At the start of September 2008, prices had fallen to $110. Analyst Jan Rudolph proposed that "weakened economies" and record high prices had reduced demand worldwide, claiming that the oil market had changed fundamentally in 2008 and was no longer sensitive to price spikes from events such as Hurricane Gustav and the Russo-Georgian war. In response to falling prices, OPEC members reduced their production levels by 1.5 Mbb/d on November 1, but prices had continued to drop as U.S. demand fell 10% from early October to early November 2008 and global demand growth and car sales dropped significantly as well.
Prices in the $95 to $105 per barrel range, in 2007 U.S. dollars, tied the previous all time inflation-adjusted record of 1980. This was broken during the first quarter of 2008. In terms of crude price, U.S. records suggest that equivalent prices were last seen in the 1860s. In terms of refined petroleum products, similar prices in real terms have not been seen since the 1920s. Outside the U.S., the history of both inflation and oil prices will be different, but after being adjusted for inflation, prices over $120/barrel are unprecedented since the very earliest days of commercial oil production. Sustained high prices contribute to fears of an economic recession similar to that of the early 1980s. In the United States, gasoline consumption dropped by 0.5% in the first two months of 2008 in response to higher prices, compared to a drop of 0.4% total in 2007. Average price for a barrel of OPEC crude oil for the week ending October 3, 2008: $93.24.
World oil demand in 2009
The ongoing financial market turmoil is expected to continue to impact oil demand well into the coming year. Oil demand in the USA will be affected negatively, at least in the first half of 2009. The expected spillover to other economies will affect oil demand elsewhere to a certain degree. Hence, world oil demand growth for 2009 was revised down by 0.1 mb/d to 0.8 mb/d, averaging 87.2 mb/d. OECD oil demand is expected to shrink by 0.4 mb/d next year; however, non-OECD oil demand growth is estimated to reach 1.1 mb/d with most of the growth coming from China, the Middle East, and India.
World oil demand in 2008
The declining US oil demand pushed OECD oil demand further down by more than 1.8% to average 48.3 mb/d. Factors affecting world oil demand in September such as a slowing economy, high retail prices and hurricanes led to a y-o-y decline in total OECD consumption which exceeded 1.0 mb/d. Non-OECD oil demand growth increased 1.16 mb/d y-o-y in September. Most of this is attributed to Asian and Middle Eastern oil demand.
Total world oil demand growth now stands at half the initial figure. Robust non-OECD oil growth more than offset the sharp unprecedented decline in developing countries. Oil demand in China, the Middle East, India, and Brazil added more than 1.0 mb/d to world oil demand this year. The slow US economy is seen as the main cause of the sharp slowdown in petroleum product demand this year, contributing to a 1.0 mb/d year-to-date contraction in US oil demand. World oil demand for 2008 was revised down by 0.33 mb/d to show growth of 0.55 mb/d for an average of 86.5 mb/d.
It is estimated that there may be 57 ZJ of oil reserves on Earth (although estimates vary from a low of 8 ZJ, consisting of currently proven and recoverable reserves, to a maximum of 110 ZJ) consisting of available, but not necessarily recoverable reserves, and including optimistic estimates for unconventional sources such as tar sands and oil shale. Current consensus among the 18 recognized estimates of supply profiles is that the peak of extraction will occur in 2020 at the rate of 93-million barrels per day (mbd). Current oil consumption is at the rate of 0.18 ZJ per year (31.1 billion barrels) or 85-mbd.
There is growing consensus that peak oil production may be reached in the near future, resulting in severe oil price increases. A 2005 French Economics, Industry and Finance Ministry report suggested a worst-case scenario that could occur as early as 2013. There are also theories that peak of the global oil production may occur in as little as 2-3 years. The ASPO predicts peak year to be in 2010. Some other theories present the view that it has already taken place in 2005. World oil production decreased from a peak of 84.59 mbd in 2005 to 84.55 mbd in 2006 and to 84.48 in 2007, but is projected to increase to 87.58 mbd in 2009. According to peak oil theory, increasing production will lead to a more rapid collapse of production in the future, while decreasing production will lead to a slower decrease, as the bell-shaped curve will be spread out over more generations.
