOB Cargo Change

Naphtha Naphtha ($/mt)

AAXJP00 188.75?188.85 188.800 -0.510 AAXJU00 660.79?660.89 660.840 -1.780

USGC Cargo Benzene

PHAAE00 295.95?296.05 296.000 0.000

USGC FOB Parcel (?/gal)

vs Mt Belvieu non-Targa natural gasoline

Light Straight Run Naphtha

AAXQK00161.750 0.000

AAXQN00 9.250 +0.250

Light Straight Run Naphtha ($/mt) AAXQM00648.620 0.000

USGC Barge (?/gal)

Naphtha Heavy Naphtha MTBE Xylene Toluene

AALPG00 AALPI00 PHAKY00 PHBHN00 PHAAR00

190.75?190.85 194.00?194.10 236.39?236.49 275.95?276.05 269.95?270.05

190.800 194.050 236.440 276.000 270.000

-0.510 -0.510 -2.820 -1.000 0.000

FOB USGC barge

vs USGC waterborne

87 unleaded

vs USGC pipeline 87 unleaded

Alkylate Raffinate Reformate

AAXBA00237.250 AAXBB00189.750 AAXBC00257.250

-0.280 -0.280 -0.280

AAFIE00 31.500 0.000 AAJMU00 -16.000 0.000 AAJMV00 51.500 0.000

AAXBD00 33.500 0.000 AAXBE00 -14.000 0.000 AAXBF00 53.500 0.000

MARKET COMMENTARY

US Gulf Coast Sweet Crude (PGA page 290)

The US Gulf Coast light sweet crude market was mixed Friday, as it absorbed news that top Chinese refiner Sinopec and its trading arm Unipec have halted buying US crude in light of trade tensions between China and the United States. "That news didn't come as a surprise. It was in effect already," said one crude trader familiar with the situation. "[I] had already assumed 330,000 b/d of US [crude] needs to find a new home. I'm assuming half to two-thirds goes to Europe and the rest to Asia." Most people in the market expect that the barrels that were flowing from the Gulf Coast to China will be redistributed elsewhere around the globe. While outright prices dipped as NYMEX WTI fell on the day. September crude differentials

SUBSCRIBER NOTES (PGA page 1500)

Platts renames, broadens scope of WTI FOB Houston assessment S&P Global Platts has redefined and renamed its WTI FOB Houston assessment as WTI FOB USGC with effect from August 1, 2018, to more broadly reflect the evolving regional crude export market. This change follows a July 23 proposal note and July 30 decision note. Significant volumes of US crude are being exported from the Gulf Coast to countries around the world. West Texas Intermediate is the dominant export grade thanks to booming production and numerous pipeline additions and infrastructure improvements that allow it to be loaded and shipped from multiple ports. To reflect this dynamic market, Platts is considering values for WTI cargoes on an FOB basis from locations along the USGC, including Corpus Christi, Texas City, Houston, Beaumont, Nederland and Port Arthur. The most competitive location sets the value for the WTI FOB USGC

(continued on page 9)



NORTH AMERICAN CRUDE AND PRODUCTS SCAN

AUGUST 3, 2018

moved in varied directions. Light Louisiana Sweet increased 20 cents/b and was assessed at WTI cash plus $3.10/b, based on a trade heard done last at that price. West Texas Intermediate crude at the Magellan East Houston was unchanged Friday as no trades were heard done. MEH remained at WTI cash plus $2.40/b. It was heard bid at WTI plus $2.35/b and offered at plus $2.60/b. WTI crude in Midland was assessed 50 cents/b lower at WTI minus $17/b, based on trade data.

US Gulf Coast Sour Crude (PGA page 292)

The differential for US Gulf of Mexico medium sour Mars was unchanged Friday and assessed flat to WTI cash, after spending the week at or above WTI. The grade was heard traded flat to WTI. Poseidon was the only Gulf Coast sour grade that showed any movement, decreasing 5 cents/b on the day to be assessed at an 85 cents/b discount to WTI and to Mars. It was heard traded at Mars minus 85 cents. Thunder Horse was unchanged at WTI cash plus $1.35/b. Southern Green Canyon remained at WTI plus 25 cents/b. It was heard offered at WTI plus 30 cents/b.

US Shale (PGA page 295)

Bakken Shale crude differentials across the country fell Friday, putting its US Gulf Coast FOB price at a discount to other light sweet crude grades. Near the oil fields in Williston, North Dakota, Bakken barrels for injection into the Dakota Access Pipeline was heard traded and assessed at NYMEX light sweet crude calendar-month average (WTI CMA) minus $2.70/b, down 40 cents day on day. Bakken in the Clearbrook, Minnesota, hub fell 15 cents to be assessed at NYMEX WTI CMA minus 40 cents/b, following the steep gains in recent trading days. Barrels in the Guernsey, Wyoming, hub had a more conservative drop, inching 5 cents lower to NYMEX WTI CMA minus $1.35/b. In Nederland, Texas, Bakken pipeline barrels were talked valued at cash WTI plus $2/b, down 15 cents, and equivalent to NYMEX WTI CMA plus $3.27/b. A market source said that Gulf Coast prices were lower amid a similarly weaker

US FEEDSTOCKS (PGF page 764)

US Gulf Coast (?/ gal) Change

VGO 0.5% vs 70/30 midpoint VGO 1% vs 70/30 midpoint VGO 2.0% vs 70/30 midpoint

PKAAO00 -7.77/-7.67 -7.720 +6.550 PKAAQ00 -8.84/-8.74 -8.790 +7.150 PKAAS00 -10.75/-10.65 -10.700 +8.340

US Atlantic Coast (?/gal)

VGO 0.5% vs 70/30 midpoint VGO 1% vs 70/30 midpoint VGO 2.0% vs 70/30 midpoint

AAJMW00 -12.53/-12.43 -12.480 +6.560 PKAAR00 -13.60/-13.50 -13.550 +7.150 PKAAT00 -15.51/-15.41 -15.460 +8.340

US West Coast (?/gal)

VGO 0.5% vs 70/30 midpoint VGO 2.0% vs 70/30 midpoint

AAJMX00 -4.11/-4.01 -4.060 +6.240 AAJNA00 -7.09/-6.99 -7.040 +8.020

US Gulf Coast ($/barrel)

