Overview
For
almost three decades, OPIS has been a news and pricing leader in
the downstream refined products marketplace. We have served customers
throughout the many industry segments - traders, suppliers, commercial
end-users, wholesalers and retailers - with up-to-the minute, award-winning
news, analysis and pricing that appears in our many published reports
and on-line services.
In
that time, OPIS has become the only provider of U.S. spot, rack
and retail prices - giving us a complete picture of the marketplace
that is rivaled by no other petroleum information supplier.
OPIS
editors collectively have more than 175 years experience covering
petroleum markets. Our editors know that our numbers are commonly
referenced by the industry, but we remain at arms' length. OPIS
does not invest in oil companies, speculate on oil prices or accept
special favors.
This
document explains our methodology for price collection at all levels
and the steps we take to ensure data integrity and accuracy.
Anti-Trust Policy
For almost 30 years clients have trusted OPIS
to adhere to strict anti-trust guidelines in collecting and distributing
sensitive oil pricing data. With oil prices under increasing scrutiny,
OPIS recognizes that suppliers cannot afford even the slightest
perception of price sharing or price signaling. That's why OPIS
does not provide price notification and messaging services for suppliers
and embargoes release of all rack pricing data until after the changes
become effective to customers.
OPIS
Wholesale Rack Pricing
Price Discovery
Every day, including Saturdays, OPIS updates its
wholesale terminal prices from hundreds of sources. Some suppliers
confirm prices directly using the same pricing messages their customers
receive. For many other suppliers, prices are collected from their
customers who OPIS deems are reliable sources.
Data Integrity
Verification of prices is done using documents
provided by either the supplier or customers. Multiple sources are
required for prices received via customer channels. In order for
a supplier's price to be added to OPIS rack coverage, their price
and the consistent supply of barrels at that location must be verified
with multiple customers. It must also be a wholesale terminal rack
price and not a commercial or consumer end-user price; this avoids
mixing classes of trade and misrepresenting true wholesale postings
and averages.
OPIS uses several levels of automation to make
sure prices that have not changed at usual intervals are fresh.
If a price has not changed in 48 hours, it is electronically flagged
and a pricing specialist is alerted so as to track down whether
the number still represents an active and meaningful listing. OPIS
specialists pinpoint prices that are outside specified reasonable
parameters to avoid displaying inactive prices where product may
not be available or where special circumstances may dictate that
the number is not representative of where most wholesale commerce
is taking place. Products tagged as "out-of-product" will
not be part of the OPIS lows, highs or averages.
Time Stamp (all
times are EST)
9:00 a.m. - OPIS wholesale terminal
prices for gasoline, distillate, and
other products are updated
and ready for release.
10:00 a.m. - OPIS contract summary data used for
benchmarking is available.
This file is delayed to allow
time for further verification to ensure
the integrity and accuracy
of all the prices before the information
is calculated. The contract
data includes the Contract Average which
is a gross price that OPIS
has had since 1995. As of April 1, 2004, we
added a Contract Low and Contract
High as well as Contract Net Average,
Contract Net Low and Contract
Net High pricing. Branded and Unbranded
numbers are also available
as Contract prices. The contract data is frozen
for 24 hours to allow customers
to reconcile exchanges, sales or other
benchmark deals. The contract
summary data is also archived. The reason
OPIS created the Contract summary
data is because OPIS updates price moves
throughout the day and publishes
them on demand for clients.
6:00 p.m. - OPIS archives the closing
rack price database for that business day.
The current day's history is
available the next business day. The OPIS
rack history database is the
largest of its kind and dates back to
December 15, 1980.
Rack Formats
OPIS Standard Display -- Dates back to 1980 and
generally includes one price per supplier for an individual city.
OPIS Standard Display selects only one terminal location per supplier
based on the location where product is priced the most competitively
and where the majority of customers in a particular city lift barrels.
This allows the OPIS contract summary data, especially the contract
average, which is widely used as a benchmark, to have a consistent
methodology and avoid being manipulated by a supplier in a given
city. OPIS verifies this data each day to ensure consistency and
accuracy in calculating contract averages for benchmark purposes.
OPIS
Terminal Display -- Dates back to 1996 when OPIS purchased Computer
Petroleum Corporation (CPC). This format includes multiple-supplier
listings for individual cities, even if a supplier consistently
posts the same price at multiple terminals in a given metropolitan
area. OPIS Terminal Display includes all terminal locations for
any rack city to provide full supplier coverage.
Rack Pricing History
In addition to providing daily, up-to-the-minute
wholesale rack prices, OPIS maintains the largest and most extensive
wholesale terminal price historical database of any company in the
world. OPIS' historical rack prices date back to 1981, when oil
prices were decontrolled. Prices are available on a daily, weekly
or monthly basis by market, by company, and by product.
OPIS
Fixed Forward Rack Pricing
Price Discovery
The OPIS Fixed Forward Rack Price Report provides daily low, high, and average buy/sell transactions in the marketplace for gasoline, diesel fuel, and heating oil six months into the future.
Price discovery is for 'basis' differentials suppliers offer to customers for each of the forward months, sorted from 'low' to 'high' then averaged based upon a survey of supplier quotes.
'Implied' forward numbers are derived using a mathematical computation that combines the basis differential with a NYMEX futures 'snapshot'. The NYMEX 'snapshot' reference is a frozen timestamp indicated on the report -- a mid-day frozen NYMEX on the 1:00 p.m. EST report and the NYMEX settle snapshot on the 4:00 p.m. EST report. The result is a forward month product value expressed in US/cents per gallon.
In addition to the individual monthly snapshots for each city, OPIS provides six-month 'basis' and 'implied' averages for your convenience, reported in the 6 month window.
Gasoline RVP levels are not indicated, only conventional unleaded quotes are reported. Zero unleaded, ultra low sulfur and No2 diesel quotes, represent flat or even value ranges, while dashes indicate no data available.
*Basis ranges deemed reliable at press time.
OPIS
Retail Gasoline Pricing
Price Discovery
Every day OPIS captures station-specific retail gasoline and diesel prices for up to 120,000 service stations throughout the United States. Through exclusive relationships with credit card companies, direct feeds and other survey methods, OPIS is able to provide the most comprehensive and accurate pump prices in the industry.
The OPIS retail data is relied on by some of the top companies in the country to provide consumers with the most accurate and timely information available including AAA, Microsoft, Mapquest, America Online, Garmin, Verizon, Sprint and many more.
Data Integrity
To ensure accuracy of the retail prices, OPIS scrubs the data through a number of computer programs to make sure the prices are current and are for pump gasoline purchases only - not for in-store purchases that may include non-gasoline products.
OPIS gets prices for most major retailers regardless of whether the station is company operated, jobber owned or dealer operated. Included in the feed are many of the more aggressive c-stores such as WAWA, QuikTrip, Maverik and Sheetz and most of the discount chains and supermarkets such as Wal-Mart, HEB and Kroger.