WEIGHT: 12.5KG Bars of AU Metal, (1 Kg = 32.1507425 Troy Ounces )
HALLMARK: Internationally Accepted and Recognized “LBMA” Registered / Certified Hallmarks, Less than five (5) years
FINENESS / PURITY: Fineness of 999.5/1000 Parts Pure Gold (“GLD Specifications”)
LOCATION: The Product is physically located at: GLD Bullion Depository, Hong Kong
The Product will be lift able from: GLD Bullion Depository, Hong Kong
QUANTITY: Twenty-Thousand Metric Tons (20,000 MT), with Rolls and Extensions as agreed.
1ST TRANCHE: Twenty-Five Metric Tons (25 MT), Or Greater amount if Buyer Capable, it would be preffered to Lift 5000MT at first Trench, this, will be discussed at Table Top Meeting (TTM)
INCREMENTS: To be executed in accordance to the trenching schedule, as agreed between Principal Seller and Principal Buyer at the (TTM) in New York City, United States of America
PRICE: The Purchase Value of Each and Every Lift of the Product as per the Agreement (the “Purchase Value”) Shall Be Calculated on the Date of Transfer / Delivery, in advance of Any Discounts, as Follows:
“The Number of Fine Troy Ounces of the Product Delivered in Each and Every Lift, as Established by the Assayer Certificate Issued by the Refinery (One Kilogram Being 32.1507425 Fine Troy Ounces), Multiplied by the Fine Troy Ounce's Price According to the Last Known 2nd Fixing of the London Bullion Market Association (the “LBMA”) on the Day of Delivery / Invoicing” and displayed by the “LBMA”. In the event that the “LBMA” is not operating on that scheduled day, the price calculation used shall be based on the second “LBMA” fixing of the next market opening day”.
The Purchase Value of the Product Shall Be Calculated with a Precision of One (1) Cent (1/100th of One (1) United States Dollar (“USD”); the Quantity of the Product Shall Be Calculated with a Precision of 0.001 (1/1000th of One (1) Fine Troy Ounce).
ORIGIN: To be advised at TTM in New York City, United States of America
PAYMENT: Cleared Funds against Delivery
DELIVERY: As Agreed upon between the Seller’s Bullion Officer and the Buyers Bullion Officer
PROCEDURES: Bullion Officer to Bullion Officer, Buyer’s Option.
DISCOUNT: Seven (7 %) percent Gross / Five (5 %) percent Net to Buyer.
Intermediaries Professional Fees of One (1 % percent on each side0. 1% Seller Side – Closed and 1% Buy Side Open To be paid by Buyer and respectively under an IMFPA
which will be an integral part of the contract.
PROOFING: Final Proof Of Product (POP) and Proof Of Funds (POF) will be exchanged between Buyer and Sellers’ Gold Bullion Officer (GBO) at a suitable time arranged between both GBO’s.
PAYMENT: Payment of the AU GLD bullion Metal shall be in good, clean, clear, United States dollars (USD) of non-criminal origin.
Each delivery will be accompanied by all documents normal to the trade. The documents which will be delivered by the seller’s bank are as follows:
Four copies of invoice made out to the buyer
Gold bullion certificate
Certificate of ownership
Internationally acceptable assay certificates
Assayer and smelter certified weight list describing each bar.
Certificate of origin
Tax clearance including declaration that the product is free from liens and encumbrances.
Warehouseman's certificate (bonded goods release permit).
Export license would be provided at buyer’s expense.