VGO 0.5% VGO 1% VGO 2.0% VGO 0.5% vs WTI M1 VGO 1% vs WTI M1 VGO 2.0% vs WTI M1 LS straight Run HS straight Run LS straight Run vs WTI M1 HS straight Run vs WTI M1 LS straight Run vs WTI M2 HS straight Run vs WTI M2

AAYMW00 82.74 +2.48

AAZMW00 82.29 +2.73

AUVGO00 81.49 +3.23

AAJNY00 14.250 +2.950

AAWLU00 13.800 +3.200

AAWLV00 13.000 +3.700

AALGK00 79.740 +2.480

AALGO00 76.740 +2.480

AALFS00 11.20/11.30 11.250 +2.950

AALGC00 8.20/8.30

8.250 +2.950

AALFT00 12.34/12.44 12.390 +2.790

AALGE00 9.34/9.44

9.390 +2.790

US Atlantic Coast ($/barrel)

VGO 0.5% VGO 1% VGO 2.0% LS straight Run HS straight Run LS straight Run vs WTI M1 HS straight Run vs WTI M1 LS straight Run vs WTI M2 HS straight Run vs WTI M2

AUVGA00 80.74 +2.48

AUVGB00 80.29 +2.73

AUVGC00 79.49 +3.23

AALGR00 77.740 +2.480

AALGQ00 74.740 +2.480

AALFU00 9.20/9.30

9.250 +2.950

AALGG00 6.20/6.30

6.250 +2.950

AALFV00 10.34/10.44 10.390 +2.790

AALGI00 7.34/7.44

7.390 +2.790

US West Coast ($/barrel)

VGO 0.5% VGO 2.0%

AUVGD00 85.24 +2.48 AUVGE00 83.99 +3.23

US CRUDES AT 16:30 LONDON MOC CLOSE

($/barrel) (PGA pa ge 1240) Change

WTI M1 (Sep)

AAQAR00

WTI M2 (Oct)

AAQAT00

WTI M3 (Nov)

AAQAV00

LLS M1 (Sep)

AAQBB00

LLS M2 (Oct)

AAQBD00

Mars M1 (Sep)

AAQAX00

Mars M2 (Oct)

AAQAZ00

WTI EFP* M1 (Sep)

AAQAS00

WTI EFP* M2 (Oct)

AAQAU00

WTI EFP* M3 (Nov)

AAQAW00

LLS M1 v WTI M1

AAQBC00

LLS M2 v WTI M2

AAQBE00

Mars M1 v WTI M1

AAQAY00

Mars M2 v WTI M2

AAQBA00

*EFP vs NYMEX light sweet crude futures

68.68?68.70 67.43?67.45 67.00?67.02 71.58?71.60 71.68?71.70 68.63?68.65 68.53?68.55 -0.01/0.01 -0.01/0.01 -0.01/0.01

2.89/2.91 4.24/4.26 -0.06/-0.04 1.09/1.11

68.690 67.440 67.010 71.590 71.690 68.640 68.540

0.000 0.000 0.000 2.900 4.250 -0.050 1.100

0.000 +0.010 +0.020

0.000 +0.010 -0.100 +0.160

0.000 0.000 0.000 0.000 0.000 -0.100 +0.150

EUROPEAN FEEDSTOCKS AND BLENDSTOCKS

CIF Northwest Eu rope cargo ($/m t) (PGF page 1760) Change

VGO 0.5-0.6% VGO 2%

AAHMZ00 AAHND00

519.00?520.00 519.500 +1.500 510.50?511.50 511.000 +1.500

FOB Northwest Europe cargo ($/mt)

VGO 0.5-0.6% VGO 2% Straight Run 0.5-0.7%

AAHMX00 AAHNB00 PKABA00

506.00?507.00 506.500 +1.500 497.50?498.50 498.000 +1.500 466.00?467.00 466.500 +1.500

FOB Black Sea cargo ($/mt)

VGO 0.8% VGO 2%

ABBAD00508.250 +1.500 ABBAC00499.750 +1.500

CIF Mediterranean cargo ($/mt)

Straight Run 0.5-0.7% VGO 0.8% VGO 2%

AAJNT00466.000 ABBAB00519.500 ABBAA00511.000

+1.500 +1.500 +1.500

FOB Rotterdam barge ($/mt)

MTBE*

PHALA00

VGO 0.5-0.6%

AAHNF00

VGO 2%

AAHNI00

* FOB Amsterdam-Rotterdam-Antwerp

818.75?819.25 499.25?500.25 490.50?491.50

819.000 -10.000 499.750 +4.000 491.000 +2.000

BLEND VALUE

(?/gal) (PGF page 7 60) Change

MTBE Alkylate Raffinate Reformate Xylene Toluene

AATAR00 48.73 AASFE00 18.83 AATAS00-55.56 AASFG00 46.64 AASFH00 51.23 AASFI00 50.17

+0.020 -0.080 -0.070 -0.180 -0.170 -0.170

US GULF COAST FOB CARGO

Middle Distillates (?/gal) (PGA page 156) Change

Export ULSD Export ULSD ($/mt)

AAXRV00208.090 -0.320 AAXRW00651.110 -1.000

US GULF COAST BENCHMARKS

US Gulf Coast (?/gal) (PGF page 752)

No. 2 Waterborne Gasoline Waterborne 70-30 Midpoint*

POAEE00 PGACU00 AAJNW00

202.190 205.800 204.717

US Gulf Coast Barge (?/gal)

Naphtha vs USGC unleaded gasoline

AASGZ00 -15.000

Heavy naphtha vs USGC unleaded gasoline AASHD00 -11.750

US Gulf Coast ($/barrel)

WTI Cushing M2 (Oct) Naphtha vs WTI No. 2 vs. USGC HSFO Straight run vs. USGC VGO HS VGO vs Maya** Naphtha vs Maya 3-2-1 settlement (Sep ?Sep ) 3-2-1 2:30pm ET

PCACH00 AAJND00 AAJNZ00 AAJNE00 AASHB00 AASHA00 AAJNX00 AAUHD00

67.350 12.786 21.100 -4.139 18.051 17.306 15.830 15.870

* ?/gal prices converted to barrels before comparison. ** Differential reached by taking VGO differential to 70-30 midpoint, calculating outright price, converting it to barrels, and comparing to WTI or Maya.

? 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.