OPIS has daily, weekly and monthly standard reports as well as customized reports which allow the user to slice and dice the data to get the view of the market they need to make smart decisions. In addition, OPIS has retail history going back as far as 1996 at the station level and can quickly roll the data up to nearly any geographic criteria you desire.
Time Stamp
OPIS is able to capture prices in near real-time - as soon as the swipe happens – at more than 25,000 locations. OPIS Is currently working with the major networks in order to bring you more and more prices as they change and expects a major percentage of the 120,000 stations to be available in real-time by the end of this year.
The stations which currently don’t have the ability to be captured in real-time are updated via a batch file each morning and each price has the actual transaction date of the purchase. The daily feed through the batch process has transactions that are from 1-5 days old with the majority of prices being no older than 3 days.
OPIS
Retail Diesel Pricing
Price Discovery
OPIS surveys the current retail prices of No. 2 low sulfur and Ultra Low Sulfur diesel fuel from more than 8,000 active truckstops and travel plazas in the U.S. and Canada. Retail prices are gathered by major fuel card companies including Comdata and EFS as well as through direct feeds from major truckstop chains.
OPIS reports wholesale fuel prices by products as defined by EPA standards more so than by any type of product use. For example, the EPA defines low-sulfur fuels as having a sulfur content of less than 500ppm and Ultra Low Sulfur diesel as less than 15 ppm.
Data Integrity
OPIS marries this retail price data with current rack and tax rate information to calculate the estimated laid-in costs and profit margins of fuel at each of the fueling sites included in the OPIS survey. The OPIS estimated cost figures are recognized as the industry standard for benchmarking "Cost Plus" fuel purchases by large trucking fleets.
Cost Plus is a method of purchasing fuel at the retail level where the fleet (buyer) and truckstop (seller) agree to a fixed margin above the cost of the fuel to the truckstop. This fixed margin protects both the fleet and the truckstop by ensuring the cost of fuel to the fleet and the profit to the truckstop is tied to a legitimate market index.
The following is a list of the diesel fuel products OPIS tracks and some typical uses for those products.
No. 2 Ultra Low-Sulfur
No. 2 Ultra Low Sulfur has a sulfur content of less than 15 ppm and must be used to supply at least 80% of the nations on road diesel fuel sold at the retail level as of October 15, 2006. In addition to clear No. 2 low sulfur, OPIS also provides pricing for Red Dye, Premium, Low Emissions and Winter grades of Ultra low-sulfur diesel fuels. All of the OPIS Ultra Low-Sulfur diesel products are understood to include lubricity.
No. 2 Low-Sulfur
Clear low-sulfur (LS No.2) diesel has a sulfur content up to 500 ppm and can be used for up to 20% of the nations on road diesel fuel sold at the retail level. In addition to clear No. 2 low sulfur, OPIS also provides pricing for Red Dye, Premium, Winter, Low Emissions Diesel and Lubricity grades of low-sulfur diesel fuels.
No. 2 High-Sulfur
Clear high-sulfur No.2 diesel is used as an off-road fuel for equipment such as farm machinery or as home heating oil.
No. 1 Low-Sulfur
Clear low-sulfur fuel is commonly used for "blending" on-road fuels. Diesel is blended during winter months to create a diesel fuel that will not solidify or gel in colder temperatures.
No. 1 High-Sulfur
Clear high sulfur is used for various off road agricultural and industrial purposes. Crop drying ovens is one example.
Kerosene
Kerosene has a lower freeze point, lower flash point and lower pour point.
Red-dye
Diesel fuel is dyed red to denote it is being used for tax-exempt purposes. Entities that are tax-exempt (school boards, etc.) use red-dyed fuel because it is tax exempt. There is no difference in red-dyed product specifications. Red-dyed prices typically are 0.25 to 0.35cts higher than clear prices to recoup the charge for the dye and dying process.
Premium Diesel
The higher cetane rating is what makes a regular diesel a premium diesel, along with some type of detergent package that serves to clean the engine as the fuel is burned. Cetane is to diesel what octane is to gasoline. Premium diesel typically has a minimum 45 cetane rating, whereas regular diesel is closer to a 38 to 40 cetane.
Winter Diesel
During the winter months, on road diesel fuels may be blended with other diesel fuels or chemical additives to produce a Winter diesel that will not begin to solidify or gel due to cold temperatures. OPIS also provides pricing for Red Dye, Premium, and Lubricity grades of Winter diesel fuels.
Lubricity
Several states have mandated the use of a lubricity additive in several on road Low Sulfur diesel fuels. OPIS provides separate pricing displays for Low Sulfur and Low Sulfur with lubricity products. Diesel postings which may include lubricity are Low Sulfur, Red Dye, Winter and Premium diesel products. Since all Ultra Low Sulfur products must have a lubricity component, it is not necessary to maintain a separate lubricity product grouping within Ultra Low Sulfur products.
CARB Diesel
As of June 1, 2006, all diesel fuel sold for vehicular use in California must meet a 15 ppm maximum sulfur limit (Ultra Low), in addition to meeting all of the current low aromatics CARB diesel specifications. The definition of "vehicular use" in California includes on-highway vehicles and non-road vehicles such as agriculture and construction equipment.
Low Emissions Diesel
Beginning in October 2005, 110 counties East/Central Texas required the use of Low Emissions Diesel or LED in both on-road vehicles and in non-road agricultural and construction equipment. LED diesel must contain less than 10 percent by volume of aromatic hydrocarbons and must have a cetane number of 48 or greater.
NRLM Diesel
Effective June 1, 2007 for refiners and October 1, 2007 for marketers, U.S. supply points required lower sulfur diesel for off-road transportation use in locomotives and for marine use in boats, etc. in various states.
This new fuel,called NRLM diesel for Non-Road Locomotive Marine, contains more than 15 ppm sulfur but less than 500 ppm sulfur and replaced the high-sulfur diesel fuel that exceeds 500 ppm and is still used for home-heating oil purposes.
Where it exists, OPIS racks display NRLM diesel simply as “NRLM.”
By 2010, all off-road locomotive and marine transportation fuel must meet NRLM specs.
Time Stamp
7:30 a.m. - Retail Diesel Price files available
10:00 a.m. - Cost Plus Prices are available.
The Retail Diesel prices and the OPIS Gross Contract Average are used to create these numbers. The data is delivered Monday through Friday by email, the Internet, FTP and many third-party vendors.
OPIS
Crude Pricing
Price
Discovery
OPIS collects posted prices for over 500 fields
every Monday through Friday. These postings are gathered from
30 different companies in the U.S. and Canada. Every month, more
than 50 refiners and exploration companies use our reports to
benchmark their crude transactions.
Data
Integrity
Data accuracy is verified each day by hand as
well as by a system of programs that audit the data for abnormalities.
Every month OPIS compares each individual field against summary
documents provided by the posting companies to provide the most
accurate service available.