Safe Keeping Receipts (SKR)
Commercial Invoice
Insurance Certificate
Aurum Utalium (AU) is Movable to Buyer’s Facility
III. PROCEDURES:
1. Seller’s mandate or Seller issues the final Full Corporate Offer (FCO) to the Buyer.
2. Buyer “Associate” Signs the Full Corporate Offer (FCO) as acceptance of terms and conditions, and issues 2 Letters as follows: BEFORE THIS CAN BE CONSIDERED. THE SELLER / MANDATE WILL BE CONTACTED BY THE BUYERS LAW FIRM AND APPOINT A TIME FOR THE MEETING. THE SELLER MANDATE WILL VISIT THE BUYERS NOMINATED LEGAL COUNSEL IN NEW YORK CITY, UNITED STATES OF AMERICA AND TO VERIFY That THE BUYER’S BANK CAPABILITY LETTER EQUAL TO 25MT AU IS SIGNED BY TWO BANK OFFICERS AND UPON VALID VERIFICATION, THE SELLER’S MANDATE (MR. SHALOM) WILL COORDINATE AND PERMIT AND CONTACT THE SELLER SHORTLY THEREAFTER TO SCHEDUEL A TTM THE AT SELLER`s SELECTED LOCATION TO EXCHANGE OF BONIFIDE DOCUMENTS AND CLAUSE “A” AND “B“ AT THE FOLLOWING APPOINTED TABLE TOP MEETING AT THE SELLER’S OFFICE IN “NEW YORK” SAME DAY . AT BUYER’S LAW OFFICE IN NEW YORK. ( Be advised that Once Seller Mandate verify THE BCL FOR 25MT has Two Bank Officers signatures and it is ORIGINAL, The Meeting with Seller will take Place Same hour or next hour. )
A.) At this time the Buyer seals and signs the IMFPA that will be sent along with the buyer signed FCO,
3. Also, Buyer will Issue a Bank Capability Letter For Twenty-Five (25 MT) Metric Tons. The Capability Letter have to be signed by Two Bank Officers and/or TO BRING THE ORIGINAL BUYER’S BANK CAPABILITY LETTER (BCL) TO BUYER’S LAW FIRM IN NEW YORK (USA) AND TO SHOW THE ORIGINAL BUYER’S BANK CAPABILITY LETTER (BCL) TO SELLER’S MANDATE AS SET FORTH AT THE APPOINTED TIME AND DATE OF THE TABLE TOP MEETING (TTM). The Seller / Sellers Mandate will verify the Capability Letter and in few Minutes the Seller will Give “Hard Copies” to The Buyer / Buyers Mandate or Legal representatives the Following Items :
A. ) Invitation to Closed Deal In Hong Kong,
B. ) SKR, Certificate of Ownership and other relevant document.
C. ) Seller`s Bullion Officer`s Coordinates
4. Seller Invites Buyer or his Reps, for a comfort TTM in Hong Kong.
And at the Final TTM In Hong Kong:
a) The Seller will sign the FCO at the meeting, and the SPA with Basic banking details. Once the SPA has been signed, l as well as the IMFPA, will also be completed and signed and sealed.
b) Tranching schedules and all relevant banking and bullion officer information that will be required for an expedited closure at the Bullion depository at Hong Kong will be discussed and confirmed.
SUGGESTED SALES PURCHASE AGREEMENT FOR TRANSACTION PROCEDURE
5.1. The Seller and the Buyer hereby agree to and fully accept the following procedure for the execution of the Transaction by both Parties:
The Seller and the Buyer, hereby execute the Agreement, electronically, which electronic execution shall be legally binding by the Parties as per the Section 14 below.
The Seller shall instruct his Bank / Bullion Officer to issue, via SWIFT, the Proof of Product (“POP”) of the Au Metal “GLD” Gold Bullion within the Initial Lift [consisting of Two Hundred Metric Tons (200 MT)] to the Buyer’s Bank / Bullion Officer. The Buyer’s Bank / Bullion Officer shall have the right to contact the Seller’s Bank / Bullion Officer to verify the Proof of Product.
The Buyer’s Bullion Officer contacts the Seller’s Bullion Officer and these two Bankers organize the rapid exchange of the Proof of Product (“POP”) for the Proof of Funds (“POF”).
