OPIS Methodology
OPIS complies with all international standards for price reporting agencies set forth by IOSCO, the International Organization of Securities Commissions for spot market pricing. Click here to read OPIS's complete compliance policy. Go here to view IOSCO audit results.


OPIS Wholesale Rack Pricing
OPIS Bottom Line Wholesale Pricing
OPIS Retail Gasoline Pricing
OPIS Retail Diesel Pricing
OPIS Crude Pricing
OPIS Spot Replacement Index (SRI)
Renewable Fuels / RIN Credits (version 2.5)OPIS Renewable Fuels & RIN Credits

OPIS Refined Spot Markets:
    U.S. Gulf Coast (version 1.1)OPIS Refined Spot Markets - US Gulf Coast
    
U.S. Atlantic Coast (version 2.0) OPIS Refined Spot Markets - US Atlantic Coast
    U.S. Midwest (version 1.1)OPIS Refined Spot Markets - US Midwest
    
U.S. West Coast (version 2.0)OPIS Refined Spot Markets - US West Coast

OPIS NGL Spot Pricing (version 1.2)OPIS NGL Spot Pricing
OPIS NGL Forwards PricingOPIS NGL Forwards Pricing

OPIS Bunker Fuels Spot Pricing (version 1.0)OPIS Bunker Fuels Spot Pricing
OPIS Residual Fuel Spot Pricing (version 1.2)OPIS Residual Fuels Spot Pricing
OPIS International Feedstocks Pricing (version 1.5)OPIS International Feedstocks Pricing
OPIS Asia Distillates Spot Pricing (version 1.1)OPIS Asia Distillates Spot Pricing
OPIS Asia LPG Spot Pricing (version 1.2)OPIS Asia LPG Spot Pricing
OPIS Europe Distillates Spot Pricing (version 2.0)OPIS Europe Distillates Spot Pricing
OPIS Europe LPG Spot Pricing (version 3.0)OPIS Europe LPG Spot Pricing


Overview
For over three decades, OPIS has been a news and pricing leader in the downstream refined products marketplace. We have served customers throughout the many industry segments - traders, suppliers, commercial end-users, wholesalers and retailers - with up-to-the minute, award-winning news, analysis and pricing that appears in our many published reports and on-line services.

In that time, OPIS has become the only provider of U.S. spot, rack and retail prices - giving us a complete picture of the marketplace that is rivaled by no other petroleum information supplier.

OPIS editors collectively have more than 250 years experience covering petroleum markets. Our editors know that our numbers are commonly referenced by the industry, but we remain at arms' length. OPIS does not invest in oil companies, speculate on oil prices or accept special favors.

OPIS methodologies are developed after substantial consultation with the stakeholder community, are in-line with market realities and are regularly reviewed by customers and editors on a quarterly basis.

Market data is collected by editors via telephone calls, e-mails, instant messaging and electronic transfer of back office deal sheets. Market data must be provided to OPIS Editors on the day the market is assessed or it will not be considered in the daily assessment.

Editors undergo rigorous internal market training and supervision before assessing markets as do "backup" editors who may be called on to fill in for a particular market's primary editor. Editors' market calls are internally reviewed daily prior to publication by a supervisory editor who checks their accuracy and adherence to OPIS methodology.

OPIS Editors always search for the most complete picture of market activity in their assessments. However, with some products and in some markets the amount of transactional data is much less comprehensive. In such case, OPIS Editors are trained to use bid/ask ranges to set highs and lows. Highest bid and lowest offer may set the parameters of these ranges. In some cases, historically demonstrated mathematical formulae may be applied to calculate the differential value of an illiquid product relative to a more liquid product.

In some markets and with some products, one or more market sources may provide the majority of market data used by the OPIS Editor in assessing the market's value. It is OPIS' policy and methodology that such price discovery, while not as desirable as a variety of sources for market data, is still valid for the purposes of setting a market value in the absence of any other data.

OPIS conducts quarterly spot methodology reviews during which our market editors consult with stakeholders to ensure our methodologies reflect current market realities and are as useful and relevant as they can be.

These spot methodology reviews are in addition to our ongoing and constant examination of our methodologies that may result in improvements in our processes and practices.

Both quarterly and as-needed methodology changes involve a robust polling of the marketplace to ensure all points of view are considered prior to any changes being considered or made.

OPIS spot market editors reach out to stakeholders through a variety of communication channels including e-mail, telephone and instant messaging to garner input on any contemplated methodology changes.

During quarterly spot methodology reviews, all current methodology language is reviewed with stakeholders to ascertain if any improvements or revisions need to be made.

Based on the input received, OPIS senior editorial leadership will decide whether to accept or reject suggestions made by stakeholders for methodology changes.

Once a spot methodology change is contemplated, OPIS reaches out to stakeholders in the form of a formal letter delivered via email soliciting feedback on the change. Feedback may be given via post, email or telephone and the opportunity to comment on any contemplated spot methodology change is open for no less than four (4) weeks and generally not more than six (6) weeks.

In the case of methodology additions, a draft notice is sent out to customers with a deadline for comments set at a maximum of two (2) weeks.

OPIS will publish stakeholder comments received with our responses regarding proposed methodology changes on our website and will respect commenter confidentiality when requested.

In each of OPIS' spot methodologies, the timeframe for accepting data submissions for inclusion into our spot market assessments is set to be as accurate and reflective of market behavior as is possible given our publication deadlines.

In some markets, the timeframe available for data submissions may be longer or shorter than in other markets in order to reflect the unique nature of the spot markets being assessed.

It is OPIS's firm policy that all submitters of spot market data or intelligence must act in good faith with OPIS and its subscribers by disclosing only truthful and complete data relevant and pertaining to our spot market coverage. OPIS will not accept any data submissions resulting from inter-affiliate transactions. Any submitter found to be wilfully submitting incomplete or untruthful data will be excluded from submitting data to OPIS spot market assessments. In addition, OPIS may at its discretion report the suspected attempt at contributing knowingly false data to the submitter's company and/or immediate supervisor. For questions and/or feedback please contact OPIS Director of Content Development Robert Gough at rgough@opisnet.com or 1-301-287-2496.

This document explains our methodology for price collection at all levels and the steps we take to ensure data integrity and accuracy.


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OPIS Spot Price Customer Bill of Rights

Every spot price editor at Oil Price Information Service understands that his or her top priority is calling market assessments fairly. Our methodologies are crafted after careful consultation with our customers and applied by our editors to ensure maximum transparency and accuracy.

Still, we understand there may be times when spot price customers wish to question, dispute or comment on a price assessment and/or our methodologies. As a valued OPIS spot price customer, you have the right to:

  • a prompt reply to any inquiry regarding price assessments and/or methodology within two trading days
  • a full consideration by senior OPIS spot market personnel of any request for a correction or adjustment of a price assessment as well as any suggested changes to OPIS spot price methodology and
  • complete confidentiality.

You can fill out our online form here to let us know if you have a question, complaint, compliment or comment about one of our spot assessments.

The appropriate OPIS personnel will reply to complaints with two (2) spot trading days via email. This reply may or may not be a resolution of the complaint but it will acknowledge receipt of the complaint and assure the complainant that he or she can expect an answer in a timely manner.

If after receiving OPIS' answer to the complaint, a complainant wishes to appeal OPIS' decision, he or she has the right to seek recourse with an independent third party arbiter appointed by OPIS.

Go here to view OPIS' Spot Price Assessment Methodology Commentary.


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Quality and Integrity of Spot Price Methodology

OPIS publishes its market assessment methodology in full on this website and in abbreviated form in its nightly reports. The methodology is written in clear, easy-to-understand language and is fully available to the public and does not require a user name or password for access. Details of each product assessment’s methodology are below.

Reliable, Indicative and Distortion-free

OPIS’ overarching strategic goal continues to be that it is recognized as a widely accepted fuel price benchmark for supply contracts and competitive positioning. OPIS is relied on as a trusted benchmark because, based on its published methodology and internal policies and practices, OPIS can provide assurance it remains completely unbiased and independent. OPIS has no stake in fuel transactions, is not funded by oil industry initiatives, and strictly adheres to antitrust guidelines determined by independent legal counsel.

OPIS does not discriminate between reporting parties that are in good standing and have demonstrated a commitment and reputation for truthful and accurate price discovery when calculating its market assessments.

Criteria and Procedures

OPIS market assessors follow the marketplace throughout a full day of trading by constant communication with designated and approved traders and brokers to discover done deals, bids and offers. This full day methodology requires OPIS market assessors to be in contact with active marketplace participants during every trading day.

The OPIS full day methodology is applied to all of its market assessments with the exception of Europe LPG which utilizes a “market window” to capture deal activity. This window is described fully in the Europe LPG methodology. This “market window” approach to assessing the Europe LPG is a reflection of the preference of the market participants as documented in OPIS’ electronic log of customer feedback and input and reflects the unique nature of the market’s behavior.

OPIS market assessors communicate with market participants via electronic instant messaging (e.g., Yahoo! IM), email and telephone communication.

Additionally, OPIS market assessors receive deal sheets from active market participants detailing their market activity for the day.

Only market data that fits OPIS methodology is used in assessing ranges for OPIS spot products. This includes restrictions on the timing of the market activity reports and the volume of product being traded as well as other factors as enumerated extensively by individual commodity, and made publicly available.

Preference for OPIS market assessments is done deals. However, in the absence of done deals, OPIS market assessors use confirmed bids and offers to set ranges for market assessments. Highest bid and lowest offer are used by OPIS market assessors to set ranges in the absence of done deals.

In very illiquid markets, formulations are used to calculate values of derivatives of more liquid products based on historic market behavior. These formulations are set based on market participant feedback and approval.

OPIS supervisors routinely review market assessors’ judgments throughout the trading day and prior to publication of the assessment. Additionally, OPIS supervisors review any market data not used in the assessment and the reasons they were not used.

Units of measure referenced in OPIS market assessments vary depending on the standard measurements used by the commodity marketplace being followed (e.g., refined products are assessed in US dollars per barrel while renewable biofuels such as ethanol are assessed in US dollars per gallon).

Consistency Between Assessors

Each market OPIS assesses has three fully trained market editors assigned to it. Each of these market editors is fully versed in the latest methodology, market participants and market intelligence available for that market. In the event the primary market editor is not available to assess his or her market, the secondary editor is fully capable of stepping in to assess the market. Additionally, a third level of redundancy in editorial continuity is built in. All OPIS data is thoroughly archived and backed up by information technology systems and hardware on- and off-site.

New OPIS market assessors undergo apprenticeship training in OPIS methodology and are required to observe closely as veteran market assessors assess markets for a period of no less than four (4) weeks prior to assessing those markets themselves.

Additionally, OPIS market assessors report to and are supervised by a core group of veteran OPIS senior editors who ensure OPIS methodology and defined practices and procedures for assessing markets are consistently followed.

Relative Importance of Types of Data

OPIS market editors give all due priority to concluded transactions when making market assessments with the exception of market trading days in which an exceptional event or anomaly occurs just prior to OPIS’ deadline for publishing market assessments. However, all price assessments that deviate from OPIS’ prioritization policy for transactional data require the consultation and prior approval of a supervisory editor.

In the case of illiquid markets where transaction volume is light or non-existent, editors draw upon bids and offers and other market intelligence to set ranges. In some cases, assessments are made based on historically demonstrable formulaic relationships to more liquid products that are reviewed regularly with the marketplace to maintain their relevance.

Notional or Illiquid Markets

In the absence of done deals, OPIS market assessors can set ranges for products in somewhat illiquid markets based on bids and offers heard in the marketplace. In such cases, OPIS market assessors use a highest bid/lowest offer methodology.

Some OPIS market assessments are “notional values” meaning the product markets being assessed do not typically feature daily activity such as done deals, bids or offers. Instead, these markets are understood by the marketplace, OPIS customers and OPIS market assessors as formulations referring back to a “parent”, more liquid product based on historical and logical pricing relationships affected by known transportation, storage or handling costs.

Timeliness of Data Submissions

OPIS market assessors track spot markets on a full-day basis and OPIS’ daily ranges reflect confirmed trades by timing, volume, product and location each day.

"Typical" trading hours extend from 9:00 a.m. to 5:15 p.m. Eastern Time (6:00 a.m. to 2:15 p.m. Pacific Time). Deals that are received outside those hours are reviewed, evaluated and independently approved for consideration in our full-day ranges. In order to meet publication deadlines, OPIS reserves the right to not accept deals as part of the final day's product ranges if that information is sent to/received by OPIS after 5:15 p.m. (2:15 p.m. Pacific Time).

OPIS market assessors sample on a daily basis a broad cross-section of refiners, traders, marketers, brokers and end users active in buying, selling or trading physical barrels. OPIS policies and practices require market assessors to cast a wide net to capture as many transactions as possible in arriving at OPIS day-to-day price assessments of spot market values. OPIS market assessors take an "arm's length" approach to covering the market.

OPIS daily spot market assessments include information obtained from "back office deal logs" sent to OPIS as part of its daily market price discovery. The information highlights actual transactions during the day, including price, volume, product, timing and counter party. OPIS market assessors compare the end-of-the-day deal logs with our confirmed deals through the day to ensure OPIS does not duplicate information. OPIS confirms deals via constant communication with traders and brokers in the marketplace.

Bulk of Data from One or More Sources

OPIS takes into account in its daily full-day price assessments market data from a variety of approved reporting entities. The volume of data coming from any single entity on any given day can vary, depending on that entities activity (buying or selling needs) in the marketplace.

OPIS gives equal weight to all market data submitted and deals confirmed based on our published methodology. To ensure consistency and integrity, all deals are weighed equally, without respect to any single data provider constituting a significant proportion of the total data.

OPIS requires its market assessors to conduct a broad canvass of the market each day so that OPIS is not “submitter dependent” on any one source for any single portion of data.

Market liquidity varies by individual regions from day to day with pipeline scheduling days typically reflecting high volume days.

Criteria for Excluding Data

OPIS adheres to its methodology language first and foremost. Any data that does not conform to the methodology's definitions regarding timing, size, specification, volume or verifiability are not included in OPIS's market assessments.

All data exclusions must be reviewed and approved by an OPIS supervisory editor.

Additionally, OPIS market assessors reserve the right to exclude market data received that either: 1) cannot be repeated in the marketplace, 2) cannot be confirmed in the marketplace by counter-parties or independent market observers and/or 3) comes from a source that is unidentifiable and/or unverifiable as a “bona fide” source of market data.

Rationale for Methodology Adoption

All OPIS market assessments follow methodologies reflective of the market’s actual behavior with regard to timing of trading, specifications of product, location of trading, and historically established relationships between products.

OPIS methodologies are carefully crafted through market participant consensus and are designed to be inclusive of all market data that fits OPIS published methodology parameters, including restrictions for inclusion of any market data that does not fit those same parameters.

The timeframes in which products are assessed are those requested by the market participants and vary from product to product.

OPIS market assessments commonly use the terms “prompt” and “any” to describe the timing of product delivery. Definition of timeframes for these terms varies from market to market and from product to product. In general, however, “prompt” refers to product expected to make delivery within a week while “any” refers to product expected to make delivery after a week’s time but before the end of a month.

Procedures for Internal Review and Approval

OPIS methodology is version controlled and constantly scrutinized for clarity, relevance and comprehensiveness by market assessors and senior editors. It is also reviewed and discussed regularly during weekly spot market editors’ meetings. Records of these meetings, subjects covered and market assessors in attendance are kept in a central electronic file.

OPIS methodology language and any proposed changes are drafted by market assessors and/or senior editors and circulated for review by all other market assessors and senior editors involved in the market(s) and product(s) addressed by the methodology. All proposed changes are version-controlled and require approval by the Director of Content Development prior to initiating external review.

Additionally, mandatory quarterly reviews of all OPIS methodology are conducted and documented by relevant OPIS market assessors and senior editors to ensure clarity, accuracy and relevance. Records of these quarterly methodology reviews, market participants polled and their feedback received are kept in a central electronic file.