Time
Stamp
OPIS offers either an evening update for the
most current information available, or a more comprehensive, morning
update.
OPIS
Spot Replacement Index (SRI) Pricing
The
starting point for the OPIS “SRI” is the average of the prior-day’s
closing spot range in each of the seven U.S. spot markets. Each
day OPIS’ 14 editors survey traders and brokers and publish a
FULL DAY range that represents their assessment of the value of
spot transactions for gasoline and diesel fuel that day. OPIS
has mapped 214 rack markets back to their spot delivery points.
From the OPIS Full Day Average Spot Price, OPIS then adds the
existing pipeline tariffs based on the distance that product flows
in the line from the spot entry point to the rack terminal location.
It then adds in line loss due to evaporation in the line, terminaling
and storage (transfer) fees if product moves from line to line,
an estimated fee for proprietary additives, a cost of money factor,
pipeline security charge and trucking fees for applicable markets
where product is shipped using vehicles. For distillates, OPIS
approximates the cost of various additives (lubricity, red dye,
etc.) Today’s SRI shows yesterday’s closing spot price delivered
into a specific market.
Each rack that contains an SRI number displays the
spot market to which the rack location is mapped.
OPIS developed this methodology after more than a
year of discussion with major oil suppliers, marketers and reseller.
For more information on OPIS SRI click here.
OPIS
Refined Spot Markets
U.S.
Gulf Coast
U.S.
Atlantic Coast
U.S.
Midwest
U.S.
West Coast
Millions of gallons of gasoline, diesel fuel, heating oil, jet fuel, ethanol and other oil products are bought and sold each day in cash bulk markets. Commonly known in the trade as "spot" market prices, these transactions typically occur at the leading oil refining, barge and pipeline centers in the United States. These include the U.S. Gulf Coast, Group 3, Chicago, Atlantic Coast, Los Angeles, San Francisco Bay and Pacific Northwest. (View a complete at-a-glance listing of products and locations)
Full-Day Philosophy
OPIS editors track spot markets on a full-day basis and our daily ranges reflect confirmed trades by timing, volume, product and location each day. Editors reserve the right to exclude any deal or deals they deem “not reflective” of prevailing or fair market value. These deals may be mentioned in our written commentary, however.
“Typical” trading hours extend from 9 a.m. to 5:15 p.m. Eastern Time (6:00 a.m. to 2:15 p.m. Pacific Time). Deals that are received outside those hours are reviewed and evaluated for consideration in our full-day ranges. In order to meet publication deadlines, OPIS reserves the right to not accept deals as part of the final day’s product ranges if that information is sent to/received by OPIS after 5:15 p.m. (2:15 p.m. Pacific Time).
We recognize ascertaining a spot product range can be subjective, and that there may be parties that dispute our numbers. Assessing markets requires judgment on the part of our editors, but those calls will be reviewed among experienced reporters and within the context of that day’s market. Ranges are only changed in the case of clerical errors such as typos or transposition mistakes.
Data Collection
OPIS editors sample on a daily basis a broad cross-section of refiners, traders, marketers, brokers and end users active in buying, selling or trading physical barrels. We cast a wide net to capture as many transactions as possible in arriving at our day-to-day price assessments of spot market values. Editors take an “arm’s length” approach to covering the market.
Editors confirm and record deals done for gasoline and distillate products that meet minimum pipeline/barge volumes specific to each geographic market. As the majority of the market is done on an EFP basis, we follow deals as basis discounts or premiums to the New York Mercantile Exchange. We consider fixed-price deals only if they fall within the full-day differential range based off the NYMEX at settlement, or to assess cash-for-cash "regrade" transactions.
OPIS daily spot market assessments include information obtained from "back office deal logs" sent to us as part of our daily market price discovery. The information highlights actual transactions during the day, including price, volume, product, timing and counter party.
OPIS has signed confidentiality agreements with some providers not to make this information public, except to use the transactions in our daily range of prices and weighted averages providing it meets our volume and timing criteria. OPIS editors compare the end-of-the-day deal logs with our confirmed deals through the day to insure we do not duplicate information.
Editors respect the wishes of sources to remain anonymous in their activities in the market, and any information we receive regarding parties in deals is kept confidential.
Ranges reflect actual transacted deals. In the case of confirmed trading followed by a shift in the market without a done deal, editors will consider the last deal recorded and weigh it in light of subsequent buyer and seller bids and offers
In the total absence of confirmed deals, we will use the input of the trading community to help us assess a viable “get-done” range and last value, and also consider the relationship the illiquid product may have with more actively-traded grades.
Typically, the “lowest sell price” and the “highest bid price” will be used to help us arrive at our full-day range.
Reports
OPIS issues East of the Rockies and West Coast full-day refined product spot reports at approximately 5:30 p.m. Eastern Time, with a final deadline of 6 p.m. Eastern Time.
Ranges in these reports apply the highest and lowest done deal differentials versus the NYMEX at settlement, resulting in an absolute full-day trading range in cents per gallon. We do not round prices up or down.
OPIS ranges track a prompt market East of the Rockies based on pipeline schedules and trading practices specific to each region.
OPIS breaks out a “last” level in addition to its low-to-high range, as a way to give the market a last-seen reference point for the next day’s session.
In addition, OPIS tracks a forward-range based on “any-month timing” for barrels that can be lifted in the same calendar or forward calendar month beyond the prompt cycle.
West Coast reports also track prompt ranges, which are trades that reflect “any month/buyers option” transactions. “Buyers option” gives the buyer the choice of taking delivery in any of the four cycles throughout the month. In Los Angeles, OPIS identifies the prompt Kinder Morgan cycle for timing clarity but ranges are buyer option/any month lifting.
OPIS also issues a Midday Spot Market Report for East of the Rockies markets that is an indication of the morning's trade based on a NYMEX "freeze" at approximately 11:45 a.m. Eastern Time.
Midday market direction for implied cash prices is important for OPIS customers using this information to make rack pricing decisions. That range is simply an estimate of where the market has been trading or talked in the morning session and is published solely to provide a gauge of where implied absolute prices would be if a snapshot was taken at midday. Due to the incredible volatility in the futures and physical markets, alike, the midday indications are not included in the end-of-day, full-day assessments unless the midday numbers fall into a range covered by the full-day numbers.
Weighted Averages
In response to subscriber requests, OPIS rolled out a weighted average in its full-day reports for selected products. This is an arithmetic mean based on confirmed deals versus the NYMEX, taking into account repeated differentials and volume of trades.
OPIS shows weighted averages for prompt Gulf Coast conventional unleaded gasoline, including the 7.8 lb RVP supplemental grade when seasonal. We also show a weighted average for prompt low-sulfur diesel, ultra-low-sulfur diesel and jet fuel in the Gulf Coast.
In the Los Angeles spot market, OPIS shows a weighted average for LAX jet fuel.
Example of a Weighted Average:
NYMEX close for reference product RB (RBOB) is 225.00cts/gal.