The Buyer’s Bank / Bullion Officer and the Seller’s Bank / Bullion Officer shall finalize all documents necessary to legalize and allow the successful transfer of the Title / Ownership of the Product in the Initial Lift of Two Hundred Metric Tons (200 MT) of the Product on a payment against delivery; Ledger to Ledger basis or Bank to Bank basis or as the Parties may agree. All payments for Each and Every Lift, as per the Agreement, shall be accomplished according to the terms and conditions herein and shall incorporate the instructions as contained in the attached the Seller’s Payment Instructions [“Annex 3” of the Agreement]. Lifts subsequent to the Initial Lift, if Rolls & Extensions should be agreed by the Parties, shall be transacted directly between the Buyer’s Bullion Officer and
Brent crude oil spot price can be divided into two types: current spot price of Brent (Dated Brent) Brent spot and forward prices (15day brent). The former is within the specified period of time specified in the price of cargo; the latter for a specified delivery month, but the specific cargo delivery time undetermined price, the specific time of delivery to be at least 15 days in advance by the seller notified the buyer.
2), North American crude oil
European crude oil markets, crude oil market the U.S. and Canada have also been more mature. Its main trading for the NYMEX exchange trading, price changes all the time, turnover is very active; In addition, over the counter. In the area of trade or exports to the region some of the main reference price of crude oil West Texas Intermediate U.S. based oil WTI (West Texas Intermedium), such as the eastern United States and the Gulf of Mexico, Ecuador exports of crude oil, Saudi Arabia's Arab Light oil exports to the U.S., the Arab Oil, heavy oil and Berry Arab super light oil.
3), Middle East crude oil are mainly exported to North America, the Middle East, Western Europe and the Far East. The benchmark price of crude oil in the light of generally depends on its oil export market. Middle East oil exports of oil pricing is divided into two categories: one is linked to its oil pricing benchmark. The other is exporting its own published price index, oil industry as "the official sales price index" ("official price", OSP). Oman Oil and Mineral Resources announced the crude oil price index for the MPM, Qatar Petroleum announced the price index for the QGPC (including onshore and offshore crude oil prices, Qatar), Abu Dhabi National Oil Company for the ADNOC price index (including the Charles Hunt Oil , DOWN Queensland oil, Moore class of oil, Umm Scherf oil), the price index published once a month, both retroactive price. QGPC and ADNOC MPM index price index to determine the basic reference. Official price index in 1986 to abandon the fixed price after OPEC appeared; the current Asian market, many oil prices linked to spot trading and the OSP. Pricing mechanism from the OSP can be seen by all three price indices greater impact on the host government, including the government to determine market trends and the corresponding countermeasures.
Frame of reference pricing of oil in the Middle East countries also distinguish between different markets. In general, for the export of crude oil in North America, by reference to the U.S. West Texas Intermediate oil price, crude oil for export to Europe by reference to the North Sea Brent crude oil prices, crude oil for export by reference to the Far East, Oman and Dubai crude oil pricing . In addition, there are some countries in the light of the choice of crude oil, all the crude oil market, only a reference, but for different markets will choose different premiums and discounts. Kuwait's crude oil exports of the three markets, the reference price of crude oil are in the nature of Arab oil, but the quality of Arab oil in the premiums and discounts are different.
4), except in Asia Pacific Oil Platts, Petroleum Argus quoted prices, the Asian Petroleum Price Index (APPI), Indonesia's crude oil price index (ICP), OSP index, and nearly two years developed the Far East Oil Price Index ( FEOP) price of crude oil to countries also have an important impact. Long-term sales contracts of crude oil pricing is divided into two categories: one in Indonesia, a crude oil price index in Indonesia or Asia-based oil-price index, plus or minus adjustment of prices; other crude oil in Malaysia Tapestry Asian oil price index based adjustment of plus or minus the price. Such as Vietnam's White Tiger oil, the pricing formula for crude oil in Asia and India Niemi NASDAQ price index of crude oil price plus or minus adjustments. Australia and Papua New Guinea exports of crude oil, the pricing formula Zeyi Malaysia Tapestry crude oil price index based in Asia. China's exports of Daqing crude oil pricing crude oil and Nasdaq Niemi Zeyi India Indonesia Cinta crude oil price index and the average of the Asian oil price index is based. China National Offshore Oil Corporation, Asian oil exports of crude oil reference price index only, also refer to OSP price index.
