Argus Us

Argus US Products
Issue 18-30 | Tuesday 13 February 2018
Overview Market summary
Nymex March light, sweet crude futures fell by 10¢/bl to Price ¢/USG
$59.19/bl. Nymex RBOB gasoline futures today rose by 0.68¢/ New York Houston Chicago Los Angeles
USG to $1.6853/USG and Nymex ultra-low sulfur diesel (ULSD)
declined by 0.2¢/USG to $1.8369/bl. CBOB/suboctane 168.13 163.86 158.53 172.53
RBOB 168.13 165.16 164.53 174.53
87 conv 172.66 167.13 158.53
US Atlantic coast prompt RBOB differentials decreased
Ethanol 150.00 149.13 140.13 161.50
slightly as the forward curve flattened. Jet fuel 180.07 174.32 183.94 184.44
ULSD 183.19 179.47 180.19 184.69
The Linden, New Jersey premium over the the US Gulf Bunker fuel $/t 347.50 324.00 363.50
coast for ULSD and jet fuel rose to 4.73¢/USG and 5.5¢/USG, Differential to Nymex ¢/USG
respectively. The premium for heating at the Linden terminal
New York Houston Chicago Los Angeles
rose to 6.88¢/USG over Houston's values.
CBOB/suboctane -0.40 -4.68 -10.00 +4.00
The year-round sale of higher-ethanol gasoline blends offers RBOB -0.40 -3.38 +6.00* +6.00
the only acceptable change to federal fuel blending mandates 87 conv +4.13 -1.40 -10.00
loathed by critics who are gaining momentum in Washington, Jet fuel -3.63 -9.38 +0.25 +0.75
ethanol trade group Renewable Fuel Association said today. ULSD -0.50 -4.23 -3.50 +1.00
Bunker fuel $/t -4.17 -7.89 -1.64
*Basis Chicago CBOB
Jet fuel prices at the New York Harbor have fallen to
14-week lows, mainly driven by sharp declines in the Nymex Change on day ¢/USG
futures contract. New York Houston Chicago Los Angeles
The US administration could consider an increase in the CBOB/suboctane +0.56 -0.24 +2.93 -2.07
federal tax on gasoline to help fund its infrastructure plan RBOB +0.56 +0.31 +2.43 -2.07
87 conv +0.31 -0.34 +2.93
despite reservations about the measure, transportation secre-
Ethanol -1.50 -0.25 -0.25 0.00
tary Elaine Chao said today.
Jet fuel +0.18 +0.05 -0.20 +0.18
ULSD -0.70 -0.95 -1.20
Bunker fuel $/t -5.00 -3.00 -5.00
Forward curves ¢/USG

Swap 87 M ULSD 62 Nymex RBOB Heating oil
Contents month USGC† USGC† month New York* New York*
Gasoline 3 Feb 170.53 179.69 Mar 168.53 183.69

Distillates 8 Mar 176.12 179.44 Apr 186.62 183.64
Biofuels and blending components 13 Apr 178.96 179.18 May 187.46 183.48
Feedstocks and residual fuel oil 16 May 179.29 178.93 Jun 186.79 183.23
Latest news 19 Jun 178.91 178.99 Jul 185.41 183.29
Announcements 26 Jul 177.61 178.93 Aug 183.36 183.28
*CME Nymex futures †swaps
Copyright © 2018 Argus Media group

Argus US Products Issue 18-30 | Tuesday 13 February 2018
Argus market map ¢/USG
Portland
NYH less Chicago
Portland less SF CBOB +9.60
RBOB +8.00 ULSD +3.00
ULSD +6.50 Chicago New York
Chicago less Group 3

CBOB -13.00
Chicago less USGC
SF less LA ULSD -3.50
San Francisco CBOB -5.32 Colonial Line Space
RBOB -4.00
ULSD +0.72 Gasoline Line 01 -0.25
ULSD +1.50
Tulsa Distillates Line 02 -0.25
Los Angeles
Group 3 less USGC
NYH less USGC
CBOB +7.68
LA less USGC CBOB +4.28
ULSD +4.22
RBOB +9.38 ULSD +3.72
ULSD +2.22
Houston
Chicago ULSD vs Group Three ULSD ¢/USG

Latest news page 19
10
Infrastructure
Total Port Arthur flaring rose
Shell Deer Park reports process unit upset 5
Industry
NYH RBOB forward curve flattens with RVP hh
hh
0
Los Angeles CARBOB down amid refiners selling
US infrastructure plan prompts gas tax talks
Ethanol trade group expects Washington help
US retail fuel marks first 2018 drop -5
API urges biofuel mandate waiver rejections 9 Nov 12 Dec 12 Jan 13 Feb
Liquid fuels splinter as EVs grow: NEC
87M Colonial vs Nymex ¢/USG Chicago vs Group Three 84 V ¢/USG

2 20
0
10
-2
0
hh
-4 hh hh
hh
-10
-6
-8 -20
9 Nov 12 Dec 12 Jan 13 Feb 9 Nov 12 Dec 12 Jan 13 Feb
Copyright © 2018 Argus Media group Page 2 of 28

Gasoline
Atlantic coast Atlantic coast ¢/USG

Basis Differential Price ±
US Atlantic coast prompt RBOB differentials decreased slightly
on Tuesday as the forward curve flattened. New York waterborne
Prompt 15 RVP RBOB traded at March Nymex -0.4¢/USG, 87 conv inc duty 13.5 Mar +4.00/+4.25 172.53-172.78
87 conv ex duty 13.5 Mar -5.57/-5.32 162.96-163.21
while 13.5 RVP RBOB was bid and offered for 10 March at
Reg CBOB inc duty 14.5 Mar +1.00/+1.45 169.53-169.98 +0.56
March Nymex -0.5¢/USG and -0.25¢/USG, respectively. The
Reg CBOB ex duty 14.5 Mar -8.56/-8.11 159.97-160.42 +0.59
forward curve was considered flat through 10 March. Reg RBOB inc duty 15 Mar +1.00/+1.45 169.53-169.98 +0.56
Buckeye and barge CBOB were at parity with RBOB, while Reg RBOB ex duty 15 Mar -8.56/-8.11 159.97-160.42 +0.59
Laurel CBOB remained 0.25¢/USG below New York Harbor. 89 conv inc duty 13.5 176.95-177.20 +0.44
Premium RBOB was offered to Buckeye pipeline at March Prem RBOB inc duty 15 Mar +15.90/+16.35 184.43-184.88 +0.67
Nymex +14.5¢/USG, while the value was considered the same 93 conv inc duty 13.5 Mar +16.63/+16.88 185.16-185.41 +0.69
Boston waterborne
level.
Reg RBOB 15 Mar +2.23/+2.48 170.76-171.01 +0.56
Buckeye and barge premium CBOB were valued 1.5¢/USG
Colonial Linden
stronger than premium RBOB at March Nymex +16¢/USG, while 87 conv M Cycle 6 13.5 Mar +4.00/+4.25 172.53-172.78 +0.31
Laurel premium CBOB remained 0.25¢/USG below New York 89 conv Cycle 6 13.5 176.82-177.33
Harbor. 93 conv V Cycle 5 13.5 Mar +16.25/+17.25 184.78-185.78 +0.68
Colonial offline F5 traded on cycle 6 at March Nymex Reg CBOB Cycle 6 13.5 Mar +0.35/+0.75 168.88-169.28 +0.48
+0.25¢/USG and +0.5¢/USG, while cycle 5 was considered the Reg RBOB Cycle 5 13.5 Mar +0.25/+0.50 168.78-169.03
New York barge
same value.
Reg CBOB dead prompt 14.5 Mar -0.50/-0.30 168.03-168.23 +0.56
Colonial offline A4 traded on cycles 6 and 7 at March
Reg CBOB prompt 14.5 Mar -0.50/-0.30 168.03-168.23 +0.56
Nymex +0.35¢/USG and +0.75¢/USG, respectively, while the Reg RBOB dead prompt 15 Mar -0.50/-0.30 168.03-168.23 +0.56
curve from cycle 6 to cycle 8 was flat. Reg RBOB prompt 15 Mar -0.50/-0.30 168.03-168.23 +0.56
Colonial offline M4 traded at March Nymex +4¢/USG and Prem CBOB dead prompt 14.5 Mar +15.75/+16.25 184.28-184.78 +0.68
+4.25¢/USG while the forward curve from cycle 6 to cycle 8 Prem CBOB prompt 14.5 Mar +15.75/+16.25 184.28-184.78 +0.68
was flat. Prem RBOB dead prompt 15 Mar +14.25/+14.75 182.78-183.28 +0.68
Prem RBOB prompt 15 Mar +14.25/+14.75 182.78-183.28 +0.68
Alkylate with 5.5 RVP and 92.5 octane was valued at March
Buckeye
Nymex +30.925¢/USG on an FOB basis in New York Harbor in
Reg CBOB dead prompt 14.5 Mar -0.50/-0.30 168.03-168.23 +0.56
consideration of alkylate with 4.8 RVP and 93 octane, which Reg CBOB prompt 14.5 Mar -0.50/-0.30 168.03-168.23 +0.56
was discussed at March Nymex +33¢/USG on an FOB basis in Reg RBOB dead prompt 15 Mar -0.50/-0.30 168.03-168.23 +0.56
New York Harbor. Reg RBOB prompt 15 Mar -0.50/-0.30 168.03-168.23 +0.56
The 3-2-1 Brent crack spread in the US Atlantic coast in- Prem CBOB dead prompt 14.5 Mar +15.75/+16.25 184.28-184.78 +0.68
Prem CBOB prompt 14.5 Mar +15.75/+16.25 184.28-184.78 +0.68
creased by $0.8584/bl to $11.259/bl as RBOB firmed and Brent
Prem RBOB dead prompt 15 Mar +14.25/+14.75 182.78-183.28 +0.68
crude weakened.
Prem RBOB prompt 15 Mar +14.25/+14.75 182.78-183.28 +0.68
Laurel
Gulf coast Reg CBOB 14.5 Mar -0.75/-0.55 167.78-167.98 +0.56
Gasoline prices fell on the US Gulf coast Tuesday as differen- Prem CBOB 14.5 Mar +15.50/+16.00 184.03-184.53 +0.68
tials weakened against a stronger March Nymex RBOB contract.
Prices for 13.5 RVP conventional (M4) fell by 0.34¢/USG to
CME Nymex RBOB
167.13¢/USG as M4 on scheduling day of the 10th cycle traded
Price Crack spread
from March Nymex -1.8¢/USG to -1¢/USG, about 1¢/USG below
Month ¢/USG ± Month $/bl
trade on Monday.
The spread between 13.5 RVP premium (V4) and M4 nar- Mar 168.53 +0.68 Mar +11.59
rowed by 2.48¢/USG on Tuesday as V4 was bid and offered Apr 186.62 +0.38 Apr +19.35
May 187.46 +0.30 May +19.98
from March Nymex +9.5¢/USG and +11¢/USG, respectively.