Done deals for Gulf Coast Unleaded Regular (9.0 lbs. RVP M2)
-3.50 at 25,000 bbl
-3.50 at 25,000 bbl
-3.25 at 25,000 bbl
-2.75 at 25,000 bbl
-2.50 at 25,000 bbl
-2.25 at 50,000 bbl
-1.75 at 25,000 bbl
-1.50 at 50,000 bbl
-1.25 at 25,000 bbl
-1.25 at 25,000 bbl
-1.00 at 25,000 bbl
-1.00 at 25,000 bbl
-1.00 at 25,000 bbl
-1.00 at 25,000 bbl
Under this scenario, OPIS’ closing range at the end of the day would be 221.50 – 224.00cts/gal – the midpoint for the day would be 222.75cts/gal.
On this day, the weighted average would be 223.05cts/gal, which is calculated by giving added weight to the larger volume deals: 2x to the -2.25cts/gal and the -1.5cts/gal deals, and by factoring in the number of actual deals into the average. EXAMPLE: the -1ct/gal deal gets entered in four times.
NOTE: for the weighted average, the Gulf Coast minimum deal is 25,000 bbl – those deals are counted once. 50,000 bbl deals are counted twice, and anything between 25,000 and 50,000, or in excess of 50,000 would be calculated at an appropriate percentage of a single piece.
OPIS Spot Ticker
The OPIS Spot Ticker is your full-day, real-time window into what U.S. spot prices are doing. OPIS editors throughout the day update the OPIS Spot Ticker with done deals and buy-sell levels tracked in the market. The ticker is a web-based tool in a desktop environment that offers real-time updates of OPIS spot prices and cash market trading differentials in major regions, along with news and events affecting prices.
Differentials are applied to the NYMEX, as it ticks, as an indicator of where the prompt market is valued. Though our full-day trading differentials are applied to the settled NYMEX, the ticker provides a market view into the numbers we are tracking as the futures market moves.
Deals we confirm are posted throughout the day in a deal log on the ticker to give the market predictability as to where editors will call the full-day differential ranges and weighted averages.
OPIS editors discover deals throughout the day, but some may not be reported to us right after they are done. We make every attempt to list deals in the deal log as soon as we discover and confirm them. In an effort to meet our deadlines, some late-received deals may be applied to our ranges and weighted averages once they are confirmed but may not be logged into the deal log.
The OPIS Spot Ticker also offers customers overnight implied spot price discovery by linking final-day cash basis trading differentials to the Globex overnight NYMEX ticks. These implied numbers are for directional purposes only to give subscribers an idea of what direction prices are moving after hours. They are not included as a part of any OPIS daily spot range of prices.
Time Stamp (all times are EST)
9:00 a.m. - Morning market preview
1:00 p.m. - Midday Spot report for New York Harbor Barge,
Gulf Coast Pipeline, Group 3 and Chicago markets
1:30 p.m. - West Coast Spot market preview
6:00 p.m. - West Coast report for Los Angeles,
San Francisco
and the Pacific Northwest
6:00 p.m. - Full-Day Spot report for New York Harbor Barge, New York
Harbor Cargo, Boston Harbor Cargo, Buckeye Pipeline,
Laurel Pipeline, Gulf Coast Pipeline, Gulf Coast Waterborne,
Group 3 and Chicago markets
6:00 p.m. - OPIS Jet Fuel Report
U.S. Gulf
Coast
Price Discovery
Editors confirm and record deals done for Gulf Coast gasoline and distillate products with a minimum pipeline size of 25,000 bbl and minimum waterborne size of 50,000 bbl.
OPIS tracks a prompt market for southern grade products moving on the Colonial Pipeline, origin Pasadena, Texas, and waterborne FOB Gulf Coast. Colonial Pipeline Texas Origin exclusive trades are discarded from our full-day ranges.
Pipeline shipments are scheduled according to cycles. Colonial Pipeline dictates those schedules, and hence, is ultimately the decision maker as to when cycles pump throughout the year. There are 72 cycles each year, lasting approximately five days. Colonial determines the duration of each cycle, which may be shortened, extended or eliminated. Schedules cannot be announced in advance by OPIS because the pipeline updates its calendar throughout the year.
Prompt waterborne assessments run at comparable timing with prompt pipeline ranges.
Cycles differ among different products at any given time. For example, Colonial unleaded regular may be on different cycle timing than Colonial diesel.
In addition to the prompt cycle, OPIS tracks a forward range based on "any-month timing" for barrels that can be lifted in the same calendar or forward calendar month beyond the prompt cycle. It should be recognized that forward numbers often do not have the same detail of discovery and liquidity as prompt cycles.
OPIS concurrently rolls all specialty grades that typically trade as "regrades" to basis products like conventional unleaded regular, so that timing references are consistent.
Specifications
OPIS tracks Colonial Pipeline specifications for products in the Gulf Coast. Details can be found at www.colpipe.com.
Pipeline Gasoline
-Conventional unleaded: 87, 89 and 93 octane;
-RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol;
-Low-sulfur (30 ppm max sulfur) "Atlanta/Birmingham" unleaded: 87, 89 and 93 octane;
-Low-sulfur CBOB “Atlanta/Birmingham” blendstock: 87 and 93 octane after blending with 10% denatured fuel ethanol;
-Reformulated unleaded: 87, 89, 93 octane. RFG blended with ethanol is not a fungible spot product. Each day OPIS creates an "implied" value for this product by taking 90% of the unleaded gasoline price and 10% of the price of spot ethanol.
**All gasoline grades follow seasonal environmental requirements for RVP.
During the summer months, OPIS shows the 7.8 lbs. RVP supplemental conventional
unleaded alongside the 9.0 lbs. RVP seasonal spec. Winter RVP is 13.5 lbs.
Pipeline Distillates
-High-sulfur No. 2 oil: 2,000 ppm sulfur maximum;
-Low-sulfur No. 2 oil (On Road): 500 ppm maximum sulfur --
420 ppm maximum at origin, minimum cetane 40;
-Low-sulfur No. 2 oil (Off Road): 500 ppm maximum sulfur --
420 ppm maximum at origin, minimum cetane 40;
-Ultra-low-sulfur diesel: 15 ppm maximum sulfur --
8 ppm sulfur maximum at origin; minimum cetane 40;
-Jet fuel: 3,000 ppm sulfur maximum;
-Jet kerosene: 400 ppm maximum sulfur.
Waterborne Gasoline
-Conventional unleaded: 87, 89 and 93 octane.
*As with pipeline specs, all gasoline grades follow seasonal environmental
requirements. During the summer months, OPIS shows the 7.8 lbs. RVP
supplemental conventional unleaded alongside the 9.0 lbs. RVP seasonal spec.
Waterborne Distillates
-High-sulfur No. 2 oil;
-Low-sulfur No. 2 oil (On-road);
-Low-sulfur No. 2 oil (Off-road);
-Jet fuel;
-Kerosene.