Procedures for External Review and Approval

OPIS methodologies are developed after substantial consultation with the stakeholder community, are in-line with market realities and are regularly reviewed by customers and editors on a quarterly basis.

Whenever an OPIS methodology is being created or altered, stakeholders in the product market affected are consulted via a two-step process:

  1. key stakeholders are asked to review an exposure draft of the proposed methodology (or change to methodology) and given adequate time (two to four weeks if the change is deemed “minor” and four to six weeks if the change is deemed “major”) to respond in writing with feedback and suggest changes, etc.
  2. After key stakeholders are thus polled and changes are either accepted or rejected, the proposed methodology (or change to methodology) is circulated via email to all OPIS customers who use (or would likely use) the market assessment. Thirty days are given for feedback and any suggested changes are given full consideration by senior editors and market assessors.

Reasons for rejecting stakeholder feedback might include, but are not limited to:

  1. suggested changes would tend to make market discovery less transparent
  2. suggested changes would exclude full market participation by otherwise bona fide market participants under the parameters of the methodology
  3. suggested changes would unfairly favour one market participant or class of trade over another
  4. suggested changes would limit the utility of the market assessment
  5. suggested changes would distort the true functioning of the market assessment

Additionally, OPIS reserves the right to reject any feedback it deems to be non-constructive or inherently untenable.

Changes to Methodology

OPIS conducts quarterly spot methodology reviews during which our market editors consult with stakeholders to ensure our methodologies reflect current market realities and are as useful and relevant as they can be.

These spot methodology reviews are in addition to our ongoing and constant examination of our methodologies that may result in improvements in our processes and practices.

Both quarterly and as-needed methodology changes involve a robust polling of the marketplace to ensure all points of view are considered prior to any changes being considered or made.

During quarterly spot methodology reviews, all current methodology language is reviewed with stakeholders to ascertain if any improvements or revisions need to be made.

Based on the input received, OPIS senior editorial leadership will decide whether to accept or reject suggestions made by stakeholders for methodology changes.

Once a spot methodology change is contemplated, OPIS reaches out to stakeholders in the form of a formal letter delivered via email soliciting feedback on the change. Feedback may be given via post, email or telephone and the opportunity to comment onany contemplated spot methodology change is open for no less than four (4) weeks and generally not more than six (6) weeks.

In the case of methodology additions, a draft notice is sent out to customers with a deadline for comments set at a maximum of two (2) weeks. OPIS will publish stakeholder comments received with our responses regarding proposed methodology changes on our website and will respect commenter confidentiality as requested.


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Anti-Trust Policy
For over 30 years clients have trusted OPIS to adhere to strict anti-trust guidelines in collecting and distributing sensitive oil pricing data. With oil prices under increasing scrutiny, OPIS recognizes that suppliers cannot afford even the slightest perception of price sharing or price signaling. That's why OPIS does not provide price notification and messaging services for suppliers and embargoes release of all rack pricing data until after the changes become effective to customers.


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OPIS Wholesale Rack Pricing

Price Discovery
Every day, including Saturdays, OPIS updates its wholesale terminal prices from hundreds of sources. Some suppliers confirm prices directly using the same pricing messages their customers receive. For many other suppliers, prices are collected from their customers who OPIS deems are reliable sources.

Data Integrity
Verification of prices is done using documents provided by either the supplier or customers. Multiple sources are required for prices received via customer channels. In order for a supplier's price to be added to OPIS rack coverage, their price and the consistent supply of barrels at that location must be verified with multiple customers. It must also be a wholesale terminal rack price and not a commercial or consumer end-user price; this avoids mixing classes of trade and misrepresenting true wholesale postings and averages.

OPIS uses several levels of automation to make sure prices that have not changed at usual intervals are fresh. If a price has not changed in 48 hours, it is electronically flagged and a pricing specialist is alerted so as to track down whether the number still represents an active and meaningful listing. OPIS specialists pinpoint prices that are outside specified reasonable parameters to avoid displaying inactive prices where product may not be available or where special circumstances may dictate that the number is not representative of where most wholesale commerce is taking place. Products tagged as "out-of-product" or "out-of-average" will not be part of the OPIS lows, highs or averages.

Time Stamp (all times are ET)

  9:00 a.m. OPIS wholesale terminal prices for gasoline, distillate, and other products are updated and ready for release.
  10:00 a.m. OPIS contract summary data used for benchmarking is available. This file is delayed to allow time for further verification to ensure the integrity and accuracy of all the prices before the information is calculated. The contract data includes the Contract Average which is a gross price that OPIS has had since 1995. As of April 1, 2004, we added a Contract Low and Contract High as well as Contract Net Average, Contract Net Low and Contract Net High pricing. Branded and Unbranded numbers are also available as Contract prices. The contract data is frozen for 24 hours to allow customers to reconcile exchanges, sales or other benchmark deals. The contract summary data is also archived. The reason OPIS created the Contract summary data is because OPIS updates price moves throughout the day and publishes them on demand for clients.
  by 5:59 p.m. OPIS archives the closing rack price database for that business day. The current day's history is available the next business day. The OPIS rack history database is the largest of its kind and dates back to December 15, 1980.
  11:59 p.m. OPIS Calendar-Day Average rack prices are a snapshot of the average of all supplier postings in each OPIS rack market at 11:59 p.m. eastern time. The snapshot includes all price moves from 12:00 a.m. (midnight) until the file is frozen at 11:59 p.m. (Example: The Jan. 3 Calendar-Day Average encompasses all price moves that were made at 12:00 a.m. on Jan. 3 up through 11:59 p.m. on Jan. 3. Hence, it is an average of all prices on that calendar day.)

Rack Formats

  • OPIS Standard Display – Provides one price per product, per supplier in each market, even when suppliers post at multiple terminals. We select the primary terminal for each supplier, so the OPIS averages that are so critical for benchmarking and market analysis are not skewed.
  • OPIS Terminal Display – Shows product prices posted for every supplier at all terminals in a given location for total price transparency and includes the location and owner.

Rack Pricing History
In addition to providing daily, up-to-the-minute wholesale rack prices, OPIS maintains the largest and most extensive wholesale terminal price historical database of any company in the world. OPIS's historical rack prices date back to 1981, when oil prices were decontrolled. Prices are available on a daily, weekly or monthly basis by market, by company, and by product.


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OPIS Bottom Line Wholesale Pricing

Price Discovery
Each day OPIS uncovers wholesale fuel purchases transacted at values below the lowest rack price that appears in the OPIS daily wholesale rack display. We verify these transactions and publish these discovered 'Bottom Line' values by market and product to give buyers and sellers visibility into the lowest transacted wholesale purchase prices on any given day.

Bottom Line prices are contrasted against the OPIS benchmark low posted price to identify how much lower these Bottom Line prices are. Only markets where Bottom Line wholesale values below the OPIS benchmark low will appear. Bottom Line prices include TVAs and other discounts and are often contract prices between suppliers and purchasers reflecting volume discounts, although specific volumes are not reported.

Data Integrity
Bottom Line values are always net and contrasted against the net OPIS Contract/Closing Terminal low poster. The delta from the OPIS low is posted. The supplier of the Bottom Line value will not be identified and all Bottom Line values are rounded.

Time Stamp
Published twice daily:

  1. Approximately 10:00 am ET based on the net OPIS Contract Terminal Low
  2. Approximately 6:00 pm ET based on the net OPIS Closing Terminal Low

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OPIS Retail Gasoline Pricing

Price Discovery
Every day OPIS captures station-specific retail gasoline and diesel prices for up to 130,000 service stations throughout the United States. Through exclusive relationships with credit card companies, direct feeds and other survey methods, OPIS is able to provide the most comprehensive and accurate pump prices in the industry.

The OPIS retail data is relied on by some of the top companies in the country to provide consumers with the most accurate and timely information available including AAA, Microsoft, Mapquest, America Online, Garmin, Verizon, Sprint and many more.

Data Integrity
To ensure accuracy of the retail prices, OPIS scrubs the data through a number of computer programs to make sure the prices are current and are for pump gasoline purchases only - not for in-store purchases that may include non-gasoline products.

OPIS gets prices for most major retailers regardless of whether the station is company operated, jobber owned or dealer operated. Included in the feed are many of the more aggressive c-stores such as WAWA, QuikTrip, Maverik and Sheetz and most of the discount chains and supermarkets such as Wal-Mart, HEB and Kroger.

OPIS has daily, weekly and monthly standard reports as well as customized reports which allow the user to slice and dice the data to get the view of the market they need to make smart decisions. In addition, OPIS has retail history going back as far as 1996 at the station level and can quickly roll the data up to nearly any geographic criteria you desire.

Time Stamp
OPIS is able to capture prices in near real-time - as soon as the swipe happens – at more than 25,000 locations. OPIS Is currently working with the major networks in order to bring you more and more prices as they change and expects a major percentage of the 130,000 stations to be available in real-time by the end of this year.

The stations which currently don't have the ability to be captured in real-time are updated via a batch file each morning and each price has the actual transaction date of the purchase. The daily feed through the batch process has transactions that are from 1-5 days old with the majority of prices being no older than 3 days.


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OPIS Retail Diesel Pricing

Price Discovery
OPIS surveys the current retail prices of No. 2 low sulfur and Ultra Low Sulfur diesel fuel from more than 8,000 active truckstops and travel plazas in the U.S. and Canada. Retail prices are gathered by major fuel card companies including Comdata and EFS as well as through direct feeds from major truckstop chains.

OPIS reports wholesale fuel prices by products as defined by EPA standards more so than by any type of product use. For example, the EPA defines low-sulfur fuels as having a sulfur content of less than 500ppm and Ultra Low Sulfur diesel as less than 15 ppm.

Data Integrity
OPIS marries this retail price data with current rack and tax rate information to calculate the estimated laid-in costs and profit margins of fuel at each of the fueling sites included in the OPIS survey. The OPIS estimated cost figures are recognized as the industry standard for benchmarking "Cost Plus" fuel purchases by large trucking fleets.

Cost Plus is a method of purchasing fuel at the retail level where the fleet (buyer) and truckstop (seller) agree to a fixed margin above the cost of the fuel to the truckstop. This fixed margin protects both the fleet and the truckstop by ensuring the cost of fuel to the fleet and the profit to the truckstop is tied to a legitimate market index.

The following is a list of the diesel fuel products OPIS tracks and some typical uses for those products.

No. 2 Ultra Low-Sulfur
No. 2 Ultra Low Sulfur has a sulfur content of less than 15 ppm and must be used to supply at least 80% of the nations on road diesel fuel sold at the retail level as of October 15, 2006. In addition to clear No. 2 low sulfur, OPIS also provides pricing for Red Dye, Premium, Low Emissions and Winter grades of Ultra low-sulfur diesel fuels. All of the OPIS Ultra Low-Sulfur diesel products are understood to include lubricity.

No. 2 Low-Sulfur
Clear low-sulfur (LS No.2) diesel has a sulfur content up to 500 ppm and can be used for up to 20% of the nations on road diesel fuel sold at the retail level. In addition to clear No. 2 low sulfur, OPIS also provides pricing for Red Dye, Premium, Winter, Low Emissions Diesel and Lubricity grades of low-sulfur diesel fuels.

No. 2 High-Sulfur
Clear high-sulfur No.2 diesel is used as an off-road fuel for equipment such as farm machinery or as home heating oil.

No. 1 Low-Sulfur
Clear low-sulfur fuel is commonly used for "blending" on-road fuels. Diesel is blended during winter months to create a diesel fuel that will not solidify or gel in colder temperatures.

No. 1 High-Sulfur
Clear high sulfur is used for various off road agricultural and industrial purposes. Crop drying ovens is one example.

Kerosene
Kerosene has a lower freeze point, lower flash point and lower pour point.

Red-dye
Diesel fuel is dyed red to denote it is being used for tax-exempt purposes. Entities that are tax-exempt (school boards, etc.) use red-dyed fuel because it is tax exempt. There is no difference in red-dyed product specifications. Red-dyed prices typically are 0.25 to 0.35cts higher than clear prices to recoup the charge for the dye and dying process.

Premium Diesel
The higher cetane rating is what makes a regular diesel a premium diesel, along with some type of detergent package that serves to clean the engine as the fuel is burned. Cetane is to diesel what octane is to gasoline. Premium diesel typically has a minimum 45 cetane rating, whereas regular diesel is closer to a 38 to 40 cetane rating.

Winter Diesel
During the winter months, on road diesel fuels may be blended with other diesel fuels or chemical additives to produce a Winter diesel that will not begin to solidify or gel due to cold temperatures. OPIS also provides pricing for Red Dye, Premium, and Lubricity grades of Winter diesel fuels.

Lubricity
Several states have mandated the use of a lubricity additive in several on road Low Sulfur diesel fuels. OPIS provides separate pricing displays for Low Sulfur and Low Sulfur with lubricity products. Diesel postings which may include lubricity are Low Sulfur, Red Dye, Winter and Premium diesel products. Since all Ultra Low Sulfur products must have a lubricity component, it is not necessary to maintain a separate lubricity product grouping within Ultra Low Sulfur products.

CARB Diesel
As of June 1, 2006, all diesel fuel sold for vehicular use in California must meet a 15 ppm maximum sulfur limit (Ultra Low), in addition to meeting all of the current low aromatics CARB diesel specifications. The definition of "vehicular use" in California includes on-highway vehicles and non-road vehicles such as agriculture and construction equipment.

Low Emissions Diesel
Beginning in October 2005, 110 counties East/Central Texas required the use of Low Emissions Diesel or LED in both on-road vehicles and in non-road agricultural and construction equipment. LED diesel must contain less than 10 percent by volume of aromatic hydrocarbons and must have a cetane number of 48 or greater.

NRLM Diesel
Effective June 1, 2007 for refiners and October 1, 2007 for marketers, U.S. supply points required lower sulfur diesel for off-road transportation use in locomotives and for marine use in boats, etc. in various states.

This new fuel,called NRLM diesel for Non-Road Locomotive Marine, contains more than 15 ppm sulfur but less than 500 ppm sulfur and replaced the high-sulfur diesel fuel that exceeds 500 ppm and is still used for home-heating oil purposes.

Where it exists, OPIS racks display NRLM diesel simply as "NRLM."

By 2010, all off-road locomotive and marine transportation fuel must meet NRLM specs.

Time Stamp (all times are ET)

  7:30 a.m. Retail Diesel Price files available.
  10:00 a.m. Cost Plus Prices are available.

The Retail Diesel prices and the OPIS Gross Contract Average are used to create these numbers. The data is delivered Monday through Friday by email, the Internet, FTP and many third-party vendors.


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OPIS NGL Spot Pricing

Price Discovery
Many of the daily prices we report provide key benchmarks for some of the largest buyers and sellers of NGLs in the world. Large utilities, petrochemical companies, industrial and manufacturing companies, rail companies, fleets, natural gas producers, gas processing companies, refiners, pipeline companies, and state and local governments buy and sell NGLs based on OPIS spot market assessments.

For North American markets, editors confirm and record deals done for NGLs between 9am and 5pm Eastern time (8am-4pm Central time) on a fixed price basis or in a relationship to another product or location or timing (example: E-P mix at a differential to purity ethane, TET propane at a differential to non-TET propane, prompt a penny over any current month). Editors respect the wishes of sources to remain anonymous in their activities in the market and any information we receive regarding parties in deals will be kept confidential.

OPIS tracks any current month, prompt, and out month trading for NGLs. OPIS NGL prices labeled as "any current month" represent transactions for product that buyer and seller agree will be delivered at any time during the current calendar month. OPIS NGL prices labeled as "prompt current month" represent transactions for product that buyer and seller agree will be delivered within the next 48 hours. OPIS NGL prices labeled as "out month" represent transactions for product that buyer and seller agree will be delivered any time in the next calendar month.

