DOCSLIB.ORG

Platts Forward Curve Products Latest Update: June 2021

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Platts Forward Curve Products Latest Update: June 2021 Specifications Guide Global Platts Forward Curve Products Latest update: June 2021 Definitions of the trading locations for which Platts publishes daily indexes or assessments 2 Futures assessments 3 Asia Pacific: crude oil 4 Asia Pacific: refined oil products 7 Asia Pacific 15 Europe: crude oil 19 Europe: refined oil products 23 Europe 41 Americas: crude oil 44 Americas: refined oil products 47 Americas 55 Revision history 57 www.spglobal.com/platts Specifications Guide Global Platts Forward Curve Products: June 2021 DEFINITIONS OF THE TRADING LOCATIONS FOR WHICH PLATTS PUBLISHES DAILY INDEXES OR ASSESSMENTS The following specifications guide contains the primary For example, a buyer and seller might agree to trade an August month. Monthly derivatives roll on the first publishing day of specifications and methodologies for the Platts Forward Curve jet fuel derivative at $100/barrel (the strike price) for a volume each month. financially-settled oil derivatives assessments around the world. of 50,000 barrels, using a Platts assessment for jet fuel in the All the assessments listed here employ Platts Assessments physical markets as the underlying instrument for settlement Calendar Quarter: A calendar quarter derivative is financially Methodology, as published at https://www.spglobal.com/ of value. On September 1, when all August assessments have settled using the relevant physical market assessment or platts/plattscontent/_assets/_files/en/our-methodology/ been published, if the average of the Platts jet fuel assessments futures market values available on every publishing day in the methodology-specifications/platts-assessments-methodology- published in August was $101/b, the seller would pay the quarter. A Q3 derivative refers to July, August and September, guide.pdf. buyer $1/b for 50,000 barrels, or $50,000. If the average of the and so on. Calendar quarters roll four times a year, on the first underlying Platts assessments in August was $99/b, the buyer publishing days of January, April, July and October. These guides are designed to give Platts subscribers as much would likewise pay the seller $1/b for 50,000 barrels, or $50,000. information as possible about a wide range of methodology and Calendar Year: A calendar year derivative is financially settled specification questions. Platts derivative assessments reflect the value of both using the relevant physical market assessment or futures uncleared and cleared instruments. market values available on every publishing day during the year. This guide is current at the time of publication. Platts may Yearly derivatives roll on the first publishing day of each year. issue further updates and enhancements to this guide and will Weeks: Platts assesses the value of Brent weekly Contract announce these to subscribers through its usual publications for Difference derivatives (CFDs). Such derivatives roll on the Spreads: Platts publishes a series of spread derivatives around of record. Such updates will be included in the next version of Thursday of each week. the world, which reflect the value of different underlying physical this guide. Platts editorial staff and managers are available to benchmarks relative to others. These include: crack spreads provide guidance when assessment issues require clarification. Balance-Month: A balance-month derivative is financially (between products and crude); grade spreads (between different settled using the relevant physical market assessment or product specifications or crude grades); time spreads (between A financially-settled derivatives contract is one in which a futures market values available on every remaining publishing derivatives of different time maturities); location spreads buyer and seller agree to a strike price in relation to a defined day in the month, including the day of publication itself. Balance- (between different geographic locations); and contract spreads underlying benchmark for a defined period of time. The month derivatives are assessed in some markets, and these (between, for example, physical and derivative