Brent crude oil spot price can be divided into two types: current spot price of Brent (Dated Brent) Brent spot and forward prices (15day brent). The former is within the specified period of time specified in the price of cargo; the latter for a specified delivery month, but the specific cargo delivery time undetermined price, the specific time of delivery to be at least 15 days in advance by the seller notified the buyer.
2), North American crude oil
European crude oil markets, crude oil market the U.S. and Canada have also been more mature. Its main trading for the NYMEX exchange trading, price changes all the time, turnover is very active; In addition, over the counter. In the area of trade or exports to the region some of the main reference price of crude oil West Texas Intermediate U.S. based oil WTI (West Texas Intermedium), such as the eastern United States and the Gulf of Mexico, Ecuador exports of crude oil, Saudi Arabia's Arab Light oil exports to the U.S., the Arab Oil, heavy oil and Berry Arab super light oil.
3), Middle East crude oil are mainly exported to North America, the Middle East, Western Europe and the Far East. The benchmark price of crude oil in the light of generally depends on its oil export market. Middle East oil exports of oil pricing is divided into two categories: one is linked to its oil pricing benchmark. The other is exporting its own published price index, oil industry as "the official sales price index" ("official price", OSP). Oman Oil and Mineral Resources announced the crude oil price index for the MPM, Qatar Petroleum announced the price index for the QGPC (including onshore and offshore crude oil prices, Qatar), Abu Dhabi National Oil Company for the ADNOC price index (including the Charles Hunt Oil , DOWN Queensland oil, Moore class of oil, Umm Scherf oil), the price index published once a month, both retroactive price. QGPC and ADNOC MPM index price index to determine the basic reference. Official price index in 1986 to abandon the fixed price after OPEC appeared; the current Asian market, many oil prices linked to spot trading and the OSP. Pricing mechanism from the OSP can be seen by all three price indices greater impact on the host government, including the government to determine market trends and the corresponding countermeasures.
Frame of reference pricing of oil in the Middle East countries also distinguish between different markets. In general, for the export of crude oil in North America, by reference to the U.S. West Texas Intermediate oil price, crude oil for export to Europe by reference to the North Sea Brent crude oil prices, crude oil for export by reference to the Far East, Oman and Dubai crude oil pricing . In addition, there are some countries in the light of the choice of crude oil, all the crude oil market, only a reference, but for different markets will choose different premiums and discounts. Kuwait's crude oil exports of the three markets, the reference price of crude oil are in the nature of Arab oil, but the quality of Arab oil in the premiums and discounts are different.
4), except in Asia Pacific Oil Platts, Petroleum Argus quoted prices, the Asian Petroleum Price Index (APPI), Indonesia's crude oil price index (ICP), OSP index, and nearly two years developed the Far East Oil Price Index ( FEOP) price of crude oil to countries also have an important impact. Long-term sales contracts of crude oil pricing is divided into two categories: one in Indonesia, a crude oil price index in Indonesia or Asia-based oil-price index, plus or minus adjustment of prices; other crude oil in Malaysia Tapestry Asian oil price index based adjustment of plus or minus the price. Such as Vietnam's White Tiger oil, the pricing formula for crude oil in Asia and India Niemi NASDAQ price index of crude oil price plus or minus adjustments. Australia and Papua New Guinea exports of crude oil, the pricing formula Zeyi Malaysia Tapestry crude oil price index based in Asia. China's exports of Daqing crude oil pricing crude oil and Nasdaq Niemi Zeyi India Indonesia Cinta crude oil price index and the average of the Asian oil price index is based. China National Offshore Oil Corporation, Asian oil exports of crude oil reference price index only, also refer to OSP price index.