Data Integrity
Because of the subjectivity of publishing NGL spot ranges, editors talk to a very broad cross section of participants including domestic and international producers, end users, refiners, processors, traders, brokers, shippers, wholesalers, and retailers.

Ranges represent where the bulk of product is moving and do not include deals struck under extraordinary circumstances and far outside the range of other deals reported on a given day, or far above or below confirmed seller or buyer levels, or under certain volumes, generally 10,000 bbl at Mont Belvieu and 2,500 bbl in the Midwest markets, though deals done in these volumes are not automatically included by virtue of the volume, and deals done in smaller volumes may at times be included at the discretion of the editor. Ranges reflect actual transacted deals, but in the case of confirmed trading followed by a shift in the market without a done deal, editors will consider subsequent confirmed and legitimate bid-asks in determining the overall range, taking into account the input of the trading community, material shifts in the market at large, and the relationship the illiquid product may have with more actively-traded products.

For Hattiesburg Spot Gas Liquids Prices, prices for a volume of 5,000 barrel (bbl) will be the minimum considered for use both for in-line and storage propane price ranges. The 5,000-bbl volume reflects the most commonly reported trade done for this market. Deals done at those volumes are not automatically included by virtue of the volume. Price ranges will reflect either fixed-price trades, buy/sell trades or spreads to Mont Belvieu markets. Unless a specific spread or buy/sell value is reported, editors will have discretion with regard to assessing the timing and relation between Hattiesburg fixed-price trades and Mont Belvieu prices. In the absence of reported trades, editors will assess Hattiesburg prices based on the most recent spread assessments to Mont Belvieu propane markets.

Minimum volumes are not necessarily a consideration for Louisiana, Canada and West Coast price ranges due to illiquidity and infrequent trading in those regions. Those markets will continue to be assessed based on most recent transactions reported to OPIS, market surveys of most recent spread assessments to more liquid markets and the best bid-ask spread available through brokers and electronic exchanges.

Editors have the ability to review and reflect transactions reached on electronic platforms, such as ICE, within published ranges, but posted "bid/asked" numbers or even confirmed deals on such networks are viewed subjectively by OPIS staff. It is up to individual OPIS editors to determine whether prices quoted on electronic platforms fall within the reasonable realm of where business is being done -- OPIS will not include a price within its daily ranges simply because it appeared on an electronic platform. Finally, a note about errors and disputes. We recognize that ascertaining a spot product range is highly subjective, and realize that there will be parties that dispute our "call." Ranges are only changed in the case of clerical errors such as typos or transpositional mistakes. We never alter ranges simply because of oil firm complaints.

OPIS Transatlantic ARB: Mont Belvieu/cif Flushing
In the northwest European propane market, OPIS assesses cargoes cif basis Flushing for 10-20 days forward delivery. The quantity, grade and quality, delivery and nomination terms are as per the industry standard ToT (ten-days notice of a three-day delivery window) contract for the current year. Assessments consider physical spot deals and swaps transacted between 4:00-4:30pm London time. Butane prices are for field grade mixed butane cargoes above 4,000mt delivered 5-20 days forward basis cif ARA.

At Mont Belvieu, propane and butane prices are non-TET any current month daily averages.

Consideration of Calendar and Product-Spread Transactions
In general, editors may disregard the prices for two-party calendar spreads. However, editors do consider the differential implied by such transactions. For instance, if two firms agreed to exchange Mt. Belvieu ethane for the current month versus the out month, at a differential of 1cts/gal, the editor would consider that differential in the day's assessment of the market.

In the case of a three-party spread - one in which firm A completes a calendar spread by selling to Firm B and buying from Firm C in different months - editors may consider the prices as well as the monthly differential when computing the day's ranges.

Editors may consider both the prices and differentials achieved in a product spread (such as ethane for EP mix) or geographical spread (such as Conway propane for Mt. Belvieu Non-TET propane).

Specifications
OPIS NGL spot market products offer twice-a-day market assessments - at midday and following the futures' market's close at the end of a business day for Mont Belvieu and Conway markets, with once daily assessments offered for all other markets except the West Coast. In addition to in-depth market analysis that explains what factors are influencing price direction, OPIS provides a range of actual spot prices, reporting a daily market "low", "high", "average" for each of the products in each of these markets: Mont Belvieu, Texas; Conway and Bushton, Kan.; Napoleonville and Geismar/Sorrento, La.; Hattiesburg, Miss.; and Sarnia and Edmonton, Canada. Additionally, OPIS provides once-weekly assessments in Los Angeles, Bakersfield, and San Francisco, Calif. Averages are simple averages of the daily low and high, as opposed to weighted averages.

In Mont Belvieu markets, TET prices apply to product traded in the original TET facility currently owned by the Energy Transfer Partners LP and Regency Energy Partners LP joint venture, (LST). Non-TET prices only apply to product traded in the Mont Belvieu Caverns facility that is a subsidiary of Enterprise Products Partners, LP. Other Non-TET prices apply to product traded in Targa Resources storage.

Unless otherwise noted all prices refer to product traded on an in-well basis.

Accepted industry standards:

  • c3 (propane) 90,830 btu/gal, .507 relative density, liquid
  • nc4 (normal butane) 102,916 btu/gal, .584 relative density liquid

Note: In Mt. Belvieu TET (LST) normal butane references refinery grade butane regardless of location. Non-TET and Other non-TET normal butane refer to isomerization grade normal butane. Conway prices reflect the market for isomerization grade normal butane.

  • ic4 (isobutane) 98,950 btu/gal, .563 relative density liquid
  • c5 (natural gasoline) 115,021 btu/gal, .664 relative density liquid

Mixed and field grade products vary depending on market conditions, the gas stream or crude slate from which they are obtained, and no specs are available as these are not deemed fungible and are tested on a per batch basis.

Canadian LPG Prices
As of July 11, 2011, OPIS began assessing Canadian LPG markets on a daily basis.

Editors track any, prompt and out month prices for Edmonton propane, field grade butane and natural gasoline; and for Sarnia propane, normal butane and isobutane.

Assessments reflect spot prices in each location. Local posted prices are, however, taken into consideration to determine market value in the absence of spot liquidity.

Prices are typically collected from 9 a.m. to 4 p.m. Eastern Time.

Edmonton: OPIS assesses Edmonton area in-well transactions for spot propane and field-grade butane.

In the case of natural gasoline, the spot location is Fort Saskatchewan Pipeline. Smaller-sized pipeline activity in the Edmonton natural gasoline market is taken into account for directional purposes only.

Typical minimum transaction volumes in Edmonton are as follows: Edmonton propane, 1,000 cubic meters; field-grade butane, approximately 500 cubic meters; natural gasoline, 1,000 cubic meters. However, OPIS will consider smaller-volume parcels to gauge market direction in the absence of liquidity. There is no absolute minimum volume requirement that OPIS adheres to in making its Edmonton assessments.

All prices are assessed in cents per gallon in the daily OPIS North America LPG report, though price reporting on the part of market participants often follows different formats. Data received is converted to cents per gallon.

For less liquid markets, OPIS editors rely on historically verifiable market relationships and traditional differentials such as:

  • Edmonton propane to Conway in-well propane;
  • Field grade butane as a percentage of average WTI crude oil prices in the current and next month;
  • Natural gasoline to WTI crude oil averages.

In addition to the cents per gallon assessment in its report, OPIS tracks the dollars per barrel premium or discount to WTI crude oil for Edmonton natural gasoline.

Sarnia:
OPIS assesses Sarnia area in-well transactions for spot propane, as well as normal butane and isobutane.

In the case of these products, the primary spot locations assessed are the Plains Sarnia fractionator and the Pembina Sarnia storage facility; both are facilities to which OPIS intends to refer when using the term “Sarnia”.

Typical minimum transaction volumes in Sarnia are 7,500-10,000 bbl, however, OPIS will consider smaller-volume parcels to gauge market direction in the absence of liquidity. There is no absolute minimum volume requirement that OPIS adheres to in making its Sarnia assessments.

All prices are assessed in cents per gallon in the daily report, though price reporting on the part of market participants often follows different formats. Data received is converted to cents per gallon.

For less liquid markets, OPIS editors rely on historically verifiable market relationships and traditional differentials such as:

  • Sarnia propane to Mt. Belvieu TET propane;
  • Sarnia normal butane to Mt. Belvieu TET normal butane;
  • Sarnia isobutane to Mt. Belvieu TET isobutane.

Frac spreads
Frac spreads in the North American LPG Report are calculated using the following formula: [NGL product average price/NGL product heating value] /100 - referenced month NYMEX natural gas futures settle price x 100 x NGL product heating value. As raw mix/y-grade stream compositions vary widely, the frac spreads published by OPIS are intended only as a general guide, and are not specific to any particular stream or site.

Delivery (all times are ET)

  10:30 a.m. Propane Daily
  1:30 p.m. NGL/LP Gas Mid-day market update
  6:15 p.m. NGL/LP Gas Final Report


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OPIS NGL Forwards Pricing

The OPIS daily end-of-day NGL Forwards Report provides a snap shot glimpse of monthly and quarterly forward assessments. The values shown in the report include low and high assessments and an overall OPIS average assessment for Mont Belvieu TET (LDH) propane, non-TET normal butane, natural gasoline, purity ethane, and Conway propane with ranges representing market projections as well as completed transactions.

At times, liquidity is low in gas liquids forward markets and price reporting can be subjective. Therefore, editors talk to a cross-section of market participants, and any information editors receive pertaining to forward transactions is kept strictly confidential.

OPIS editors have the discretion to exclude values that represent extraordinary circumstances or are far outside the range of other values reported on a given day. Deals generally represent volumes of 10,000 bbl. or greater at Mont Belvieu and 2,500 bbl or greater at Conway, though smaller volumes may be considered at an editor's discretion. Editors have the ability to reflect transactions reached on electronic platforms, but will not include a price in daily ranges simply because it appeared on an electronic platform. Ranges are only changed in the case of clerical mistakes and typographical errors.

The spot price at today's settlement is a confirmation of bids, asks and/or transactions at the time of the NYMEX close.

Frac Spreads
Frac spreads in the North American LPG Report are calculated using the following formula:[NGL product average price/NGL product heating value] /100 - referenced month NYMEX natural gas futures settle price x 100 x NGL product heating value. As raw mix/y-grade stream compositions vary widely, the frac spreads published by OPIS are intended only as a general guide, and are not specific to any particular stream or site.

Note: quarterly values reflect three months of prices, even if all three are not currently displayed in the above report.


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OPIS Refined Spot Markets

U.S. Gulf Coast
U.S. Atlantic Coast
U.S. Midwest
U.S. West Coast

Millions of gallons of gasoline, diesel fuel, heating oil, jet fuel, ethanol and other oil products are bought and sold each day in cash bulk markets. Commonly known in the trade as "spot" market prices, these transactions typically occur at the leading oil refining, barge and pipeline centers in the United States. These include the U.S. Gulf Coast, Group 3, Chicago, Atlantic Coast, Los Angeles, San Francisco Bay and Pacific Northwest. (View a complete at-a-glance listing of products and locations).

Full-Day Philosophy
OPIS editors track spot markets on a full-day basis and our daily ranges reflect confirmed trades by timing, volume, product and location each day. Editors reserve the right to exclude any deal or deals they deem "not reflective" of prevailing or fair market value. These deals may be mentioned in our written commentary, however.

"Typical" trading hours extend from 9:00 a.m. to 5:15 p.m. Eastern Time (6:00 a.m. to 2:15 p.m. Pacific Time). Deals that are received outside those hours are reviewed and evaluated for consideration in our full-day ranges. In order to meet publication deadlines, OPIS reserves the right to not accept deals as part of the final day's product ranges if that information is sent to/received by OPIS after 5:15 p.m. (2:15 p.m. Pacific Time).

We recognize ascertaining a spot product range can be subjective, and that there may be parties that dispute our numbers. Assessing markets requires judgment on the part of our editors, but those calls will be reviewed among experienced reporters and within the context of that day's market. Ranges are only changed in the case of clerical errors such as typos or transposition mistakes.

Definition of "Last" and "Mean"
OPIS Last: The OPIS "Last" is a price indicator of where cash or spot market prices end for each full-day spot market trading session. It provides a numerical approximation of a refined products end-of-the day value.

The OPIS "Last" is a market indicator number and DOES NOT necessarily reflect an actual spot market deal transaction. In other words, it DOES NOT necessarily reflect a "Last" trade. Instead, it is designed to indicate the market's direction at the end of the trading day to help gauge the relative shift in physical values from day to day.

In the absence of an actual confirmed trade, the OPIS "Last" may be included in OPIS's Full-Day Spot Trading Ranges using a "highest bid/lowest offer" methodology to pinpoint a reasonable number it would take to close a transaction at day's end.

OPIS Mean: The OPIS Spot "Mean" represents the numerical mid-point of the OPIS "low" and the OPIS "high" calculated using actual spot market deals confirmed by OPIS markets editors during the course of full-day trading.

OPIS spot market transactions are made transparent during the day on the OPIS Deal Log as part of the daily OPIS Spot Ticker.

While the OPIS Spot "Mean" is calculated using actual deal transactions from "low" to "high" during the day, editors do take into account in full-day price assessment end-of-the-day market shifts that potentially indicate new pricing levels.

At times to supplement confirmed deals or in the absence of confirmed deals, OPIS editors use a "highest bid/lowest offer" methodology to assess the new pricing levels as part of the full-day range.

Data Collection
OPIS editors sample on a daily basis a broad cross-section of refiners, traders, marketers, brokers and end users active in buying, selling or trading physical barrels. We cast a wide net to capture as many transactions as possible in arriving at our day-to-day price assessments of spot market values. Editors take an "arm's length" approach to covering the market.

Editors confirm and record deals done for gasoline and distillate products that meet minimum pipeline/barge volumes specific to each geographic market. As the majority of the market is done on an EFP basis, we follow deals as basis discounts or premiums to the New York Mercantile Exchange. We consider fixed-price deals only if they fall within the full-day differential range based off the NYMEX at settlement, or to assess cash-for-cash "regrade" transactions.

OPIS daily spot market assessments include information obtained from "back office deal logs" sent to us as part of our daily market price discovery. The information highlights actual transactions during the day, including price, volume, product, timing and counter party.

OPIS has signed confidentiality agreements with some providers not to make this information public, except to use the transactions in our daily range of prices and weighted averages providing it meets our volume and timing criteria. OPIS editors compare the end-of-the-day deal logs with our confirmed deals through the day to insure we do not duplicate information.

Editors respect the wishes of sources to remain anonymous in their activities in the market, and any information we receive regarding parties in deals is kept confidential.

Ranges reflect actual transacted deals. In the case of confirmed trading followed by a shift in the market without a done deal, editors will consider the last deal recorded and weigh it in light of subsequent buyer and seller bids and offers.

In the total absence of confirmed deals, we will use the input of the trading community to help us assess a viable "get-done" range and last value, and also consider the relationship the illiquid product may have with more actively-traded grades.

Typically, the "lowest sell price" and the "highest bid price" will be used to help us arrive at our full-day range.

Reports
OPIS issues east of the Rockies and West Coast full-day refined product spot reports at approximately 5:30 p.m. Eastern Time, with a final deadline of 6 p.m. Eastern Time.

Ranges in these reports apply the highest and lowest done deal differentials versus the NYMEX at settlement, resulting in an absolute full-day trading range in cents per gallon. We do not round prices up or down.

OPIS ranges track a prompt market east of the Rockies based on pipeline schedules and trading practices specific to each region.

OPIS breaks out a "last" level in addition to its low-to-high range, as a way to give the market a last-seen reference point for the next day's session.

In addition, OPIS tracks a forward-range based on "any-month timing" for barrels that can be lifted in the same calendar or forward calendar month beyond the prompt cycle.