benchmarks). counterparties ultimately financially settle the difference in assessments are available up to and including the 15th of each value between the strike price and the average value of the month in the US and Asia, and up to the 20th of the month in Examples of such assessments include Singapore regrade underlying benchmark, once that average value is known. Europe and Africa. After these points, Platts may continue to derivatives which reflect the difference in value between jet Financially-settled derivatives do not typically result in the publish balance-month bids and offers during the Market on fuel and gasoil; viscosity derivatives which reflect the difference physical delivery of a commodity. They typically result in the Close assessment process, but the information might not be in value between 180 CST fuel oil and 380 CST fuel oil; sulfur payment of a financial consideration reflecting the difference in used for assessment purposes due to lower underlying liquidity. spreads or “hi-lo” derivatives that reflect the difference in value value between the strike price and the average of the underlying between high-sulfur and low- sulfur fuels; and spreads between reference price – commonly the average price published for a Calendar Month: A calendar month derivative is financially refined product derivatives and related frontline futures. physical market price benchmark, or sometimes another key settled using the relevant physical market assessment or indicator, like a futures contract. futures market values available on every publishing day in the © 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 2 Specifications Guide Global Platts Forward Curve Products: June 2021 Time (ET) Trades Bid Ask Futures assessments editorial assessments of what the market value is at the close. 2:29 80.00 80.00 80.05 The assessment may not be a specific transaction as it may have 80.00 80.01 80.04 Platts assesses the prevailing market value for several futures been an unusual and not representative event. 80.04 80.01 80.05 contracts on CME/NYMEX, ICE and DME. These assessments 80.05 80.01 80.05 80.01 80.01 80.04 reflect the value of these contracts at the close of Platts Here is an example of the assessment process for front-month 80.01 80.02 80.03 assessment processes around the world. NYMEX crude futures at the US close. 80.02 80.01 80.03 80.01 80.00 80.03 2:30 80.03 Platts examines traded levels, bid and offer levels prior to the Time (ET) Trades Bid Ask close of regional MOCs, and employs the same methodological 2:29 80.00 80.00 80.05 In this example, the repeatable value for NYMEX crude again was 80.00 80.01 80.04 principles used in its physical assessments - repeatability and $80.01, and that was the most recent deal immediately prior to 80.01 80.01 80.03 incrementability - when assessing the prevailing value of futures 80.01 80.01 80.03 2:30:00 pm ET. The two deals at $80.04 and $80.05 created gaps at the close in each region. Platts tracks the movements in the 80.01 80.01 80.03 and did not meet the repeatability standard. bids and the offers, the spread between the bids and the offers, 80.01 80.02 80.03 80.02 80.01 80.03 and the execution of those trades. 80.01 80.00 80.03 The Platts assessment for front-month NYMEX crude futures 2:30 80.03 value would be $80.01. Furthermore, Platts analyzes the price trends leading up to the close, and considers only normal market activity in In this example, repeatable value for NYMEX crude was Futures settlements the assessment process. This is to ensure that the Platts $80.01, and that was the most recent and representative deal assessment reflects a prevailing and representative value at immediately prior to the close. The $80.03 deal at 2:30 pm ET Platts separately republishes settlements for a number the close, rather than an unusual trade occurring at that time, came in right after the 2:30:00 pm ET MOC timestamp, and of commodity futures contracts from exchanges. These earlier or later. would not be considered in the assessment process. settlements are clearly labelled as such in Platts publications and are provided for information purposes. The bases of these For example, there may be a situation where liquidity in the The Platts assessment for