Blendstocks
-MTBE: Purity 95% minimum, methanol 0.5 Wt% maximum, water 1,500 ppm
maximum. Barge quantity.
-Alkylate: 92 minimum octane, 5.5psi RVP maximum, 15 ppm sulfur maximum;
300 ppm MTBE maximum. Barge quantity.
U.S.
Atlantic Coast
Price Discovery
Editors confirm and record deals for gasoline and distillate fuels delivering via New York Harbor and Boston Harbor waterborne cargoes, New York Harbor barges, the Buckeye pipeline and the Laurel pipeline. Minimum volume requirements are as follows: NYH and Boston standard-size cargoes reflect volumes of 225,000 barrels, plus or minus 10% at the seller’s option; 10,000 bbl for NYH barges and Buckeye pipeline; and 8,000 bbl for Laurel pipeline.
New York Harbor
Ranges reflect cargo- and barge-quantity deals and are supplemented by Colonial Pipeline deals on an FOB basis. While prompt timing for the New York Harbor barge market is generally regarded as barrels loading within the next 72 hours, OPIS will consider barrels delivering within the next 5 days, when liquidity is thin.
The forward range is based on "any-month timing" for barrels that can be lifted in the same calendar or forward calendar month beyond prompt timing.
Cargoes in the New York Harbor typically trade as the “front half” or the “back half” of the month, which are later narrowed down to a 5-day delivery period. OPIS will accept barrels delivering in the “front half” of the month for inclusion in the prompt index, and barrels delivering in the “back half” of the month for inclusion in the forward index.
Specifications
Gasoline
-Conventional unleaded: 87, 89 and 93 octane, conforms to Colonial Pipeline;
-RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol, conforms to Colonial Pipeline;
-CBOB, 87 octane after blending with 10% denatured fuel ethanol;
-Premium CBOB, 93 octane after blending with 10% denatured fuel ethanol.
*All gasoline grades follow seasonal environmental requirements, with RVP from 9.0 lbs. to 15.0 lbs.
**Reformulated unleaded: 87, 89, 93 octane. RFG blended with ethanol is not a fungible spot product. Each day OPIS creates an "implied" value for this product by taking 90% of the unleaded gasoline price and 10% of the price of spot ethanol.
Distillates
-High-sulfur No. 2 oil: conforms to Nymex heating oil contract specifications;
-Low-sulfur No. 2 oil (on-road): conforms to Colonial Pipeline specs;
-Low-sulfur No. 2 oil (off-road): conforms to Colonial specs;
-Ultra-low sulfur No. 2 oil: conforms to Colonial specs;
-Jet Fuel: conforms to Colonial specs;
-Jet kerosene: conforms to Colonial specs;
-Ultra-low sulfur kerosene.
Buckeye Pipeline
Ranges reflect barrels delivered FOB New York Harbor, loading into the Buckeye pipeline at Linden, New Jersey for destinations in New York or Pennsylvania. Prompt timing is generally regarded as barrels delivering within the next 72 hours, but OPIS will consider barrels delivering up to 5 days out for inclusion in its prompt index when market conditions are thin. Shipments are based on 24 cycles of 15 days each throughout the calendar year. Gasoline and distillates ship on alternating 7- and 8-day periods within each cycle.
Specifications (All conform to Colonial Pipeline Specs)
Gasoline
-Conventional unleaded: 87, 89 and 93 octane;
-RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol;
*All gasoline grades follow seasonal environmental requirements.
Distillates
-High-sulfur No. 2 oil;
-Ultra-low sulfur No. 2 oil;
-Jet Fuel;
-Jet Kerosene.
Laurel Pipeline
Ranges reflect barrels delivering FOB Philadelphia. Prompt timing is generally regarded as barrels delivering within the next 72 hours, but OPIS will consider barrels delivering up to 5 days out for inclusion in the prompt index, when market conditions are thin. Shipments are based on 24 cycles of 15 days each throughout the calendar year.
Specifications (All conform to Colonial Pipeline Specs)
Gasoline
-Conventional unleaded: 87, 89 and 93 octane;
*Gasoline grades follow seasonal environmental requirements.
Distillates
-High-sulfur No. 2 oil;
-Ultra-low sulfur No. 2 oil;
-Jet Fuel;
-Jet Kerosene.
Boston Harbor
Ranges reflect cargoes delivering into the Boston Harbor, via the Chelsea Creek. Vessels entering the creek must be no greater than 660'-6" in length, no greater than 90'-6" in beam and no deeper than 36’ in draft.
Cargoes in the Boston Harbor typically trade as the “front half” or the “back half” of the month, which are later narrowed down to a 5-day delivery period.
Specifications (All conform to Colonial Pipeline Specs)
Gasoline
-RBOB: 87 and 93 octane after blending with 10% denatured fuel ethanol.
Distillates
-High-sulfur No. 2 oil;
-Low-sulfur No. 2 oil (on-road);
-Low-sulfur No. 2 oil (off-road);
-Ultra-low sulfur No. 2 oil;
-Jet kerosene;
-Ultra-low sulfur kerosene.
Residual Fuel
Listings represent cargo transactions for delivery in the East Coast region, centered around the N.Y. Harbor. Sulfur maximums of 0.3% HP, 1.0% and 3% and higher are covered. HP, or High Pour, indicates material with over 65 degrees F. maximum.
U.S.
Midwest
Price
Discovery
Editors confirm and record deals done for gasoline and distillate products with a minimum size of 5,000 bbl in the Group 3 market and 10,000 bbl in Chicago.
OPIS tracks the Group 3 market following deals for prompt delivery, typically same-day and next-day deals, on the Magellan Pipeline. In addition, OPIS tracks a forward range based on "any-month timing" for barrels that can be lifted in the same calendar month beyond prompt timing, typically the last five days of a month. In the last few days of the month, OPIS reserves the right to roll coverage forward to the next, more liquid month.
OPIS tracks the Chicago market following generic pipeline deals, due to the fact that several lines feed this region. There are three cycles each month which advance on the 5th, 15th, and 25th.
OPIS follows four consecutive cycles, starting with the current cycle as “prompt-timing” and continuing with the next three out. The last cycle in each month (“Cycle 3”) is designated as “any-timing” except when Cycle 3 is the prompt cycle. Then, the next calendar month’s Cycle 3 will be designated as “any-timing.”
Group 3
Ranges represent product FOB Central Oklahoma locations for shipment on the Magellan Pipeline.
Specifications
OPIS tracks Magellan specs for:
Gasoline
-Conventional unleaded: 87, 89, and 91 octane;
**All gasoline grades follow seasonal environmental requirements.
Distillates
-Low-sulfur No. 2 oil (On Road): 500 ppm maximum sulfur --
420 ppm maximum at origin, minimum cetane 40;
-Ultra-low-sulfur diesel: 15 ppm maximum sulfur --
8 ppm sulfur maximum at origin; minimum cetane 40;
-Jet fuel;
-Ultra-low-sulfur No. 1 oil (this is a seasonal assessment typically running from
Oct. 15 through April 1, depending on seasonal refinery production changes and spot liquidity).