Gasoline
Weaker V4 differentials sent cash prices 2.82¢/USG lower to Gulf coast ¢/USG
178.78¢/USG. Basis Differential Price ±
Differentials for 13.5 RVP regular CBOB (A4) fell by 0.93¢/ Colonial
USG, with trade done from March Nymex -5.35¢/USG to -4¢/ 87 conv M 13.5 Cycle 10 Mar -1.80/-1.00 166.73-167.53 -0.34
Weighted average -1.40 167.13
USG for product on the 10th cycle. Cash prices for A4 fell by
87 conv M 13.5 Cycle 11 Mar -0.90/ 0.00 167.63-168.53 -0.20
0.25¢/USG, the smallest decline in the region on Tuesday, to Reg RBOB F 13.5 Cycle 10 Mar -3.75/-3.00 164.78-165.53 +0.31
163.86¢/USG. Weighted average -3.50 165.03
Premium CBOB prices sank by 1.57¢/USG to 174.78¢/USG Reg RBOB F 13.5 Cycle 11 Mar -3.75/-3.00 164.78-165.53 +0.31
as 13.5 RVP premium CBOB (D4) traded from March Nymex Reg CBOB A 13.5 Cycle 10 Mar -5.35/-4.00 163.18-164.53 -0.24
+5.5¢ to +7¢/USG. Lower D4 prices narrowed the D4/A4 octane
Reg CBOB A 13.5 Cycle 11 Mar -5.10/-3.25 163.43-165.28 +0.26
spread by 1.32¢/USG to 10.93¢/USG. 89 conv 13.5 170.69-171.73 -1.22
Prices for 13.5 regular RBOB (F4) saw the only increase on Prem CBOB D 13.5 Cycle 10 Mar +5.50/+7.00 174.03-175.53 -1.57
the day, rising by 0.31¢/USG to 165.16¢/USG. F4 on the 10th 93 conv V 13.5 Cycle 10 Mar +9.50/+11.00 178.03-179.53 -2.82
cycle traded from March Nymex -3.75¢/USG to -3.25¢/USG, 93 conv V 13.5 Cycle 11 Mar +9.50/+11.00 178.03-179.53 -3.63
Prem RBOB 13.5 Cycle 10 Mar +7.00/+7.50 175.53-176.03 -1.44
about 0.4¢/USG below levels traded on Monday.
Prem RBOB 13.5 Cycle 11 Mar +7.00/+7.50 175.53-176.03 -1.44
Shipping space on Colonial Pipeline’s gasoline-bearing Line Colonial Line Space
1 were stable despite the decline in gasoline prices, trading Gasoline Line 01 Cycle 10 -0.50/0.00 +0.50
from -0.5¢/USG to -0.25¢/USG, with offers heard as high as Weighted average -0.25
flat. Waterborne
Reg CBOB A 13.5 Mar -4.10/-2.75 164.43-165.78 -0.24
87 conv M 13.5 Mar -0.55/+0.25 167.98-168.78 -0.34
Midcontinent 89 conv 13.5 171.94-172.98 -1.22
Prices for Generic Chicago CBOB and CBOB originating at the Prem CBOB 13.5 Mar +6.75/+8.25 175.28-176.78 -1.57
Chicago Buckeye Complex (BCX) moved closer together on 93 conv V 13.5 Mar +10.75/+12.25 179.28-180.78 -2.82
Tuesday as the former increased and the latter declined. Waterborne ex-RVO
Reg CBOB A 13.5 Mar -12.03/-10.68 156.50-157.85 -0.20
Generic Chicago CBOB traded between March Nymex -12¢/
87 conv M 13.5 Mar -8.48/-7.68 160.05-160.85 -0.31
USG and -8¢/USG during the day for second-cycle February 89 conv 13.5 164.01-165.05 -1.18
shipping. Cash differentials rose by 2.25¢/USG from Monday’s Prem CBOB 13.5 Mar -1.18/+0.32 167.35-168.85 -1.53
market as a result. Outright prices increased by 2.93¢/USG as 93 conv V 13.5 Mar +2.82/+4.32 171.35-172.85 -2.79
the March Nymex RBOB contract price rose 0.68¢/USG on the see distillates section for Colonial Line 02 assessment
weighted average is volume-weighted average of deals done during the entire trad-
day. ing day
Market sources attributed the rise in trade levels, primarily
in the first half of the trading day, to the exit of a major seller Delivered Florida ¢/USG
Origin Price ±
from the spot market.
BCX CBOB traded at March Nymex -3.5¢/USG for second- Port Everglades, Florida
cycle February shipping, leaving cash differentials 0.5¢/USG Reg CBOB A 13.5 USGC 170.82 -0.24
Prem CBOB D 13.5 USCG 181.74 -1.57
below Monday’s market.
Tampa, Florida
A roll deal for second-cycle February BCX CBOB traded at a
Reg CBOB A 13.5 USGC 170.34 -0.25
0.5¢/USG discount to third-cycle February BCX CBOB, indicat- Prem CBOB D 13.5 USCG 181.27 -1.57
ing a market in contango.
The spread between generic Chicago CBOB and BCX CBOB
stood at 6.5¢/USG, still relatively wide by historic standards
but narrower than the two locations have been in weeks. +6¢/USG at the end of trade.
BCX RBOB traded at March Nymex -4¢/USG for second- Group Three sub-octane gasoline traded between March
cycle February shipping. RBOB’s premium to CBOB thus de- Nymex +2.5¢/USG and +3.5¢/USG, resulting in a 0.5¢/USG de-
creased by 0.5¢/USG over yesterday’s spread, standing at CBOB cline in cash differentials from Monday’s market.

Gasoline
Delivered South America $/m3 Midcontinent ¢/USG

Origin Price ± Basis Differential Price ±
Santos, Brazil Group 3
87 conv ex-RVO USGC 452.11 -8.18 Suboctane V 13.5 prompt Mar +2.50/+3.50 171.03-172.03 +0.18
Weighted average +3.06 171.59
Eurobob Oxy ARA 470.39 -8.37
Suboctane V 13.5 any Feb Mar +2.75/+4.00 171.28-172.53 +0.31
Paranagua, Brazil
91 conv A 10 prompt Suboct V +20.00/+22.00 191.53-193.53 +0.18
87 conv ex-RVO USGC 453.29 -8.19
Chicago
Reg CBOB 13.5 2nd Feb Mar -12.00/-8.00 156.53-160.53 +2.93
Itaqui, Brazil
Reg CBOB 13.5 3rd Feb Mar -12.00/-8.00 156.53-160.53 +2.93
87 conv 13.5 2nd Feb Mar -12.00/-8.00 156.53-160.53 +2.93
87 conv 13.5 3rd Feb Mar -12.00/-8.00 156.53-160.53 +2.93
Suape, Brazil
89 conv 13.5 166.33-169.46 +2.93
91 conv 13.5 2nd Feb 87 +26.00/+27.50 184.53-186.03 +2.93
91 conv 13.5 3rd Feb 87 +26.00/+27.50 184.53-186.03 +2.93
Montevideo, Uruguay
Reg RBOB 13.5 2nd Feb CBOB +5.75/+6.25 164.28-164.78 +2.43
Reg RBOB 13.5 3rd Feb CBOB +5.75/+6.25 164.28-164.78 +2.43
Prem RBOB 13.5 2nd Feb RBOB +21.75/+27.50 186.28-192.03 +2.43
Buenos Aires, Argentina
Chicago BCX
Reg CBOB 15 2nd Feb Mar -3.75/-3.25 164.78-165.28 +0.18
West coast ¢/USG

West coast Basis Differential Price ±
The Los Angeles prompt CARBOB market continued to fall on Los Angeles
Tuesday amid refiner selling. Reg CARBOB 5.99 Feb Mar +4.00/+8.00 172.53-176.53 -2.07
Los Angeles February CARBOB traded between March
Reg CARBOB 5.99 Mar Apr -2.50/-1.50 184.12-185.12 -0.62
Nymex +4¢/USG and +8¢/USG, moving differentials down by Prem CARBOB 5.99 Feb CARBOB +18.00/+23.00 192.53-197.53 -2.07
2.75¢/USG. Cash differentials have fallen over four consecutive Suboctane 11.5 Feb Mar +2.00/+6.00 170.53-174.53 -2.07
sessions, from a midpoint of +16¢/USG to +6¢/USG on Tuesday. Reg AZRBOB 8.0 Feb CARBOB -2.00/ 0.00 172.53-174.53 -2.07
Prices fell by 2¢/USG to close at $1.75/USG. Prem AZRBOB 8.0 Feb CARBOB +18.50/+20.50 193.03-195.03 -2.07
San Francisco
Refiner selling depressed CARBOB values, indicating market
Reg CARBOB 12.5 Feb Mar +1.50/+2.50 170.03-171.03 +2.68
length, according to market participants. Prem CARBOB 12.5 Feb CARBOB +23.75/+24.75 194.28-195.28 +2.68
Los Angeles March CARBOB traded at April Nymex -2¢/ San Francisco waterbone
USG and was subsequently talked between April Nymex -5¢/ Reg CARBOB 12.5 Feb Mar +3.00/+4.00 171.53-172.53 +2.68
Reg CARBOB ex-RVO 12.5
USG and -2¢/USG. Differentials fell by a penny on the day and Mar -4.93/-3.93 163.60-164.60 +2.72
Feb
prices declined by 0.6¢/USG to $1.85/USG. The forward curve Portland
remained in contango, and the spread widened to 10¢/USG Suboctane 13.5 Feb Mar +9.50/+10.50 178.03-179.03 +3.68
from 8¢/USG on Tuesday.
San Francisco prompt CARBOB traded at March Nymex +2¢/
USG, lifting differentials up by 2¢/USG. Prices gained 2.7¢/USG
to close at $1.71/USG.
In Portland, third-cycle February suboctane gasoline traded
at March Nymex +10¢/USG. Differentials firmed by 3¢/USG and
prices increased by 3.7¢/USG to $1.79/USG.

Gasoline
Gulf coast deals Gulf coast deals

Grade Timing Price Volume Grade Timing Price Volume
Colonial A4 10th Cycle -5.35 25 10th Cycle C11-0.25 25
10th Cycle -5.35 25 10th Cycle C11-0.25 25
10th Cycle -5.25 25 10th Cycle C11+0.75 100
10th Cycle -5.25 25 10th Cycle F4-0.50 25
10th Cycle -5.25 25 10th Cycle M4-3.25 25
10th Cycle -5.25 25 11th Cycle -4.00 25
10th Cycle -5.25 25 11th Cycle -4.00 125
10th Cycle -5.25 25 Colonial A3 12th Cycle -0.50 25
10th Cycle -5.25 25 Colonial M4 10th Cycle -1.80 50
10th Cycle -5.25 50 10th Cycle -1.75 25
10th Cycle -5.00 25 10th Cycle -1.75 25
10th Cycle -5.00 25 10th Cycle -1.55 25
10th Cycle -5.00 25 10th Cycle -1.45 25
10th Cycle -5.00 25 10th Cycle -1.25 25
10th Cycle -5.00 25 10th Cycle -1.00 25
10th Cycle -5.00 50 10th Cycle -1.00 25
10th Cycle -4.75 25 10th Cycle -1.00 25
10th Cycle -4.75 25 10th Cycle -1.00 25
10th Cycle -4.50 25 Colonial F4 10th Cycle -3.75 25
10th Cycle -4.50 25 10th Cycle -3.50 25
10th Cycle -4.50 50 10th Cycle -3.50 25
10th Cycle -4.50 50 10th Cycle -3.25 25
10th Cycle -4.25 25 10th Cycle A4+0.75 25
10th Cycle -4.25 25 10th Cycle A4+1.00 25
10th Cycle -4.25 50 Colonial D4 10th Cycle +5.50 25
10th Cycle -4.25 50 10th Cycle +7.00 25
10th Cycle -4.25 50 10th Cycle +7.00 25
10th Cycle -4.00 50 Colonial H4 10th Cycle +7.25 25
10th Cycle C11-0.75 25 Colonial line space 01 10th Cycle -0.50 25
10th Cycle -0.25 20
Assessment rationale
The Argus US Atlantic coast prompt RBOB barge assessment cording to the methodology. The regrade against 13.5 RVP
was based on generic and Buckeye RBOB trades as the delivery regular CBOB A traded as high as +1¢/USG, setting the high for
modes were deemed at parity. The low and high values were the day. The low and high prices for 13.5 RVP regular RBOB F
set at March Nymex RBOB -0.5¢/USG and -0.3¢/USG, respec- were set at the March Nymex RBOB contract -3.75¢/USG and
tively. -3¢/USG.
The US Gulf coast 13.5 RVP regular CBOB A market met the The US Gulf coast 13.5 RVP 87 conventional M market met the
volume minimums needed to calculate the VWA in accordance volume minimums needed to calculate the VWA in accordance
with the methodology. The VWA price for 13.5 RVP regular with the methodology. The VWA price for 13.5 RVP 87 conven-
CBOB A was set at the March Nymex RBOB contract -4.75¢/ tional M was set at the March Nymex RBOB contract -1.4¢/USG.
USG. Generic Chicago area regular CBOB traded between the March
The US Gulf coast 13.5 RVP regular RBOB F market met the Nymex RBOB contract -12¢/USG and -8¢/USG, setting the low
volume minimums needed to set the low and high prices ac- and high ends of the day's trade range, respectively.

Gasoline
Colonial Cbob A vs Colonial 87M ¢/USG Atlantic coast deals
-2 Grade Timing Price Volume
F5 20 Feb Mar-0.40 50 generic

20 Feb Mar-0.40 25 bpl
-4 c6 Mar+0.25 25 cpl
c6 Mar+0.50 25 cpl
A4 c6 Mar+0.35 25 cpl
-6 c7 Mar+0.75 25 cpl
M4 c6 Mar+4.25 25 cpl
hh
hh c7 Mar+4.25 25 cpl
-8
Midcontinent deals
Grade Timing Price Volume
-10
MPL sub-octane V Prompt March+3.50 10
9 Nov 12 Dec 12 Jan 13 Feb 14 Feb March+3.50 10
14 Feb March+2.75 10
14 Feb March+2.50 10
Colonial ULSD vs Chicago ULSD ¢/USG 16 Feb March+2.50 25
Chicago area CBOB C2 Feb March-8.00 10
0
C2 Feb March-12.00 10
Wolverine CBOB C3 Feb March-5.50 30
Buckeye Complex CBOB C2 Feb March-3.50 15
Buckeye Complex RBOB C2 Feb March-4.00 15
-5
West coast deals
hh
hh LA 84 Carbob Feb Mar+4.00 25
-10
Feb Mar+4.75 25
Feb Mar+8.00 25
Mar Apr-2.00 25
SF 84 Carbob Feb Mar+2.00 23
-15
Portland 84 Conv C3 Feb Mar+10.00 15
9 Nov 12 Dec 12 Jan 13 Feb
NYH 83.7 Rbob barge cash ¢/USG LA Carb ULSD cash ¢/USG
200 220
190 210
180 200
hh
hh hh
hh
170 190
160 180