front-month NYMEX crude futures settlements are available from the relevant original providers. third forward month is poor. In that situation, due to lack of value would be $80.01. trade in the time leading to the close, the value then may need to be inferred from a spread relationship in the absence of Here is another example of the assessment process for front- representative outright traded values. The values published are month NYMEX crude futures at the US close. © 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 3 Specifications Guide Global Platts Forward Curve Products: June 2021 ASIA PACIFIC: CRUDE OIL ICE Brent Futures at Brent Frontline Derivs Dubai Derivs Oman Derivs NYMEX WTI Futures ICE Brent/NYMEX Brent/Dubai Derivs at ICE Brent/Dubai EFS Oman/Dubai Derivs 1630 Singapore at 1630 Singapore at 1630 Singapore WTI Futures at 1630 1630 Singapore at 1630 Singapore Singapore CURRENCY US$ US$ US$ US$ US$ US$ US$ US$ US$ UOM Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels SETTLEMENT BASIS - Brent Futures Platts Dubai Platts Oman - Brent Futures/NYMEX Brent Frontline Brent Futures/Platts Platts Oman Derivs/ NAME WTI Futures Derivs/Platts
Load more

Recommended publications
  • Independent Statistics & Analysis U.S. Energy Information Administration
    Independent Statistics & Analysis September 2020 U.S. Energy Information eia Administration Short- Term Energy Outlook (STEO) Forecast highlights Globalliquidfuels The SeptemberShort- TermEnergy Outlook (STEO) remainssubject to heightenedlevels of uncertaintybecausemitigationand reopeningefforts relatedto the 2019 novel coronavirusdisease ( COVID- 19) continueto evolve. Reducedeconomicactivity related to the COVID- 19 pandemichas caused changes in energydemandand supply patternsin 2020.This STEOassumes U.S. grossdomesticproductdeclinedby 4.6% in the first half of 2020fromthe same period a year ago and will rise beginninginthe third quarterof 2020, with year-over-year growthof 3.1% in 2021.The U.S. macroeconomic assumptionsinthis outlookare based onforecasts by IHS Markit. Brentcrude oilspot prices averaged$45 per barrel ( b ) in August, up $2/ b from the average inJuly. Brent prices in Augustwere up $26/ b from the multiyearlow monthly average price in April.The increaseinoil prices has occurred EIA estimatesglobal oil marketshave shifted from global liquidfuelsinventoriesbuildingat a rate of 7.2 million barrels per day (b/ d ) in the second quarterto drawingat a rate of 3.7 millionb/ d inthe third quarter. expects inventorydraws in the fourth quarterof 3.1million b/d before marketsbecome relativelybalancedin 2021, withforecast drawsof0.3 million b/ d. Despiteexpectedinventorydraws inthe comingmonths, EIA expects high inventory levels and surplus crude oil productioncapacitywill limit upward pressureon oil prices. EIA forecastsmonthlyBrent spot priceswill average $ 44 / b duringthe fourth quarter of 2020 and riseto an average of $49/ b in 2021as oil marketsbecome more balanced. EIA estimatesthat globalconsumptionof petroleumand liquid fuels averaged94.3 millionb/ d in August . Liquid fuels consumptionwas down 8.2 millionb/ d from August 2019, butit was up from an averageof 85.1 million b/ d duringthe second quarterof 2020 and 93.3 millionb/ d in July.
    [Show full text]
  • Oil Price Forecasting Using Crack Spread Futures and Oil Exchange Traded Funds
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Choi, Hankyeung; Leatham, David J.; Sukcharoen, Kunlapath Article Oil price forecasting using crack spread futures and oil exchange traded funds Contemporary Economics Provided in Cooperation with: University of Finance and Management, Warsaw Suggested Citation: Choi, Hankyeung; Leatham, David J.; Sukcharoen, Kunlapath (2015) : Oil price forecasting using crack spread futures and oil exchange traded funds, Contemporary Economics, ISSN 2084-0845, Vizja Press & IT, Warsaw, Vol. 9, Iss. 1, pp. 29-44, http://dx.doi.org/10.5709/ce.1897-9254.158 This Version is available at: http://hdl.handle.net/10419/141896 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu 29 Primary submission: 16.09.2014 | Final acceptance: 26.09.2014 Oil Price Forecasting Using Crack Spread Futures and Oil Exchange Traded Funds Hankyeung Choi1, David J.