Chicago
Ranges represent FOB Chicago area, reflecting origin pipelines that include the West Shore, Badger and Wolverine lines. Chicago takes product from the Explorer Pipeline, which runs from the Gulf Coast to the Midwest.
Specifications
OPIS tracks pipeline quality specs for:
Gasoline
-Conventional unleaded: 87, 89, and 91-93 octane;
-RBOB: 84.6 and 91.4 octane, pre-blend;
**All gasoline grades follow seasonal environmental requirements.
Distillates
-High-sulfur No. 2 oil;
-Low-sulfur No. 2 oil (On Road): 500 ppm maximum sulfur --
420 ppm maximum at origin, minimum cetane 40;
-Low-sulfur No. 2 oil (Off Road): 500 ppm maximum sulfur --
420 ppm maximum at origin, minimum cetane 40;
-Ultra-low-sulfur diesel: 15 ppm maximum sulfur --
8 ppm sulfur maximum at origin; minimum cetane 40;
-Jet fuel: 400 ppm maximum sulfur;
-Ultra-low-sulfur No. 1 oil (this is a seasonal assessment typically running from
Oct. 15 through April 1, depending on seasonal refinery production changes and spot liquidity).
U.S.
West Coast
Price
Discovery
Editors confirm and record deals done for gasoline and distillate products with a minimum pipeline size of 10,000 bbl in California and 5,000 bbl in the Pacific Northwest. As the majority of the market is done on an EFP basis, we follow deals as basis discounts or premiums to the New York Mercantile Exchange. We consider fixed-price deals only if they fall within the full-day differential range based off the NYMEX at settlement. Fixed price deals in California spot markets are converted to an EFP when reported and confirmed and then reapplied to the NYMEX settlement price.
OPIS does publish "prompt" ranges, which are trades that reflect "any month / buyers option" transactions. "Buyers option" gives the buyer the choice of taking delivery in any of the four cycles in throughout the month. In Los Angeles, OPIS identifies the prompt Kinder Morgan cycle for timing clarity but ranges are buyer option/any month lifting.
OPIS works with the Kinder Morgan Pipeline to determine the timing of the various cycles throughout the month. Each month has four pumping cycles. In cases where it is close to the end of the months trading cycle, OPIS reserves the right to roll coverage forward to the more liquid month.
U.S. West Coast
For the Los Angeles market, OPIS follows the Kinder Morgan West Line, and in the Bay area the OPIS assessment is for the Kinder Morgan Zero Line. In the Pacific Northwest, prices are FOB Portland - Olympic Pipeline and jet fuel is FOB Seattle barge.
Specifications
OPIS tracks Kinder Morgan specs for:
Gasoline
-Conventional unleaded, both regular and premium;
-California Reformulated Blendstock for Oxygenate Blending (CARBOB),
both regular and premium;
-Seasonal gasoline blends in Arizona and Las Vegas;
Distillates
-California Air Resources Board Spec ultra low sulfur diesel (CARB No. 2 oil);
-Ultra Low Sulfur diesel, which does not meet CARB specs;
-Jet fuel.
Frequently Asked
Questions Regarding OPIS West Coast Methodology
OPIS
Renewable Fuels
U.S. Gulf Coast
Ethanol: Denatured fuel-grade ethanol FOB Houston, typically up to barge volume, 10,000 bbl. Prompt assessments are 3-15 days from the published date, RINs (Renewable Identification Numbers) included are those for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year.
Biodiesel: Soy methyl ester (SME) B100, ASTM specifications, not including any tax credits for blending, FOB Houston rail volumes, typically 3 to 15 days from published date. Truck and in-tank sales will also be considered and factored for assessment purposes. Deals must generally include current calendar- year RINs transfer that correspond to the product delivery date.
U.S. Atlantic Coast
Ethanol: Denatured fuel-grade ethanol FOB New York Harbor, typically up to barge volume, 25,000 bbl, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 3-15 days from the published date.
U.S. Midwest
Ethanol: Denatured fuel-grade ethanol FOB Kinder Morgan Argo terminal, typically up to barge volume, 10,000 bbl, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 3-10 days from the published date.
Biodiesel: Soy methyl ester (SME) B100, ASTM specification, in rail volume not including any tax credits for blending, FOB Argo terminal, 3-15 days from the published date. Deals must generally include current calendar-year RINs transfer that correspond to the product delivery date.
U.S. West Coast
Ethanol: Denatured fuel-grade ethanol FOB Los Angeles-area and FOB San Francisco Bay-area terminals for railcar shipments, typically more than single 29,000 gallon railcar loads, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 5-15 days out. Phoenix ethanol assessment also reflects denatured-fuel grade ethanol railcar shipments into area terminals 5-15 days from the published date.
Dallas
Ethanol: Denatured fuel-grade ethanol FOB Dallas/Fort Worth-area terminals for railcar shipments, typically more than a single 29,000 gallon railcar loads, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 3-15 days from the published date.
Tampa
Ethanol: Denatured fuel-grade ethanol FOB Tampa-area terminals for railcar shipments, typically more than a single 29,000 gallon railcar loads, RINs (Renewable Identification Numbers) included that are for the current calendar year corresponding to the product delivery date. Deliveries in the first quarter of a given year may include RINs from the previous calendar year. Prompt assessments are 3-15 days from the published date.
Brazil
Ethanol: Undenatured anhydrous ethanol cargoes, FOB Brazil terminals for export, typically 50,000 bbl or more available 5-30 days from the date of publication. The assessment generally reflects price at the
Santos export terminal, though others may be used for assessment purposes.
Natural Gasoline (denaturant):
The natural gasoline spot snapshot represents the bulk price for c5 product, 115,021 btu/gal, 664 relative density liquid. Ranges generally represent deals for a minimum of 10,000
bbl at Mont Belvieu, Texas, for non-TET delivery reported on a given day for any-month transactions. The range reflects completed spot deals, and may also include bids and offers in the market. Ranges do not include deals concluded under extraordinary circumstances and far outside the range of other deals or below certain volumes.
National Renewable Fuel Feedstock/Co-Product Prices:
These are prices for large quantities of feedstocks for ethanol and biodiesel production and their co-products transacted or being
discussed in certain FOB markets.
RIN Credits
This is the price assessment range for Renewable Identification Numbers attached to trades of volumes of 1 million to 5 million gallons. RINs are generated by production of ethanol, biodiesel or other specified renewable fuels and defined by the U.S. EPA’s Renewable Fuels Standard. RINs are traded daily on per-gallon basis for delivery anywhere in the U.S. Smaller or larger volume RIN trades as well as confirmed bids and offers may also be used in factoring the daily RIN price assessment. RIN values are shown for each active year of trading.