2

NORTH AMERICAN CRUDE AND PRODUCTS SCAN

AUGUST 3, 2018

US CRUDES AT 2:30 PM EASTERN TIME

Change ($/barrel) (PGA page 210)

WTI M1 (Sept) WTI M2 (Oct) WTI M3 (Nov) Light Houston Sweet Light Houston Sweet M2 LOOP Sour (Sept) LOOP Sour (Oct) LOOP Sour (Nov) Americas Crude Marker M1 (Sept) Americas Crude Marker M2 (Oct) Americas Crude Marker M3 (Nov)

PCACG00

68.48?68.50

PCACH00

67.34?67.36

AAGIT00

66.92?66.94

AAXEW00

AAYRY00

AALSM01

AALSM02

AALSM03

AAQHN00

67.63?67.65

AAQHO00

67.64?67.66

AAQHP00

67.72?67.74

68.490 67.350 66.930 70.890 71.050 68.190 68.200 68.280 67.640 67.650 67.730

-0.470 -0.310 -0.250 -0.470 -0.310 -0.470 -0.060 0.000 -0.520 -0.110 -0.050

Change ($/barrel) (PGA page 210)

Mars M1 (Sept) Mars M2 (Oct) Mars M3 (Nov) P-5 WTI Average WTI EFP (Sept) WTI EFP (Oct) Mars/WTI M1 (Sept) Mars/WTI M2 (Oct) Mars/WTI M3 (Nov) WTI P-Plus WTI-Delta

AAMBR00

68.48?68.50

68.490

AAMBU00

68.49?68.51

68.500

AAMBX00

68.57?68.59

68.580

AAFEN0065.040

AAGVT00

-0.01/0.01

0.000

AAGVU00

-0.01/0.01

0.000

AAGWH00

-0.01/0.01

0.000

AAKTH00

1.14/1.16

1.150

AAMBO00

1.64/1.66

1.650

PCACI00

4.64/4.66

4.650

AAEJK00

1.26/1.28

1.270

-0.470 -0.060 0.000 -0.450 0.000 0.000 0.000 +0.250 +0.250 -0.180 -0.180

Crudes ($/barrel) (PGA page 214)

WTI Midland

PCACJ00

51.48?51.50

51.490

-0.970

WTI Midland vs WTI M1

AAGVZ00

-17.01/-16.99

-17.000

WTI Midland M2

AAYZA00 50.050

-0.810

WTI Midland M2 vs WTI M2

AAXXF00-17.300

LLS M1

PCABN00

71.58?71.60

71.590

-0.270

LLS M1 vs WTI M1

AAGWN00

3.09/3.11

3.100

LLS M2

AAURC00

71.79?71.81

71.800

-0.110

LLS M2 vs WTI M2

AAURD00

4.44/4.46

4.450

HLS M1

PCABD00

70.93?70.95

70.940

+0.030

HLS M1 vs WTI M1

AAGWP00

2.44/2.46

2.450

HLS M2

AAURE00

71.14?71.16

71.150

+0.190

HLS M2 vs WTI M2

AAURF00

3.79/3.81

3.800

WTS Midland M1

PCACK00

51.48?51.50

51.490

-0.520

WTS Midland M1 vs WTI M1

AAGWB00

-17.01/-16.99

-17.000

WTS Midland M2

AAURG00

50.04?50.06

50.050

-0.360

WTS Midland M2 vs WTI M2

AAURH00

-17.31/-17.29

-17.300

WTI MEH

AAYRG00 70.890

-0.470

WTI MEH VS WTI M1

AAYRH002.400

WTI MEH M2

AAXXE00 71.050

-0.310

WTI MEH M2 vs WTI M2

AAYYA003.700

Poseidon

AABHK00

67.63?67.65

67.640

-0.520

Poseidon vs WTI M1

AAGWL00

-0.86/-0.84

-0.850

Thunder Horse

AAWZK00

69.83?69.85

69.840

-0.470

Thunder Horse vs WTI M1

AAWZL00

1.34/1.36

1.350

Wyoming Sweet

PCACM00

65.88?65.90

65.890

-0.320

Wyoming Sweet vs WTI M1

AAGWR00

-2.61/-2.59

-2.600

Bonito

PCAIE00

69.33?69.35

69.340

-0.470

Bonito vs WTI M1

AAGWF00

0.84/0.86

0.850

SGC

AASOI00

68.73?68.75

68.740

-0.470

SGC vs WTI M1

AASOJ00

0.24/0.26

0.250

Eugene Island

PCAFC00

69.33?69.35

69.340

-0.470

Eugene Island vs WTI M1

AAGWD00

0.84/0.86

0.850

ANS (California)

PCAAD00

73.30?73.34

73.320

-1.090

ANS vs NYMEX WTI CMA

AAGWX00

6.09/6.11

6.100

Basrah Light

AAEJH00

72.96?72.98

72.970

-0.150

Basrah Light vs WTI M2

AAGWV00

5.61/5.63

5.620

Thums

PCACD00

72.85?72.87

72.860

+1.170

Line 63

PCABM00

77.10?77.14

77.120

-0.240

Line 63 P-Plus

PCAFV00

4.39/4.41

4.400

Kern River

PCABJ00

71.23?71.25

71.240

+1.170

WTI CMA

AAVSN00 67.220

-0.290

Bakken Williston

AAXPP00 64.520

-0.690

Bakken Williston vs NYMEX WTI CMA

AASRX00-2.700

Bakken Guernsey

AASRR00

65.86?65.88

65.870

-0.340

Bakken Guernsey vs NYMEX WTI CMA

AASRV00

-1.36/-1.34

-1.350

Bakken Clearbrook

AASRU00

66.81?66.83

66.820

-0.440

Bakken Clearbrook vs NYMEX WTI CMA

AASRW00

-0.41/-0.39

-0.400

Bakken USGC Pipe

ABAKA00 70.490

-0.620

Bakken USGC pipe vs NYMEX WTI CMA

ABAKB003.270

Eagle Ford Postings Avg.