    [Show full text]
  • The Spectre of Weakening Prices
    Oil & gas macro outlook The spectre of weakening prices 16 August 2010 Crude oil and refined product markets are in significant surplus currently which sets the scene for some near-term weakness in prices. A lacklustre price trend Analysts Peter J Dupont 020 3077 5700 is also expected to extend into 2011 reflecting the likely persistence of well Neil Shah 020 3077 5715 supplied markets and historically high inventories. Weak fundamentals relate to Ian McLelland 020 3077 5700 OPEC and non-OPEC supply additions and an increasingly lacklustre economic Elaine Reynolds 020 3077 5700 [email protected] backdrop. For institutional enquiries please contact: Alex Gunz 020 3077 5746 Crude oil supply/demand outlook Gareth Jones 020 3077 5704 [email protected] The upward trend in US and OECD inventories over the past year or more points to a crude oil market in surplus. Inventories are now close to 20-year and at least WTI vs Brent 12-year highs respectively. For 2010 we look for a supply surplus of at least 90 0.5mmb/d and approximate balance in 2011. 70 50 Crude oil prices $ barrel per 30 Light crude oil prices have trended broadly flat since the end of the third quarter of 2009. Prices firmed in the month to early August 2010 with West Texas Jul/09 Jul/10 Apr/09 Apr/10 Jan/10 Jan/09 Oct/09 Intermediate (WTI) hitting a recent high of $82.6/barrel. Subsequently, prices have Brent WTI AIM Oil & Gas Index come under significant pressure taking WTI down to $78.4/barrel on August 11, 7000 reflecting rising inventories and bearish US and China macroeconomic news.
    [Show full text]
  • Volatility Dynamics and Seasonality in Energy Prices: Implications for Crack-Spread Price Risk
    Volatility Dynamics and Seasonality in Energy Prices: Implications for Crack-Spread Price Risk Hiroaki Suenaga* and Aaron Smith** We examine the volatility dynamics of three major petroleum commod- ities traded on the NYMEX: crude oil, unleaded gasoline, and heating oil. Using the partially overlapping time-series (POTS) framework of Smith (2005), we model jointly all futures contracts with delivery dates up to a year into the future and extract information from these prices about the persistence of market shocks. The model depicts highly nonlinear volatility dynamics that are consistent with the observed seasonality in demand and storage of the three commodities. Spe- cifically, volatility of the three commodity prices exhibits time-to-delivery effects and substantial seasonality, yet their patterns vary systematically by contract delivery month. The conditional variance and correlation across the three com- modities also vary over time. High price volatility of near-delivery contracts and their low correlation with concurrently traded distant contracts imply high short- horizon price risk for an unhedged position in the calendar or crack spread. Price risk at the one-year horizon is much lower than short-horizon risk in all seasons and for all positions, but it is still substantial in magnitude for crack-spread positions. Crack-spread hedgers ignore nearby high-season price risk at their peril, but they would also be remiss to ignore the long horizon. 1. INTRODUCTION Demand for motor gasoline in the United States peaks in the summer driving season, whereas demand for heating oil peaks in winter. Because these two refined petroleum products are imperfect substitutes in the production pro- The Energy Journal, Vol.
    [Show full text]
  • Glossary of Energy Terms
    Glossary of Energy Terms A API gravity A measure of the weight of hydrocarbons according to a scale established by the American Petroleum Institute. Crude oils with higher values are lighter and tend to produce larger volumes of high-value lighter products in atmospheric distillation, which makes them relatively more valuable. Crude oil grades that are lower on the API scale tend conversely to be less highly valued because they produce smaller yields of lighter products. assay A laboratory assessment of the characteristics of a crude oil that help determine its market value and refining capabilities. Assays of some kind are usually required as part of all crude oil sales. atmospheric distillation The primary phase of all refining in which crude oil or other raw feedstock is boiled and the vapors are collected and condensed to create basic petroleum products. B backwardation A relationship between prices in which the cost of prompt, immediately available supplies exceeds the price of volumes available in the future. Oil markets have been in backwardation for much of 1995 and 1996. benchmark crude A crude oil that is traded regularly enough in the spot market that its price quotes are relied upon by sellers of other crude oils as a reference point for setting term or spot prices. Brent, West Texas Intermediate, and Dubai are all benchmark crude oils. Brent market A widely traded group of spot, forward, and futures markets in North Sea Brent crude oil that emerged in the early 1980s. They are used as a key source of international oil price risk management and as a benchmark for crude oil pricing under both term and spot transactions.