West Coast reports also track prompt ranges, which are trades that reflect "any month/buyers option" transactions. "Buyers option" gives the buyer the choice of taking delivery in any of the four cycles throughout the month. In Los Angeles, OPIS identifies the prompt Kinder Morgan cycle for timing clarity but ranges are buyer option/any month lifting.

OPIS also issues a Midday Spot Market Report for east of the Rockies markets that is an indication of the morning's trade based on a NYMEX "freeze" at approximately 11:45 a.m. Eastern Time.

Midday market direction for implied cash prices is important for OPIS customers using this information to make rack pricing decisions. That range is simply an estimate of where the market has been trading or talked in the morning session and is published solely to provide a gauge of where implied absolute prices would be if a snapshot was taken at midday. Due to the incredible volatility in the futures and physical markets, alike, the midday indications are not included in the end-of-day, full-day assessments unless the midday numbers fall into a range covered by the full-day numbers.

OPIS spot methodology for gasoline Reid Vapor Pressure has always designated RVP levels during the spring/summer months when federal and state mandates require lower RVP gasoline. During the fall/winter months, OPIS spot prices have always defaulted to the seasonal RVP requirements. Starting September 2, 2009, OPIS now designates gasoline RVP levels year-round, with designations specific to trading cycles by product by market.

Weighted Averages
In response to subscriber requests, OPIS rolled out a weighted average in its full-day reports for selected products. This is an arithmetic mean based on confirmed deals versus the NYMEX, taking into account repeated differentials and volume of trades.

OPIS shows weighted averages for prompt Gulf Coast conventional unleaded gasoline, including the 7.8 lb RVP supplemental grade when seasonal. We also show a weighted average for prompt ultra-low-sulfur diesel and jet fuel in the Gulf Coast.

In the Los Angeles spot market, OPIS shows a weighted average for LAX jet fuel.

Example of a Weighted Average:
NYMEX close for reference product RB (RBOB) is 225.00cts/gal.

Done deals for Gulf Coast Unleaded Regular (9.0 lbs. RVP M2):

  • -3.50 at 25,000 bbl
  • -3.50 at 25,000 bbl
  • -3.25 at 25,000 bbl
  • -2.75 at 25,000 bbl
  • -2.50 at 25,000 bbl
  • -2.25 at 50,000 bbl
  • -1.75 at 25,000 bbl
  • -1.50 at 50,000 bbl
  • -1.25 at 25,000 bbl
  • -1.25 at 25,000 bbl
  • -1.00 at 25,000 bbl
  • -1.00 at 25,000 bbl
  • -1.00 at 25,000 bbl
  • -1.00 at 25,000 bbl

Under this scenario, OPIS's closing range at the end of the day would be 221.50 – 224.00cts/gal – the midpoint for the day would be 222.75cts/gal.

On this day, the weighted average would be 223.05cts/gal, which is calculated by giving added weight to the larger volume deals: 2x to the -2.25cts/gal and the -1.5cts/gal deals, and by factoring in the number of actual deals into the average. EXAMPLE: the -1ct/gal deal gets entered in four times.

NOTE: for the weighted average, the Gulf Coast minimum deal is 25,000 bbl – those deals are counted once. 50,000 bbl deals are counted twice, and anything between 25,000 and 50,000, or in excess of 50,000 would be calculated at an appropriate percentage of a single piece.

All gasoline grades follow seasonal environmental requirements for RVP. When actively trading, OPIS reports will track ranges for multiple RVPs, for example during transitional periods or in the summer in the Gulf Coast when 9.0-lb. and 7.8-lb. psi specs are seasonal.

OPIS Spot Ticker
The OPIS Spot Ticker is your full-day, real-time window into what U.S. spot prices are doing. OPIS editors throughout the day update the OPIS Spot Ticker with done deals and buy-sell levels tracked in the market. It's a web-based tool that offers real-time updates of OPIS spot prices and cash market trading differentials in major regions, along with news and events affecting prices.

Differentials are applied to the NYMEX, as it ticks, as an indicator of where the prompt market is valued. Though our full-day trading differentials are applied to the settled NYMEX, the Spot Ticker provides a market view into the numbers we are tracking as the futures market moves.

Deals we confirm are posted throughout the day in the Deal Log to give the market predictability as to where editors will call the full-day differential ranges and weighted averages.

OPIS editors discover deals throughout the day, but some may not be reported to us right after they are done. We make every attempt to list deals in the Deal Log as soon as we discover and confirm them. In an effort to meet our deadlines, some late-received deals may be applied to our ranges and weighted averages once they are confirmed but may not be logged into the Deal Log.

The OPIS Spot Ticker also offers customers overnight implied spot price discovery by linking final-day cash basis trading differentials to the Globex overnight NYMEX ticks. These implied numbers are for directional purposes only to give subscribers an idea of what direction prices are moving after hours. They are not included as a part of any OPIS daily spot range of prices.

Time Stamp (all times are ET)

  9:00 a.m. Morning market preview
  1:00 p.m. Midday Spot report for New York Harbor Barge, Gulf Coast Pipeline, Group 3 and Chicago markets
  1:30 p.m. West Coast Spot market preview
  6:00 p.m.

West Coast report for Los Angeles, San Francisco and the Pacific Northwest

Full-Day Spot report for New York Harbor Barge, New York Harbor Cargo, Boston Harbor Cargo, Buckeye Pipeline, Laurel Pipeline, Gulf Coast Pipeline, Gulf Coast Waterborne, Group 3 and Chicago markets

OPIS Jet Fuel Report



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U.S. Gulf Coast

Price Discovery
Editors confirm and record deals done for Gulf Coast gasoline and distillate products with a minimum pipeline size of 25,000 bbl and minimum waterborne size of 50,000 bbl.

OPIS tracks a prompt market for southern grade products moving on the Colonial Pipeline, origin Pasadena, Texas, and waterborne FOB Gulf Coast. Colonial Pipeline Texas Origin exclusive trades are discarded from our full-day ranges.

Pipeline shipments are scheduled according to cycles. Colonial Pipeline dictates those schedules, and hence, is ultimately the decision maker as to when cycles pump throughout the year. There are 72 cycles each year, lasting approximately five days. Colonial determines the duration of each cycle, which may be shortened, extended or eliminated. Schedules cannot be announced in advance by OPIS because the pipeline updates its calendar throughout the year.

Prompt waterborne assessments run at comparable timing with prompt pipeline ranges.

Cycles differ among different products at any given time. For example, Colonial unleaded regular may be on different cycle timing than Colonial diesel.

OPIS follows three consecutive cycles, starting with the current cycle as "prompt-timing" and continuing with the next two out. In addition, OPIS Gulf Coast coverage tracks a ratable-timing range. Ratable numbers are an average of a full month of cycles. Because this range tracks a full month, during the first cycle of each month, the ratable range will reflect the same month. When the second cycle of the month becomes prompt, the ratable timing switches to the next month. It should be recognized that forward numbers often do not have the same detail of discovery and liquidity as prompt cycles.

OPIS concurrently rolls all specialty grades that typically trade as "regrades" to basis products like conventional unleaded regular, so that timing references are consistent.

Specifications
OPIS tracks Colonial Pipeline specifications for products in the Gulf Coast. Details can be found at www.colpipe.com.

Pipeline Gasoline

  • Conventional unleaded: 87, 89 and 93 octane. 89-octane unleaded is not a fungible spot product. OPIS assesses an implied price, using a blend ratio of premium gasoline and its regular-grade counterpart.
  • RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol;
  • CBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol;
  • Low-sulfur CBOB "Atlanta/Birmingham" blendstock: 87 and 93 octane after blending with 10% denatured fuel ethanol;
  • Reformulated unleaded: 87, 89, 93 octane. RFG blended with ethanol is not a fungible spot product. Each day OPIS creates an "implied" value for this product by taking 90% of the RBOB price and 10% of the price of spot ethanol.

*All gasoline grades follow seasonal environmental requirements for RVP. During the summer months, OPIS shows the 7.8 lbs. RVP supplemental conventional unleaded alongside the 9.0 lbs. RVP seasonal spec. Winter RVP is 13.5 lbs.

Pipeline Distillates

  • High-sulfur No. 2 oil: 2,000 ppm sulfur maximum; matches 77-grade Colonial Pipeline specification
  • Ultra-low-sulfur diesel: 15 ppm maximum sulfur; 8 ppm sulfur maximum at origin; minimum cetane 40; contains no renewable diesel from origin to delivery; matches 62-grade Colonial Pipeline specification.
  • 61ULSD: 15ppm maximum sulfur; 8 ppm maximum sulfur at origin; minimum cetane 40; may contain up to 5% renewable diesel north of Meridian, Miss.; matches Colonial Pipeline 61-grade specification.
  • Ultra-low-sulfur heating oil (ULSHO): 15 ppm maximum sulfur; 11 ppm sulfur maximum at origin; minimum cetane 40; matches 67-grade Colonial Pipeline specification.
  • Jet fuel: 3,000 ppm sulfur maximum; matches 54-grade Colonial Pipeline specification
  • Jet kerosene: 400 ppm maximum sulfur; matches 55-grade Colonial Pipeline specification
  • Ultra-low-sulfur Kerosene: 15ppm maximum sulfur; matches 51-grade Colonial Pipeline specification

Waterborne Gasoline

  • Conventional unleaded: 87, 89 and 93 octane. 89-octane unleaded is not a fungible spot product. OPIS assesses an implied price, using a blend ratio of premium gasoline and its regular-grade counterpart.

*As with pipeline specs, all gasoline grades follow seasonal environmental requirements. During the summer months, OPIS shows the 7.8 lbs. RVP supplemental conventional unleaded alongside the 9.0 lbs. RVP seasonal spec.

Waterborne Distillates

  • Ultra-low-sulfur diesel;
  • Ultra-low-sulfur Heating Oil (ULSHO);
  • High-sulfur No. 2 oil;
  • Low-sulfur No. 2 oil (On-road);
  • Low-sulfur No. 2 oil (Off-road);
  • Jet fuel;
  • Kerosene.

Blendstocks

  • MTBE: Purity 95% minimum, methanol 0.5 Wt% maximum, water 1,500 ppm maximum. Barge quantity.
  • Alkylate: 92 minimum octane, 5.5psi RVP maximum, 15 ppm sulfur maximum; 300 ppm MTBE maximum. Barge quantity.

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U.S. Atlantic Coast

Price Discovery
Editors confirm and record deals for gasoline and distillate fuels delivering via New York Harbor and Boston Harbor waterborne cargoes, New York Harbor barges, Linden Junction, via Colonial Pipeline, the Buckeye Pipeline and the Laurel Pipeline. Minimum volume requirements are as follows: NYH and Boston standard-size cargoes reflect volumes of 225,000 barrels, plus or minus 10% at the seller's option; Linden Junction assessments, refined products delivered at the final destination on the Colonial Pipeline into Linden, New Jersey, reflect minimum volumes of 25,000 barrels; NYH barges and Buckeye Pipeline assessments reflect minimum volumes of 10,000 barrels; and Laurel Pipeline assessments reflect minimum volumes of 8,000 barrels.

New York Harbor
Ranges reflect cargo- and barge-quantity deals and are supplemented by Colonial Pipeline deals on an FOB basis. While prompt timing for the New York Harbor barge market is generally regarded as barrels loading within the next 72 hours, OPIS will consider barrels delivering within the next 5 days, when liquidity is thin.

The forward range is based on "any-month timing" for barrels that can be lifted in the same calendar or forward calendar month beyond prompt timing.

The ratable range is based on traded values that reflect an average of a full month where a buyer takes delivery throughout the month.

Cargoes in the New York Harbor typically trade as the "front half" or the "back half" of the month, which are later narrowed down to a 5-day delivery period. OPIS will accept barrels delivering in the "front half" of the month for inclusion in the prompt index, and barrels delivering in the "back half" of the month for inclusion in the forward index.

OPIS cargo ranges reflect inside-duty basis.

Specifications

Gasoline

  • RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol, conforms to Colonial Pipeline;
  • CBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol.

*All gasoline grades follow seasonal environmental requirements.

**Reformulated unleaded: 87, 89, 93 octane. RFG blended with ethanol is not a fungible spot product. Each day OPIS creates an "implied" value for this product by taking 90% of the unleaded gasoline price and 10% of the price of spot ethanol.

Distillates

  • Ultra-low-sulfur heating oil (ULSHO): 15ppm max sulfur content; conforms to Colonial Pipeline undyed specifications;
  • High-sulfur No. 2 oil: conforms to Colonial Pipeline undyed specifications; prior to 9/12/2012 OPIS assessed Dyed High-sulfur No.2 oil;
  • Ultra-low-sulfur diesel: 15 ppm maximum sulfur; 8 ppm sulfur maximum at origin; minimum cetane 40; contains no renewable diesel from origin to delivery; matches 62-grade Colonial Pipeline specification;
  • Low-sulfur Heating oil: 500 ppm maximum sulfur; 420 ppm sulfur maximum at origin; minimum cetane 40; conforms to Colonial specs;
  • Jet Fuel: conforms to Colonial specs;
  • Jet kerosene: conforms to Colonial specs; • Ultra-low sulfur kerosene: conforms to Colonial specs.

Linden Junction
Ranges reflect shipments with a minimum volume of 25,000 barrels for delivery to Linden, New Jersey, into the first full Colonial Pipeline cycle available for trade in the market. Colonial Pipeline deliveries are scheduled according to cycles, of which there are typically six per month, 72 per year, lasting approximately five days.

“Prompt” Linden Junction assessments reflect the first full shipping cycle, which is always the cycle immediately following the cycle currently delivering into Linden. Typically, this will reflect barrels delivering within one to five days out from the current day. OPIS will switch cycles in line with Colonial Pipeline’s transport schedule and modify cycle roll dates in line with any changes made to the cycle timings.

Specifications

Gasoline

  • Conventional unleaded: 87, 89 and 93 octane, conforms to Colonial Pipeline. 89-octane unleaded is not a fungible spot product. OPIS assesses an implied price, using a blend ratio of premium gasoline and its regular-grade counterpart.
*All gasoline grades follow seasonal environmental requirements.

Distillates

  • Ultra-low-sulfur heating oil (ULSHO): 15 ppm max sulfur content; matches Colonial Pipeline 67-grade undyed specification;
  • High-sulfur No. 2 oil: 2000 ppm max sulfur content; matches Colonial Pipeline 77-grade undyed specification;
  • Ultra-low-sulfur diesel: 15 ppm maximum sulfur; 8 ppm sulfur maximum at origin; minimum cetane 40; contains no renewable diesel from origin to delivery; matches 62-grade Colonial Pipeline specification;
  • 63ULSD: 15 ppm maximum sulfur; 8 ppm maximum sulfur at origin; minimum cetane 40; may contain up to 5% renewable diesel north of Baton Rouge, La..; matches Colonial Pipeline 63-grade specification;
  • Jet Fuel: 3,000 ppm sulfur maximum; matches 54-grade Colonial Pipeline specification

Buckeye Pipeline
Ranges reflect barrels delivered FOB New York Harbor, loading into the Buckeye pipeline at Linden, New Jersey for destinations in New York or Pennsylvania. Prompt timing is generally regarded as barrels delivering within the next 72 hours, but OPIS will consider barrels delivering up to 5 days out for inclusion in its prompt index when market conditions are thin. Shipments are based on 24 cycles of 15 days each throughout the calendar year. Gasoline and distillates ship on alternating 7- and 8-day periods within each cycle.

Specifications (All conform to Colonial Pipeline Specs)

Gasoline

  • RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol;
  • CBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol.

*All gasoline grades follow seasonal environmental requirements.

Distillates

  • Ultra-low-sulfur heating oil (ULSHO);
  • Undyed High-sulfur No. 2 oil; prior to 9/12/2012 OPIS assessed Dyed High-sulfur No.2 oil;
  • Ultra-low sulfur No. 2 oil;
  • Jet Kerosene;
  • Ultra-low sulfur kerosene.