Distillates
Atlantic coast Atlantic coast ¢/USG

US Atlantic coast ultra-low sulphur diesel (ULSD) differentials
New York waterborne
mostly weakened on Tuesday, while the Nymex fell for the Heating oil Mar -14.50/-13.50 169.19-170.19 -0.20
eighth consecutive session. ULSD Mar -0.75/-0.25 182.94-183.44 -0.70
Jet Mar -4.13/-3.13 179.57-180.57 +0.18
ULSD on the Laurel pipeline traded at March Nymex ULSD
Kerosine Mar +16.25/+17.25 199.94-200.94 -0.20
-1.5¢/USG, about 1.5¢/USG weaker than where differentials ULSK Mar +20.00/+21.00 203.69-204.69 -0.20
stood on Monday. Cash prices ended at $1.8244/USG, a low Boston waterborne
HO 500ppm Mar -10.13/-9.88 173.57-173.82 -0.20
value unseen since October. New York barge
The Nymex fell for the eighth consecutive session, but Heating oil prompt Mar -14.50/-13.50 169.19-170.19 -0.20
Heating oil any Feb Mar -14.50/-13.50 169.19-170.19 -0.20
losses weren’t as sharp as seen in previous session, declining ULSHO Mar -7.75/-7.25 175.94-176.44 -0.45
by 0.2¢/USG to $1.8369/bl. HO 500ppm Mar -10.50/-10.00 173.19-173.69 -0.20
ULSD prompt Mar -0.75/-0.25 182.94-183.44 -0.70
ULSD barge material for prompt timing traded at March ULSD any Feb Mar -0.75/-0.25 182.94-183.44 -0.70
Nymex ULSD -0.5¢/USG, about 0.5¢/USG weaker than where Jet Mar -3.75/-3.50 179.94-180.19 +0.18
Kerosine Mar +16.50/+17.00 200.19-200.69 -0.20
Monday’s levels stood. The Buckeye pipeline ULSD market con- ULSK Mar +20.00/+21.00 203.69-204.69 -0.20
tinued to hold a premium to barges, trading at March Nymex Buckeye
ULSHO Mar -7.75/-7.25 175.94-176.44 -0.45
ULSD -0.1¢/USG.
HO 500ppm Mar -10.50/-10.00 173.19-173.69 -2.20
ULSD on the Colonial pipeline’s prompt cycle 6 was offered ULSD Mar -0.35/+0.15 183.34-183.84 -0.55
at March Nymex ULSD +0.75¢/USG, unchanged from where Jet Mar -3.75/-3.50 179.94-180.19 +0.18
Kerosine Mar +16.50/+17.00 200.19-200.69 -0.20
levels stood on Monday. Laurel
Ultra-low sulphur heating oil (ULSH) differentials also fell HO 500ppm Mar -8.00/-7.50 175.69-176.19 +0.05
ULSD Mar -1.50/-1.00 182.19-182.69 -1.70
on Tuesday. ULSH for cycle 8 traded at March Nymex ULSD Jet Mar -3.75/-3.50 179.94-180.19 +0.18
-8¢/USG, where the prompt cycle was talked. ULSH for barge Colonial Linden
ULSHO Cycle 6 Mar -8.25/-7.75 175.44-175.94 -0.95
and Buckeye pipeline was valued at March Nymex ULSD -7.5¢/ HO 500ppm Cycle 5 Mar -9.70/-9.20 173.99-174.49 -0.20
USG. HO 77 Cycle 5 Mar -16.75/-16.25 166.94-167.44 +0.80
ULSD Cycle 6 Mar +0.25/+0.75 183.94-184.44 -0.20
The 500ppm heating oil markets were mixed directionally. Jet 54 Cycle 6 Mar -4.00/-3.75 179.69-179.94 +0.18
Buckeye pipeline material was talked flat to barges, at March
Gulf coast ¢/USG
Nymex ULSD -10.5¢/USG and -10¢/USG, while Laurel pipeline
was offered at -7.5¢/USG.
Colonial
The 2,000ppm heating oil Colonial pipeline market traded ULSHO 67 Cycle 11 Mar -11.80/-11.65 171.89-172.04 -0.23
at March Nymex ULSD -16.5¢/USG for cycles 5 and 7, about 1¢/ Heating oil 77 Cycle 10 Mar -23.50/-23.25 160.19-160.44 +0.43
USG firmer than where values were talked on Monday. Heating oil 77 Cycle 11 Mar -23.50/-23.25 160.19-160.44 +0.43
Jet fuel markets at the New York Harbor edged higher on ULSD 62 Cycle 11 Mar -4.30/-4.15 179.39-179.54
Tuesday, as gains in differentials outweighed smaller losses ULSD 62 Cycle 12 Mar -4.30/-4.15 179.39-179.54
seen in the Nymex. Jet 54 Cycle 11 Mar -9.50/-9.25 174.19-174.44 +0.05
Colonial pipeline jet fuel traded at March Nymex ULSD -4¢/ Jet 54 Cycle 12 Mar -9.65/-9.40 174.04-174.29 -0.10
USG for cycle 7 material. The Buckeye pipeline market was as- Kerosine 55 Cycle 11 Mar -9.25/-9.00 174.44-174.69 +0.05
Kerosine 55 Cycle 12 Mar -9.50/-9.25 174.19-174.44 -0.20
Colonial Line Space
Distillates Line 02 Cycle 11 -0.50/0.00 na
CME Nymex ultra low-sulfur diesel Waterborne
Price Crack spread Heating oil Mar -22.25/-22.00 161.44-161.69 +0.43
ULSD 62 Mar -3.05/-2.90 180.64-180.79 -0.23
Month ¢/USG ± Month $/bl
ULSD 62 ex-RVO Mar -10.98/-10.83 172.71-172.86 -0.18
Mar 183.69 -0.20 Mar +17.96 Jet 54 Mar -8.25/-8.00 175.44-175.69 +0.05
Kerosine 55 Mar -8.00/-7.75 175.69-175.94 +0.05
Apr 183.64 Apr +18.10
see gasoline section for Colonial Line 01 assessment; weighted average is volume-
May 183.48 +0.12 May +18.31 weighted average of deals done during the entire trading day

Distillates
Delivered Florida ¢/USG Midcontinent ¢/USG

Origin Price ± Basis Differential Price ±
Port Everglades, Florida Group 3

ULSD 62 USGC 186.43 -0.22 ULSD X prompt Mar -0.25/+0.25 183.44-183.94 -0.70
Jet 54 USCG 181.28 +0.05 Weighted average -0.03 183.66
Tampa, Florida ULSD X any Feb Mar -0.25/+0.25 183.44-183.94 -0.70
ULSD 62 USGC 185.95 -0.23 Jet Q prompt Mar -1.50/-0.50 182.19-183.19 -0.20
Jet 54 USCG 180.80 +0.05 ULSK prompt Mar +27.50/+30.25 211.19-213.94 -0.20
Chicago
Delivered South America, ULSD ex-RVO $/m3 ULSD 2nd Feb Mar -4.00/-3.00 179.69-180.69 -0.95
Origin Price ± ULSD 3rd Feb Mar -4.00/-3.00 179.69-180.69 -0.95
Santos, Brazil USGC 489.69 -5.42 Jet 2nd Feb Mar -0.25/+0.75 183.44-184.44 -0.20
Paranagua, Brazil USGC 491.10 -5.43 Jet 3rd Feb Mar -0.25/+0.75 183.44-184.44 -0.20
Itaqui, Brazil USGC 475.94 -5.05 ULSK 2nd Feb Mar +24.50/+28.50 208.19-212.19 -0.20
Suape, Brazil USGC 481.00 -5.11 Chicago BCX
Montevideo, Uruguay USGC 483.24 -5.31 ULSD BCX 2nd Feb Mar -1.50/-0.50 182.19-183.19 -0.70
Buenos Aires, Argentina USGC 483.54 -5.36
West coast ¢/USG
sessed at about a 0.25¢/USG premium to the Colonial pipeline, Los Angeles

Carb ULSD Feb Mar +0.50/+1.50 184.19-185.19 -1.20
where the relationship between the markets last stood, at
March Nymex ULSD -3.75¢/USG and -3.5¢/USG.
EPA ULSD Feb Mar -2.50/-1.50 181.19-182.19 +1.05
The 3-2-1 Brent crack spread at the US Atlantic coast rose Jet Feb Mar +0.25/+1.25 183.94-184.94 +0.18
by $0.8584/bl to $11.259/bl. Weighted average +0.75 184.44
LAX
Gulf coast Jet Feb Mar 0.00/+1.00 183.69-184.69 +0.18
San Francisco
Diesel prices on the US Gulf coast fell on Tuesday as both the
Carb ULSD Feb Mar -1.50/-0.50 182.19-183.19 -0.70
March Nymex ULSD contract and prompt differentials declined.
EPA ULSD Feb Mar -1.50/+0.50 182.19-184.19 -0.20
Ultra-low sulphur diesel (ULSD) saw the only declines in the
Jet Feb Mar -1.25/-0.25 182.44-183.44 +0.18
region on Tuesday, falling by 0.23¢/USG to 179.47¢/USG. ULSD San Francisco waterborne
on the newly prompt 11th cycle traded from March Nymex Carb ULSD Feb Mar +15.16/+16.16 183.69-184.69 -0.70
-4.3¢/USG to -4.15¢/USG, stable from levels traded Monday on Carb ULSD ex-RVO Feb Mar +7.23/+8.23 175.76-176.76 -0.66
the then-prompt 10th cycle. Portland
ULSD Feb Mar +5.50/+6.50 189.19-190.19 -0.20
Jet fuel prices on the US Gulf coast were stable in thin
trade on Tuesday, rising by 0.05¢/USG to 174.32¢/USG as
stronger differentials offset a fall in the March Nymex ULSD tively, about 0.6¢/USG above levels traded on Monday.
contract. Jet fuel on the 11th cycle traded from March Nymex Inter-regional spreads between US Gulf coast and New York
-9.5¢/USG to -9.25¢/USG, 0.25¢/USG above levels seen on Harbor market prices widened on Tuesday, supporting shipping
Monday. space values on Colonial Pipeline’s distillates-bearing Line 2,
Rolls for jet fuel on the US Gulf coast on cycles 11/12 which was talked from March Nymex 0.5¢/USG to flat for space
traded at 0.15¢/USG backward, deepening the backwardation on the 11th cycle.
in the forward structure. The Linden, New Jersey premium over the US Gulf coast
Heating oil on the US Gulf coast was talked higher on Tues- ULSD and jet fuel rose to 4.73¢/USG and 5.5¢/USG, respec-
day, sending prices up by 0.42¢/USG to 160.32¢/USG. Bids and tively. The premium for heating at the Linden terminal rose to
offers for heating oil on scheduling day of the 10th cycle were 6.88¢/USG.
heard at March Nymex -23.5¢/USG and -23.25¢/USG, respec- The inter-regional spread must be at least 5.26¢/USG to

Distillates
cover the cost of shipping on Line 2 from it origin in Pasadena, Gulf coast deals
Texas to the Linden terminal in order for the arbitrage to be
workable on paper. Colonial 62 11th Cycle -4.30 25
11th Cycle -4.25 25
11th Cycle -4.25 25
Midcontinent 11th Cycle -4.25 25
Chicago’s ultra-low sulphur diesel (ULSD) markets weakened 11th Cycle -4.25 25
11th Cycle -4.25 25
Tuesday amid weak offers and few bids.
11th Cycle -4.25 25
ULSD originating on the Badger pipeline system was offered 11th Cycle -4.25 25
at March Nymex -3¢/USG for second-cycle February shipping, 11th Cycle -4.25 25
and no bids were discovered. Cash differentials declined by 11th Cycle -4.25 25
11th Cycle -4.25 25
0.75¢/USG from Monday’s market while outright prices fell by
11th Cycle -4.25 50
0.95¢/USG as the March Nymex ULSD contract price fell by 11th Cycle -4.15 25
0.2¢/USG. Colonial 54 11th Cycle -9.50 25
ULSD originating at the Citgo East Chicago terminal traded 11th Cycle -9.50 25
11th Cycle -9.25 25
at March Nymex -1¢/USG for prompt shipping. Market partici-
11th Cycle -9.25 25
pants indicated that Citgo East Chicago ULSD and ULSD origi- 11th Cycle C12+0.15 25
nating at the Chicago Buckeye Complex (BCX) were at parity
on Tuesday. BCX ULSD cash differentials declined by 0.5¢/USG
as a result. Los Angeles prompt jet fuel traded twice at March Nymex
Group Three ULSD traded between March Nymex -0.25¢/ +0.75¢/USG. Cash differentials gained +0.38¢/USG and prices
USG and +0.25¢/USG, leaving cash differentials down by 0.5¢/ remained largely steady at $1.84/USG. The Torm Sovereign,
USG from Monday’s levels. a jet cargo is expected to arrive in Los Angeles from Dalian,
Cash differentials for jet fuel in both Group Three and China, at the end of this week.
Chicago held steady Tuesday amid a sparse trade activity.
Outright prices in both regions fell by 0.2¢/USG in step with Assessment rationale
the March Nymex ULSD contract price. The US Atlantic coast 62 grade Colonial pipeline prompt mar-
ket did not trade. An offer set the high value at March Nymex
West coast ULSD +0.75¢/USG and the assessed low value at March Nymex
US west coast distillates differentials were mixed on Tuesday ULSD +0.25¢/USG.
while the spread narrowed between the Los Angeles diesel The US Atlantic coast ULSD Buckeye pipeline prompt market
markets. met the volume minimum required to set the midpoint value
Los Angeles prompt CARB diesel traded at a penny above according to methodology. The market was assessed between
the March Nymex, moving differentials down by a penny. Cash March Nymex ULSD -0.35¢/USG and +0.15¢/USG.
prices fell by 1.2¢/USG to close at $1.85/USG. Los Angeles The US Atlantic coast ULSD prompt barge prompt market met
prompt EPA diesel traded at March Nymex -2¢/USG, lifting dif- the volume minimum required to set the midpoint value ac-
ferentials higher by 1.25¢/USG and prices gained a penny. The cording to methodology. The market was assessed between
CARB-EPA diesel spread narrowed from 5.25¢/USG to 3¢/USG March Nymex ULSD -0.75¢/USG and -0.25¢/USG.
on Tuesday. The US Gulf coast ULSD market met the volume minimums
San Francisco February CARB diesel was last seen bid at needed to set the low and high prices according to the meth-
March Nymex -1.5¢/USG on Monday. odology. The low and high prices for ULSD were set at the
Portland prompt ULSD traded at March Nymex +6¢/USG, March Nymex ULSD contract -4.3¢/USG and -4.15¢/USG.
keeping differentials unchanged. Prices fell slightly by 0.2¢/ US Gulf coast heating oil did not trade. The highest bid and
USG to $1.90/USG. the lowest offer set the day's range from March Nymex ULSD