    [Show full text]
  • Short-Term Energy Outlook Market Prices and Uncertainty Report
    October 2013 Short-Term Energy Outlook Market Prices and Uncertainty Report Crude Oil Prices: Front month futures prices for the Brent and West Texas Intermediate (WTI) crude oil benchmarks fell in September. The Brent contract settled at $109.00 per barrel on October 3, a decline of $6.68 per barrel since September 3, and WTI settled at $103.31 per barrel on October 3, falling by $5.23 per barrel over the same period (Figure 1). These changes marked the first month-over-month declines in crude oil prices since May 2013. The return of some Libyan production and declining refinery runs during September helped put downward pressure on crude oil prices. This is a regular monthly companion to the EIA Short-Term Energy Outlook (http://www.eia.gov/forecasts/steo/) Contact: James Preciado ([email protected]) U.S. Energy Information Administration | Short-Term Energy Outlook October 2013 1 Evidence of a loosening crude oil market is seen in the decline in backwardation (when near-term prices are higher than further-dated ones) of the Brent and WTI futures curves. For the first time since April, the 1st-13th month spread declined for both contracts. The Brent and WTI time spreads settled at $7.70 and $9.66 per barrel, respectively, on October 3, declining by $4.33 and $3.73, respectively, since September 3 (Figure 2). Rising crude oil supply in global markets and falling refinery runs lessened the need to draw down crude oil inventories and lowered the financial incentive to sell oil now and buy it back later.
    [Show full text]
  • Hedging Natural Gas - LNG Price Movements
    University of Pennsylvania ScholarlyCommons Joseph Wharton Scholars Wharton Undergraduate Research 2018 The Cool Spread: Hedging Natural Gas - LNG Price Movements Christopher L. Hofstadter University of Pennsylvania Follow this and additional works at: https://repository.upenn.edu/joseph_wharton_scholars Part of the Business Commons Recommended Citation Hofstadter, C. L. (2018). "The Cool Spread: Hedging Natural Gas - LNG Price Movements," Joseph Wharton Scholars. Available at https://repository.upenn.edu/joseph_wharton_scholars/57 This paper is posted at ScholarlyCommons. https://repository.upenn.edu/joseph_wharton_scholars/57 For more information, please contact [email protected]. The Cool Spread: Hedging Natural Gas - LNG Price Movements Abstract The launch of liquified natural gas futures in May of 2017 on a major exchange follows a dramatic increase in global demand for the energy source. The profit of firms that produce LNG, known as transformers, is driven by the spread between the price of natural gas and LNG. With the launch of LNG futures, transformers now have the ability to hedge their exposure to this spread, similar to oil refiners hedging the crack spread. This paper proposes three hedging strategies transformers can utilize to limit their exposure to natural gas and LNG price movements. Using second-order lower partial moments (LPM2) as a measure for hedging effectiveness, this paper will show that transformers who do not hedge their exposure to the spread perform better than those who employ any of the proposed strategies, a result driven in part by 2017 market conditions. Keywords natural gas, LNG, commodity hedging Disciplines Business This thesis or dissertation is available at ScholarlyCommons: https://repository.upenn.edu/joseph_wharton_scholars/ 57 THE COOL SPREAD: HEDGING NATURAL GAS – LNG PRICE MOVEMENTS By Christopher L.
