A dark-brown-to-black cement-like material containing bitumens as the predominant constituent obtained by petroleum processing; used primarily for road construction. It includes crude asphalt as well as the following finished products: cements, fluxes, the asphalt content of emulsions (exclusive of water), and petroleum distillates blended with asphalt to make cutback asphalts. Note: The conversion factor for asphalt is 5.5 barrels per short ton.
Hydrocarbons characterized by their uniform carbon ring structure and their often pleasant aroma. Commercial petroleum aromatics are benzene, toluene, and xylene. These three are often referred to by the acronym BTX. These chemicals are used as high octane components in gasoline. Aromatics have been judged to be undesirable in some finished motor fuels with various state and federal regulations geared toward reducing their levels. CARB diesel fuel in the state of California mandates a low aromatics composition. As Billed Rates – A policy requiring pipelines to flow through gas costs to their customers in the same manner as they are billed to the pipeline.
The buying, selling, and exchange of petroleum products or crude oil in different markets with the express design to take advantage of location, product, and timing differentials. Traders looking to move U.S. Gulf Coast No. 2 oil to Rotterdam watch the arbitrage between Gulf Coast prices and the IPE, for example.
A widely monitored body of data in the petroleum industry. This report compiles changes in domestic petroleum production, imports, refining, capacity and product movements into and out of primary storage. Traders use this information to access supply and demand on a weekto- week basis. These figures are usually released Tuesday afternoons. The release of these reports is often a catalyst for movement on the futures market.
Industry scale expressing the gravity or density of liquid petroleum products. The measuring scale is calibrated in terms of degrees API; it may be calculated in terms of the following formula: Degrees API = 141.5/ sp.gr.60°F/60°F -131.5. The higher the API gravity, the lighter the compound. Light crudes generally exceed 38 degrees API and heavy crudes are commonly labeled as all crudes with an API gravity of 22 degrees or below. Intermediate crudes fall in the range of 22 degrees to 38 degrees API gravity. Light crudes yield more gasoline.
Spot market terminology for deliveries that can be made at any time during the month at the seller’s discretion. Spot market prices will often be tied to the delivery stipulations termed prompt, outer month, or any month.
OPIS 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.
The quantity of gas a buyer or shipper has nominated to receive on an annual basis from a pipeline.
Grade and quality specifications for petroleum products are determined by ASTM test methods.
A trade association comprised of larger, integrated oil companies that works for the common goals of the oil industry.