OPIS
Feedstocks Pricing
Note: Because of the often thin nature of feedstocks trading,
OPIS ranges for various products may often encompass a relatively
wide range of specifications. Our expertise is on the editorial
side and we make no claims of any proficiency in the field of
petroleum engineering. Editors are instructed to exclude bbls
which are deemed "off spec" from particular price ranges,
but we are often not privy to a long list of specifications for
individual cargo and barge loads.
While every effort is made to include completed
transactions within price range assessments, because of illiquidity,
the assessments are often entirely subjective and based on a reasonable
judgment as to where buyers and sellers would meet on common ground.
What follows is an approximation of "ballpark"
specifications for feedstocks covered in daily OPIS Overnight
publication.
Specifications
Vacuum
Gasoil
Price ranges for low sulfur VGO reflect material with a 0.6% sulfur content or less. Other typical specs would be: API Gravity of 22 min/30 max.; 110 degree F. max. Pour; CCR of 0.5% max.; Metals (ppm): Vanadium 1.5 max., Sodium 2.0 max., Iron 2.0 max., Copper 1.0 max, Nickel 1.0 max.; Aniline, 180 F. min.; Flash Point, 150 F. min.; Nitrogen, (wt %), 1,300 max.; Distillation, 425 F. IBP min., 1,100 F. FBP max.
Medium sulfur VGO would typically reflect 0.7-1.4% sulfur max. material; API Gravity, 22 min/30 max.; 110 F. max Pour; CCR, 0.5% max. Metals (ppm): Vanadium 1.5% max., Sodium 2.0 max., Iron 20 max., Copper 1.0 max, Nickel 1.0 max.; Aniline, 170 F. min.; Flash Point, 150 F. min.; Nitrogen (WT%), 1,500 max.; Distillation, 425 F. IBP min., 1,100 F. FBP max.
High sulfur VGO is typically 1.5% sulfur or higher; API Gravity, 22 min./30 max.; 110 F. max. Pour; CCR, 0.5% max.; Metals (ppm): Vanadium 1.5 max., Sodium 2.0 max., Iron 2.0 max., Copper 1.0 max., Nickel 1.0 max.; Aniline, 160 F. min.; Flash Point, 150 F. Min., Nitrogen (WT%), 1,500 max.; Distillation, 425 F. IBP min., 1,100 F. FBP max.
While VGO volumes transacted in the USGC spot market are not expected to exactly match the VGO specifications listed above, the above specifications serve as a benchmark for making spot assessments. VGO with materially above-average qualities (relative to the above specifications) would be expected to command a stronger price, and VGO with materially sub-par specifications would be expected to be discounted for quality.
Depending on the extent of the quality discrepancy from the specifications listed above, OPIS may decide to reflect VGO deals somewhere within price ranges (near one end of the range rather than the mean), or OPIS may decide that the qualities of the VGO in question are too far removed from the above specifications to be considered representative of spot VGO values.
VGO cargo price assessments reflect minimum 200,000 bbl parcels, delivered ex-duty basis to Gulf Coast ports. VGO barge price assessments typically represent domestic transactions for barges of 40,000 bbl or more on a delivered Houston basis, although smaller volumes (minimum 20,000 bbl) and volumes for delivery to other Gulf Coast locations will be considered as well.
Timing on VGO cargoes: VGO cargoes typically trade one to two weeks before the cargoes land in the U.S. Gulf Coast. If a trade involves a cargo landing sooner than one week out, OPIS will attempt to determine if the material was discounted for prompt delivery and will consider the transaction level in that context. Some cargo trades involve material arriving more than two weeks out, and OPIS will consider such cargoes in its forward pricing assessments.
Timing on VGO barges: VGO barge trades typically involve delivery within five days. If a barge trade involves delivery within two days, OPIS will attempt to determine if the material received a discount or a premium for prompt delivery and will consider the transaction level in that context. OPIS also will consider barge transactions for delivery more than five days out for purposes of general price discovery.Naphtha
Values
for domestic naphtha reflect a minimum 40 N+A or similar reformer
grade material with typical specifications of 100-110 degrees
F. initial point; 360-385 Degrees F. end point, 20 min. color
on full range bbls; with typical 150 Degree F. initial point,
360-370 degree end point; typical 40-42 N+A, 20 min. color for
heavy bbls.
Paraffinic Naphtha
Assessment is typically reflective of material with the following specifications: 65 minimum paraffin content, 68 API gravity, 500 ppm maximum sulfur, 12.5 maximum RVP, 50 ppm maximum MTBE, 50 ppm maximum lead, 1 ppm maximum H2S,
and 20 minimum color.
Straight
Run Residual Fuel
Prices for Gulf Coast low sulfur straight run residual fuel tend to reflect transactions, delivered into the Gulf Coast inside duty, for 0.5% material and similar grades out of NW Europe. Other low sulfur grades may from time to time be included when made available to Gulf Coast buyers.
High sulfur straight run values at the Gulf Coast typically reflect delivered Gulf Coast values for M-100, or E-4 material, but may often include high sulfur straight run from domestic sources and various material from offshore sources such as the Mediterranean.
Light Cycle Oil
OPIS assessments for light cycle oil generally reflect material with 1.2% to 1.8% sulfur. Gravity is generally 14-17 API, and cetane is typically within a range of 20-25. The upper limit for color is 2.5, and the end point is no higher than 690-700 degrees Fahrenheit. Some higher-sulfur grades of LCO command similar prices as 1.2-1.8% sulfur material, and trade of those grades may be reflected in OPIS assessments from time to time. OPIS assessments for low sulfur light cycle oil reflect material with a maximum sulfur content of 0.5%. Other quality specifications affecting the value of a spot LCO volume may be taken into consideration, such as haze, and if some of these specifications are not within the parameters of what most traders consider typical, and if a volume traded at a discount for that reason, OPIS will take this into account when establishing ranges. OPIS LCO assessments reflect the delivered value at various Gulf Coast locations.
West
Coast Alaskan North Slope (Ans) Vacuum Gasoil
Price
ranges for low-sulfur VGO reflect 0.25-0.3% sulfur material. Other
typical specs: API gravity 19-25; CCR 0.5% max; all Metals less
than 1 ppm; Sodium less than 2 ppm; Aniline typically 150-175
F.; Nitrogen (WT%) ranges 1,500-2,000 ppm.
High sulfur VGO can range between 0.3-1.5% sulfur
material, but most typical sulfur spec would be just in excess
of 1%. Other "typical" specs would include: API gravity
19-25; CCR 0.5% max; all Metals less than 1 ppm; Sodium less than
2 ppm; Aniline typically 150-175 F.; Nitrogen (WT%) less than
3,000 ppm.
Cycle Oil material has a maximum sulfur content
of 0.5%, with a typical Viscosity of 2.5-3.5%. Lower viscosity
material is generally discounted. Gravity is usually 17-20.