AAYAH00 63.650

-0.420

Eagle Ford Posting Avg vs EF Marker

AAYAI00-7.350

Eagle Ford Marker

AAYAJ00 71.000

-0.350

FOB USGC

FOB USGC

Bakken

ABAKC00 71.240

-0.620

Bakken vs NYMEX WTI strip

ABAKD003.630

Eagle Ford Crude

AAYAT00 71.390

-0.470

Eagle Ford Crude vs NYMEX WTI strip

AAYAU003.780

Eagle Ford Condensate

AAYAR00 71.190

-0.470

Eagle Ford Condensate vs NYMEX WTI strip

AAYAS003.580

WTI

AAYBA00 71.390

-0.470

WTI vs NYMEX WTI strip

AAYAZ003.780

FOB Houston

FOB Houston

Eagle Ford Crude

AAYAV00 71.390

Eagle Ford Condensate

AAYBB00 71.190

Global Benchmarks at US Close

-0.470 -0.470

Eagle Ford Crude vs NYMEX WTI CMA Eagle Ford Condensate vs NYMEX WTI CMA

AAYAW003.780 AAYBC003.580

Americas Dated Brent

AAQBF00

72.37?72.39

72.380

-1.150

-0.500 -0.810 +0.200 +0.200 +0.500 +0.500 -0.050 -0.050 0.000 0.000 -0.050 0.000 +0.150 0.000 0.000 0.000 -0.800 +0.160

0.000

-0.400 -0.050 -0.150 -0.330 -0.070

-0.240 -0.090 -0.090 -0.090

-0.090 -0.090

? 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.

3

NORTH AMERICAN CRUDE AND PRODUCTS SCAN

AUGUST 3, 2018

market for Dakota Access Pipeline. With the lower Nederland pipeline differential, Gulf Coast Bakken FOB was assessed at an outright price of $71.24, a premium of $2.75/b to September cash WTI. Bakken FOB was 15 cents lower than Eagle Ford 45-API and WTI FOB, which were both assessed at $71.39/b.

Canada East Coast crudes (PGA page 296)

Eastern Canadian crudes were assessed 5 cents/b lower across the board Friday amid growing signs of weakness in barrels sold in the Atlantic Basin. The day's decline brought Hibernia crude to a discount of 85 cents/b to the Eastern Canadian Dated Brent strip, the weakest in eight sessions. Market participants said one potentially negative factor for all crudes sold in the Atlantic Basin is the arrival of more US barrels as trade tensions rise with China. US crude exports have slowed in recent weeks, likely because the US-China trade war has reduced flows to China, the single largest buyer of US crude in May. West African crude market sources Friday also warned that reduced refinery runs would lead to higher US crude exports into Europe, competing with Nigerian light sweet crudes, which compete directly with offerings produced off the coast of Newfoundland and Labrador.

Canada pipeline crudes (PGA page 298)

Differentials for Western Canadian crudes shipped on pipelines continued to diverge Friday, with heavy grades weakening and light grades moving in the opposite direction. Western Canadian Select at Hardisty started the day weaker, trading at NYMEX WTI CMA minus $31/b. It fell from there, and last traded below the deadline at minus $31.25/b, sources said, which is where it was assessed for a fresh four-year low. Sources have said refinery maintenance in the US Midwest is driving the weakness by cutting demand when inventories are already at a record and pipelines remained constrained. There are signs such historically weak differentials are affecting producers, with Canadian Natural Resources saying Thursday it had shut in

CANADIAN CRUDES

Change

Canada pipeline crudes ($/barrel) (PGA page 230)

vs WTI CMA

Lloyd Blend

AALRK00 36.910?36.930 36.920

-0.740

AALRP00

-30.310/-30.290 -30.300

Mixed Sweet

AALRR00 61.910?61.930

61.920

+0.260

AALRV00

-5.310/-5.290

-5.300

Light Sour Blend

AALRX00 60.960?60.980 60.970

-0.040

AALSD00

-6.260/-6.240

-6.250

Midale

AAUCC00 60.460?60.480 60.470

-0.040

AAUCE00

-6.760/-6.740

-6.750

Condensates

AALSF00 66.760?66.780 66.770

-0.090

AALSJ00

-0.460/-0.440

-0.450

Syncrude Sweet Prem. AASOK00 70.210?70.230

70.220

+0.210

AASOM00

2.990/3.010

3.000

WCS Hardisty

AAPPN00 35.960?35.980 35.970

-0.740

AAPPP00

-31.260/-31.240 -31.250

WCS ex-Cushing

AAWTY00 62.360?62.380 62.370

-0.290

AAWTZ00

-4.860/-4.840

-4.850

WCS ex-Nederland

AAYAY00 64.570

-0.290

AAYAX00-2.650

Cold Lake Hardisty

AASZX00 35.310?35.330 35.320

-0.740

AASZZ00

-31.910/-31.890 -31.900

Eastern Canada ($/barrel) (PGA page 230)

Hibernia Terra Nova White Rose

AAJKK00 AAJUH00 AAVJX00

71.970?72.000

71.985

+0.060

71.920?71.950

71.935

+0.060

72.720?72.750

72.735

+0.060

AAJKM00 AAJUJ00 AAVJY00

vs Canada Dated Brent strip

-0.860/-0.840

-0.850

-0.910/-0.890

-0.900

-0.110/-0.090

-0.100

Change

-0.450 +0.550 +0.250 +0.250 +0.200 +0.500 -0.450

0.000 0.000 -0.450

-0.050 -0.050 -0.050

2,900 b/d of heavy oil output in Alberta because of the steep WCS discount to WTI. A total of 7,450 b/d of output was curtailed in the second quarter, but with the price margins improving for the company in July, 4,550 b/d of output restarted, company President Tim McKay said Thursday during and earnings call. On the light side, Syncrude Sweet Premium continued rising, and was heard to trade at WTI CMA plus $3/b, which is where it was assessed. The higher differential comes as Syncrude Canada works to restart production after it shut down last month due to a transformer outage. Mixed Sweet also gained, and was assessed up 55 cents/b on the day to WTI CMA minus $5.30/b, after it was heard to trade there.

US West Coast crudes (PGA page 294)

Alaska North Slope crude fell Friday despite a stronger Dubai-WTI swap spread. A 300,000-barrel cargo of September-delivery ANS in Southern California was heard traded at September ICE Brent calendar-month average minus 25 cents/b, equivalent to front-month NYMEX light sweet crude calendar-month average plus $6.10/b. ANS was assessed at this trade level, 80 cents lower than Thursday's WTI CMA differential. The crude fell despite the September Dubai-WTI spread widening by 11 cents to $4.60/b.

