One barrel of diesel weighs approximately 839.5 kilogram or 159 liters In the oil industry, one barrel (unit symbol bbl) is a unit of volume used for measuring oil defined as exactly 42 US gallons, approximately 159 liters, or 35 imperial gallons.
A barrel is a unit of volume or weight that can vary depending on the context and what it contains. A barrel of oil is typically around 159 liters, or 42 US gallons. The average domestic crude oil weighs about 7.21 pounds per gallon, so a barrel of oil weighs about 300 pounds, or 136 kilograms.
The term “barrel” is often used interchangeably with the term “drum”. However, a drum usually holds 55 gallons.
EN 590 MOPS (Mean of Platts Singapore) is the average of a set of Singapore-based oil product price assessments published by Platts, a global energy, petrochemicals, metals and agriculture information provider and a division of S&P Global. MOPS, or Mean of Platts Singapore, is a benchmark price for refined products in the Singapore region. It’s calculated by averaging a set of oil price assessments published by Standard and Poor’s Platts, a Singapore-based market wire service. The time frame for the average can be a week, a month, or any agreed period of time.
Platts is a price benchmark service for the oil industry. Platts pricing is often used as the preferred pricing mechanism, plus or minus a premium or discount.
EN 590, NWE Platts refers to the Northwest Europe cargoes subheading under the “Platts European Marketscan”. The Floating Price for EN 590 Diesel 10ppm UK CIF NWE Cargoes (Platts) is based on the difference between the average of the “Mid” quotations in the “Northwest Europe cargoes” subheading and the average of the settlement prices for the front month Low Sulphur Gasoil Future.
EN 590 is the standard for automotive diesel fuel sold in the European Union and other European countries. It’s also known as ultra-low sulfur diesel (ULSD). The EN 590 standard describes the physical properties that all automotive diesel fuel must meet.
What is Platts FOB Singapore Gasoil?
The term ‘Platts FOB Singapore Gasoil’ refers to the physical price of gasoil loading on FOB Straits 15-30 days forward from the date of publication. Gasoil grades assessed by S&P Global Commodity Insights include 2500 ppm, 500 ppm, 50 ppm and 10 ppm sulfur gasoil.
The Gasoil benchmark price is the primary physical market pricing reference for gasoil loading or delivered to traders, refiners and end users in Asia.
Underpinned by firm economic growth in Asia, demand for the multi-use fuel has grown and now Asia is a leading producer of gasoil as well as a key consumer, thus making the FOB Singapore Gasoil assessment a key pricing benchmark for the whole world.
Annual gasoil exports from the main regional refinery centers South Korea and India have risen to more than 20 million mt each, while large demand centers in Asia Pacific, such as Australia, see imports of similar volumes, data from the Joint Oil Data Initiative shows.
S&P Global Commodity Insights Singapore physical gasoil assessments reflect a minimum of 150,000 barrels, maximum 250,000 barrels, loading 15-30 days forward from the date of publication. Market participants should specify loading for a five-day date range at the time of submitting a bid of offer for publication in the assessment process.
Platts gasoil assessments are assessed by S&P Global Commodity Insights on a Market on Close assessment process basis.
From January 2, 2018, Platts FOB Singapore, FOB Arab Gulf, FOB Arab Gulf LR2 and FOB Korea Gasoil assessments by S&P Global Commodity Insights will begin to reflect maximum 10 ppm sulfur. The following assessments and codes will be affected:
Assessment Codes
- FOB Singapore Gasoil POABC00
- FOB Arab Gulf Gasoil POAAT00
- FOB Arab Gulf LR2 Gasoil AAKBT00
- FOB Korea Gasoil POAIE00
S&P Global Commodity Insights will also assess differentials and strips in these markets basis gasoil with maximum 10 ppm sulfur.
Note that Platts C+F Japan Gasoil assessment already reflects maximum 10 ppm sulfur gasoil.