Laurel Pipeline
Ranges reflect barrels delivering FOB Philadelphia. Prompt timing is generally regarded as barrels delivering within the next 72 hours, but OPIS will consider barrels delivering up to 5 days out for inclusion in the prompt index, when market conditions are thin. Shipments are based on 24 cycles of 15 days each throughout the calendar year.

Specifications (All conform to Colonial Pipeline Specs)

Gasoline

  • RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol;
  • CBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol.

*Gasoline grades follow seasonal environmental requirements.

Distillates

  • Undyed High-sulfur No. 2 oil; prior to 9/12/2012 OPIS assessed Dyed High-sulfur No.2 oil;
  • Ultra-low sulfur No. 2 oil;
  • Jet Fuel.

Boston Harbor
Ranges reflect cargoes delivering into the Boston Harbor, via the Chelsea Creek. Vessels entering the creek must be no greater than 660'-6" in length, no greater than 90'-6" in beam and no deeper than 36' in draft.

Cargoes in the Boston Harbor typically trade as the "front half" or the "back half" of the month, which are later narrowed down to a 5-day delivery period.

Specifications (All conform to Colonial Pipeline Specs)

Gasoline

  • RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol.

Distillates

  • Ultra-low sulfur No. 2 oil.

Residual Fuel
Listings represent cargo transactions for delivery in the East Coast region, centered around the N.Y. Harbor. Sulfur maximums of 0.3% HP, 1.0% and 3% and higher are covered. HP, or High Pour, indicates material with over 65 degrees F. maximum.


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U.S. Midwest

Price Discovery
Editors confirm and record deals done for gasoline and distillate products with a minimum size of 5,000 bbl in the Group 3 market and 10,000 bbl in Chicago and 5,000 bbl in the Wolverine market.

OPIS tracks the Group 3 market following deals for prompt delivery, typically same-day and next-day deals, on the Magellan Pipeline. In addition, OPIS tracks a forward range based on "any-month timing" for barrels that can be lifted in the same calendar month beyond prompt timing, typically the last five days of a month. In the last few days of the month, OPIS reserves the right to roll coverage forward to the next, more liquid month.

OPIS tracks the Chicago market following generic pipeline deals, due to the fact that several lines feed this region. There are three cycles each month which advance on the 5th, 15th, and 25th. OPIS follows four consecutive cycles, starting with the current cycle as "prompt-timing" and continuing with the next three out. The last cycle in each month ("Cycle 3") is designated as "any-timing" except when Cycle 3 is the prompt cycle. Then, the next calendar month's Cycle 3 will be designated as "any-timing."

OPIS tracks the Wolverine Pipe Line market following deals for prompt cycle delivery refined products, shipping specifically on the Wolverine Pipe Line system. There are three cycles each month (January Cycle 1 through December cycle 3) that advance on the 5th, 15th, and 25th.

Group 3
Ranges represent product FOB Central Oklahoma locations for shipment on the Magellan Pipeline.

Specifications
OPIS tracks Magellan specs for:

Gasoline

  • Conventional unleaded: 84, 89 and 91 octane. 89-octane unleaded is not a fungible spot product. OPIS assesses an implied price, using a blend ratio of premium gasoline and sub-octane regular.

*All gasoline grades follow seasonal environmental requirements.

Distillates

  • Ultra-low-sulfur diesel: 15 ppm maximum sulfur; 8 ppm sulfur maximum at origin; minimum cetane 40;
  • Jet fuel;
  • Ultra-low-sulfur No. 1 oil (this is a seasonal assessment typically running from Oct. 15 through April 1, depending on seasonal refinery production changes and spot liquidity).

Chicago
OPIS's Chicago generic market includes deals with seller's option, delivered FOB Chicago area pipelines. Deals confirmed for specified pipeline delivery or storage locations in the region, such as West Shore, Badger, Wolverine and Buckeye Complex, are evaluated for assessment purposes with the consideration that those values might hold a premium or discount to the generic market.

Specifications
OPIS tracks pipeline quality specs for:

Gasoline

  • Conventional unleaded: 89 and 91-93 octane. 89-octane unleaded is not a fungible spot product. OPIS assesses an implied price, using a blend ratio of premium unleaded gasoline and CBOB.
  • RBOB: 84.6 and 91.4 octane, pre-blend;
  • CBOB: 84 octane, pre-blend.

*All gasoline grades follow seasonal environmental requirements.

Distillates

  • Low-sulfur No. 2 oil (Off Road): 500 ppm maximum sulfur; 420 ppm maximum at origin, minimum cetane 40;
  • Ultra-low-sulfur diesel: 15 ppm maximum sulfur; 8 ppm sulfur maximum at origin; minimum cetane 40;
  • Jet fuel: 400 ppm maximum sulfur;
  • Ultra-low-sulfur No. 1 oil (this is a seasonal assessment typically running from Oct. 15 through April 1, depending on seasonal refinery production changes and spot liquidity).

Wolverine Pipe Line
Ranges represent barrels delivering FOB Illinois, Indiana and Michigan on the Wolverine Pipe Line system. Assessments reflect prompt-timing products only. There are three cycles each month (January Cycle 1 through December Cycle 3) that advance on the 5th, 15th, and 25th.

Specifications
OPIS tracks pipeline quality specs for:

Gasoline

  • Conventional unleaded: 89 and 91-93 octane. 89-octane unleaded is not a fungible spot product. OPIS assesses an implied price, using a blend ratio of premium unleaded gasoline and CBOB.
  • RBOB: 84.6 and 91.4 octane, pre-blend;
  • CBOB: 84 octane, pre-blend.

*All gasoline grades follow seasonal environmental requirements.

Distillates

  • Ultra-low-sulfur diesel: 15 ppm maximum sulfur; 8 ppm sulfur maximum at origin; minimum cetane 40;
  • Jet fuel: 400 ppm maximum sulfur.

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U.S. West Coast

Price Discovery
Editors confirm and record deals done for gasoline and distillate products with a minimum pipeline size of 10,000 bbl in California and 5,000 bbl in the Pacific Northwest. As the majority of the market is done on an EFP basis, we follow deals as basis discounts or premiums to the New York Mercantile Exchange. We consider fixed-price deals only if they fall within the full-day differential range based off the NYMEX at settlement. Fixed price deals in California spot markets are converted to an EFP when reported and confirmed and then reapplied to the NYMEX settlement price.

OPIS does publish "prompt" ranges, which are trades that reflect "any month / buyers option" transactions. "Buyers option" gives the buyer the choice of taking delivery in any of the four cycles in throughout the month.*Please see the footnote at the bottom of this section for details on how OPIS handles the high RVP to low RVP transition for CARBOB in Los Angeles. In Los Angeles, OPIS identifies the prompt Kinder Morgan cycle for timing clarity but ranges are buyer option/any month lifting.Low carbon fuel standard obligations are passed on to the buyer with each spot sale.

(*During the transition from high RVP to low RVP CARBOB in Los Angeles OPIS prices will represent high RVP gasoline through the end of the 1st cycle of February on Kinder Morgan's West Line. The February 1st cycle typically is during the last week of January at which time OPIS assessments will be for 1st cycle only barrels for Los Angeles CARBOB, when the 1st cycle has been frozen OPIS assessments will revert back to "any month" pricing. While the main assessments are for the 1st cycle high RVP gasoline, the first forward month (page 2 of the West Coast Report PDF) will list prices for "any February" low RVP which in this case would be cycles 2-4. When the 1st cycle of February freezes that first forward month will then become "any March". Please note that this pricing shift is only in Los Angeles.)

Some commonly-traded products in Los Angeles have pumping options attached to them. For example, most CARB diesel trades have a GATX storage facility option, while most jet fuel trades include a pump-over option to Los Angeles International Airport (LAX).

OPIS works with the Kinder Morgan Pipeline to determine the timing of the various cycles throughout the month. Each month has four pumping cycles. The timing of the cycles is fluid from month-to-month, particularly the 4th cycle which marks the transition from one month to the next. Typically, on the West Line, diesel fuel will roll some time between the 16th and 20th of the month, while gasoline typically rolls between the 21st and 23rd of the month.

For jet fuel, due to the LAX pumping option, the month typically rolls eight days before the end of the month. In cases where it is close to the end of the month's trading cycle, OPIS reserves the right to roll coverage forward to the more liquid month.

The OPIS West Coast report also offers physical and paper forward-price discovery in Los Angeles for CARBOB, CARB diesel and jet fuel. Forward physical discovery for CARBOB extends three months beyond the prompt cycle; for CARB diesel, one month beyond the prompt cycle; and for jet fuel, two months beyond the prompt cycle. For example, if June is the prompt month, the forward months for CARBOB will be July, August, and September.

For the Los Angeles paper market, OPIS discovery for CARBOB includes two months of pricing, as well as the two forward quarters; and for CARB diesel and jet fuel, discovery includes two months of pricing and the forward quarter. For example if June is the current calendar month, L.A. CARBOB paper pricing will be provided for July, August, the 3rd quarter and the 4th quarter.

Forward physical markets are shown as both a differential and on a fixed-price basis. The paper markets are shown as a differential only.

U.S. West Coast
For the Los Angeles market, OPIS follows the Kinder Morgan West Line, and in the Bay area the OPIS assessment is for the Kinder Morgan North Line/Zero Line. In the Pacific Northwest, prices are FOB Portland - Olympic Pipeline and jet fuel is FOB Seattle barge. Trades for gasoline and diesel at the local terminals (ex. Kinder Morgan Willbridge) are considered in the Pacific Northwest.

Specifications
OPIS tracks Kinder Morgan specs for:

Gasoline

  • California Reformulated Blendstock for Oxygenate Blending (CARBOB), both regular and premium;
  • Arizona Reformulated Blendstock for Oxygenate (AZRBOB), both regular and premium;
  • 84 sub-octane regular gasoline and 88.5 sub-octane premium (Los Angeles, San Francisco); 84 sub-octane regular gasoline and 90 sub-octane premium (Pacific Northwest);
  • In Los Angeles and San Francisco CARB-RFG (regular and premium) is not a fungible spot product. Each day OPIS creates an "implied" value for this product by taking 90% of the CARBOB price and 10% of the price of spot ethanol. Previous to Jan. 1 2010, it had been 94.3% of the CARBOB price and 5.7% of the price of spot ethanol.

Distillates

  • California Air Resources Board Spec ultra low sulfur diesel (CARB No. 2 oil);
  • Ultra Low Sulfur diesel, which does not meet CARB specs;
  • Pacific Northwest B5 is a spot diesel that is comprised of ultra low sulfur diesel blended with 5% biodiesel. The 5% biodiesel component has to be canola and/or other blends but cannot be animal fat;
  • Jet fuel.

California Carbon Allowance (CCA)
OPIS provides daily price discovery for California Carbon Allowances (CCA) created for the state’s cap-and-trade regulations that are being traded in the marketplace.

Products:

  • Current Year Vintage CCA
  • Previous Year Vintage CCA

Timing: Prompt and Forward.

Prompt: CCAs delivering prompt month, with the roll date scheduled two days before the final business day of the month.

For example, in July 2014, the prompt timing for the CCA 2013 Vintage (previous year) and CCA 2014 Vintage (current year) contracts would be July, with final trade date on Monday, 7/28 and a roll timing to August on Tuesday, 7/29.

Forward: CCAs delivering December of current year.
For example, in July 2014, the forward timing for the CCA 2013 Vintage (previous year) and the CCA 2014 Vintage (current year) would be December 2014.

When December becomes prompt timing, OPIS will assess a prompt cycle only for previous year and current year vintage CCAs, and will introduce prompt and forward timings for next year vintage CCAs.

Minimum volume: 10,000 metric tons.

Daily Pricing Mechanism: $/metric ton.

California Cap-at-the-Rack (CAR)
OPIS provides a daily price for the estimated impact of cap-and-trade regulations on gasoline and diesel fuel delivered at each California rack. California’s cap-and-trade regulations officially impact the California rack market beginning January 1, 2015; OPIS began publishing the CAR price August 1, 2014, ahead of the regulation compliance start date.

Products:

  • CARB RFG Gasoline: Unleaded, Midgrade and Premium
  • CARB Distillates ULSD: No. 2
  • B5 Biodiesel

Timing: Current day pricing based on the OPIS CCA Current Year Vintage prompt timing assessment. OPIS will also provide a week average and a 30-day average for CAR assessment prices.

Calculation: OPIS uses its assessment for California Carbon Allowances (CCA) to calculate a daily cents-per-gallon cap-at-the-rack value based on the following carbon dioxide equivalent (CO2e) emissions for obligated fuels delivered at California racks:

Carbon Emissions Equivalent Calculations per Gallon for Gasoline & Ethanol

Summer CARBOB CO2e Winter CARBOB CO2e Ethanol CO2e
Regular 0.00909 Regular 0.00888 0.00022
Mid 0.00911 Mid 0.00893  
Prem 0.00912 Prem 0.00898  

Carbon Emissions Equivalent Calculations per Gallon for Diesel Fuels

ULSD No.2 CO2e Biodiesel CO2e
0.01024 0.00001

*OPIS derived the CO2e/gal estimates for each obligated fuel in the charts above based on the carbon intensity requirements prescribed by the California Air Resources Board in its calculation and reporting tools for suppliers of transportation fuels, which can be found here:http://www.ccdsupport.com/confluence/display/calhelp/Reporting+Form+Instructions

The OPIS Cap-at-the Rack (CAR) cents-per-gallon assessment for each product is calculated using the following formula: CPG = OPIS daily current year, prompt month CCA assessment mean $/mt x CO2e/gal of obligated fuel.

Since biomass derived fuels have a compliance obligation under the California cap-and-trade program, OPIS considers the CO2e/gal values for those products when calculating the CAR price for blended gasoline and biodiesel delivered at the rack.

The assessment for CAR gasoline prices (CARB RFG) = 90% gasoline grade’s CO2e/gal x the prompt CCA assessment + 10% ethanol CO2e/gal x the prompt CCA assessment.

The assessment for CAR biodiesel prices (B5) = 95% CARB diesel CO2e/gal x the prompt CCA assessment + 5% biodiesel CO2e/gal x the prompt CCA assessment.

For example, considering the hypothetical prompt assessment for Current Year Vintage CCAs:

Prompt OPIS California Carbon Allowance Price Assessment ($/mt)

Vintage Timing Low High Mean
Current Yr. PMT Jul ‘14 11.79 11.81 11.80

The CAR calculation for 1 gal of Summer CARB RFG delivered at the rack would be:
CAR = (((0.00909 x 0.9) x 11.80) + ((0.00022 x 0.1) x 11.80)) x 100
CAR = 9.680cts/gal

The CAR calculation for 1 gal of CARB diesel delivered at the rack would be:
CAR = (0.01024 x 11.80) x 100
CAR = 12.083cts/gal

The CAR calculation for 1 gal of B5 Biodiesel delivered at the rack would be:
CAR = (((0.01024 x 0.95) x 11.80) + ((0.00001 x 0.05) x 11.80)) x 100
CAR = 11.480cts/gal

Daily Pricing Mechanism: Cents-per-gallon
CAR Gasoline RVP schedule: The schedule for determining winter or summer blend gasoline CAR calculations at each rack terminal will be determined by the RVP cap limits and dates set for each air basin in California’s Reformulated Gasoline Regulations:

Air Basin Summer Winter
Mojave Desert March 1 November 1
North Coast May 1 October 1
Sacramento Valley April 1 November 1
Salton Sea March 1 November 1
San Diego March 1 November 1
San Francisco Bay April 1 November 1
San Joaquin Valley April 1 November 1
South Central Coast May 1 November 1
South Coast March 1 November 1

Twice a year during the RVP transition periods, OPIS will publish a CAR price assessment for both winter and summer gasoline grades in the West Coast Spot market reports. Both gasoline CAR price assessments will be published October 1-31 and March 1-April 30.