    [Show full text]
  • Regulatory Capture in the U.S. Petroleum Refining Industry
    Regulatory Capture in the U.S. Petroleum Refining Industry Robert Gmeiner Florida State University Abstract The capture theory of regulation concludes that regulatory agencies tend to be captured by the firms they are regulating. This paper tests the capture theory in the recent environment of nuanced agency regulation by the administrative state, focusing on the U.S. oil refining industry. Regulation has tended to narrow refiners’ margins, which harms nonintegrated oil refiners more than vertically integrated. Providing evidence of regulatory capture, complementary analysis of stock returns shows that regulations have benefited the stocks of vertically integrated firms. The narrowing of the margins is primarily due to rising input costs. The capture theory of regulation holds that regulations benefit regulated firms because the regulatory agencies are captured by the firms they regulate (Stigler, 1971). Regulations create winners and losers as products of a political process. The capture theory says that concentrated and well-organized interests will tend to be the winners and reap rents from the regulatory process (Olson, 1971). Owen and Braeutigam (1977) go so far as to write, “No industry offered the opportunity to be regulated should decline it. Few industries have done so.” This view that concentrated special interests are most able to capture regulators is empirically well supported. Kolko (1963) challenges the conventional wisdom that Progressive Era regulations worked to control concentrated economic interests and presents evidence that these regulations further entrenched the positions of the dominant businesses at the time. Gilens and Page (2014) complement this view with an empirical analysis showing that implemented policies have tended to benefit well-connected special interests.
    [Show full text]
  • PRICING and HEDGING SPREAD OPTIONS Whether the Motivation Comes from Speculation, Basis Risk Mitigation, Or Even Asset Valuation
    PRICING AND HEDGING SPREAD OPTIONS RENE´ CARMONA AND VALDO DURRLEMAN ABSTRACT. We survey the theoretical and the computational problems associated with the pricing of spread options. These options are ubiquitous in the financial markets, whether they be equity, fixed income, foreign exchange, commodities, or energy markets. As a matter of introduction, we present a general overview of the common features of all the spread options by discussing in detail their roles as speculation devices and risk management tools. We describe the mathematical framework used to model them and we review the numerical algorithms used to actually price and hedge them. There is already an extensive literature on the pricing of spread options in the equity and fixed income markets, and our contribution there is mostly to put together material scattered across a wide spectrum of recent text books and journal articles. On the other hand, information about the various numerical procedures which can be used to price and hedge spread options on physical commodities is more difficult to find. For this reason, we make a systematic effort to choose examples from the energy markets in order to illustrate the numeric challenges associated with these instruments. This gives us a chance to venture in the poorly understood world of asset valuation and real options which are the object of a frenzy of active mathematical research. In this spirit, we review the two major avenues to modeling energy prices dynamics, and we explain how the pricing and hedging algorithms can be implemented both in the framework of models for the spot prices dynamics as well as for the forward curves dynamics.
    [Show full text]
  • Modelling and Trading the Gasoline Crack Spread: a Non-Linear Story
    Modelling and trading the gasoline crack spread: A non-linear story Christian L. Dunis, Jason Laws and Ben Evans* *CIBEF — Centre for International Banking, Economics and Finance, JMU, John Foster Building, 98 Mount Pleasant, Liverpool, L35UZ. E-mail: [email protected] Received: 14th November, 2005 Christian Dunis is Professor of Banking and Finance at Liverpool John Moores University and Director of CIBEF. Jason Laws is a lecturer and course leader of MSc International Banking and Finance at Liverpool John Moores University. Ben Evans is an associate researcher with CIBEF and is currently working on his PhD. Practical applications The research below has three main practical applications. Firstly, the ability to predict WTI-GAS spread displays obvious advantages to oil refiners, whose profit maximisation depends on knowing when to buy and sell stocks of either WTI crude or unleaded gasoline. Refining when the WTI-GAS spread is large will lead to higher operating profits than refining when the WTI-GAS spread is small. Secondly, the tests of non-linear cointegration show whether upside and downside moves are significantly different. In this case this was interpreted as the ability of major oil companies to control the price of unleaded gasoline. This method could be used for other spreads indicative of profit margins such as the soybean crush spread (the difference between soybeans and soybean products), spark spread (the difference between natural gas and electicity) or the frac spread (the difference between natural gas and propane). Finally, from the perspective of a futures trader, the ability to predict the direction of the WTI-GAS spread using a simple fair value model as described here could be easily implemented as a comparatively low risk trading strategy.