CANADIAN CRUDES

Change Canada pipeline crudes (C$/cu m) (PGA page 232)

Lloyd Blend Mixed Sweet Light Sour Blend Midale Condensates Syncrude Sweet Prem. WCS Hardisty WCS ex-Cushing Cold Lake Hardisty

AALRM00 AALRT00 AALRZ00 AAUCD00 AALSH00 AASOL00 AAPPO00 AAWUA00 AASZY00

301.461?301.624 301.543 505.647?505.811 505.729 497.888?498.052 497.970 493.805?493.968 493.886 545.260?545.423 545.341 573.437?573.601 573.519 293.702?293.865 293.783 509.323?509.486 509.404 288.393?288.556 288.475

-6.764 +0.944 -1.494 -1.485 -2.015 +0.376 -6.747 -3.568 -6.734

Eastern Canada (PGA page 232)

Hibernia Terra Nova White Rose

AALSN00 AALSP00 AAVPI00

587.812?588.057 587.935 587.404?587.649 587.526 593.938?594.183 594.060

-0.886 -0.885 -0.901

Note: barrel to cubic meter conversion factor is 6.28976

FOREX

Canadian dollar/US dollar forex CADUS00

0.7701

ALASKA CRUDE PRODUCTION/INVENTORIES

Effective date: 01-Aug-18 (PGA page 258)

Total Alaska North Slope

TANSB00

Prudhoe Bay

PBBPD00

Kuparuk

TAKBD00

Endicott

TAEBD00

Lisburne

TALBD00

Alpine

TAABD00

Valdez inventories

VIBPD00

b/d 376,847 223,784 135,432

0 17,630

0 barrels 1,832,109

Source: Alaska Department of Revenue, Tax Division

Change +27,306 +23,424

+805 NA

+3,077 NA

Change +220,437

? 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.

4

NORTH AMERICAN CRUDE AND PRODUCTS SCAN

AUGUST 3, 2018

European VGO (PGA page 1597)

The profitability of sending high sulfur and low sulfur vacuum gasoil to the US Gulf Coast from the Baltic -- as indicated by the freight netback -- has dropped due to a fall in USGC barge premiums, as well as higher Panamax freight rates. European traders had mixed views on the US VGO barge-cargo spread, pegging it a range between flat and $5/b. Barge and cargo values were heard to be level in the Houston and New Orleans markets. LSVGO and HSVGO CIF Houston barges were last assessed at a premium to September cash WTI crude of $11.30/b and $9.30/mt respectively, dropping 95 cents/b and $1.95/b respectively. Houston low-sulfur vacuum gasoil barges rose early Thursday on strong cargo trade but fell later in the day on dips in Brent and WTI. The rate for 55,000 mt Panamaxes from UK Continent to the US Gulf Coast has risen to $21.36/ mt ($3.44/b), its highest since January 2018, as the Caribbean has been very busy with fixtures and this has tied in lots of tonnage in the region. The rally of Panamax freight rates has weakened the potential of a VGO arbitrage to the US. "The arb seems to have slammed shut overnight," a feedstocks trader said. However, other traders pointed towards a workable arb, with two VGO cargoes heard fixed from Europe due for discharge in the USGC, according to a market source. "A paper arb maybe, but in reality it's not really [open]," a second trader said,

European LSSR

Market Analysis: (PGA page 1598) Demand for European low sulfur straight run was on the bullish side Friday, supported by a weaker front-line Dated Brent fuel oil crack. "LSSR is looking in decent shape these days," a feedstocks trader said. The front-month fuel oil crack fell as crude prices remained supported by the prospect of an Iranian supply squeeze following the re-imposition of US oil sanctions, with Thursday's rally stymied by short-term bearish supply factors that continue to weigh on prices. "The fuel oil crack being a bit weaker today is helping," a feedstocks trader added, with cargoes clearing easily on strong refinery

demand. However, some refineries in Europe have been opting to reduce runs as a way of dealing with the current heatwave, sources told S&P Global Platts Friday. "The high temperatures are causing refineries to be down slightly [on runs]," a trader said. Northwest Europe especially has been hit by unusually high temperatures, set to last for a while. Refineries need to cool the crude distillation columns and some have been reducing rates to cope with the heat, although the measures appear to be temporary and have not been widespread, sources said. This points to a slightly bearish feedstocks market, as reduced runs would put a dampener on refinery demand for products such as LSSR which is run through fluid catalytic cracking units to produce gasoline. The reduced run rates were seen as partly lending support to Northwest Europe's gasoline market which has been very tight on seasonally higher demand and shipments to North America and West Africa, according to sources.

Straight Run 0.5-0.7%S FOB NWE Cargo Assessment Rationale: (PGA page 1584) The FOB Northwest European low sulfur straight run cargo assessment was based on the following input: the LSSR FOB NWE differential was assessed at a $4.40/b discount to ICE October Brent crude futures. The outright LSSR price was derived using the dollars per barrel to metric ton conversion factor of 6.77 for LSSR. No bids or offers were reported in the Platts Market on Close assessment process. The above commentary applies to the market data code: PKABA00

LSSR Cargo bids/offers/trades: (PGA page 1585) LSSR CARGO MOC: DEAL SUMMARY: No deals. LSSR CARGO MOC: OUTSTANDING INTEREST: None.

LSSR Cargo exclusions: (PGA page 1585) No market data was excluded from the August 3 assessment process.

US MTBE

Market Analysis: (PGA page 774) The US MTBE price fell Friday alongside the energy complex. US MTBE was assessed Friday at 236.39-236.49 cents/gal FOB USG, down

NYMEX FRONT MONTH LIGHT SWEET CRUDE

($/barrel) 75

03-Aug: $68.49, down $0.47

70

65 07-Jun

21-Jun

Source: S&P Global Platts

06-Jul

20-Jul

03-Aug

FUTURES PRICES

NYMEX Settlements (PGA page 701)

?/gal

NYMEX NY ULSD (Sep)

AAHS001212.69

NYMEX NY ULSD (Oct)

AAHS002213.24

NYMEX NY ULSD (Nov )

AAHS003213.63

NYMEX RBOB (Sep)

AARS001206.55

NYMEX RBOB (Oct)

AARS002194.51

NYMEX RBOB (Nov )

AARS003191.72

$/barrel

NYMEX Crude (Sep)

AAWS00168.49

NYMEX Crude (Oct)

AAWS00267.35

NYMEX Crude (Nov )

AAWS00366.93

ICE futures assessments

$/barrel

Brent (Oct)

AAQBG0073.24

Brent (Nov)

AAQBH0073.56

Brent (Dec)

AAXZZ0073.67

Brent (Jan)

AAYAL0073.66

2.82 cents day on day and 3.94 cents week on week. Activity during the Platts Market on Close assessment process was muted this week, with no firm bids, offers or trades seen. Market participants continue to talk the US premium to the FOB ARA marker at around 6 cents/gal. Sources said blending demand was firm, with some additional demand seen coming out of Mexico. Blend values were last estimated at 252.53 cents/gal, compared with 259.99 cents a week earlier, according to S&P Global Platts data. The US MTBE factor relative to gasoline was 1.1602 Friday, compared with 1.1455 a week ago. In related energy

? 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.