Southern California Rack-to-Retail Trend
In the OPIS U.S. West Coast Spot market report, a rack-to-retail trend snapshot is provided as a tool that can be used through downstream channels to help forecast the trend line for rack to retail markets for gasoline and diesel in Southern California. Prompt spot prices represent the mean for Los Angeles CARBOB and CARB No. 2 oil. The basket of racks represents the OPIS Gross Contract Average price for both gasoline and diesel at the Los Angeles and Colton racks. The retail gasoline and diesel averages represent a four-county, three-day rolling average comprised of Los Angeles, Orange, San Bernardino and Riverside Counties.

ANS Crude Oil
ANS crude oil delivered into Long Beach with a minimum volume of 300,000 bbl. Specific gravity is 29-31 and sulfur should not exceed 1.1%. Differentials are calculated versus front month WTI contract.


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OPIS Renewable Fuels

U.S. Gulf Coast

  • Ethanol: Denatured fuel-grade ethanol FOB Houston, typically up to barge volume, 10,000 bbl. Prompt assessments are 3-15 days from the published date, RINs (Renewable Identification Numbers) included are those for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year.
  • Biodiesel: Soy methyl ester (SME) B100, ASTM specifications, not including any tax credits for blending, FOB Houston rail volumes, typically 3 to 15 days from published date. Truck and in-tank sales will also be considered and factored for assessment purposes. Deals must generally include current calendar-year RINs transfer that correspond to the product delivery date.

U.S. Atlantic Coast

  • Ethanol: Denatured fuel-grade ethanol FOB New York Harbor, typically up to barge volume, 25,000 bbl, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are for the current any-month barge delivery, until the last week of the current month (final seven days) when the prompt assessment will then roll over to the next month. The forward any-month assessments are for barge volume in the month immediately following the prompt month.
  • Biodiesel: Soy methyl ester (SME) B100, ASTM specifications, not including any tax credits for blending, FOB New York rail volumes, typically 3 to 15 days from published date. Truck and in-tank sales will also be considered and factored for assessment purposes. Deals must generally include current calendar-year RINs transfer that correspond to the product delivery date.
  • New York In Tank Transfer (NY ITT): Denatured fuel-grade ethanol FOB New York In Tank, typically up to 25,000 bbl, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are for the transfer in the next week or seven days. In the absence of transactional data, NY ITT will be calculated by applying a differential (either premium or discount) to New York Harbor barge ethanol spot prices. This differential will be regularly reviewed for relevance and accuracy.

U.S. Midwest

  • Ethanol: Denatured fuel-grade ethanol FOB Kinder Morgan Argo terminal, typically up to barge volume, 10,000 bbl, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 3-10 days from the published date.
  • Ethanol (FOB Rail): Denatured fuel-grade ethanol FOB railcar shipments, typically five to thirty 29,000 gallon railcar loads shipping prompt up to five days from publication date with Nebraska locations for either or an average of both the Burlington Northern and Union Pacific rail lines, Renewable Identification Numbers (RINs) included for the current calendar year. Deliveries in the first quarter of a given year may include RINs from the previous calendar year.
  • Ethanol (Rule 11): Denatured fuel-grade ethanol FOB railcar shipments, typically five to thirty 29,000 gallon railcar loads shipping prompt up to five days from publication date covered under AAR Rule 11 and taking place in and/or around Chicago, Renewable Identification Numbers (RINs) included that are for the current calendar year. Deliveries in the first quarter of a given year may include RINs from the previous calendar year.
  • Biodiesel: Soy methyl ester (SME) B100, ASTM specification, in rail volume not including any tax credits for blending, FOB Argo terminal, 3-15 days from the published date. Deals must generally include current calendar-year RINs transfer that correspond to the product delivery date.
  • Chicago Dead Prompt: Denatured fuel-grade ethanol in tank FOB Kinder Morgan Argo terminal, typically up to barge volume, 10,000 bbl, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Dead Prompt assessments are 0-2 days from the published date.

U.S. West Coast

  • Ethanol: Denatured fuel-grade ethanol for railcar shipments, typically five to thirty 29,000 gallon railcar loads, RINs (Renewable Identification Numbers) included that are for the current calendar year. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are for railcars generally shipping from one to five days from publication date. Any-month assessments are for railcars shipping from six to 15 days from publication date. Pacific Northwest and Phoenix ethanol assessment also reflect denatured-fuel grade ethanol railcar shipments into area terminals shipping one to five days from the publication date. Los Angeles and San Francisco ethanol prices are reported by their Carbon Intensity (CI) specification: Ethanol CI 90.10 - Midwest, Dry Mill, Wet, DGS.
  • Low Carbon Fuel Standard Credits: Traded in U.S. dollars per metric ton of carbon dioxide (CO2), this represents the daily traded price range or range of bids and offers on carbon credits generated for compliance under California's Low Carbon Fuel Standard program implemented by the California Air Resources Board. Trading is for credits transferable in the current calendar year, until the last month of the year when deals for the following year may also be considered.

    OPIS uses the carbon credit value to calculate a value for Carbon Intensity (CI) points per gallon of ethanol (gCO2e/MJ-gal). CI points are measured in grams of CO2 emitted per mega joule (MJ) of energy produced by the fuel as defined in pathways described by the California Air Resources Board. The price per CI point, in dollar terms ($/CI point per gallon), is based on the following formula: OPIS will multiply our market-derived assessment of carbon credit value by the baseline energy density of denatured ethanol as referenced by California's Air Resources Board (CARB) in its Low Carbon Fuel Standard regulations (currently 81.51 MJ/gal) and divide that result by 1,000,000 to yield CI value in dollars per CI point per gallon. The underlying CI scores of the required ethanol needed to comply with CARB's gasoline standard and the pathway calculations for CI are subject to change at CARB's discretion. OPIS will announce changes to the underlying calculations as they take effect.

    Additionally, OPIS prints a “Carbon Credit CPG” calculation derived from our Carbon Credit spot assessment. The Carbon credit value Per Gallon (CPG) value of gasoline and diesel carbon credits is calculated by using the following formula: CPG = OPIS Carbon Credit value x (Current CI – Target CI) x Energy Density x 10^-6.

Dallas

  • Ethanol: Denatured fuel-grade ethanol FOB Dallas/Fort Worth-area terminals for railcar shipments, typically more than a single 29,000 gallon railcar loads, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 3-15 days from the published date.

Tampa

  • Ethanol: Denatured fuel-grade ethanol FOB Tampa-area terminals for railcar shipments, typically more than a single 29,000 gallon railcar loads, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 3-15 days from the published date.

Brazil

  • Ethanol: Anhydrous and hydrous ethanol cargoes, FOB Brazil terminals for export, typically 50,000 bbl or more available 5-30 days from the date of publication. The assessment generally reflects price at the Santos export terminal, though others may be used for assessment purposes. Assessments reflect the values for "EPA" anhydrous and hydrous ethanol, i.e. ethanol supplied by Brazilian mills that have registered with the U.S. Environmental Protection Agency under the renewable fuels standard (RFS2).

    OPIS assesses FOB Brazil hydrous and anhydrous prices daily, showing those prices in US$/gallon, US$/cubic meter, and Brazilian real/cubic meter.

    OPIS utilizes the $/real exchange rate published daily by Banco Central do Brasil (Central Bank of Brazil), which is issued at 1 p.m. Sao Paulo time.
  • Natural Gasoline (denaturant): The natural gasoline spot snapshot represents the bulk price for c5 product, 115,021 btu/gal, 664 relative density liquid. Ranges generally represent deals for a minimum of 10,000 bbl at Mont Belvieu, Texas, for non-TET delivery reported on a given day for any-month transactions. The range reflects completed spot deals, and may also include bids and offers in the market. Ranges do not include deals concluded under extraordinary circumstances and far outside the range of other deals or below certain volumes.
  • National Renewable Fuel Feedstock/Co-Product Prices: These are prices for large quantities of feedstocks for ethanol and biodiesel production and their co-products transacted or being discussed in certain FOB markets.

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RIN Credits

Ethanol RIN Credits
This is the price assessment range for Renewable Identification Numbers attached to Renewable Biofuel as defined under the U.S. EPA's Renewable Fuels Standard. Trades are generally for volumes of 1 million to 5 million gallons. RINs are generated by production of ethanol or other specified renewable fuels and traded daily for delivery anywhere in the U.S. Smaller or larger volume RIN trades as well as confirmed bids and offers may also be used in factoring the daily RIN price assessment. Ethanol RIN credit values are shown for the current and previous year of trading.

Biodiesel RIN Credits
This is the price assessment range for Renewable Identification Number credits attached to Biomass-based Diesel as defined under the U.S. EPA's Renewable Fuels Standard. RINs are generated by production of biomass-based biodiesel and traded daily for delivery anywhere in the U.S. generally for a minimum of 250,000 RINs. Slightly smaller volume RIN trades as well as confirmed bids and offers may also be used in factoring the daily RIN price assessment. Biodiesel RIN credit values are shown for the current year and the previous year as well as for the following year, when available.

Cellulosic Ethanol RIN Credits
This is a largely notional market price assessment range for Renewable Identification Numbers attached to Cellulosic Biofuel as defined under the U.S. EPA's Renewable Fuels Standard for volumes in the current year.

Advanced Biofuel Credits
This is the price assessment range for Renewable Identification Number credits attached to Advanced Biofuels (categorized as D5 by EPA) as defined under the U.S. EPA's Renewable Fuels Standard for a minimum of 100,000 RINs for the current year and the previous year as well as for the following year, when available. Smaller volume Advanced Biofuels RIN trades as well as confirmed bids and offers may also be used in factoring the daily RIN price assessment.


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OPIS Crude Pricing

Price Discovery
OPIS collects posted prices for over 500 fields every Monday through Friday. These postings are gathered from 30 different companies in the U.S. and Canada. Every month, more than 50 refiners and exploration companies use our reports to benchmark their crude transactions.

Data Integrity
Data accuracy is verified each day by hand as well as by a system of programs that audit the data for abnormalities. Every month OPIS compares each individual field against summary documents provided by the posting companies to provide the most accurate service available.

Time Stamp
OPIS offers either an evening update for the most current information available, or a more comprehensive, morning update.


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OPIS International Feedstocks Pricing

Note: Because of the sometimes thin nature of feedstocks trading, OPIS ranges for various products may sometimes encompass a relatively wide range of specifications. Editors are instructed to exclude bbls which are deemed "off spec" from particular price ranges, but sometimes we are not privy to a long list of specifications for individual cargo and barge loads.

While every effort is made to include completed transactions within price range assessments, because of illiquidity, the assessments are sometimes subjective and based on a reasonable judgment as to where buyers and sellers would meet on common ground.

What follows is an approximation of "ballpark" specifications for feedstocks covered in daily OPIS Overnight publication.

Specifications

Vacuum Gasoil
Price ranges for low sulfur VGO reflect material with a 0.6% sulfur content or less. Other typical specs would be: API Gravity of 22 min/30 max.; 110 degree F. max. Pour; CCR of 0.5% max.; Metals (ppm): Vanadium 1.5 max., Sodium 2.0 max., Iron 2.0 max., Copper 1.0 max, Nickel 1.0 max.; Aniline, 180 F. min.; Flash Point, 150 F. min.; Nitrogen, (wt %), 1,300 max.; Distillation, 425 F. IBP min., 1,100 F. FBP max.

Medium sulfur VGO would typically reflect 0.7-1.4% sulfur max. material; API Gravity, 22 min/30 max.; 110 F. max Pour; CCR, 0.5% max. Metals (ppm): Vanadium 1.5% max., Sodium 2.0 max., Iron 20 max., Copper 1.0 max, Nickel 1.0 max.; Aniline, 170 F. min.; Flash Point, 150 F. min.; Nitrogen (WT%), 1,500 max.; Distillation, 425 F. IBP min., 1,100 F. FBP max.

High sulfur VGO is typically 1.5% sulfur or higher; API Gravity, 22 min./30 max.; 110 F. max. Pour; CCR, 0.5% max.; Metals (ppm): Vanadium 1.5 max., Sodium 2.0 max., Iron 2.0 max., Copper 1.0 max., Nickel 1.0 max.; Aniline, 160 F. min.; Flash Point, 150 F. Min., Nitrogen (WT%), 1,500 max.; Distillation, 425 F. IBP min., 1,100 F. FBP max.

While VGO volumes transacted in the USGC spot market are not expected to exactly match the VGO specifications listed above, the above specifications serve as a benchmark for making spot assessments. VGO with materially above-average qualities (relative to the above specifications) would be expected to command a stronger price, and VGO with materially sub-par specifications would be expected to be discounted for quality.

Depending on the extent of the quality discrepancy from the specifications listed above, OPIS may decide to reflect VGO deals somewhere within price ranges (near one end of the range rather than the mean), or OPIS may decide that the qualities of the VGO in question are too far removed from the above specifications to be considered representative of spot VGO values.

VGO cargo price assessments reflect minimum 200,000 bbl parcels, delivered ex-duty basis to Gulf Coast ports. VGO barge price assessments typically represent domestic transactions for barges of 40,000 bbl or more on a delivered Houston basis, although smaller volumes (minimum 20,000 bbl) and volumes for delivery to other Gulf Coast locations will be considered as well.

Timing on VGO cargoes: VGO cargoes typically trade one to two weeks before the cargoes land in the U.S. Gulf Coast. If a trade involves a cargo landing sooner than one week out, OPIS will attempt to determine if the material was discounted for prompt delivery and will consider the transaction level in that context. Some cargo trades involve material arriving more than two weeks out, and OPIS will consider such cargoes in its forward pricing assessments.

Timing on VGO barges: VGO barge trades typically involve delivery within five days. If a barge trade involves delivery within two days, OPIS will attempt to determine if the material received a discount or a premium for prompt delivery and will consider the transaction level in that context. OPIS also will consider barge transactions for delivery more than five days out for purposes of general price discovery.

Forward VGO Assessments

OPIS's forward VGO assessments on the U.S. Gulf Coast utilize the out-month West Texas Intermediate (WTI) crude contract along with forward (also referred to as "ratable") USGC unleaded and ultra-low-sulfur diesel (ULSD) values to calculate a forward USGC 70/30 split.

OPIS Gulf Coast refined products coverage tracks a ratable-timing range. Ratable numbers are an average of a full month of Colonial Pipeline cycles. Because this range tracks a full month, during the first cycle of each month, the ratable range reflects the same month. When the second cycle of the month becomes prompt, the ratable timing switches to the next month.

Naphtha

Domestic 40N+A (Heavy) Naphtha:
Values for domestic 40 N+A heavy naphtha reflect material with 38-44 N+A, an initial boiling point of 150-160 Degrees F., an end point of 350-380 Degrees F., +20 minimum color, a maximum RVP of 4.0 lbs., 3 parts per million maximum nitrogen, 500 parts per million maximum sulfur, and an API gravity of 56-60.

Domestic Full-Range Naphtha:
Values for domestic full-range naphtha reflect material with 36-40 N+A, an initial boiling point of 100-120 Degrees F., a 10% distillation of 130-160 Degrees F., an end point of 350-380 Degrees F., +20 minimum color, an RVP of 4.5-6.5 lbs., 3 parts per million maximum nitrogen, 500 parts per million maximum sulfur, and an API gravity of 60-64.

Offshore Naphtha:
Offshore 40 N+A naphtha assessments tend to reflect offshore naphtha grades with high N+A content (44-48) but with full-range qualities such as an initial boiling point of 100-120 Degrees F., an RVP of 4.5 lbs. or higher, and an API of 60 or higher.

Paraffinic Naphtha

Assessment is typically reflective of material with the following specifications: 65 minimum paraffin content, 68 API gravity, 500 ppm maximum sulfur, 12.5 maximum RVP, 50 ppm maximum MTBE, 50 ppm maximum lead, 1 ppm maximum H2S, and 20 minimum color.