PROCEDURE
Most common method of getting into a transaction is by doing a first trial lift by CI Dip and Pay or SPOT, either from a storage facility or by TTO/TTT, which when completed successfully will lead into a Contract either CIF or FOB.
This way, both Buyer and Seller are able to test performing capability of both parties, before committing to a long term contract. We do also from time to time , facilitate single SPOTs when the availability and need arises.
Ownership transfer (Preferred payment terms by Ametheus):
1. Buyer sends ICPO & buyer sellers signs CI
2. Seller releases full POP including fresh SGS or Saybolt.
3. Buyer verify full docs within 02 days confirm the way forward.
4. If required buyer does dip test on its own cost & releases the payment within 24 hours
5. Seller transfers full titleholding with tank ownership in buyer’s name.
TRANSACTION PROCEDURES (CI, DIP &PAY)
1. Buyer submits ICPO with bank info.
2. Seller issues draft contract to the buyer
3. Buyer fills in their contacts and banking information sign the draft contract and sends it to back the seller to sign and fill in their banking information and return it to the buyer in pdf. The buyer will issue a bank-to-bank proof of funds, for the total purchase cargo value based on the POF draft format on the contract.
4. Buyer and/or its end buyer and Seller may or may not meet in Dubai UAE. Parties sign the contract via electronic signature. Seller issues dip test authorization for the SGS inspection to be carried out by the buyer, SGS/Saybolt for Q&Q.
5. Upon confirmation and satisfaction by the buyer and certification by SGS/Saybolt for Q&Q Seller issues a commercial invoice with the SGS report exact quantity for the full payment to be transferred to the seller account within 48hrs and the Buyer pays 100% via MT103 CI and Pay.
6. Upon confirmation of receipt of full payment, the Title is transferred to the buyer, and the product will be discharged to the buyer’s vessel/tank.
7. Shipment will commence as agreed.
TTV:
The Tank to Vessel (TTV) procedure is a process for the transfer of refined petroleum products from a tank to a vessel. Here are some steps in the TTV procedure:
The buyer provides the ICPO (Irrevocable Corporate Purchase Order) and CPA (Buyer Company Profile)
The seller responds with a Confirmation Letter of fuel availability
The seller issues a Joint Participation Agreement (JPA)
The buyer signs and returns the JPA
The seller issues a Commercial Invoice (CI)
The buyer signs and returns the CI
The seller issues a Delivery Transfer Authorization (DTA)
The buyer receives a successful SGS report
The seller arranges for the fuel transfer to the buyer’s tanks
The buyer confirms the complete transfer of fuel
The buyer pays for the fuel
The seller issues a Proof of Purchase (POP) and other relevant title documents
TTO/STS offer:
Buyer issues Irrevocable Corporate Purchase Order (ICPO), Company registration certificate
with Guarantee Letter to take over title of the product.
2. Seller issue draft (MOU) agreement to Buyer countersign and return to seller.
3. Seller sends to Buyer the following documents for Buyer’s confirmation.
A. Q88
B. Bill of Lading
C. Estimated Time of Arrival E.TA.
D. Q&Q Analysis Report.
E. Cargo Manifest.
F. Certificate of Origin
G. Vessel Declaration
4. Buyer/Seller authorizes shipping company to reroute the vessel to buyer’s desired Port If
buyer needs to vessel to be rerouted from the current destination. Seller transfer title at the
appropriate governmental department to Buyer’s name and releases a fresh dated Dip-Test
Authorization-DTA, Authority to Board (ATB), and Authority to Verify (ATV) to Buyer. Buyer
order SGS or Equivalent inspection team for Q&Q inspection.
5. Upon the successful completion of Dip-test inspection, Buyer makes the balance payment
by MT103 wire transfer for the total goods value, Seller transfers Title of ownership Certificate
to buyer’s name as the legitimate owner of the goods and commence trans-loading.
6. Trans-loading commence immediately.
7. Seller will release payments to the intermediaries involved within 48 hours of receiving the
Payment for the product from the Buyer’s bank.