5

NORTH AMERICAN CRUDE AND PRODUCTS SCAN

AUGUST 3, 2018

markets, the complex was weaker Friday on rising OPEC and Russian output, and concerns that the trade war between the US and China will impact demand. NYMEX September RBOB settled at $2.0655/gal Friday, down 26 points day on day and 9.64 cents week on week. NYMEX September WTI crude settled 47 cents lower day on day and 20 cents lower week on week at $68.49/b. The European MTBE FOB ARA marker closed Friday at $819/mt, down $10/ mt day on day and $14/mt from a week ago. In Asia, prices increased $7/mt Friday, but fell $16.50/mt week on week to close Friday at $757.50/mt FOB Singapore.

MTBE FOB USG Assessment Rationale: (PGA page 774) US MTBE was assessed Friday at 236.39-236.49 cents/gal FOB USG, down 2.82 cents day on day. The assessment was based on movement in the Northwest European market, with a premium of 6 cents to the Platts MTBE FOB ARA assessment remaining in place. The above commentary applies to the market data code: PHAKY00

US CRUDE POSTINGS (PGA page 250)

Plains

Shell

Sunoco

Valero

WTI

PSADF09 65.00* 03Aug18 PSADI09 65.10* 03Aug18 PSADG09 65.00* 03Aug18 PSACS09 65.00* 03Aug18

WTS

PSAED09 51.95 03Aug18 PSAEG09 65.44 03Aug18 PSAEE09 60.00 03Aug18

LLS

PSAMO09 63.50 03Aug18 PSAMQ09 63.50 03Aug18 PSAMP09 63.50 03Aug18 PSATF09 66.89 03Aug18

Oklahoma sweet

PSUS191 65.00 03Aug18 PSANX09 64.85 03Aug18 PSANW09 65.00 03Aug18

Kansas

PSAPL09 55.35 03Aug18 PSUS112 57.58 03Aug18 PSAPE09 64.00 03Aug18

Wyoming sweet

PSAQZ09 62.10 03Aug18

Eugene Island

AALBB00 60.50 03Aug18

Eagle Ford PSUS100 65.00 03Aug18

Eagle Ford Condensate PSUS110 64.00 03Aug18

Eagle Ford Light

PSUS135 65.00 03Aug18

Phillips 66

Flint Hills

WTI

PSACP09 65.11* 03Aug18 AAUQN00 65.00 03Aug18

WTS

PSADO09 52.92 03Aug18

LLS

PSAMC09 63.86 03Aug18

Oklahoma sweet

PSASL09 64.91 03Aug18

Wyoming sweet

PSUS264 64.75 03Aug18

Wyoming sour

PSUS261 46.00 03Aug18

Eagle Ford PSUS068 58.20 03Aug18

Eagle Ford Condensate PSUS070 51.70 03Aug18

Eagle Ford Light PSUS069 58.20 03Aug18

*P-5 WTI is a crude oil postings-based index as of 5:30 p.m. local New York time. Posted prices by the following companies are used in the index: Phillips66, Plains, Sunoco, Shell, and Valero.

US Blendstocks (PGA page 394)

The lightest naphtha assessed by S&P Global Platts rose slightly Friday on blender bids. Light straight run naphtha at 83 API rose 25 points to August natural gasoline plus 9.25 cents/gal on bids 25 points lower. LSR sweet naphtha up to 10 ppm sulfur was talked at 12 cents over natural gasoline, with that value not informing the Platts assessment. There were no bids or offers for naphtha at any grade in the Platts Market on Close assessment process. Alkylate at 92 octane was talked higher, but market talk of trade at differentials in the high 30s over pipeline 87-unleaded could not be confirmed. The blendstock was unchanged at pipeline gasoline plus 33.5 cents/gal and has been rangebound at 32-34 cents/gal over the basis since July 18 with little liquidity.

US Feedstocks (PGA page 393)

Sour vacuum gasoil at Houston rebounded Friday, one day after coming within $10/b of cash crude on lowering cargo offers. High-sulfur VGO barges CIF Houston for early to mid-

REFINERY YIELDS AND NETBACKS (Summer specifications)

Yield Freight NetbackSpot Price Margin

US Atlantic Coast Crack Yield & Netback (PGA page 810)

Arab Light Brent

TYACL00 81.12 TYAHP00 84.81

TDDAU00 0.93 TDDCC00 1.03

TNACL00 80.19 TNAHP00 83.78

AAXCU00 69.290 PCAAS00 72.440

TNACLMR 10.900 TNAHPMR 10.910

US Atlantic Coast Coke Yield & Netback (PGA page 812)

Arab Light Brent

TYACJ00 83.78 TYAHN00 86.12

TDDAU00 0.93 TDDCC00 1.03

TNACJ00 82.85 TNAHN00 85.09

AAXCU00 69.290 PCAAS00 72.440

TNACJMR 13.560 TNAHNMR 12.220

Midwest Crack Yield & Netback (PGA page 820)

Light Louisiana Sweet (LLS) West Texas Intermediate (WTI) West Texas Sour (WTS)

TYANT00 87.65 TYAUB00 83.68 TYAUJ00 82.25

TDDQV00 TDDRG00 TDDRI00

1.02 1.88 2.64

TNANT00 86.63 TNAUB00 81.80 TNAUJ00 79.61

PCABN00 71.590 PCACG00 68.490 PCACK00 51.490

TNANTMR 15.040 TNAUBMR 13.310 TNAUJMR 28.120

Midwest Coke Yield & Netback (PGA page 822)