(A) international price of crude oil and refined oil market mechanism
1, the international crude oil price system
With world oil market development and evolution of long-term trade of crude oil contracts are now many are using the formula calculation method, that is, with reference to one or several selected based on the price of crude oil, together with premiums and discounts, the basic formula is:
P = A + D
Where: P A settlement price for the crude oil price as a benchmark for the premiums and discounts D
A reference price of crude oil which is not specific to a specific time transaction price, but with a period of time after closing spot price, futures price, or offer a quote associated institutions calculated on the price. Some of crude oil using a quotation system for such type of crude oil pricing, buried at the post by the formula as the benchmark price; some crude oil prices, etc because there is no reason for crude oil will have to link it other offer.
Oil pricing benchmark called the light of the oil at the oil. Base oil selected different trade areas are different. Exports to Europe or from European exports, the basic selection Brent Oil (Brent); major North American West Texas Intermediate oil selection (WTI); the Middle East with reference to Brent oil export to Europe, North America, the export of oil West Texas Intermediate light, exports Oman and Dubai crude reference to the Far East; the Middle East and Asia-Pacific region are often the "base oil" and 'Yu price index "a combination of price and attach great importance to premiums and discounts.
Day Trading oil futures: Essential tips
Holding on to a long or short position when it comes to futures trading is a common phenomenon. However, there are certain situations when one is able to buy and sell off futures in a single day. This is refereed to as day trading. This kind of trading will allow one to be freed from having any positions that are open by the close of the day.
Day trading oil futures is fast paced. It entails making very fast decisions and also some level of expertise is required so as to avoid making expensive mistakes. Below are some of the essential requirements of day futures trading:
One should possess sufficient understanding and experience of the futures market. Having years of expertise in futures trading will assist one gain a deeper understanding of how the entire system operates. One is able to analyze trends which is an important skill in being successful in days futures trading. Researching constantly and being updated on the latest in the financial world will assist you in weighing out your options and coming up with winning strategies.
When it comes to the financial resources, having sufficient leverage that will enable you have access to good capital is very important. With sufficient capital and good trading experience, then making substantial profits becomes part of the package.
Ensure that you come up with a good trading plan. Long term investments usually require some strategies in order to optimize on the movements in the market.
With the futures market, one must have a disciplined approach. Come up with an amount for your risk capital and then make intelligent and cautious moves, Impulsive kind of decisions involve a high level of risk and in most cases they end up being unproductive.
In order to be successful in day futures trading, you must have the necessary tools. This includes a computer with internet connection. That way, you are in position to keep track of the market at any time. This is very useful in day trading since you must be aware of the market trends constantly so as to avoid making a poor decision.
Since there are no open positions that are held over the night, you are protected from any unexpected losses that may become imminent as the trading floor opens on the next day. However, it is worth noting that some of the day traders get tempted to over trade which leads to financial complications. Since the trading commissions are usually impressively high, it is advisable to make sober decisions so as to maximize on the level of profits that you earn.
The first discovery of crude oil was made in America in 1859. By the beginning of the twentieth century, crude oil supplied approximately four percent of the world’s energy. However, today, crude oil is responsible for supplying about forty percent of the energy in the world with the transportation market being its highest user.
Crude oil is traded in the futures market and it become imminent on the trading floor in 1983. It now happens to be one of the most heavily traded commodities in the world. Futures imply that you are trading the price of the crude oil way in to the near future. Traders usually make speculations that the price will go higher in the future or in some cases the price may go lower. Crude oil futures usually trade in significant units of one thousand U.S barrels or forty thousand gallons.
In order to succeed at the art of days trading, you must have skill and some level of experience. After years of being in the trade, it becomes easier to understand the market trends. Making rush decisions is unwise as you could end up making an expensive mistake. Since day futures involve buying and selling on the same day, quick decisions have to be made. The trader should be able to be constantly informed of what is happening on the trading floor. This implies that one should have the necessary technological tools such as computer and internet connection.
As a trader, it is also advisable to be updated on the latest happenings in the financial marketing. Information in this kind of avenues can greatly assist one is determining the behavior of the particular stock in the market. It is therefore important to be able to analyze the impact of information in relation to the stock that you are trading.