Time
Stamp (time
is EST)
6:30
p.m. - OPIS International Feedstocks Intelligence
OPIS
NGL Spot Pricing
Price
Discovery
Many of the daily prices we report provide key
benchmarks for some of the largest buyers and sellers of NGLs
in the world. Large utilities, petrochemical companies, industrial
and manufacturing companies, rail companies, fleets, natural gas
producers, gas processing companies, refiners, pipeline companies,
and state and local governments buy and sell NGLs based on OPIS
spot market assessments.
Editors confirm and record deals done for NGLs on a fixed price
basis or in a relationship to another product or location or timing
(example: E-P mix at a differential to purity ethane, TET propane
at a differential to non-TET propane, prompt a penny over any
current month). Editors respect the wishes of sources to remain
anonymous in their activities in the market and any information
we receive regarding parties in deals will be kept confidential.
OPIS
tracks any current month, prompt, and out month trading for NGLs.
OPIS NGL prices labeled as "any current month" represent transactions
for product that buyer and seller agree will be delivered at any
time during the current calendar month. OPIS NGL prices labeled
as "prompt current month" represent transactions for product that
buyer and seller agree will be delivered within the next 48 hours.
OPIS NGL prices labeled as "out month" represent transactions
for product that buyer and seller agree will be delivered any
time in the next calendar month.
Data Integrity
Because of the subjectivity of publishing NGL spot ranges, editors talk to a very broad cross section of participants including domestic and international producers, end users, refiners, processors, traders, brokers, shippers, wholesalers, and retailers.
Ranges represent where the bulk of product is moving and do not include deals struck under extraordinary circumstances and far outside the range of other deals reported on a given day, or far above or below confirmed seller or buyer levels, or under certain volumes, generally 10,000 bbl at Mont Belvieu and 2,500 bbl in the Midwest markets, though deals done in these volumes are not automatically included by virtue of the volume, and deals done in smaller volumes may at times be included at the discretion of the editor.
Editors have the ability to review and reflect transactions reached on electronic platforms, such as HostEnergy and ICE, within published ranges, but posted "bid/asked" numbers or even confirmed deals on such networks are viewed subjectively by OPIS staff. It is up to individual OPIS editors to determine whether prices quoted on electronic platforms fall within the reasonable realm of where business is being done -- OPIS will not include a price within its daily ranges simply because it appeared on an electronic platform. Finally, a note about errors and disputes. We recognize that ascertaining a spot product range is highly subjective, and realize that there will be parties that dispute our "call." Ranges are only changed in the case of clerical errors such as typos or transpositional mistakes. We never alter ranges simply because of oil firm complaints. Specifications
OPIS NGL spot market products offer twice-a-day market assessments - at midday and following the futures' market's close at the end of a business day. In addition to in-depth market analysis that explains what factors are influencing price direction, OPIS provides a range of actual spot prices, reporting a daily market "low", "high", "average" for each of the products in each of these markets: Mont Belvieu, Texas; Conway and Bushton, Kan.; Napoleonville and Geismer/Sorrento, La.; and Hattiesburg, Miss. In Mt. Belvieu markets, TET designations represent LDH pricing (TET=LDH).Additionally, OPIS provides once-weekly assessments in these markets: Sarnia and Edmonton, Canada, and Los Angeles, Bakersfield, and San Francisco, Calif..
Accepted industry standards:
-c3 (propane) 90,830 btu/gal, .507 relative density, liquid
-nc4 (normal butane) 102,916 btu/gal, .584 relative density liquid
Note: In Mt. Belvieu TET (LDH) normal butane references refinery grade butane. Non-TET and Other non-TET normal butane refer to isomerization grade normal butane. Conway prices reflect the market for isomerization grade normal butane.
-ic4 (isobutane) 98,950 btu/gal, .563 relative density liquid
-c5 (natural gasoline) 115,021 btu/gal, .664 relative density liquid
Mixed and field grade products vary depending on market conditions, the gas stream or crude slate from which they are obtained, and no specs are available as these are not deemed fungible and are tested on a per batch basis.
Time
Stamp (all
times are EST)
10:30 a.m. - Propane Daily
1:30 p.m. - NGL/LP Gas Mid-day market update
6:30 p.m. - NGL/LP Gas Final Report
OPIS Asian Spot Market
Price Discovery
Editors confirm and record deals done for naphtha and jet fuel with a size of 25,000-75,000 tonnes for naphtha and 30,000-60,000 tonnes for jet fuel. As the majority of the market is done on C+F Japan quotes basis for naphtha and FOB Singapore quote basis for jet fuel, we follow deals, bids, and offers as basis discounts or premiums to the FOB Singapore quotes.
OPIS use weighted average for our Asian daily assessments. We assign 25 percent for the mid-day swaps and papers and 75 percent for the numbers at the close in order to calculate OPIS final signature values. Naphtha papers are C+F Japan basis and Jet fuel swaps are FOB Singapore basis.
For naphtha market, we take an average of 2nd and 3rd cycle of OPIS final signature value to calculate C+F Japan quotes that serves as the benchmark.
For FOB Arab Gulf naphtha assessments, we will take 1st cycle of the OPIS final signature value and deduct freight differentials for Arab Gulf-Singapore route. FOB Singapore quotes will be calculated as follows
(1st cycle of OPIS final signature/9)-freight-$0.05/bbl. If 1st cycle of OPIS final signature is $880.75/mt and freight for Singapore-Japan is $2.39/bbl , the calculation for FOB Singapore should be as following: (880.75/9)-2.39-0.05=$95.42/bbl.
For jet fuel, we will calculate the mid-value of 15-30 days forward trading window by using weighted average value of OPIS final signature that usually use 1st and 2nd cycle of swaps value. Then we will add discount or premium to calculate FOB Singapore quotes.
FOB AG jet fuel assessments will be a simple freight netback from FOB Singapore quotes. The calculations for FOB Korea, FOB Taiwan, and C+F Japan are as follows
(FOB Singapore quotes-FOB Singapore discount/premium)+ discount/premium for each markets)
If FOB Singapore jet fuel quote is $124.56/bbl with a premium of 85-cents, and if the freight rate for FOB Arab Gulf-Singapore LR 1 is $2.58/bbl, the calculation for FOB AG LR-1 is following
124.56-2.58=$121.98/bbl
If FOB Korea premium is $1.00/bbl for the same day, the calculation for FOB Korea is following
(124.56-0.85)+1.00=$124.71/bbl
Specifications
OPIS tracks Asian specs for:
Naphtha
-Open-specification naphtha
-Full range (we will netback to open-spec equivalent discount/premium)
Jet
-Jet fuel A-1
Time Stamp (all times are Singapore)
1:00 p.m. – Mid-day paper, swaps numbers
4:30 p.m. - Market close for both physical and papers
7:00 p.m. – Asian naphtha, Asian jet fuel reports
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