Straight Run Residual Fuel
Prices for Gulf Coast low sulfur straight run residual fuel tend to reflect transactions, delivered into the Gulf Coast inside duty, for 0.5% material and similar grades out of NW Europe. Other low sulfur grades may from time to time be included when made available to Gulf Coast buyers.

High sulfur straight run values at the Gulf Coast typically reflect delivered Gulf Coast values for M-100, or E-4 material, but may often include high sulfur straight run from domestic sources and various material from offshore sources such as the Mediterranean.

Light Cycle Oil
OPIS assessments for light cycle oil generally reflect material with 1.2% to 1.8% sulfur. Gravity is generally 14-17 API, and cetane is typically within a range of 20-25. The upper limit for color is 2.5, and the end point is no higher than 690-700 degrees Fahrenheit. Some higher-sulfur grades of LCO command similar prices as 1.2-1.8% sulfur material, and trade of those grades may be reflected in OPIS assessments from time to time. OPIS assessments for low sulfur light cycle oil reflect material with a maximum sulfur content of 0.5%. Other quality specifications affecting the value of a spot LCO volume may be taken into consideration, such as haze, and if some of these specifications are not within the parameters of what most traders consider typical, and if a volume traded at a discount for that reason, OPIS will take this into account when establishing ranges. OPIS LCO assessments reflect the delivered value at various Gulf Coast locations.

West Coast Intermediate Feedstocks – Vacuum Gasoil and Cycle Oil
OPIS shows West Coast VGO values in three ways: as absolute prices (cts/gal); as differentials to the Los Angeles 70/30 split (70% of the price of Los Angeles regular unleaded gasoline and 30% of the price of Los Angeles ultra-low-sulfur diesel); and as differentials to WTI and ANS crude oil.

West Coast VGO values tend to be discussed in the market as differentials to the Los Angeles 70/30 split, and absolute values and differentials to crude are usually derived from VGO differentials to the split.

Price ranges for low sulfur VGO reflect 0.0-0.3% sulfur material. Other typical specs: API gravity 19-25; CCR 0.5% max; all Metals less than 1 ppm; Sodium less than 1 ppm; Aniline typically 165-185 F.; Nitrogen (WT%) ranges 1,000-1,500 ppm.

High sulfur VGO can range between 0.3-1.5% sulfur material, but the most typical sulfur spec would range from 1.0-1.5%. Other "typical" specs would include: API gravity 19-25; CCR 0.5% max; all Metals less than 1 ppm; Sodium less than 1 ppm; Aniline typically 150-175 F.; Nitrogen (WT%) less than 3,000 ppm.

Cycle Oil material has a maximum sulfur content of 0.5%, with a typical Viscosity of 2.5-3.5%. Lower viscosity material is generally discounted. Gravity is usually 13-19.

OPIS will consider deals involving VGO or cycle oil with non-typical specs. However, in such cases, OPIS also will take into consideration whether the material garnered a premium for above-average specs or a discount for sub-standard specs, and spot assessments will be made accordingly.

OPIS will consider for assessment purposes spot transactions involving delivery or loading in the current month or in the immediate forward month. While price assessments reflect delivered values, deals transacted on an fob basis also can serve as market indicators, with a delivered equivalent value extrapolated from freight costs.

  LSVGO HSVGO Light Cycle Oil
Sulfur 0 - 0.3% 0.3 - 1.5% 0.5% Max
API Gravity 19 - 25 19 - 25 13 - 19
CCR 0.5% Max 0.5% Max  
Metal < 1 PPM < 1 PPM  
Sodium < 1 PPM < 1 PPM  
Aniline 165 - 185 F 150 - 175 F  
Nitrogen 1,000 - 1,500 PPM < 3,000 PPM  
Viscosity     2.5 - 3.5%
(centistokes at 122 F)

Note: Higher viscosity is generally discounted based on current market conditions.

Asia Naphtha
The assessments reflect pricing of products for loading 45 to 90 days from the date of publication based on three half-month cycles. In other words, a report for March 1 will reflect reflection of forward prices for H2 Apr (1st cycle), H1 May, (2nd cycle), and H2 May (3rd cycle).

For naphtha we take an average forward value of the 2nd and 3rd cycle to calculate CFR Japan quotes to serve as the benchmark. The trades are based on forward paper deals and bids/offers with a parcel size of 25,000 tonnes. We use the numbers at the close at 4:30 pm Singapore Time to calculate OPIS final signature values.

For FOB Arab Gulf naphtha assessments, we take the OPIS final signature value of CFR Japan quotes and deduct freight differentials for Arab Gulf-Japan cargoes. FOB Singapore quotes are calculated as follows: (1st cycle of OPIS final signature/9) minus freight minus $0.05/bbl (port charge).

Delivery (time is ET)

  6:15 p.m. OPIS International Feedstocks Intelligence
  6:30 a.m. OPIS Asia Naphtha & LPG Report


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OPIS Bunker Fuels Spot Pricing

OPIS bunker assessments include the four main fuels of the shipping industry, Intermediate Fuel Oil (IFO) 380 centistokes (CST), IFO 180 CST, Marine Diesel (MDO) and Marine Gasoil (MGO).

OPIS adheres to bunker fuel specifications set by the International Convention for the Prevention of Pollution from Ships (MARPOL) in global bunker fuel assessments. Under amendments to Annex VI of the convention, high sulfur bunker fuel supplied at major global bunkering locations from 2012 onwards must contain a maximum of 3.5% sulfur.

The worldwide market generally follows similar specifications for these grades in all locations. The specifications followed are those defined by the International Organization for Standardization in document ISO 8217:2010 (E) - Petroleum products - Fuels (class F).

IFO 380: Specifications: Approximate Kinematic Viscosity: At 50 C, max 380 cst. Flash point 60 C minimum. Pour point (upper) winter quality, 30 C maximum; summer quality, same. Ash 0.10 m/m maximum. Sulfur, statutory requirements. Vanadium max 350 mg/kg. Aluminum plus silicon, 60 mg/kg max; water, 0.5% maximum.

IFO 180: Specifications: Approximate Kinematic Viscosity: At 50 C, max 180 cst. Flash point 60 C minimum. Pour point (upper) winter quality, 30 C maximum; summer quality, same. Ash 0.10 m/m maximum. Sulfur, statutory requirements. Vanadium max 350 mg/kg. Aluminum plus silicon, 60 mg/kg max.; water, 0.5% maximum.

Marine Diesel: Specifications generally conform with that for DMB. Kinematic viscosity at 40 C, max 11 cst; Flash point 60 C minimum; Pour point (upper) winter quality, 0 C; pour point upper summer quality, 6 C; Ash 0.01% maximum; Sulfur, statutory requirements; water, 0.3% maximum.

Marine Gasoil: Specifications generally conform with that for DMA. Kinematic Viscosity at 40 C, 1.5 minimum CST, maximum 6 cst; Flash point 60 C minimum; pour point (upper) winter quality, - 6 C; pour point upper, summer quality, 0 C; Ash 0.01% maximum; Sulfur, statutory requirements. Cetane, minimum 40.

Assessment Timing: Americas bunker fuel takes into account all transactions throughout the trading day. Trades are weighted toward the close of the day's trading. A transaction that occurs at 9:00 am ET may be less relevant than a trade that occurs at 5:00 pm ET as oil markets can gain or lose value, but nonetheless does indicate market value. In the event a grade of fuel is not reported, the assessing editor will use historical data and product spreads to assess the product until market provides a price level.

Qualifying transactions
OPIS assesses bunker trades delivered from 3-5 days in the U.S. East Coast, U.S. Gulf Coast, Latin and Central America. The U.S. West Coast, because of operational procedures, has a delivery period of 7-10 days of trade agreement. Price: OPIS bunker assessments are published in $/metric ton. Individual local taxes are not considered for assessment. Delivered trades will take into account the published barging charges for individual ports. Average barging prices at each port published by OPIS are updated regularly by market editors.

Typicals on size:

  • New York: 500-2,000 mt
  • Philadelphia: 300-750 mt
  • Norfolk: 300-1,000 mt
  • Houston: 500-2,000mt
  • New Orleans: 250-2,000 mt
  • Panama: 500-2,000 mt
  • Los Angeles: 750-3,000 mt
  • San Francisco: 750-3,000 mt
  • Seattle: 300-2,500 mt
  • Portland: 300-2,500 mt
  • Vancouver: 300-2,000 mt

Delivery (time is ET)

  6:15 p.m. OPIS Bunker Fuels America Report


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OPIS Residual Fuel Spot Pricing

(effective January 2, 2014)

Specifications

East Coast

0.3%S HP: Gravity of min 10.5 to max 24.9 API. Viscosity of max 300 SSF. Pour point of max 110 F. Min of 149,000 BTU/gal. Flash point of min 175. FBS&W of max 1.0%. Sediment of max 0.3%.

1.0%S: Aluminum+Silicon (Al+Si) content of max 80 ppm. Nitrogen of max 0.5%. Vanadium of max 150 ppm. Gravity of min 10.1 to max 18.0 API. Viscosity of min 70 to max 250 SSF. Flash Point of min 150 F. Pour point of max 60 F. Ash of max 0.1%. BS&W of max 1.0%. Water by distillation of max 1.0%. Sediment by extraction of max 0.1%. Vanadium of max 150 ppm. Sodium of max 60 ppm. Asphaltenes of max 8%. Min of 151,000 BTU/gal, H2S of max 50 ppm.

3.0%S: Gravity of min 10 API. Viscosity of max 300 SSF. Vanadium of max 300 ppm. Al+Si of max 80 ppm. Flash point of min 150 F. BS&W of max 1%. Ash of max 0.1%.

Gulf Coast

3.0%: Sulfur of max 3%. Gravity of min 10.2 API. Viscosity of 150-250 SSF. Vanadium of max 450 ppm. Ash of max 0.1%. Flash point of min 150 F. Pour point of max 60 F. Al+Si of max 80 ppm. Compatibility rating of max 2. Water of max 0.5%.

Assessment Timing: OPIS residual fuel price assessments take into account all transactions throughout the trading day. Trades are weighted toward the close of the day's trading. A transaction that occurs at 9:00 am EST may be less relevant than a trade that occurs at 5:00 pm EST as fuel oil markets can gain or lose value, but nonetheless does indicate market value. Residual fuel spot trading overviews are also considered as part of the assessment.

Qualifying Transactions: OPIS assesses fuel oil trades delivered from 7-9 days in the U.S. Gulf Coast and 10-15 days in the U.S. East Coast. Prices are published in $/bbl. Individual local taxes are not considered for assessment.

Priority is given to deals done, with bids and offers also taken into account. In the absence of market positions, fuel oil swaps prices will be considered in making assessments.

Typicals on size:
• U.S. Gulf Coast: 45,000 bbl
• U.S. East Coast: 50,000 bbl


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OPIS Asia Distillates Spot Pricing

OPIS provides accurate and up-to-date price assessments based on FOB benchmarks that include those out of Singapore, South Korea, Taiwan and the Middle East which are summarized in our daily market reports.

OPIS uses an average of daily forward paper/swaps value as a basis of our Asian daily assessments. We use the numbers at the close at 4:30 pm Singapore Time to calculate OPIS final signature values.

The assessments generally reflect pricing of products loading 15 to 30 days from the date of publication. In other words, a report for March 1 will reflect forward prices from March 16-31.

In our assessments, we use a variety of inputs which include outright, floating as well as a combination of both in terms of daily bids, offers and strike prices in the respective oil product market on both the physical and paper trading.

We calculate the mid-value of 15-30 days forward trading window by using the weighted average calculation that use the curve of 1st and 2nd cycle of swaps value. Then we add a discount or premium to calculate FOB Singapore quotes.

For discount/premium assessments for FOB Singapore quotes, we take transactions with a size of a minimum of 100,000 barrels, maximum 250,000 barrels for jet fuel; a minimum of 150,000 barrels and maximum 250,000 barrels for gasoil. FOB Arab Gulf Jet Fuel and Gasoil assessments are a simple freight netback from FOB Singapore quotes.

FOB Korea Jet Fuel assessment is a simple freight netback from the OPIS USWC Los Angeles Jet Fuel quote and the NYMEX Heating Oil quote (freeze at 4:30pm Singapore time). The calculation for FOB Taiwan Jet Fuel is assessment as follows: (FOB Singapore quotes minus FOB Singapore discount/premium) + discount/premium for the market. Editors confirm and record deals done with a size of 30,000-60,000 tonnes for FOB Taiwan discount/premium assessments.

For instance, if FOB Singapore Jet Fuel quote is $124.56/bbl with a premium of 85-cents/bbl, and if the freight rate for FOB Arab Gulf-Singapore LR 1 is $2.58/bbl, the calculation for FOB AG LR 1 is following: 124.56-2.58=$121.98/bbl. If FOB Taiwan premium is $1.00/bbl for the same day, the calculation for FOB Taiwan Jet Fuel assessment is following: (124.56-0.85)+1.00=$124.71/bbl.

Delivery (times are ET)

  6:30 a.m. OPIS Asia Jet Fuel & Gasoil Report


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OPIS Asia LPG Spot Pricing (updated August 1, 2014)

The assessments reflect pricing of products for loading 30 to 75 days from the date of publication based on three half-month cycles. In other words, a report for March 1 will reflect assessments of forward prices for H1 Apr (1st cycle), H2 Apr, (2nd cycle), and H1 May (3rd cycle).

For LPG markets, we take an average forward value of the 1st and 2nd cycle to calculate CFR Japan quotes to serve as the benchmark. The trades are based on forward paper deals and bids/offers for LPG with a parcel size of 22,000 tonnes for LPG (both propane and butane). We use the full-day value of forward papers.

For FOB Arab Gulf LPG assessments, we take Saudi Contract Prices (CP) swaps as a basis and add the discount/premium assessments determined by OPIS. For CFR China LPG assessments, we check the differentials between CFR Japan market by confirming and recording spot deals for cargoes of up to 44,000 tonnes.

Delivery (times are ET)

  6:30 a.m. OPIS Asia Naphtha & LPG Report


OPIS Asia LPG Spot Pricing
(before August 1, 2014)

The assessments reflect pricing of products for loading 45 to 90 days from the date of publication based on three half-month cycles. In other words, a report for March 1 will reflect reflection of forward prices for H2 Apr (1st cycle), H1 May, (2nd cycle), and H2 May (3rd cycle).

For LPG markets, we take an average forward value of the 2nd and 3rd cycle to calculate CFR Japan quotes to serve as the benchmark. The trades are based on forward paper deals and bids/offers for LPG with a parcel size of 22,000 tonnes for LPG (both propane and butane). We use the full-day value of forward papers.

For FOB Arab Gulf LPG assessments, we take Saudi Contract Prices (CP) swaps as a basis and add the discount/premium assessments determined by OPIS. For CFR China LPG assessments, we check the differentials between CFR Japan market by confirming and recording spot deals for cargoes of up to 44,000 tonnes.

Delivery (times are ET)

  6:30 a.m. OPIS Asia Naphtha & LPG Report


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OPIS Europe Distillates Spot Pricing

Methodology (as of May 1, 2013)

Market coverage
OPIS tracks market activity from 09.00 to 17.00 London Time to derive a simple average of price levels during the day of barge and cargo trade.

Products and specs

OPIS covers Jet A1, 1000ppm (0.1%) sulphur gasoil, 50ppm Low Sulphur Gasoil and 10ppm Ultra Low Sulphur Diesel.

Pricing basis

Prices are reported both as a differential to the front-month London ICE gasoil settlement, and as an outright price.

Timing

OPIS assesses barge trades that are for delivery during a 3-5 to15 day period from Monday to Friday. OPIS assesses cargoes for delivery 10 to 25 days from the day of trade.

Size and location

OPIS uses a 30,000mt part or full load as the basis for its Cif jet cargo assessments, while Fob barges in the 2,000-5,000mt range are assessed. Barge trades of 1,000mt can also be included during illiquid markets.