Distillates
-23.5¢/USG to -23.25¢/USG respectively. Atlantic coast deals

The US Atlantic coast 67 grade prompt Colonial pipeline mar-
ket did not trade. An offer set the high value at March Nymex Heat 2,000ppm C5 Mar-16.50 25 CPL
ULSD -7.75¢/USG and a bid set the low value at March Nymex C6 Mar-16.50 25 CPL
ULSD 16-15 Feb Mar-0.50 25 Barge
ULSD -8.25¢/USG.
16-18 Feb Mar-0.50 20 Barge
The US Atlantic coast jet Buckeye pipeline market did not
20-25 Feb Mar-0.50 100 Barge
trade. In absence of liquidity, the market was assessed be- 02-22-18 Mar-0.10 10 BPL
tween March Nymex ULSD -3.75¢/USG and -3.5¢/USG, at about 051L Mar-1.50 25 LPL
a 0.25¢/USG premium to the Colonial pipeline, where the ULSH C7 Mar-8.00 25 CPL
relationship between the cycles last stood. C8 Mar-8.00 25 CPL
The US Atlantic coast 54 grade Colonial pipeline prompt mar- Jet C7 Mar-4.00 25 CPL
C7 Mar-4.00 25 CPL
ket did not trade. In absence of liquidity, the market was as-
sessed between March Nymex ULSD -4¢/USG and -3.75¢/USG,
at a slight premium to the forward cycle, where the relation- Midcontinent deals
ship between the cycles last stood.
The US Atlantic coast jet barge market did not trade. The MPL ULSD X 14 Feb March +0.25 15
15 Feb March 0.00 25
market was assessed between March Nymex ULSD -3.75¢/USG
15 Feb March 0.00 10
and -3.5¢/USG, at flat to the Buckeye pipeline market, where
15 Feb March -0.25 25
the relationship between the markets last stood. 16 Feb March -0.25 25
The US Gulf coast jet fuel market met the volume minimums March rates April +0.50 75
needed to set the low and high prices according to the meth- Citgo East Chicago ULSD 13 Feb March -1.00 25
odology. The low and high prices for jet fuel were set at the
March Nymex ULSD contract -9.5¢/USG and -9.25¢/USG.
West coast deals
LA EPA ULSD Feb Mar-2.00 47

LA Jet Feb Mar+0.75 25
Feb Mar+0.75 50
LA Carb ULSD Feb Mar+1.00 25
Portland EPA ULSD Feb Mar+6.00 10
NYH Cbob vs 87M Buckeye ¢/USG Heating oil: NYH Buckeye vs USGC Colonial ¢/USG
0 25
-1
20
-2
-3 15
hh
hh hh
hh
-4
10
-5
-6 5

Clean product forward curves
Physical ¢/USG Physical (continued) ¢/USG

Timing Basis Differential Price ± Timing Basis Differential Price ±
87 conv M Colonial Linden Jet New York barge

Cycle 6 Mar +4.00/+4.25 172.53-172.78 +0.31 Prompt Mar -3.75/-3.50 179.94-180.19 +0.18
Cycle 7 Mar +4.00/+4.25 172.53-172.78 +0.31 10 days forward Mar -3.85/-3.60 179.84-180.09 +0.18
Cycle 8 Mar +4.00/+4.25 172.53-172.78 +0.31 15 days forward Mar -3.95/-3.70 179.74-179.99 +0.18
Reg CBOB A Colonial Linden 20 days forward Apr -3.80/-3.75 179.84-179.89 +0.28
Cycle 6 Mar +0.35/+0.75 168.88-169.28 +0.48 Jet Colonial Linden
Cycle 7 Mar +0.35/+0.75 168.88-169.28 +0.48 Cycle 6 Mar -4.00/-3.75 179.69-179.94 +0.18
Cycle 8 Mar +0.35/+0.75 168.88-169.28 +0.48 Cycle 7 Mar -4.25/-3.75 179.44-179.94 +0.18
Reg RBOB New York barge Cycle 8 Mar -4.50/-4.00 179.19-179.69 +0.18
Prompt Mar -0.50/-0.30 168.03-168.23 +0.56 Kerosine New York barge
10 days forward Mar -0.50/-0.30 168.03-168.23 +0.66 Prompt Mar +16.50/+17.00 200.19-200.69 -0.20
15 days forward Mar -0.50/-0.30 168.03-168.23 +0.70 10 days forward Mar +16.50/+17.00 200.19-200.69 -0.20
20 days forward Apr -18.59/-18.34 168.03-168.28 +0.71 15 days forward Mar +16.50/+17.00 200.19-200.69 -0.20
Any Feb Mar -0.50/-0.30 168.03-168.23 +0.68 20 days forward Apr +16.55/+17.05 200.19-200.69 -0.20
Prem RBOB New York barge Heating oil Colonial 77
Prompt Mar +14.25/+14.75 182.78-183.28 +0.68 Cycle 10 Mar -23.50/-23.25 160.19-160.44 +0.43
10 days forward Mar +14.25/+14.75 182.78-183.28 +0.68 Cycle 11 Mar -23.50/-23.25 160.19-160.44 +0.43
15 days forward Mar +14.25/+14.75 182.78-183.28 +0.68 Cycle 12 Mar -23.50/-23.25 160.19-160.44 +0.43
20 days forward Apr -3.84/-3.34 182.78-183.28 +0.68
Cycle 13 Apr -23.45/-23.20 160.19-160.44 +0.43
87 conv Colonial M
Heating oil Colonial 77 Linden
Cycle 10 Mar -1.80/-1.00 166.73-167.53 -0.34
Cycle 5 Mar -16.75/-16.25 166.94-167.44 +0.80
Cycle 11 Mar -0.90/ 0.00 167.63-168.53 -0.20
Cycle 6 Mar -16.75/-16.25 166.94-167.44 +0.80
Cycle 12 Mar +3.10/+4.25 171.63-172.78 -0.20
Cycle 7 Mar -16.75/-16.25 166.94-167.44 +0.80
Cycle 13 Apr -13.50/-13.25 173.12-173.37 +0.13
ULSD Colonial 62
Reg CBOB Colonial A
Cycle 11 Mar -4.30/-4.15 179.39-179.54
Cycle 10 Mar -5.35/-4.00 163.18-164.53 -0.24
Cycle 12 Mar -4.30/-4.15 179.39-179.54
Cycle 11 Mar -5.10/-3.25 163.43-165.28 +0.26
Cycle 13 Apr -4.25/-4.10 179.39-179.54
Cycle 12 Mar -0.75/-0.25 167.78-168.28 +0.43
Cycle 14 Apr -4.25/-4.10 179.39-179.54
Cycle 13 Apr -17.75/-17.25 168.87-169.37 +0.13
Jet Colonial 54
Heating oil New York barge
Cycle 11 Mar -9.50/-9.25 174.19-174.44 +0.05
Prompt Mar -14.50/-13.50 169.19-170.19 -0.20
Cycle 12 Mar -9.65/-9.40 174.04-174.29 -0.10
10 days forward Mar -14.50/-13.50 169.19-170.19 -0.20
Cycle 13 Apr -9.75/-9.50 173.89-174.14 -0.25
15 days forward Mar -14.50/-13.50 169.19-170.19 -0.20
Cycle 14 Apr -9.90/-9.65 173.74-173.99 -0.40
20 days forward Apr -14.45/-13.45 169.19-170.19 -0.20
Any Feb Mar -14.50/-13.50 169.19-170.19 -0.20
Swaps ¢/USG
Heating oil 75 Colonial Linden
Cycle 5 Mar -9.70/-9.20 173.99-174.49 -0.20 Timing Basis Differential Price ±
Cycle 6 Mar -9.85/-9.35 173.84-174.34 -0.20
ULSD Colonial 62
Cycle 7 Mar -10.00/-9.50 173.69-174.19 -0.20
Feb Mar -4.25/-3.75 179.44-179.94 -0.20
ULSH Colonial Linden
Mar Apr -4.45/-3.95 179.19-179.69
Cycle 6 Mar -8.25/-7.75 175.44-175.94 -0.95
Apr May -4.55/-4.05 178.93-179.43 +0.12
Cycle 7 Mar -8.25/-7.75 175.44-175.94 -0.95
May Jun -4.55/-4.05 178.68-179.18 +0.25
Cycle 8 Mar -8.25/-7.75 175.44-175.94 -0.95
Jun Jul -4.55/-4.05 178.74-179.24 +0.33
ULSD New York barge
Jul Aug -4.60/-4.10 178.68-179.18 +0.44
Prompt Mar -0.75/-0.25 182.94-183.44 -0.70
87 conv Colonial M
10 days forward Mar -0.75/-0.25 182.94-183.44 -0.70
Feb Mar +1.75/+2.25 170.28-170.78 +0.68
15 days forward Mar -0.75/-0.25 182.94-183.44 -0.70
Mar Apr -10.75/-10.25 175.87-176.37 +0.38
20 days forward Apr -0.70/-0.20 182.94-183.44 -0.70
Any Feb Mar -0.75/-0.25 182.94-183.44 -0.70 Apr May -8.75/-8.25 178.71-179.21 +0.30
ULSD Colonial Linden May Jun -7.75/-7.25 179.04-179.54 +0.35
Cycle 6 Mar +0.25/+0.75 183.94-184.44 -0.20 Jun Jul -6.75/-6.25 178.66-179.16 +0.34
Cycle 7 Mar +0.25/+0.75 183.94-184.44 -0.20 Jul Aug -6.00/-5.50 177.36-177.86 +0.42
Cycle 8 Mar +0.25/+0.75 183.94-184.44 -0.20

Biofuels and blending components
Ethanol Ethanol ¢/USG

Low High ±
US ethanol prices were mostly lower Tuesday as a particularly
Chicago
volatile day for paper markets failed to provide clear direction
Argo in-tank prompt 140.00 140.25 -0.25
to physical markers. Weighted average 140.13
Corn prices ended the day higher after posting losses in the Argo in-tank any Feb 140.50 140.75 +0.38
Rule 11 rail prompt 140.00 141.50 +0.25
morning, while Nymex RBOB futures plummeted more than 2¢
New York Harbor
on the day. The physical marketplace remains well-supplied Barge any Feb 149.00 151.00 -1.50
with inventories at the third highest level on record. US Gulf coast/south
Houston barge/rail 148.00 150.25 -0.25
Outside Chicago, at Kinder Morgan’s Argo terminal prompt
Tampa rail 158.00 160.25 -0.25
barrels traded repeatedly at 140¢ and 140.25¢/USG, shedding Atlanta rail 150.00 151.25 -0.25
0.25¢ from Monday’s commerce. Dallas rail 146.50 148.25 -0.25
Nebraska
In New York the market flipped into a 2¢ contango from a
Union Pacific rail 128.00 131.00
0.25¢ backwardation as February barges were bid at 149¢/USG BNSF rail 128.00 131.00
during the afternoon, while March barges were bid at 151¢. Los Angeles
Low-carbon intensity rail 160.50 162.50 0.00
Offers for Iowa Union Pacific railcars slipped a penny to Brazil
131¢/USG absent buying interest. fob anhydrous $/m3 na na
A market for this week shipment New Mexico railcars sur- fob anhydrous BRL/m3 na na
fob hydrous $/m3 na na
faced between 148¢ and 155¢/USG without trade. fob hydrous BRL/m3 na na
West coast ethanol prices were stable at either side of del anhydrous $/m3 na na
161.5¢/USG for 79.9 CI material amid a dearth of fresh market del anhydrous BRL/m3 na na
activity. Biodiesel ¢/USG

Differential Price ±
New York Harbor rail
B100 SME Mar +126.75/+135.75 310.44-319.44 -4.20
B99 SME Mar -15.00/-6.00 168.69-177.69 -4.20
Houston rail/barge
B100 SME Mar +111.75/+121.75 295.44-305.44 -0.20
B99 SME Mar -30.00/-20.00 153.69-163.69 -0.20
Chicago In-tank transfer Argo
B100 SME Mar +121.75/+123.75 305.44-307.44 -5.70
B99 SME Mar -20.00/-18.00 163.69-165.69 -5.70
Tier III, 9 Feb $/mn USG credits
RINs ¢/RIN
Low High ±
Low High ±
Early 60.00 100.00 nc Renewable fuel (ethanol)
Standard 1800.00 2200.00 nc 2016 64.25 65.00 -0.75
2017 65.50 66.50 -0.75
RIN spreads ¢/RIN 2018 67.00 68.00 -0.25
Weighted average 67.00
Today ± Prior day 5-day avg
Biomass-based diesel
Category spreads, 2017 2016 80.00 81.00 +1.25
Biodiesel D4-ethanol D6 18.50 +1.00 17.50 15.18 2017 84.00 85.00 +0.25
2018 87.50 88.00 0.00
Biodiesel D4-advanced biofuel D5 0.75 +0.25 0.50 1.25
Cellulosic biofuels
Advanced biofuel D5-ethanol D6 17.75 +0.75 17.00 13.92
2016 256.00 258.00 0.00
Category spreads, 2018 2017 266.00 270.00 0.00
Biodiesel D4-ethanol D6 20.25 +0.25 20.00 16.90 2018 248.00 252.00 -9.00
Biodiesel D4-advanced biofuel D5 1.50 0.00 1.50 1.50 Advanced biofuels
Advanced biofuel D5-ethanol D6 18.75 +0.25 18.50 15.40 2016 78.50 81.00 +1.00
Vintage spreads, 2017-2018 2017 82.50 85.00 0.00
2018 86.00 86.50 0.00
Biodiesel D4 -3.25 +0.25 -3.50 -2.70
Renewable volume obligation (RVO) ¢/USG
Advanced biofuel D5 -2.50 0.00 -2.50 -2.45 2017 7.82 -0.05
Ethanol D6 -1.50 -0.50 -1.00 -0.98 2018 7.93 -0.04