In order to make good profit margins, a trader should have sufficient levels of capital. The higher the capital the better is the chance of making increased profits. Low capital can be a barrier to succeeding in the day futures crude oil trading market.
Tread cautiously as nothing is certain in the futures market. Many people have ended up receiving very hard financial blows because of making rush decisions. The strategy is learn how to analyze market trends as this will form the basis of your speculation efforts. Be very vigilant in examining the stock movements that are taking place.
Oil & Gas Service
On a global basis, the service produces 10-year forecasts of oil, gas, refined products and LNG supply and demand, imports, exports and prices using a proprietary model integrated with BMI’s macroeconomic and risk data from the Country Risk team. As well as the forecasts, our in-depth country reports contain industry SWOT analyses, proprietary business environment rankings and a comprehensive view of the competitive landscape, including profiles of all major upstream and downstream players in each state.
The Oil & Gas Service is designed to enable industry executives, senior budget-holders and decision-makers in investment banks, consultancies, government agencies and large multinational corporations to evaluate and manage risk and exploit business opportunities in the global oil & gas industry.
Saudi Light Crude Oil ( ARAMCO SLCO ) ; crude oil price ;crude oil price today; crude price;crude oil prices chart;oil barrel price today;crude oil price chart
Subject: Re: Saudi Light Crude Oil ( ARAMCO SLCO )
Price - Dubai Platts minus $6/$4 or $5/$3
The combined commission to facilitators group is 50 cents.
While the $1.50 will be given to the usual recipients: Prince bureau and Aramco officials !
Would like to inform you that we have a Saudi Light Crude Oil from Saudi Aramco.
Saudi Aramco only sells to qualified refinery-buyers with an Aramco refinery registration number , OR to a trader who has Crude processing agreement with a refinery registered with Aramco (with authorization from the refinery).
Buyer's ICPO to be addressed to Aramco along with fresh BCL , the buyer will be invited to Aramco's office in Saudi Arabia. Buyer should have his original doc. with bank letter ( POF ) and all doc. related to the refinery , then contract hard copy will be signed in TTM .
The buyer should give quantity required and his target price in ICPO , with the following details :
1. Refinery Name.
2. Refinery Location.
3. Refining Capacity.
4. Storage Capacity.
5. Refinery Registration number with ARAMCO.
6. Copy of CPA (Crude Processing Agreement) – if not Refinery.
7. Buyers Banking Coordinates.
8. Full Contact Details.
9. Permission for Soft Probe.
Bonny Light Crude Oil – Specifications
Enclosed herewith BLCO specs .
For CIF china price of minus USD5.00 below DID BRENT Platts.
Usually the price in the market is less discount usd 1 to 1.5 .
Since we are getting a very good discount from the seller/allocation holder we will need to pay usd 2 as commission to the people getting this deal on the table .So the discount to u nett after paying the commissions will be for CIF china price of minus USD3.00 below DID BRENT Platts, but the contract will show platts less usd 5 and we need to the comissions seperately from the contract for usd 2 .
In this deal your subsidiary company can do the deal on behalf of Sinopec and your can resell to Sinopec .
If you are ready to proceed then i will request for the SPA from the seller for your approval.
Bonny Light Crude Oil – Specifications
Specific Gravity: 0.8597
Shipment Content: 0.1
API 36.7
Wax-WT percent 2.9
Vanadium PPM V200 11.0
Gross Heating Value 19.23
Reid Vapor Pressure 6.52PSIG
Salt Content PPM NACL 3.8
Sulphur wt % 0.12 to 0.14
Carbon Residue, wt% 1.0
Pour Point Below 40ºF
Jet Fuel Price Index
Petroleum Oil products: Jet Juel JP54 SPOT Price and Offer
The one main and crucial requirement - the Buyer must have own or leased tank storage and must be in a position to show to Seller the TSA with Rotterdam port terminal.
We can offer from:
First delivery is SPOT.
Quantity - 200K - 1 mln on Buyers option
Quantity - 300 - 600K X 12
The key point is that the Buyer has to show 1&3 pages of TSA.