For Cif gasoil cargoes, OPIS assesses 10,000-20,000mt loads, and 1,000-5,000mt for Fob gasoil and ULSD barges.

Jet Cif cargoes are assessed basis Le Havre and Rotterdam. Trades conducted into non-restricted ports in Northwest Europe excluding Scandinavia can be taken into account.

Jet Fob barge deals are assessed basis FARAG (Amsterdam, Rotterdam, Antwerp, Flushing and Ghent).

Fob Northwest Europe Cargo price is calculated as a netback from the day's CIF Cargo price to reflect European coaster trade pricing.

A FOB Mediterranean Jet price is calculated as a netback of freight costs between Augusta and Rotterdam.

Gasoil, 50ppm gasoil and 10ppm diesel barge trades are assessed basis ARA.

Price discovery

OPIS reflects real bids, offers and trades in the assessment process. Outright and EFP related bids, offers and trades take precedence over floating price equivalents. In the absence of physical indications, OPIS can take into account current spreads, swap movements, and ratios versus Brent futures.

Forward curve

Two months of calendar forward prices are provided for barge and cargo jet and other barge-traded products. For these, futures contracts which run from middle of the month are converted into calendar equivalents and added to monthly swaps figures to represent accurately the cost of locking in prices in those months. Further along the forward curve, quarterly and calendar swaps are added to their futures equivalents.

Product cracks and rolling Brent

OPIS calculates product cracks to Brent crude, priced at the afternoon (4.30pm London time) marker. To provide a reliable reflection of the relative economics, a rolling assessment is used in the calculation of cracks. This involves reflecting the coming contract price for the following month in increments each day so as to smooth the otherwise step change that occurs at the expiry of the current futures contract.

Carbon and clean prices

OPIS's clean jet and carbon assessments make use of the settlement price for the relevant carbon contracts. For the purpose of benchmarking jet fuel on a "clean" basis, with associated carbon costs covered, the carbon price is converted into dollars at settlement time, and multiplied by 3.15 before being added to jet fuel at a variety of locations covered by the European Emissions Trading System. US clean prices are provided for the previous day as these are the latest available.

Data integrity

Because of the subjectivity of publishing spot ranges, editors talk to a very broad cross section of participants including European and international producers, end users, refiners, traders, brokers, shippers, wholesalers, and retailers. Editors have the ability to reflect transactions reached on electronic platforms, within published ranges, but posted "bid/offered" numbers or even confirmed deals on such networks are viewed subjectively by OPIS staff. Editors respect the wishes of sources to remain anonymous in their activities in the market and any information we receive regarding parties in deals will be kept confidential, unless volunteered, or posted to a public electronic dealing bulletin board.

Delivery (times are ET)

  4:00 p.m. OPIS Europe Jet Fuel & Gasoil Report


Methodology before May 1, 2013

Market coverage
OPIS tracks market activity from 09.00 to 16.30 London time to derive a volume-weighted average of price levels during the full day of barge and cargo trade.

Products and specs
OPIS covers Jet A1, 1000ppm (0.1%) sulphur gasoil, 50ppm Low Sulphur Gasoil and 10ppm Ultra Low Sulphur Diesel.

Pricing basis
Prices are reported both as a differential to the day's official 16.30 London ICE gasoil settlement, and as an outright price. Close to expiry, when trading can take place using the front or second-month contract, OPIS accounts for the intermonth spread in order to reflect prices on a front-month basis until the day before the noon gasoil expiry.

Timing
OPIS assesses barge trades that are for delivery during a 3-10 day period on Monday and Tuesday, and 5-10 days on Wednesday to Friday. OPIS assesses cargoes for delivery 10-20 days from the day of trade.

Size and location
OPIS uses a 30,000mt part or full load as the basis for its Cif jet cargo assessments, while Fob barges in the 2,000-5,000mt range are assessed. For Cif gasoil cargoes, OPIS assesses 10,000-20,000mt loads, and 1,000-5,000mt for Fob gasoil and ULSD barges. Cif cargoes are assessed basis Le Havre, while trades conducted in non-restricted ports in Northwest Europe excluding Scandinavia will be taken into account. Fob barge deals are basis Rotterdam, with full account given to activity in the ARA (Amsterdam Rotterdam Antwerp) region and nearby ports. A Fob Northwest Europe Cargo price is generated by removing an average of North West European route freight rates from the day's CIF Cargo price to reflect European coaster trade pricing. A FOB Mediterranean price is calculated by removing freight costs between Augusta and Rotterdam.

Price discovery
As a full-day reporting service, OPIS gains unrivalled insight into spot trade, term contract pricing and associated swap markets across the European union. This data is used to inform our assessment process.

Forward curve
Two months of calendar forward prices are provided for barge and cargo jet and other barge-traded products. For these, futures contracts which run from middle of the month are converted into calendar equivalents and added to monthly swaps figures to represent accurately the cost of locking in prices in those months. Further along the forward curve, quarterly and calendar swaps are added to their futures equivalents.

Product cracks and rolling Brent
OPIS calculates product cracks to Brent crude, priced at the afternoon (4.30pm London time) marker. To provide a reliable reflection of the relative economics, a rolling assessment is used in the calculation of cracks. This involves reflecting the coming contract price for the following month in increments each day so as to smooth the otherwise step change that occurs at the expiry of the current futures contract.

Carbon and clean prices
OPIS's clean jet and carbon assessments make use of the settlement price for the relevant carbon contracts. For the purpose of benchmarking jet fuel on a "clean" basis, with associated carbon costs covered, the carbon price is converted into dollars at settlement time, and multiplied by 3.15 before being added to jet fuel at a variety of locations covered by the European Emissions Trading System. US clean prices are provided for the previous day as these are the latest available.

Data integrity
Because of the subjectivity of publishing spot ranges, editors talk to a very broad cross section of participants including European and international producers, end users, refiners, traders, brokers, shippers, wholesalers, and retailers. Editors have the ability to reflect transactions reached on electronic platforms, within published ranges, but posted "bid/offered" numbers or even confirmed deals on such networks are viewed subjectively by OPIS staff. Editors respect the wishes of sources to remain anonymous in their activities in the market and any information we receive regarding parties in deals will be kept confidential, unless volunteered, or posted to a public electronic dealing bulletin board.

Delivery (times are ET)

  4:00 p.m. OPIS Europe Jet Fuel & Gasoil Report


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OPIS Europe LPG Spot Pricing

Current methodology for NW Europe Propane (as of August 12, 2014)

The market for large propane cargoes in northwest Europe presents a variety of challenges, including its relatively illiquid nature in both physical and paper trading and limited number of participants.

There has been a strong move within the trading community to seek a methodology that offers consistent price assessments that are reflective of the physical spot market.

The focus of our methodology is to:

  • Establish consistency, transparency and verifiability;
  • Minimise disparities between physical market levels and published benchmark prices;
  • Give emphasis to deals transacted, and
  • Define the method of assessment in the absence of traded deals.

In the northwest European propane market, OPIS assesses cargoes cif basis Flushing for 10-20 days forward delivery.
The quantity, grade and quality, delivery and nomination terms are as per the industry standard ToT (ten-days notice of a three-day delivery window) contract for the current year.
Assessments consider physical spot deals and swaps transacted between 4:00-4:30pm London time.
Physical bids must have a minimum 5-day delivery date range and offers a maximum 5-day delivery date range entirely within the 10-20 days forward delivery period, basis Flushing.
Deals, bids and offers that carry a minimum 50% fixed price component will be considered for the purpose of price discovery.
A fixed price is specific price a buyer or seller would pay to secure tons. The remaining floating component references swap, often with a differential. 

Deals, bids and offers, which carry additional requirements to the ToT contract that can be restrictive, are not considered for pricing assessments.

Physical Spot Price Assessment
OPIS uses the following method to derive physical spot price assessments:

  • If there is 1 deal done, the deal price is the basis of the assessment;
  • If there is more than 1 deal done, the mean of the deal prices is the basis of the assessment;
  • In the absence of any deals, bids and offers will be considered;
  • In the absence of any bids, offers or deals, a notional value will be derived from the relationship of the physical market assessment and the swap value on the previous trading day.

In the cases where there are no deals, OPIS moves the assessed physical-paper differential in line with stronger or weaker spot indications, i.e. higher bids or lower offers relative to the reference month swap level compared to the previous trading day.

Otherwise, OPIS would carry over the previous day’s differential, or may employ an adjustment of up to +/-$2/t to reflect market changes (see “Note” below).

Floating Price Calculation

It has become common in the propane cargo market for deals, bids and offers to carry fixed and floating price components, e.g. a bid at 50% $800/t and 50% July +$4/t. The latter component typically represents the reference month swap with a differential.

The floating price component is derived by seeking the reference month swap level in the 4:00-4:30pm London timeframe to fully valuate the indication. OPIS uses the following method:

  • Refer to swaps deals transacted on a broker platform such as Trayport or reported on electronic clearing platforms such as ICE and CME for complete validation and disclosure of price, volume, and time traded.
  • Take a mean of minimum 2,000t swap deals for the propane cif ARA reference month swap traded between 4:00-4:30pm London time, rounded to the closest $1.00/t. This will be published as the “Reference Month 4:00-4:30pm” under “OPIS cif ARA Propane Swaps.”
  • Apply premium or discount to the reference month, as specified in the bid/offer, to arrive at the floating price.
  • In the absence of reference month swap deals transacted on the above platforms between 4:00-4:30pm London time, OPIS will consider bids and offers levels for the reference month swap, in addition to spread trades linked to the reference month swap during this time period. Editors will also canvass market sources for a close value for the reference month swap.  
  • For bids, offers and deals that carry a naphtha-related floating price component for the balance or next month, the floating value will be derived from swap deals transacted and close values on central platforms, and by surveying market participants for the 4:30pm London time close naphtha swap value.
  • When the 10-20 days forward delivery period crosses two calendar months, OPIS will roll forward the reference month swap considered in its assessment when seven days of the delivery period fall in the second month.

Example:

A buyer has bid for a physical cargo meeting OPIS’s assessment criteria at 50% fixed price of $800/t and 50% Month A +$4/t. Month A swaps trade at an average at $802/t between 4:00-4:30pm London time. The previous day’s assessed physical-paper differential was +$3/t.

To value the floating portion, OPIS applies +$4/t to the Month A swap value of $802/t to get $806/t. OPIS then calculates the bid’s total fixed and floating components (50% $800/t + 50% $806/t) to arrive at $803/t. The bid equates to a value of Month A +$1/t, marking the physical-paper differential at +$1/t. Since the current day’s bid at +$1/t does not exceed the previous day’s differential at +$3/t, the spot assessment for the current day’s differential would hold at +$3/t, marking the spot price assessment at $802/t +$3/t = $805/t.

Note: Editors may employ an adjustment of up to +/-$2/t (the “tolerance band” within OPIS’s low-high range) to the physical-paper differential assessment in cases where there are no deals, limited bids and/or offers, or limited parties making visible bids and/or offers. Reasons for employing the tolerance include, but are not limited to, changes to the forward structure, factors affecting supply-demand balances and/or market intelligence through information gathered by editors through the trading day.

OPIS editors contact a cross-section of market participants daily. This typically entails the editor communicating with approved sources – via telephone, email or instant messenger – to help determine their spot assessments on the day.

NWE Butane
Butane prices are for field grade mixed butane cargoes above 4,000mt delivered 5-20 days forward basis cif ARA.

FOB Med Propane and Butane
In the Mediterranean, OPIS assesses field grade and refinery grade propane and butane fob basis Lavera 5-15 days forward. The assessment considers cargo sizes of 1,500mt and above.

End-of-Day Swaps Curves
OPIS aggregates close-of-business swap data from broker reports to help make up its End-of-Day NWE Forwards and Global Forward price assessments. All forward curve information must be received by our editors no later than 7:00pm London time. Editors may exclude data that falls outside what is considered the normal range. Reports received after that time may be evaluated for market perspective, but will not be automatically included in the forward market range. 

Delivery (Eastern Time)

 

3:30 p.m.

OPIS Europe LPG Report

 

Methodology for NW Europe Propane before August 12, 2014

In the northwest European propane market, OPIS assesses cargoes cif basis Flushing for 10-20 days forward.

The quantity, grade and quality, delivery and nomination terms are as per the TOT (ten-days notice of a three-day delivery window) contract for the current year.

Assessments consider physical spot deals transacted between 4:00-4:30pm London Time. Butane prices are for field grade mixed butane cargoes above 4,000mt delivered 5-20 days forward.

For the physical spot price assessment if there is 1 deal done, the deal price is the basis of the assessment; if there is more than 1 deal done, the mean of the deal prices is the basis of the assessment; in the absence of any deals, bids and offers will be considered; in the absence of any bids, offers or deals, a notional value will be derived from the relationship of the physical market assessment and the swap value on the previous trading day. This notional value is the result of applying the differential between the swap value and the physical spot assessment of the previous day, to the current day’s swap value; the assessment will take the notional value into account, with a +/-$2/t tolerance band, until the market demonstrates otherwise.

Bids must have a minimum 5-day delivery date range and offers a maximum 5-day delivery date range entirely within the 10-20 days forward delivery period, basis Flushing.

Deals, bids and offers that carry a minimum 50% fixed price component will be considered for the purpose of price discovery.

OPIS editors contact a cross-section of market participants daily.

Floating Value Calculation

For bids, offers and deals that carry a propane-related floating price component for balance or next month, the floating value will be derived by the following method:

  • Refer to swaps deals transacted on a central platform such as Trayport for complete validation and disclosure of price, volume, and time traded
  • Mean of minimum 2,000mt swap deals for the cif ARA propane swap reference month traded between 4:00-4:30pm UK time, rounded to the closest $1.00/mt. This will be published as the “Reference Month 4:00-4:30pm” under “OPIS cif ARA Propane Swaps”
  • Premium or discount to floating price component applied

Only in the absence of front-month swap deals transacted on the central platform, the floating value will be derived from the bid-offer range for the reference month swap at 4:30pm UK time.

For bids, offers and deals that carry a naphtha-related floating price component for the balance or next month, the floating value will be derived from swap deals transacted on the central platform and surveying market participants for the 4:30pm close naphtha swap value.

Where the 10-20 days forward delivery period crosses two calendar months, OPIS will roll forward the reference month swap considered in its assessment when seven days of the delivery period fall in the second month.

OPIS aggregates close of business swap data from broker reports to help make up its End of Day NWE Forwards and Global Forward price assessments. All forward curve information must be received by our editors no later than 7:00pm UK time. Editors may exclude data that falls outside what is considered in the normal range. Reports received after that time may be evaluated for market perspective, but will not be automatically included in the forward market range. 

Delivery (times are ET)

  3:30 p.m. OPIS Europe LPG Report

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OPIS Spot Replacement Index (SRI) Pricing

The starting point for the OPIS "SRI" is the average of the prior-day's closing spot range in each of the seven U.S. spot markets. Each day OPIS's 14 editors survey traders and brokers and publish a FULL DAY range that represents their assessment of the value of spot transactions for gasoline and diesel fuel that day. OPIS has mapped over 250 rack markets back to their spot delivery points. From the OPIS Full Day Average Spot Price, OPIS then adds the existing pipeline tariffs based on the distance that product flows in the line from the spot entry point to the rack terminal location. It then adds in line loss due to evaporation in the line, terminaling and storage (transfer) fees if product moves from line to line, an estimated fee for proprietary additives, a cost of money factor, pipeline security charge and trucking fees for applicable markets where product is shipped using vehicles. For distillates, OPIS approximates the cost of various additives (lubricity, red dye, etc.) Today's SRI shows yesterday's closing spot price delivered into a specific market.

Each rack that contains an SRI number displays the spot market to which the rack location is mapped.

OPIS developed this methodology after more than a year of discussion with major oil suppliers, marketers and reseller.


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