RINs Biofuel spreads

Differential
RIN markets made mixed moves as D6 credits ticked lower on
light volume, while D4 RINs retained value. Ethanol crush $/bushel +0.30
Heating oil-soybean oil ¢/USG -0.53
A trade for 2018 vintage D6 RINs was heard early at 67¢/RIN
before the market climbed to either side of 67.75¢/USG just Ethanol forward curves ¢/USG
before noon, while additional commerce was heard at the 68¢/ Chicago New York
RIN level. This left prices down 0.25¢ on the day. Feb 140.50-140.75 149.00-151.00
Current year vintage D4 credits traded at 87.5¢ and 88¢/ Mar 142.00-142.25 151.00-153.00
RIN leaving prices unchanged on the day. The 2018 D4 RINs Apr 143.75-144.00 152.50-154.50
May 144.75-145.00 154.25-156.25
have gained 15¢, or 20pc, in the past three sessions.
The 2018 cellulosic D3 RINs traded sharply lower at 250¢/ Blendstocks ¢/USG
RIN amid heavy selling pressure, shedding 9¢/RIN, or 3.5pc, on Basis Differential Price ±
the day. Alkylate
Compliance costs as measured by the Argus Renewable NY barge ex duty Mar +30.80/+31.05 199.33-199.58 +7.68
Houston 87 NLT 9 RVP +22.00/+23.00 189.13-190.13 -1.85
Volume Obligation shed 0.04¢ to 7.93¢/USG amid D6 and D3 RIN
Raffinate
weakness. Houston 87 NLT 9 RVP -20.00/-18.00 147.13-149.13 -0.35
Reformate
NY barge ex duty Mar +43.00/+43.50 211.53-212.03 +0.68
Biodiesel Houston 87 NLT 9 RVP +48.00/+49.00 215.13-216.13 -0.35
Biodiesel differentials were mostly lower as the market re- Refinery grade butane
acted to rebounding margins while the heating oil/soybean oil New York 86.75-87.25 -3.00
(HOBO) recovered 2¢/USG to hold at -53¢/USG. Carbon

In Chicago, offers for prompt RIN-less B99 SME with a 50:50 Vintage Del Bid Ask Price ±
split of the blenders tax credit (BTC) were seen at Nymex -8¢/ California carbon allowances (CCA) $/t
USG, equating to a credit-less equivalent of Nymex -18¢/USG. 2018 Feb 18 14.76 14.86 14.81 -0.01
2018 Dec 18 15.16 15.26 15.21 0.00
In Houston, RIN-less and credit-less B99 SME continued
2019 Dec 19 15.55 15.75 15.65 0.00
to be on offer at Nymex -20¢/USG absent buying interest as CCA price ¢/USG Winter Summer
Regular CARBOB 11.90 -0.01 11.93 -0.01
Month index Jan 12.04 -0.09
Futures Midgrade CARBOB 11.90 -0.01 11.91 0.00
Settlement ± Prem CARBOB 11.91 -0.01 11.88 -0.01
CBOT ethanol ¢/USG Month index Jan 11.99 -0.09
ULSD 15.16 -0.01
Mar 18 141.60 -0.10
Apr 18 143.40 -0.40
Quebec carbon price for gasoline, diesel CA¢/l
May 18 145.00 -0.30
Gasoline 4.19 0.00
Jun 18 145.90 -0.30 Gasoline month index Jan 4.17 -0.14
CBOT corn ¢/bushel Diesel 5.21 0.00
Mar 18 366.75 -0.25 Diesel month index Jan 5.18 -0.18
May 18 374.25 -0.50 California low-carbon fuel credits (LCFS) $/t
Jul 18 382.00 -0.50 LCFS 150.00 151.00 150.50 +0.50
Sep 18 388.50 -0.75 VWA MTD 148.33
CBOT soybean oil ¢/lb Number of trades MTD 5
Mar 18 31.57 -0.28 Volume MTD 30,000
Oregon low-carbon fuel credits (LCFS) $/t
May 18 31.78 -0.27
LCFS 46.00 56.00 51.00 0.00
Jul 18 32.00 -0.24
LCFS premium per carbon intensity point ¢/USG
Aug 18 32.11 -0.23
Ethanol 1.23 +0.01
CBOT soybeans ¢/bushel Biodiesel 1.90 +0.01
Mar 18 1,011.75 +10.00 LCFS cost for gasoline, diesel ¢/USG
CBOT soybean meal $/t CARBOB 10.09 +0.04
Mar 18 365.20 +7.40 ULSD 10.09 +0.02

blending economics remain under pressure. Ethanol deals ’000 bl

The market for RIN-less and credit-less B99 SME in New
York Harbor was on offer at Nymex -15¢/USG early Tuesday. Chicago Argo 18-28 Feb 140.00 5
A 8,000t shipment of renewable diesel is set to leave the 18-28 Feb 140.00 5
18-28 Feb 140.00 5
US Gulf coast for delivery to Sweden in late-February/early-
18-28 Feb 140.00 5
March.
18-28 Feb 140.00 5
18-28 Feb 140.00 5
California carbon 18-28 Feb 140.00 5
California Low Carbon Fuel Standard credits rose slightly today 18-28 Feb 140.25 5
as bids pushed higher during the session. 18-28 Feb 140.25 5
The LCFS credits picked up $0.50 to end the day at 18-28 Feb 140.25 5
18-28 Feb 140.25 5
$150.50/t, with no trades heard today.
18-28 Feb 140.25 5
California Carbon Allowances (CCAs) were steady to slightly
18-28 Feb 140.25 5
weaker. The vintage 2018 CCA for prompt-month delivery fell 18-28 Feb 140.25 5
by 1¢ to $14.81/t after trading twice at that level for a total of 18-28 Feb 140.25 5
185,000t. The vintage 2018 CCAs for December delivery held
steady at $15.21/t after trading once at that level for 25,000t.
RINS deals
Blending components Grade Timing Price Volume
Alkylate cash differentials slid lower on Tuesday in the US Gulf Biodiesel 2017 84.50 366
coast blendstock market. 2018 87.50 1000
2018 88.00 1000
The market struggled to trade on-spec material for most
Ethanol 2017 66.00 1000
blendstocks.
2018 67.00 1000
The closest to on-spec material done in the alkylate mar-
ket featured a 91.2 octane level and was traded at US Gulf
coast gasoline pipeline mean (PLM) +21¢/USG. This was used to
craft a PLM +22.5¢/USG assessment. Verified trades were used to set the range for the Argus
Reformate barrels traded at PLM +40 for 97 octane mate- prompt Argo in-tank transfer ethanol assessment.
rial. This left the assessment unchanged at PLM +47¢/USG. In the absence of trade, a bid was used to set the low for the
The raffinate market still hovered around PLM -19¢/USG. Argus New York Harbor barge ethanol assessment, while a 2¢
range was used to establish the high value.
Assessment rationale In the absence of trade, bids and offers, the A16/A17 spread
In the absence of trade, an offer for Houston B99 SME at was set at -4¢, mirroring the B16/B17 spread to set the range
Nymex -20¢/USG, or Nymex +121.75¢/USG when including RINs for the Argus 2015 D5 RIN assessment.
and the assessed value for a retroactive blenders’ tax credit In the absence of trade, an offer at 81¢/RIN set the high for
(BTC), was used to set the high for the Argus Houston B100 the day, while an offer for the B16/B17 spread at -4¢ set the
SME assessment. The previous session’s range was kept the range for the Argus 2016 D4 RIN assessment.
same. The value was calculated using the day’s B18 midpoint In the absence of trade, bids or offers, the last assessed E16/
of 87.75¢/RIN, multiplied by 1.5, adding the assessed BTC E17 spread was left unchanged at -1.25¢/-1.5¢ to set the range
50:50 split value of 10¢ and subtracting the last assessed B99 for the Argus 2016 D6 RIN assessment.
SME offer value.

Feedstocks and residual fuel oil
Vacuum gasoil Vacuum gasoil Gulf coast

Basis Differential Price
VGO prices remained under pressure from depressed margins
and a backwardated crude pricing basis. Differential to WTI $/bl
Commerce was subdued Tuesday as selling interest lin- 0.5% cargo Mar +13.50/+14.00 72.69-73.19
0.5% barge Mar +13.25/+13.75 72.44-72.94
gered, while fresh demand was difficult to detect.
1.0% cargo Mar +12.75/+13.25 71.94-72.44
Fluid catalytic cracker (FCC) margins were little changed 1.0% barge Mar +12.25/+13.00 71.44-72.19
from Monday, but overall still weak, putting a damper on VGO 2.0% cargo Mar +12.00/+12.50 71.19-71.69
trading interest. 2.0% barge Mar +11.50/+12.00 70.69-71.19
Differential to 70:30 87 conv/heating oil ¢/USG
Market participants maintained a cautious front, keeping
0.5% cargo +6.73/+7.92 173.07-174.26
most deals and discussions confidential.
0.5% barge +6.14/+7.33 172.48-173.67
High sulphur VGO demand continued to be attributed to re- 1.0% cargo +4.95/+6.14 171.29-172.48
finers with ongoing crude unit turnarounds in Texas, yet there 1.0% barge +3.76/+5.54 170.10-171.88
were no verified negotiations or deals heard to this end. 2.0% cargo +3.16/+4.35 169.50-170.69
2.0% barge +1.97/+3.16 168.31-169.50
A refiner that was offering an ocean-going barge (OGB) of
Differential to 70:30 87 conv/ULSD ¢/USG
1.8pc sulphur, 162 aniline VGO Monday was reportedly offer- 0.5% cargo +0.99/+2.18 173.07-174.26
ing another 130,000 bl OGB of 1.2pc sulphur VGO Tuesday. 0.5% barge +0.40/+1.59 172.48-173.67
The first OGB was heard sold but details did not come to light. 1.0% cargo -0.79/+0.40 171.29-172.48
The status of the 1.2pc sulphur OGB was not known as of late 1.0% barge -1.98/-0.20 170.10-171.88
2.0% cargo -2.58/-1.39 169.50-170.69
Tuesday afternoon.
2.0% barge -3.77/-2.58 168.31-169.50
This refiner was also heard a low sulphur VGO seller, of- 70:30 formulas ¢/USG
fering 0.153pc sulphur with 188 aniline, but no specific prices 87 conv waterborne/heating oil -0.11 166.02-166.65
were seen. 87 conv waterborne/ULSD -0.31 171.78-172.38
A refiner that had been a VGO buyer was reportedly seen Naphtha barge Gulf coast
offering 0.3pc maximum sulphur VGO with 192 aniline as well. Basis Differential Price
No trades were heard done for sweet VGO barges.
Heavy (40 N+A) ¢/USG 87 NLT 9 RVP -25.00/-22.00 143.38-146.38
A major that was offering a Calcasieu-quality low sulphur Heavy (40 N+A) $/t 510.43-521.11
barge and a part-cargo volume off a choice of vessels arrive Full range ¢/USG 87 NLT 9 RVP -29.00/-26.00 139.38-142.38
end-February and early March was heard still able to sell low Full range $/t 505.95-516.84
LSR/LV ¢/USG C5 +8.00/+13.00 134.25-143.50
sulphur VGO.
LSR/LV $/t 534.32-571.13
With VGO barge differentials to crude oil futures suc-
Natural gasoline ¢/USG 126.25-130.50
cumbing first to downward pressure early this week, cargo Natural gasoline $/t 530.25-548.10
differentials assumed slight premiums. This was thought to be
Light cycle oil ¢/USG
temporary because of a lack of firm bids, offers and deals on
the cargo front.
0.5% sulphur HO pipe -0.50/+0.50 159.82-160.82 +0.43
Early mention of end-February and early March cargo dis-
2.0 % sulphur HO pipe -0.75/+0.25 159.57-160.57 +0.43
cussions did not yield any specific pricing as of Tuesday.
The light cycle oil (LCO) market remained illiquid, with no
CME Nymex
new trades confirmed. High-sulphur diesel (HSD) cash prices
Price ±
rose amid slightly weaker ultra-low sulphur diesel (ULSD) val-
ues, narrowing the sulphur spread just slightly to 19.15¢/USG WTI crude $/bl
Mar 59.19 -0.10
on Tuesday.
Apr 59.03 -0.05
May 58.75 +0.02
Henry Hub natural gas $/mmBtu
Mar 2.594 +0.04
Apr 2.623 +0.04