Light Louisiana Sweet (LLS) West Texas Intermediate (WTI) West Texas Sour (WTS)

TYANR00 88.63 TYATZ00 85.28 TYAUH00 85.47

TDDQV00 TDDRG00 TDDRI00

1.02 1.88 2.64

TNANR00 87.61 TNATZ00 83.40 TNAUH00 82.83

PCABN00 71.590 PCACG00 68.490 PCACK00 51.490

TNANRMR 16.020 TNATZMR 14.910 TNAUHMR 31.340

US Gulf Coast Crack Yield & Netback (PGA page 830)

Arab Light Brent Light Louisiana Sweet (LLS) Mars Maya West Texas Intermediate (WTI)

TYACP00 79.32 TYAHT00 82.51 TYANP00 85.82 TYAOB00 79.39 TYAOJ00 71.07 TYATX00 82.39

TDDAR00 TDDCB00 TDDQW00 TDDQY00 TDDDP00 TDDRH00

1.03 2.44 0.95 0.36 0.76 1.62

TNACP00 78.29 TNAHT00 80.07 TNANP00 84.87 TNAOB00 79.03 TNAOJ00 70.31 TNATX00 80.77

AAXCU00 69.290 PCAAS00 72.440 PCABN00 71.590 AAMBR00 68.490 PDATS09 62.830 PCACG00 68.490

TNACPMR 9.000 TNAHTMR 7.200 TNANPMR 13.280 TNAOBMR 10.540 TNAOJMR 7.480 TNATXMR 12.280

? 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.

6

NORTH AMERICAN CRUDE AND PRODUCTS SCAN

AUGUST 3, 2018

August rose $3.70/b to cash September WTI plus $13/b on a heard barge trade late Thursday at that level. Barges were understood to have moved to a premium to cargoes at week's end. "You've got to come in with the offer under the barges or the barges will just block you out," a US market source said. "Why not buy two or three barges as you need them instead of 350,000-400,000 barrels on a ship that you have to tank and tie up on inventory?"

NEWS (PGA page 100)

OPEC July crude output surges 340,000 b/d from June to 32.66 mil b/d

Saudi Arabia pumped close to its all-time high in July and several of its OPEC brethren posted their largest output figures in more than a year and a half, as the bloc appears to be following through on its agreement to unleash more barrels on the market. OPEC produced 32.66 million b/d in July, a 340,000 b/d rise from June, including newest member the Republic of Congo, according to the latest S&P Global Platts survey of industry officials, analysts and shipping data. Saudi Arabia, OPEC's largest member, produced 10.63 million b/d, the kingdom's highest since August 2016, when it produced its record 10.66 million b/d, according to Platts survey archives. Its Gulf allies Kuwait and the UAE pushed their output to their most since December 2016 -- the last month before OPEC and 10 nonOPEC allies agreed to implement supply cuts that are now being eased -- as did Iraq and Algeria, the survey found. Those gains were more than enough to offset output declines in sanctions-hit Iran, crisis-wracked Venezuela and conflict-torn Libya. OPEC on June 23 agreed with its partners to end overcompliance with their production cuts and boost output by a collective 1 million b/d to replace barrels expected to be shut in by the reimplementation of US sanctions on Iran and Venezuela's economic quagmire. OPEC's July compliance among the 12 members with specified quotas stands at 105%, down from 131% in June, according to Platts calculations. Iran, which has warned

REFINERY YIELDS AND NETBACKS (continued)

Yield Freight NetbackSpot Price Margin

US Gulf Coast Coke Yield & Netback (PGA page 832)

Arab Light Brent Light Louisiana Sweet (LLS) Mars Maya West Texas Intermediate (WTI)

TYACN00 81.29 TYAHR00 83.05 TYANN00 85.61 TYANZ00 81.55 TYAOH00 78.15 TYATV00 82.62

TDDAR00 TDDCB00 TDDQW00 TDDQY00 TDDDP00 TDDRH00

1.03 2.44 0.95 0.36 0.76 1.62

TNACN00 80.26 TNAHR00 80.61 TNANN00 84.66 TNANZ00 81.19 TNAOH00 77.39 TNATV00 81.00

AAXCU00 69.290 PCAAS00 72.440 PCABN00 71.590 AAMBR00 68.490 PDATS09 62.830 PCACG00 68.490

TNACNMR 10.97 TNAHRMR 7.74 TNANNMR 13.07 TNANZMR 12.70 TNAOHMR 14.56 TNATVMR 12.51

US West Coast Crack Yield & Netback (PGA page 840)

ANS Arab Light

TYAAD00 83.05 TYACX00 81.69

TDDGL00 0.00 TDDAT00 1.63

TNAAD00 83.05 TNACX00 80.06

PCAAD00 73.320 AAXCU00 69.290

TNAADMR 9.730 TNACXMR 10.770

US West Coast Coke Yield & Netback (PGA page 842)

ANS Arab Light

TYAAB00 84.84 TYACV00 83.04

TDDGL00 0.00 TDDAT00 1.63

TNAAB00 84.84 TNACV00 81.41

PCAAD00 73.320 AAXCU00 69.290

TNAABMR 11.520 TNACVMR 12.120

Platts refinery yields and netbacks are based on product prices and freight rates assessed by Platts. The refinery modeling was produced by Turner, Mason & Co. using its proprietary Turner, Mason Modeling System (TMMS).

PLATTS NORTH AMERICA REFINERY MAINTENANCE (PGA page 175)

Refinery

Capacity (b/d)

Owner

PADD 1

Current

Bayway

238,000

P66

Future

Paulsboro

160,000

PBF

PADD 2

Current

Wood River

314,000

MULTIPLE

Future

Lima Superior

177,000 50,000

Husky Husky

PADD 3

Current

Alliance

247,000

Phillips 66

Baton Rouge

502,500

ExxonMobil

Baytown Borger Convent Lake Charles Meraux Pascagoula Port Arthur

560,500 146,000 225,800 425,000 125,000 330,000 603,000

ExxonMobil MULTIPLE Shell Citgo Valero Chevron Aramco

Country

US

US

US

US US

US US US US US US US US US

PADD 4

Woods Cross Billings Commerce City E Great Falls

45,000

HFC

US

61,500

ExxonMobil

US

36,000

Suncor

US

24,000

Calumet

US

PADD 5

Start date

14-Jan-18

Q318

24-Feb-18

Q418 Q218

Q218 26-Feb-18 Q218 24-Feb-18 1-Apr-18 1-Apr-18 1-Apr-18 Q218 Q118

13-Mar-18 1-Apr-18 3-Feb-18 1-Apr-18

End date

Event

30-Mar-18

MT

Q318

MT

1-Apr-18

MT

Q418

MT

Q218

MT

Q218

MT

unknown

RC

Q218

MT

4-Apr-18

MT

1-May-18

MT

1-May-18

MT

1-May-18

MT

Q218

MT

Q218

MT

15-May-18

Fire

1-Jun-18

MT

8-Apr-18

MT

15-May-18

MT

? 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.