1. The Buyer shows copies of their TSA for issuance of FCO
2. Seller issues FCO to your named Buyer.
General Seller's procedure is:
1. Buyer sends copies of 1st and 3rd pages of TSA-Rotterdam
2. Seller issues FCO
2. ICPO with agreed procedure.
3. Seller send SPA for SPOT (200K MT up to 600K MT)
4. Upon signed SPA seller send full POP incl TSR or PIR, SGS for liftable quantity and DTA.
5. Buyer's bank issue MT 103/23
6. Seller start to pump the goods to the Buyer's Tank according Pumping Schedule.
7. Payment-Title Transfer
The reason why the Seller asking for TSA is because the first liftable quantity will be delivered from Seller's tank in to Buyer's tank, afterwords the supplying will be effected directly to Buyer's tanks either to Buyer's vessels.
I
Natural Gas Prices News
Natural Gas Quotes
D5 - 3,400,000 gallons
D6 - 2,000,000 gallons
discount Houston USA Platt 5%
POP upfront
D5 is located in Michigan USA
D6 in Ohio USA
ULSD & Octane 87 ideal for end buyer or Major:
ULSD USA Standard 8-15 ppm Sulfur, unbranded road Diesel, origin USA (Specifications for ULSD to follow)..
The target price as we discussed is Gulf Platt -4 Net to BUYER with weekly deliveries of approximately 33,000 Metric Tons per week (approximately 10 million gallons per week) for 52 weeks on a term contract with rolls and extensions.
You indicated BUYER would take delivery from the Magellan Pipeline/Houston which we can do with no problems.
Company requires buyers submit one document at the outset of a transaction:
***LOI from the buyer to include quantity, term, target price, logistics, transaction Bank name (not account information) and Bank Officer name with his/her email made out to seller rep, if they want to procure this product.
Upon receipt, and examination of BUYER LOI, a closing package will be sent directly to the bank and a Customer ID# will be issued. Open access to our Company's internal web site will be activated. There BUYER can check all open LIVE inventories, they can schedule SGS inspections and Dip Tests directly with SGS if desired. Speak live to anyone including myself in the Trading departments for information or assistance. Also, our company will assist BUYER with logistics if needed such as recommending cost saving ways to pickup fuel, storage or shipping.
Closing time for contracts can occur in as little as 4 hours up to 48 hours depending on the accuracy, completeness, and timing of the documentation submitted.
All fuel transactions are treated as extremely time sensitive and the utmost care is given during every step to assure smooth completion and service before the first lift and during the entire term of the contract.
If the buyer is a Major, no LOI is required. We need to identify who the Major is. Seller rep will talk to the procurement officer in order to get the pay order issued and the commercial invoice, SGS reports, DTA issued.
BUYER WILL SIGN DIRECTLY WITH REFINERY
PETROLEUM PRODUCTS RUSSIAN ORIGIN
Seller is a refinery and title holder
Refinery prices, exclusive the commissions
FIXED PRICES NET TO REFINERY:
JP54 $75per barrel-FOB Rotterdam; (1M to 5M X 12) per month
D2 $780 per MT-FOB Rotterdam; (500K MT to 2M X 12) per month
Mazut100 $450 per MT CIF Delivery Port (300K MT to 1M) per month
REFINERY PROCEDURES
-1. Buyer sends ICPO / NCND Sign & Seal address to: Refinery Agent
-2. Refinery sends SCO for confirmation
-3. Buyer confirm SCO by Sign and Seal
-4. Seller sends FULL Contract for final signature and Legalization
-5. Buyer opens Bank-instrument (SBLC or LC NON Operative) to Refinery-Bank
Bank-Instrument,
-6. After Refinery verify and confirm Bank-instrument, the Refinery shall send in 24
hours the Partial POP (inclusive TDS, SGS & Dip test), to Buyer.
-7. Buyer Issue MT 103,
- 8. The Refinery, start immediately delivery of the Product FOB Rotterdam