Naphtha Residual fuel oil $/bl

Trading interest for heavy and full-range N+A naphtha re- Price ±
mained sporadic Tuesday despite a generally stable energy New York waterborne
complex. 0.3% low pour 65.93/66.09 +0.34

0.3% high pour 64.60/64.80 +0.45
The Gulf coast waterborne conventional 13.5 RVP (GC WBM
1% 54.10/54.30 +0.45
M4) gasoline cash pricing basis was little changed at 0.35¢/USG
3% 53.67/53.87 +0.62
below Monday’s level. Corresponding GC WBM M4 differentials Gulf coast waterborne
weakened slightly to offset a 0.68¢/USG rise in the March 3% 51.77/51.87 +0.63
Nymex RBOB for the day. RMG 52.70/52.80 +0.60
A refiner that had sold two prompt barges of premium 1% New York swaps
Feb 53.95/54.05 +0.45
quality, heavy virgin naphtha (HVN) Monday was out offering
Mar 53.85/53.95 +0.55
another two barges of similar quality Tuesday.
Apr 53.80/53.90 +0.50
The refiner offered a 50,000 bl barge of 49 N+A naphtha Gulf coast high-sulphur swaps
with 167 IBP, 243 t10, 417ppm sulphur and 54 API at GC WBM Feb 52.50/52.60 +0.75
M4 -20¢/USG, delivered 13-15 February at the Gulf coast. Buy- Mar 52.70/52.80 +0.65
ing interest for this barge was reported around GC WBM M4 Bunker fuel $/t
-23¢/USG, delivered Gulf coast. There was no deal verified Price ± Price ±
done as of Tuesday afternoon.
180cst 380cst
A less than generic full-range N+A naphtha barge with 33 New York 383.00-389.00 -5.50 345.00-350.00 -5.00
N+A, 125 IBP, 180 t10 and 60.8 API with 479ppm sulphur was Philadelphia 358.50-360.50 -5.00
reportedly offered at GC WBM M4 -31.5¢/USG and bid 2¢/USG Houston 481.00-499.00 -4.50 318.00-330.00 -3.00
lower for 13-15 February delivery to Houston. The barge would Los Angeles 448.00-454.00 -6.00 361.00-366.00 -5.00
Seattle 426.00-431.00 -4.00 364.50-368.50 -3.00
be discounted for the high sulphur level.
Light naphtha differentials were generally stable in busi-
ness reported done. Diluent demand continued to bolster
light naphtha activity with deals reportedly done in a wider oil cargoes in Skikda, Algeria, for discharge into the Gulf. The
range of 7¢/USG up to 13¢/USG premiums to natural gasoline, first will load on 1 March and the second will load on 4 March.
depending on product specifications. The backwardation in New York Harbor 1pc sulphur residual
High sulphur Targa was heard talked between C5 +9¢/USG fuel oil third-front month swap prices narrowed to 15¢/bl.
and +12¢/USG, delivered Gulf coast. This was eventually heard
concluded at C5 +10.5¢/USG for delivery via pipeline, without Marine fuels
confirmation. North American bunker demand was steady on Tuesday.
Splitter light virgin naphtha (LVN) selling interest inched A clip for less than 700t was rumored sold at $336/t ex-
down to C5 +10¢/USG Tuesday, fob Gulf coast for 15-17 Febru- wharf in New Orleans. In Galveston, Texas, an inquiry for over
ary loading. No bids were heard. 1,200t of high-sulphur 380cst was offered at $340/t ex-wharf.
High-sulphur 380cst was indicated at $330/t and MGO at $570/t
Fuel oil ex-wharf in Houston. Smaller quantities were heard quoted
Fuel oil prices moved higher for a second session amid thin cheaper than $320/t and MGO as low as $545/t ex-wharf. On
demand on Tuesday. Monday night a clip for less than 400t of high-sulphur 380cst
Demand was low on the Gulf coast. There was a single sold at $318/t ex-wharf in Houston. In Pascagoula, Mississippi,
3.5pc sulphur residual fuel oil barge lot heard sold for load- high-sulphur 380cst was indicated at $380/t and MGO at $655/t
ing there at $52.75/bl, moving the assessment midpoint up by ex-wharf.
60¢/bl. There were two tankers provisionally booked by sepa- In Baltimore, Maryland, MGO was offered at $586-590/t
rate refiners to load 55,000t each of straight run residual fuel ex-wharf. In New York, high-sulphur 380cst was indicated

at $355/t and MGO at $585/t ex-wharf. RMK500 was selling Assessment rationale
around $337/t ex-wharf on Monday night in New York. NYH 1pc sulphur residual fuel oil was assessed at $54.10-54.30/
West coast spot bunker demand was flat. Assessments bl tracing a 45¢/bl increase in NYH 1pc sulphur residual fuel oil
mostly declined tracing crude. MGO was indicated at $668- front month swap prices. There were no bids, offers or deals
670/t ex-wharf in Vancouver, British Columbia, but was heard.
rumored selling cheaper than $660/t. High-sulphur 380cst was USG 3.5pc sulphur residual fuel oil was assessed at $52.70-
indicated at $386/t delivered, basis 500t in Los Angeles. A big- 52.80/bl based on a midpoint set by a 3.5pc sulphur residual
ger clip of MGO sold cheaper than $590/t delivered on Monday fuel oil barge lot head sold for loading in the Gulf at $52.75/bl.
night in Los Angeles.
Ethanol RINs ¢/USG SME Houston fob B100 ¢/USG
Ethanol RINs USC/RIN USGC B100 USC/USG

110 360
100
340
90
-- 80 hhh -- 320 hhh

70
300
60
50 280
3 Oct 14 Nov 29 Dec 13 Feb 9 Nov 12 Dec 12 Jan 13 Feb
Gulf Coast ethanol vs Colonial CBOB ¢/USG NYH ethanol vs Chicago ethanol ¢/USG
Gulf coast Ethanol vs Colonial Cbob USC/USG NYH Ethanol vs Chicago Ethanol USC/USG
-10 20
-20
15
-30
-- hhh -- hhh
-40
10
-50
-60 5

Infrastructure news
Total Port Arthur flaring rose Shell Deer Park reports process unit upset
Total reported increased flaring yesterday at its 240,000 b/d A process unit malfunctioned today at Shell’s 340,000 b/d joint
refinery in Port Arthur, Texas. venture refinery in Deer Park, Texas.
About 75 minutes of increased flaring began at 4:30pm ET The upset led to increased flaring beginning at 12:08pm ET,
on 12 February, according to a filing to state environmental according to a notification to a community alert system.
monitors. Previously, Shell reported increased flaring at the refinery
The source of the flaring was under investigation, accord- on 12 February but did not identify the cause.
ing to the filing. Shell operates the refinery in a joint venture with Mexico's
state-controlled oil firm Pemex.
Industry news
NYH RBOB forward curve flattens with RVP a trade was confirmed at March Nymex +4¢/USG. Refiners
The New York Harbor RBOB forward curve moved from selling depressed CARBOB values indicates market length, ac-
backwardation to flat today for the first time this year amid cording to market participants.
increased prompt selling interest and the approach of spring. Cash differentials have fallen over four consecutive ses-
Prompt RBOB moved to parity with product for delivery in sions, from +16¢/USG to +4¢/USG on 13 February. Since the
early March on 13 February as cash differentials continued to beginning of the month, prices have fallen about 31¢/USG and
weaken across the board. Prompt cash prices fell to their low- closed at $1.77/USG yesterday. Prices remained a penny higher
est level this year on 12 February at $1.6758/USG as companies than year-ago levels.
planned to clear high RVP winter gasoline out of storage to Last week, reports of California's stockpiles reaching a
make room for low RVP summer gasoline. record high also weighed on the market. CARBOB stockpiles
More sellers than buyers, coupled with losses in the Nymex increased by 5pc to 7.9mn bl in the week ended 2 February,
contract, also contributed to a decline in prompt values. exceeding the previous record of 7.7mn bl set last month, ac-
Prices rose marginally to $1.6813/USG on 13 February, but cording to the California Energy Commission.
regional differentials continued to fall.
The March versus April Nymex spread settled at -18.09¢/ US infrastructure plan prompts gas tax talks
USG on 13 February, with the inter-month contango slightly The US administration could consider an increase in the fed-
wider than the end of last week. By contrast, the inter-month eral tax on gasoline to help fund its infrastructure plan despite
Nymex spread was closer to -21¢/USG during the same time reservations about the measure, transportation secretary
last year when cash differentials had already been in contango Elaine Chao said today.
since late January. President Donald Trump, who hopes to spur $1.5 trillion
The market will shift toward more expensive lower RVP in infrastructure investments with relatively modest federal
gasoline during the seasonal transition beginning in March. End spending, has not "declared anything out of bounds," Chao said
user suppliers traditionally utilize the winter grades as long as at a White House briefing.
possible at the rack level, while some other market partici- "Everything is on the table. The gas tax, like any other tax,
pants clear high RVP material out of storage earlier. is not ideal. It has its pros and cons," Chao said, noting that the
tax "has a regressive impact on the most vulnerable."
Los Angeles CARBOB down amid refiners selling But the administration would be willing to discuss with
The Los Angeles prompt CARBOB market continued to fall Congress "tough decisions" for funding the infrastructure plan,
today amid refiners selling. Chao said.
Trades were heard early in the session for Los Angeles The notion of higher federal taxes on gasoline and diesel,
prompt CARBOB at March Nymex +7¢/USG and +8¢/USG, before last increased in 1993, has been politically difficult, and re-

Industry news
mains so. Republicans have resisted raising any taxes, par- loathed by critics who are gaining momentum in Washington,
ticularly a tax that voters see each time they refuel their gas ethanol trade group Renewable Fuel Association said today.
tanks. Democrats are leery of increasing a tax that dispropor- The ethanol industry could count on support from Presi-
tionately hits low-income residents. dent Donald Trump in protecting domestic access and improv-
But fuel tax hikes have gained some proponents in Wash- ing overseas trade, chief executive Bob Dinneen said in open-
ington. The US Chamber of Commerce is pushing to increase ing remarks to the National Ethanol Conference in San Antonio,
federal excise taxes by 25¢/USG over five years, and then Texas. But the industry should reject misguided interest from
index it to inflation. The plan could raise $394bn over 10 years “some of our own champions” in changing the Renewable Fuel
in revenues for highways, bridges and other infrastructure, the Standard (RFS), Dinneen said.
group says. Federal regulators and legislators wanting to reduce refiner
US House of Representatives Transportation Committee compliance costs should simply increase blending and support
chairman Bill Shuster (R-Pennsylvania) likewise has floated the US fuel production in gaining market share worldwide, he said.
idea of nearly doubling the 18.4¢/USG gasoline tax. Shuster's “The bottom line is this — there is no reason for the etha-
committee is leading the effort in the House to pass the infra- nol industry or its champions in Washington to accept demand
structure bill, requiring billions of dollars in new funding. destruction as a necessary or legal path to the future to
Trump yesterday outlined a plan to generate $1.5 trillion in accommodate the failed business plans of a few independent
spending on highways, rail, ports and other infrastructure. But refiners,” Dinneen said.
the White House would offer $200bn in federal funds for its The RFS requires refiners, importers and other companies
plan and hopes the rest would come from states, local govern- ensure minimum volumes of renewable fuels each year enter
ments and private investors. The plan, tied to the release of the US transportation supply. Companies prove compliance by
the fiscal year 2019 budget proposal, faces scrutiny in Congress acquiring renewable identification numbers (RINs) representing
and its final form is far from guaranteed. that blending, either through their own wholesale operations
Trump's budget proposal does not address the fuel taxes. or by purchasing from companies that blend.
But it proposes a cap on spending from the Highway Trust Fund Legislators have shown more interest in modifying the
to precisely match the revenue brought in from existing fuel program following years of complaints from obligated refin-
taxes. Congress has had to allocate additional funds for main- ers that do not blend fuel. Senator John Cornyn (R-Texas) and
taining transportation infrastructure to complement spending other legislators from both chambers have worked for months
from the insufficiently-funded Highway Trust Fund. to find compromise changes to the program expected to be
The proposed cuts would remove $122bn in federal spend- proposed later this month. Some have pushed for legislative
ing on highway infrastructure over the next decade. changes ahead of 2022, when the mandates shift under more
The administration said it expected states and local mu- Environmental Protection Agency (EPA) control.
nicipalities to make up the gap, "as they are best equipped to “The answer of the uncertainty of 2022 is not ‘Let’s cripple
know the right level and mix of infrastructure investments." it today’,” Dinneen said. “I’ll take my chances.”
"At its core, the president’s approach is a bait and switch RFA’s stance echoed that of Senator Chuck Grassley (R-
that would cut federal support for infrastructure over the long Iowa), in rejecting any change beyond expanding the legal
term," think tank Center for Budget and Policy Priorities senior availability of higher-ethanol blends.
adviser Jacob Leibenluft said. Bankruptcy filings last month by Philadelphia Energy Solu-
Two advocacy groups affiliated with billionaire industrialists tions (PES), a 330,000 b/d refinery in Philadelphia, Pennsylva-
Charles and David Koch last month urged Trump not to support nia, have added political urgency to the effort. PES blamed
the gasoline tax increase proposed by the Chamber, which the mandates, more than any other factor, for its financial
they said would cost the average household $285/yr. woes, and sought support from the current administration for
manufacturing jobs in a state that last election swung to sup-
Ethanol trade group expects Washington help port Trump.
The year-round sale of higher-ethanol gasoline blends offers Dinneen said the refinery failed to adapt to the modern
the only acceptable change to federal fuel blending mandates energy business.