7

NORTH AMERICAN CRUDE AND PRODUCTS SCAN

AUGUST 3, 2018

other members against encroaching on its market share, saw its production fall to 3.72 million b/d in July -- lowest since January 2017 -- as European buyers began winding down their purchases in advance of US sanctions snapping back in November. Venezuela, suffering from crushing debt, crumbling infrastructure, worker unrest, hyperinflation and US sanctions, continued its output slide to 1.24 million b/d, a 670,000 b/d drop in a year and the lowest in the 30-year history of the Platts OPEC survey, except a debilitating worker strike in late 2002 and early 2003. Libya's output dropped 30,000 b/d month-on-month to 670,000 b/d, its lowest since April 2017, the survey found, as it dealt with a militia blockade of its eastern ports that was resolved July 11 and a kidnapping at the Sharara field in the country's southwest. Angola's production remained steady at 1.45 million b/d in July, a 190,000 b/d year-on-year decline, according to the survey, as its mature fields continued to deplete. But the African country should see its production rebound in the coming months with the offshore Kaombo field beginning first production in late July. Major gainers besides Saudi Arabia include Nigeria, which boosted its output to 1.80 million b/d as the force majeure on key export grade Bonny Light was lifted mid-month, and the UAE and Kuwait, both of whom had signaled their intent to loosen their taps. UAE output rose to 2.97 million b/d, while Kuwait produced 2.78 million b/d in July, the survey found. Iraq also raised crude exports from its southern terminals to a record high in July, with its production coming in at 4.57 million b/d, according to the survey. Newest member Congo produced 310,000 b/d in July, a drop from 330,000 b/d in June. The Platts OPEC figures were compiled by surveying OPEC and oil industry officials, traders and analysts, as well as reviewing proprietary shipping data.

US sour VGO rallies to $13/b over crude on stronger ULSD cracks

Houston feedstocks differentials rebounded Friday, with sour vacuum gasoil hitting a $13/b premium to crude for the first time since late June on stout diesel cracks at US Gulf Coast refiners. High-sulfur VGO barges for early to mid-

PLATTS NORTH AMERICA REFINERY MAINTENANCE (continued) (PGA page 175)

Refinery

Capacity (b/d)

Owner

Country

Start date

End date

Event

Current

Anacortes

120,000

Andeavor

US

Cherry Point

227,000

BP

US

El Segundo

269,000

Chevron

US

4-Apr-18 1-Apr-18 1-Jan-18

10-May-18

MT

1-May-18

MT

12-Mar-18

MT

Canada and Mexico

Current

Edmonton Salina Cruz

85,000 330,000

Suncor Pemex

CN

31-Mar-18

MX

1-Apr-18

5-May-18

NA

RC

*CL = Closure/EX = Expansion/ID = Idle/LB = Labor/MT = Maintenance/PO = PowerOutage/RC = Run Cuts/RS = Restart/SL = Sale/UP = Upgrade/WT = Weather

Source: Platts Custom Data

For more information please contact oiltracker@

*CL = Closure/EX = Expansion/ID = Idle/LB = Labor/MT = Maintenance/PO = PowerOutage/RC = Run Cuts/RS = Restart/SL = Sale/UP = Upgrade/WT = Weather

Source: Platts Custom Data

For more information please contact oiltracker@

August traded late Thursday at September WTI futures plus $13/b, up from the assessment at $9.30/b over crude Thursday afternoon. Low-sulfur VGO barges were talked stronger. "High-sulfur VGO is where all the strength is," a US market source said. The rise in diesel cracks has meant extra support for sour feedstocks. Since July 2, the dieselWTI crack in the Gulf Coast region has risen $4.24/b to $19.02/b through Thursday, including a day-over-day $2.78/b jump on July 27. Gulf Coast ULSD has been on a steep climb this week, bolstered by strong domestic and export demand. S&P Global Platts Thursday assessed the market at the NYMEX September ULSD futures contract minus 3.70 cents/gal, up from minus 4.50 cents/gal on Monday. Thursday marked the strongest level the market has been since May. The last time sour VGO was assessed higher than $13/b over crude was June 22 at WTI plus $13.3/b, with a reduction in imports from Africa, Europe and other sources supporting the market at that time. In Europe, the rally in Panamax freight rates has weakened the potential of a VGO arbitrage to the US. "The arb seems to have slammed shut overnight," a Europe feedstocks trader said. Other market sources pointed to a workable arbitrage, with two VGO cargoes heard fixed from Europe due for discharge in the USGC, according to a market source. "A paper arb maybe," a second Europe feedstocks

source said, "but in reality it's not really [open]." Panamax United Kingdom-USGC rates for VGO, crude and other dirty products have been assessed above $20/mt for four consecutive days through Thursday. Offers for USGC VGO cargoes have dipped below barge values late this week. "You've got to come in with the offer under the barges or the barges will just block you out," a second US market source said. "Why not buy two or three barges as you need them instead of 350,000 to 400,000 barrels on a ship that you have to tank and tie up on inventory."

Buckeye seeks permit for Corpus Christi crude loading facility

US midstream player Buckeye Partners has started the initial permitting process for its South Texas Gateway terminal at Corpus Christi to load large crude carriers, a senior company executive said Friday. Start up of the terminal is planned in late 2019 and the project will be part of a large marine facility that it is planning to build along with Phillips 66 and Andeavor, Buckeye's president of the global marine terminal, Khaled Muslih, said on an earnings webcast. "There are large-scale opportunities in Corpus [Christi] for crude exports, with the terminal being a part of the 800,000 b/d Gray Oak pipeline that will allow for barrels

? 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.

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