    [Show full text]
  • Monthly Oil Market Report 12 April 2018
    OPEC Monthly Oil Market Report 12 April 2018 Feature article: Summer product market outlook Oil market highlights i Feature article iii Crude oil price movements 1 Commodity markets 9 World economy 12 World oil demand 30 World oil supply 41 Product markets and refinery operations 53 Tanker market 60 Oil trade 64 Stock movements 70 Balance of supply and demand 77 Organization of the Petroleum Exporting Countries Helferstorferstrasse 17, A-1010 Vienna, Austria E-mail: prid(at)opec.org Website: www.opec.org Oil Market Highlights Oil Market Highlights Crude Oil Price Movements In March, the OPEC Reference Basket (ORB) increased by less than 0.5% to $63.76/b. Oil futures ended about 1% higher in a relatively volatile month, following US equity market movements and supported by robust oil demand growth forecasts, tightening US crude stocks and geopolitical tensions. ICE Brent was 99¢, or 1.5%, higher at $66.72/b from the previous month, while NYMEX WTI gained 59¢, or 0.9%, to average $62.77/b. Year-to-date, ICE Brent was $12.66 higher at $67.23/b. The NYMEX WTI/ICE Brent spread widened slightly month-on-month, as the steep inventory declines in Cushing, Oklahoma, subsided. Hedge funds increased net long positions in ICE Brent and NYMEX WTI in March to 1.08 million contracts. For the month, the Dubai structure flipped back into contango, while Brent and WTI structure remained in backwardation, albeit at a reduced level. World Economy The global GDP growth forecast remains at 3.8% for both 2017 and 2018.
    [Show full text]
  • Refining and Marketing – Supplemental Information
    REFINING & MARKETING Supplemental information Published July 24, 2019 2 Suncor Refining & Marketing supplemental information • Integrated model • Financial strength • Oil Sands market access • Markets for refined products • Refinery overview • Custom gross margin benchmark • First-in first-out (FIFO) inventory • Sample calculation • Glossary 3 Direct physical integration of upstream and downstream businesses Suncor takes an active role in connecting supply to consumer demand with a diverse portfolio of upstream production, refinery assets and customer outlets Mining and In Situ assets provide Suncor upgrades ~75%1 of 2018 refinery feedstock reliable bitumen feedstock bitumen to sweet and sour (~60% equity & comparable crude & 97% inland crude) 1% synthetic crude and 8% 8% 10% 7% finished diesel 39% 37% 65% 53% 70% 23% 27% 19% 6% 23% 30% 26% 16% 11% 20% Montreal Sarnia Edmonton Commerce Total City Heavy Sour Sweet Other Feedstock 2018 refinery products International and East 4% 2% 0% 2% 2% 14% 6% 15% 15% Coast Canada offshore 22% assets provide high 44% quality oil supply 47% 48% 43% 37% 50% 37% 37% 35% 40% Montreal Sarnia Edmonton Commerce Total City Distillates Gasoline Other Bunker 1 See Slide Notes and Advisories. 4 FFO1 protection and strength through pricing cycles Refining & Marketing supports FFO1 in all cycles while covering enterprise-wide sustaining capital2 WTI $93 ($US/bbl) Minimizing volatility WCS in all price cycles ($US/bbl) $65 $74 $51 $49 $43 Optimizing value $39 $39 of all barrels and products $35 $30 10.2 1 9.1 9.1 Maximizing FFO by controlling the full value chain 4.9 6.8 6.0 5.4 4.7 Oil Sands (C$ billions) 2.8 1 2.7 E&P 1.9 R&M 1.4 1.7 perations 1.9 1.3 Corporate o Sustaining capital2 rom rom f 3.8 2.9 2.8 2.6 2.3 Funds 2014 2015 2016 2017 2018 1, 2 See Slide Notes and Advisories.
    [Show full text]