Industry news
“PES does not have a RFS problem,” Dinneen said. “It has a Averages sank in every region. US west coast prices marked
management problem.” the largest drop, by 2.8¢/USG to $3.432/USG.
A joint statement issued just before the conference by PES
and the unions representing workers at the refinery said RFA API urges biofuel mandate waiver rejections
was “mocking the livelihoods of thousands of manufacturing The Environmental Protection Agency (EPA) must reject
workers in refineries across America.” requests to waive federal biofuel blending mandates in four
“Despite these attacks, we will continue the work of im- states and for small refiners making up roughly 10pc of US fuel
proving our business, providing high quality and high wage jobs production, according to an oil industry trade group seeking to
to our employees and delivering essential fuels to our commu- eliminate the mandates.
nity,” the statement by PES chief executive Gregory Gatta and Waivers requested by four governors and sought separately
United Steelworkers International president Leo Gerard said. by an undisclosed number of small refiners would only further
If uncertain about the future of domestic policy around distort the US fuels marketplace and have no support under
biofuels, Dinneen was more optimistic about exports under the current law, American Petroleum Institute (API) downstream
Trump administration. Domestic producers exported 1.4bn USG group director Frank Macchiarola said in a letter to EPA head
of ethanol last year. US officials under Trump’s direction would of air and radiation William Wehrum.
be less accommodating of foreign trade barriers and help im- API, whose membership includes integrated refiners and
prove access to Brazil, China and Europe, Dinneen said. fuel blenders better positioned to comply with federal fuel
“We are optimistic that the tide of protectionism will soon blending mandates, supports changes or a repeal to the pro-
ebb,” Dinneen said. gram.
But those changes must be evenly distributed across the
US retail fuel marks first 2018 drop industry, rather than based on the size of a refinery or where
US national average retail gasoline prices fell for the first time it operates, he said.
this year as falling crude prices passed through to the street
level. Argus Assessment Rationale Database
US gasoline prices averaged $2.607/USG in the week ended For prices used in financial benchmarks, Argus publishes
12 February, lower by 3¢/USG than the previous week, accord- daily explanations of the assessment rationale with sup-
ing to the Energy Information Administration. porting data. This information is available to permissioned
Cash wholesale prices slumped with crude last week to subscribers and other stakeholders.
their lowest levels since the end of last year, according to
Argus assessments. Subscribers to this report via Argus Direct or MyArgus may
access the database here.
A 7.2¢/USG drop in the midcontinent, to $2.463/USG, led
the decline. US Gulf coast prices remained the lowest of any
Other subscribers may request access here or contact us
region after falling by 3.7¢/USG to $2.331/USG.
by email at sales@argusmedia.com.
On-highway diesel prices fell by 2.3¢/USG to $3.063/USG.
Announcement
Argus successfully completes annual Iosco assurance review

Argus has completed the sixth external assurance review of its price benchmarks covering crude, products, biofuels,
thermal coal, coking coal, natural gas, biomass and petrochemicals benchmarks. The review was carried out by professional
services firm PwC. Annual independent, external reviews of oil benchmarks are required by international regulatory group
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For more information and to download the review visit our website http://www.argusmedia.com/About-Argus/How-We-
Work/

Industry news
"There is no practical rationale for waiving the standard for fuel economy. The Environmental Protection Agency by April
a specific region or for a specific period," Macchiarola wrote. must complete a mid-term review of corporate average fuel
The Renewable Fuel Standard requires refiners, importers economy (CAFE) targets for 2022-2025.
and other companies to ensure minimum volumes of renew- “The question is do you have equal footing for all of these
able fuels blend into the transportation fuel they add to the technologies,” said Eva Rigamonti, representing the fuel retail-
US supply. Companies that lack sufficient blending infrastruc- er association SIGMA. “Our concern is not that they do away
ture purchase renewable identification numbers (RINs) that with electric vehicles, but that the regulation be structured in
represent that blending activity from other businesses. such a way that electric vehicles are the only solution to fuel
Over the past year governors of Delaware, New Mexico, economy.”
Pennsylvania and Texas have requested waivers from the pro- Forecasts agree electric vehicles will add global market
gram for refiners in their states, arguing severe economic harm share over the next 20 years, although forecasts vary widely
from the cost of those RINs. on the pace and extent to which consumers will adopt the
Congress also created a waiver for refineries with less technology. Major city governments, as well as Brazil, China
than 75,000 b/d of capacity. EPA granted only limited waivers and India, have set targets phasing out internal combustion
under the exemption historically. But language in last year’s engines to mitigate air pollution and congestion.
appropriations bill for the agency explicitly instructed EPA to Electric vehicles have gained market share in part from dis-
approve waivers regardless of whether the refinery continued illusionment in the environmental benefits of renewable fuels,
to be profitable while complying with the program. fuel market consultant Tammy Klein said. Renewables need to
The waivers are considered confidential business informa- reach out to environmental activists in addition to state and
tion. But the language has given rise to industry concerns that federal regulators.
a considerable number of waivers would be approved, either “It is time to really get back in there and engage and to
glutting the market with RINs or shifting new burdens onto educate,” Klein said.
larger refiners. Support had faded in part because of campaigns by petro-
American Fuel and Petrochemical Manufacturers (AFPM), a leum fuel producers critical of renewable fuels as part of a
refining trade group seeking repeal of the RFS and supporting broader campaign against US mandates, said Leslie Hayward,
the waivers, declined to comment. vice president of communications with the interest group
API’s letter follows a similar request last month from the Securing America’s Energy Future.
Renewable Fuels Association. Macchiarola was speaking at the “That is what happens when advocates for alternative fuels
ethanol trade group’s National Ethanol Conference in San Anto- get fractured,” Hayward said.
nio, Texas, when the letter was disclosed.
"I did not time the letter," Macchiarola said. “We have Eco-Energy opens NC ethanol terminal
been pretty consistent that RFS reform needs to move through Eco-Energy has opened an ethanol unit train receipt terminal
Congress.” at Charlotte, North Carolina.
The site, which connects with Kinder Morgan's nearby ter-
Liquid fuels splinter as EVs grow: NEC minal, can receive up to 96 tank cars on the CSX system.
The liquid fuels industry will need to work together as electric The company also has unit train facilities at Houston, At-
vehicle adoption threatens long-term demand, panelists told lanta and the San Francisco bay area.
the National Ethanol Conference today in San Antonio, Texas.
Conventional and renewable fuels have clashed over NYH jet prices down to 14-week lows
federal programs mandating blends and consumption, splitting Jet fuel prices at the New York Harbor have fallen to 14-week
the liquid fuel industry as the US evaluates its own automotive lows, mainly driven by sharp declines in the Nymex futures
future. contract.
But the businesses manufacturing and delivering liquid Buckeye pipeline cash prices fell to $1.7989/USG on 12 Feb-
fuels share risk over the growth of electric vehicles to satisfy ruary, declining for the seventh consecutive session.
state and federal programs to reduce emissions and improve Nymex ultra-low sulfur diesel (ULSD) declined to $1.8389/

Industry news
bl on 12 February, a low not seen since 25 October. Since the heavy snowfall.
start of the new trade year, the Nymex has fallen by almost Flights resumed on their normal schedule on 12 February
11pc. after a handful of additional cancellations in the morning.
Buckeye pipeline jet fuel differentials at the New York Southwest said today that it would store any unused jet
Harbor have remained stable as little demand for the product fuel from the canceled weekend flights at Midway, as opposed
has done little to offset declines in the Nymex. to placing product back into the market.
Buckeye jet differentials have averaged March Nymex "...in the event of flight cancellations, the jet fuel inven-
ULSD -3.9¢/USG since 6 February, with highs and lows ranging tory remains onsite and available for use until we resume
between a narrow -4¢/USG to -3.75¢/USG. operations," the company said.
US jet fuel demand fell last week, by 38,000 b/d to 1.6mn Last week, O'Hare International Airport in Chicago expe-
b/d, down 250,000 b/d from where demand stood the same rienced flight cancellations on a larger scale from snowfall.
week last year. Around the same time, market sources in Chicago reported
Similarly, jet fuel cash prices at the US Gulf coast have increased jet fuel sales from airlines in the Chicago spot
fallen to $1.74265/USG on 12 February, a low not seen since 30 market. The increased selling interest put pressure on Chicago
November. jet prices, which fell by 28.52¢/USG over a two-week period
starting 30 January.
San Francisco air traffic up in October: BTS
Passenger traffic through San Francisco International Airport Green Plains sees record production in 4Q
rose in October, according to the Bureau of Transportation Ethanol maker Green Plains reported record production of
Statistics (BTS). 340.8mn USG (88,200 b/d) for the last quarter of 2017, running
Passengers arriving into San Francisco increased by 2.7pc at 91pc capacity.
compared with the same month in 2016, to 20.139mn, BTS data Chief executive Todd Becker said Green Plains would lower
showed. The number of departing passengers similarly rose by its production rate in the first quarter as ethanol supply re-
2.94pc to 20.137mn. mained high and margins remained weak.
Scheduled departing flights rose by 0.49pc, ranking San The company produced 1.25bn USG of ethanol in 2017,
Francisco the eleventh busiest airport among 812 US airports compared with 1.1bn USG the year before, and had 335mn USG
in the last 12 months ending October 2017. stored at the end of 2017.
Los Angeles, California, remained the top destination for Green Plains sold 359mn USG of ethanol in the fourth quar-
passengers departing from San Francisco, followed by Chicago, ter, down by 5.4pc from the same period last year. But the
Illinois. Seattle, Washington; Las Vegas, Nevada; and New York, company increased sales by nearly 6pc to 1.5bn USG for the
New York, rounded out the top five. year. Green Plains said 13.5pc of its 2017 sales were exported.
On-time departures fell to 75pc from 77pc in 2017, while The company reported a $46.6mn profit in the fourth
on-time arrivals were down to 70pc from 74pc. quarter — including a $52.8mn bump from the revised US tax
United Airlines was the top carrier in October at San Fran- code — compared with an $18.7mn profit in the year-prior
cisco, with 40.64pc of market share. American came in second period. Green Plains reported a $61.1mn profit for all of 2017,
with 9.35pc, followed by Southwest at 9.03pc. compared iwth $10.7mn in 2016.
Of the 40mn total passengers traveling through San Fran- Green Plains’ crush margin was 8¢/USG for the last quarter
cisco, 16.36mn were carried by United and 3.77mn by Ameri- of 2017, 16¢/USG less than in the last quarter of 2016.
can.
Motiva ups Group II, Group III base postings
Midway flights canceled on de-icer shortage Motiva notified its customers yesterday that it will raise post-
Southwest Airlines canceled approximately 220 flights from ings for its Group II and Group III base stocks, the second
Midway International Airport in Chicago on 11 February when posted price increase the company has made to its base oils
it ran low on de-icer fluid, or glycol, following several days of this year.

Industry news
Motiva will raise prices for all of its base oils grades by remained flat.
$0.20/USG. This will lift postings for its Group II N105 (STAR 4) The company said it sold 978mn l of the biofuel in the third
to $2.67/USG, N220 (STAR 6) to $2.74/USG and N600 (STAR 12) quarter, nearly stable with the 980mn l sold in the same three
to $3.04/USG. It will also increase its Group III postings, bring- month period of its previous financial year.
ing its 4cst (STAR HVI 4) to $3.23/USG and 6cst (STAR HVI 6) to Of total sales volumes, 570mn l were of ethanol produced
$3.18/USG. The new prices are effective from 13 February. by its own mills and 408mn l were purchased on the open
Motiva’s price increases complete the second round of market and sold by the group’s trading desk.
North American Group II producer price increases in a month. Raizen sold 687mn l to the local market, where ethanol
All of the other major North American Group II producers demand has been on the rise, and 291mn l was exported.
have raised their posted prices by $0.15-0.22/USG since 31 The decline in sales volumes comes despite an increase in
January. These increases have been larger than the first round production volumes of the biofuel at its 26 cane mills. Rai-
of increases in early January, which ranged from $0.10-0.15/ zen said this is in line with its sales strategy for the 2017-18
USG. harvest season of increasing its inventories in an effort to take
These increases also lift the US Gulf coast average posted advantage of the higher prices during the inter-harvest period,
prices for Group II N100 to $2.96/USG, N220 to $3.03/USG and which corresponds to the fourth quarter (January-March) of
N600 to $3.42/USG. The US Gulf coast average is made up of the company’s financial year.
the Motiva, Chevron, Phillips 66 and Flint Hills Resources post- Raizen said that the average price for the ethanol sold in
ings. Motiva’s price increases narrow the spread between the the third quarter was down by 11pc from a year ago to R1.714/l
US Gulf coast high and low postings to $0.44-0.55/USG. ($1.965/USG).
The combined posting increases since early January now As a result, the company posted an 11pc drop in the bio-
more fully reflect the rise in feedstock costs since early Oc- fuel’s sales revenue to R1.7bn ($515mn) in the third quarter.
tober 2017. Crude and low sulphur VGO prices have increased Raizen did not publish its production numbers along with
between $0.21-0.28/USG since early October. The higher feed- its quarterly earnings report for its third quarter. The company
stock costs prompted most North American Group II producers reports such data later with the earnings report of Brazilian
to raise their posted prices in October. energy and logistics conglomerate Cosan, which controls the
The rise in US Group II spot prices has lagged the increase Brazilian sugar and ethanol joint venture along with Shell.
in postings since early January. The Argus US domestic and ex- Sales of surplus biomass energy to the national grid helped
port Group II N100 posted prices have increased by $0.16-0.18/ to offset some of the losses from the weaker ethanol sales,
USG, since early October 2017. with a 136pc climb in revenue to R280mn in the quarter.
A surplus overhang of mostly Group II N220 and N600 in The group’s mills crushed 13.3mn tons of cane in the
recent months, combined with seasonally slower regional October-December period, a 17pc improvement from a year
demand, placed pressure on spot prices in late November and ago, with the help of drier weather in the final months of har-
December 2017. vesting of the center-south growing region.
The move to clear most of these surplus supplies in the ex- In contrast, the entire region crushed 583mn tons of cane
port market from December through February has left Group during the April-December period, down 1pc from the same
II supplies tight in the domestic market. The tight Group II sup- period of 2016, according to Brazil’s main cane milling associa-
plies are now supporting higher prices in the domestic market. tion Unica.
Raizen added that its mills were strongly favoring ethanol
Raizen builds ethanol stocks as 3Q sales remain over sugar production in the third quarter.
flat The company directed 52pc of its third quarter harvest to
Brazil’s largest sugar and ethanol producer Raizen increased ethanol production and the remainder to sugar. This is a sharp
its ethanol stocks by 57.5pc to 1bn liters (6.29mn bl) in the departure from the same period of its 2017 financial year,
third quarter of its 2018 financial year, but sales volumes when it directed just 44pc of its cane to ethanol production.

Industry news
Guyana firm plans 30,000 b/d oil refinery Mexico pipeline where fuel tapping is exceptionally high. The
A local company plans to build and operate a 30,000 b/d oil nearby state of Hidalgo was third with 1,064 illegal taps.
refinery in Guyana to be fed by some of the crude that will be Fuel theft is an increasingly profitable business for cartels
produced from a deepwater block starting in 2020, the com- in need to diversify their revenue streams. Pemex executives
pany said this week. estimate that fuel theft costs Mexico over $1bn/year. Pemex's
The $100mn refinery will be located at the town of Linden director of downstream operations Carlos Murrieta Cummings,
in north east Guyana and will be “modular” in construction so in October 2016, said the company was losing up to 27,000 b/d.
it can be easily expanded, officials with the company, GuyEn- Fuel theft has also generated a wave of violence in key
ergy, said. states, contributing to making 2017 Mexico’s most violent year
The refined products will supply the domestic market as since the beginning of modern data gathering in 1997, with
well as markets in northern Brazil. 25,339 homicides.
ExxonMobil plans to start production of about 120,000 b/d In May 2017, following a deadly clash between fuel thieves
from its Liza project on the Stabroek block offshore Guyana and the military, Mexico’s president Enrique Pena Nieto asked
in March 2020. Guyana will have access to about 15,000 b/d of that Pemex work with the energy and finance secretaries as
that output, according to the natural resources ministry. The well as the attorney general’s office and the military to find a
country’s current demand is for 13,000 b/d of products. more efficient strategy against illegal tapping.
The refinery will be commissioned by the time Stabroek “Pemex has a vested interest in slowing down fuel theft,”
production begins. the company said last week. “To steal from Pemex is to steal
ExxonMobil is seeking approval from Guyanese authorities from Mexico,” the statement read, calling authorities for help.
to develop Phase 2 of the Liza project that could see produc- The "new" strategy includes doubling down on existing
tion reach 340,000 b/d by 2022, the company said last month. methods, such as using advanced technology to monitor pipe-
ExxonMobil would consider selling crude to buyers in line activity and strengthening the presence of armed forces
Guyana, outside of its obligation to supply the government’s along highly targeted pipelines. Overall, Pemex says that in
contracted share, the company’s Guyana country manager Rod 2017 it retrieved almost 15mn liters of stolen fuel.
Henson said in December. But energy officials say they are also seeking alternative
The government said in 2017 it would not pursue a plan ways to combat fuel theft, such as penalizing retail stations
to construct a refinery after a consultant it appointed said a that are commercializing stolen gasoline and diesel. Pemex
120,000 b/d facility would cost about $5bn. says it has shut down about 70 retail stations that were unable
It said in December it was considering asking ExxonMobil to prove the origin of the products they sold.
to refine its portion of the oil, and was also mulling a proposal But station owners have said that they can be coerced into
from Trinidad's state-run oil company Petrotrin that operates a selling illicit products by members of violent organized crime
168,000 b/d refinery. groups. Pemex workers, who can provide key information
about when exactly fuel is being transported in any given pipe-
Mexico's illegal pipeline taps jump 50pc in 2017 line, have also said they are sometimes forced to cooperate.
Mexico is still grappling with growing fuel theft which has Last month, the head of security at Pemex’s Salamanca
reached historic levels in 2017 with 10,363 illegal taps into refinery in central Mexico was killed in an early morning at-
pipelines, up 50pc compared with the previous year. tack, while driving his two children to school. Pemex did not
Illegal tapping, also known as "milking," grew six fold since say whether the murder was directly linked to the employee’s
the beginning of the current administration in 2012, according position at the company.
to data from Mexico’s state-run Pemex. Fuel theft and related gang violence have become particu-
The central state of Guanajuato had the highest number of larly problematic for Pemex and energy officials, as the coun-
incidents, with a total of 1,852 illegal taps last year, or over try is seeking private investment to update its aging refineries.
150 a month. And while private fuel storage terminals are booming, officials
The state of Puebla was second with 1,443 taps. Puebla is fear that insecurity might be an obstacle to the construction
the home to Mexico's "red triangle," a stretch of the Minatitlan- of costlier pipelines.

Announcements
Chicago BCX RVP to change Argus will stop publishing a dedicated assessment for 13.5
Beginning 26 February with the start of prompt trading for RVP 93 conventional (V4) on cycle 12.
first-cycle March, Argus’ primary assessment for Chicago Buck- Effective cycle 12 on Colonial pipeline in the US Atlan-
eye Complex (BCX) CBOB (PA1853521) will transition to RVP tic coast: Argus assessments for 87 conventional M-grade
13.5. (PA0004396, PA0004377) will be for 11.5 RVP (M3). Argus will
Please contact David Ruisard at david.ruisard@argusmedia. stop publishing a dedicated assessment for 13.5 RVP 87 con-
com or 713-429-6306 or Suzanne Edwards at suzanne.edwards@ ventional (M4) on cycle 12.
argusmedia.com or 713-429-6318 with questions or comments. Effective cycle 12 on Colonial pipeline in the US Atlantic
coast: Argus assessments for 87 CBOB A-grade (PA0018530,
Portland RVP changes PA0018529) will be for 11.5 RVP (A3). Argus will stop publishing
Effective 12 February: Argus’ assessments for Portland 84 a dedicated assessment for 13.5 RVP 87 CBOB A-grade (A4) on
suboctane (PA0002348) in the west coast will be for 13.5 RVP. cycle 12.
Please contact David Ruisard at david.ruisard@argusmedia. Effective cycle 13 on Colonial pipeline in the US Atlantic
com or 713-429-6306 or Joanne Liou at joanne.liou@argusme- coast: Argus assessments for regular RBOB F-grade (PA0019881,
dia.com or 415-829-4592 with questions or comments. PA0019880) will be for 11.5 RVP (F3). Argus will stop publishing
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Termination of four US products swaps on cycle 13.
Argus is proposing to terminate four US products swaps assess- Effective 1 March: Argus assessments for US Atlantic coast
ments. barge and Buckeye pipeline dead prompt and prompt regu-
Under this proposal, Argus would terminate assess- lar RBOB (PA0011736, PA0004400, PA0011727, PA0004381,
ments of three US Gulf coast swaps: 87 conventional gasoline PA0011740, PA0004401, PA0011731, PA0004382) will be for 13.5
(PA0007807), ultra-low sulphur diesel (ULSD) (PA0007806) and RVP RBOB. Effective 15 March in the US Atlantic coast: Argus
high sulphur residual fuel oil (PA0002798) and one New York assessments for US Atlantic coast barge and Buckeye pipeline
Harbor swap: 1pc residual fuel oil (PA0002785). dead prompt and prompt regular RBOB will be for both Region
Also under this proposal, Argus would replace price tables 2 RBOB and 13.5 RVP RBOB.
for the swaps in its US Products PDF with graphs/charts based Effective 1 March: Argus assessments for US Atlantic coast
on comparable assessments from Argus' US Refined Products barge and Buckeye pipeline dead prompt and prompt pre-
Forward Curves service. mium RBOB (PA0011737, PA0004403, PA0011728, PA0004384,
Argus is proposing this change to prevent confusion be- PA0011741, PA0011732, PA0004411, PA0004392) will be for 13.5
tween these assessments and the comparable assessments RVP RBOB. Effective 15 March in the US Atlantic coast: Argus
from Argus' US Refined Products Forward Curves service. assessments for US Atlantic coast barge and Buckeye pipeline
Argus will be accepting comments on this change up to dead prompt and prompt premium RBOB will be for both Re-
12 February. To discuss comments on this proposal, please gion 2 RBOB and 13.5 RVP RBOB.
contact Todd Petracek at todd.petracek@argusmedia.com or Effective 1 March: Argus assessments for US Atlantic coast
+1 713 360 7539. Formal comments should be marked as such barge and Buckeye pipeline dead prompt and prompt regu-
and may be submitted via e-mail to todd.petracek@argusme- lar CBOB (PA0011734, PA0005502, PA0012003, PA0008839,
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February. Effective 15 March in the US Atlantic coast: Argus assessments
for US Atlantic coast barge and Buckeye pipeline dead prompt
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Effective cycle 12 on Colonial pipeline in the US Atlantic coast: CBOB.
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Effective 15 March in the US Atlantic coast: Argus assessments
for US Atlantic coast barge and Buckeye pipeline dead prompt USGC premium grade RVP shifts
and prompt premium CBOB will be for 7.8, 9.0, and 12.9 RVP Effective 3 March with the start of prompt trading for cycle
CBOB. 14: Argus assessments for 93 conventional V-grade (V grade -
Effective 1 March: Argus assessments for US Atlantic coast PA0002758, PA0013297) in the Gulf coast will be for 9.0 RVP
Laurel pipeline regular CBOB (PA0007723, PA0008865) and (V2).
premium CBOB (PA0008323, PA0008866) will be for 12.9 RVP Argus’ assessment for premium CBOB (D grade -
CBOB. Effective 15 March: Argus assessments for US Atlantic PA0006999, PA0013299) in the Gulf coast will be for 9.0 RVP
coast Laurel pipeline regular and premium CBOB will be for premium CBOB (D2).
12.9 and 9.0 RVP CBOB. Please contact David Ruisard at david. Effective 8 March with the start of prompt trading for
ruisard@argusmedia.com or 713-429-6306 or Stephanie Rau at cycle 15: Argus’ assessments for premium RBOB (H grade
stephanie.rau@argusmedia.com or 713-429-6356 with questions - PA0003994) in the Gulf coast will be for VOC-controlled
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cycle 12: Argus assessments for regular CBOB (A grade -
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Argus’ assessment for 87 conventional (M grade -
PA0002754, PA0013296) in the Gulf coast will be for 11.5 RVP
Argus Mexico Fuel
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Issue 18-30 | Tuesday 13 February 2018

Overview Market summary

Forward curves ¢/USG

Gasoline 3 Feb 170.53 179.69 Mar 168.53 183.69

Copyright © 2018 Argus Media group

Argus market map ¢/USG

Chicago less Group 3

Chicago ULSD vs Group Three ULSD ¢/USG

87M Colonial vs Nymex ¢/USG Chicago vs Group Three 84 V ¢/USG

Copyright © 2018 Argus Media group Page 2 of 28

Atlantic coast Atlantic coast ¢/USG

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Delivered South America $/m3 Midcontinent ¢/USG

Santos, Brazil Group 3

West coast ¢/USG

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Gulf coast deals Gulf coast deals

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F5 20 Feb Mar-0.40 50 generic

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Atlantic coast Atlantic coast ¢/USG

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Delivered Florida ¢/USG Midcontinent ¢/USG

Port Everglades, Florida Group 3

sessed at about a 0.25¢/USG premium to the Colonial pipeline, Los Angeles

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-23.5¢/USG to -23.25¢/USG respectively. Atlantic coast deals

LA EPA ULSD Feb Mar-2.00 47

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Clean product forward curves

Physical ¢/USG Physical (continued) ¢/USG

87 conv M Colonial Linden Jet New York barge

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Biofuels and blending components

Ethanol Ethanol ¢/USG

activity. Biodiesel ¢/USG

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Biofuels and blending components

RINs Biofuel spreads

(HOBO) recovered 2¢/USG to hold at -53¢/USG. Carbon

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Biofuels and blending components

blending economics remain under pressure. Ethanol deals ’000 bl

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Feedstocks and residual fuel oil

Vacuum gasoil Vacuum gasoil Gulf coast

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Feedstocks and residual fuel oil

Naphtha Residual fuel oil $/bl

complex. 0.3% low pour 65.93/66.09 +0.34

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Feedstocks and residual fuel oil

Ethanol RINs ¢/USG SME Houston fob B100 ¢/USG

Ethanol RINs USC/RIN USGC B100 USC/USG

-- 80 hhh -- 320 hhh

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Argus successfully completes annual Iosco assurance review

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