MII Oil Holding Inc.

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PLATTS OIL GUIDE TO SPECIFICATION

PRODUCTS-ASIA

General Terms and Conditions

All Asia-Pacific/Arab Gulf product assessments are assessed up until 1730 Singapore standard time. Transactions and bids/offers after 1730 Singapore time deadline will not be taken into account. All Singapore assessments are FOB.

Price Units

All product prices are in US dollars. Singapore fuel oil and MTBE are quoted on a dollars per metric ton basis but all other products are quoted on a dollars per barrel basis. For Japan and the Arab Gulf both naphtha and fuel oil are quoted in dollars per metric ton but all other products are quoted on a dollars per barrel basis.

Gasoline
Platt's quotes three physical gasoline grades in Singapore and one in Japan:

1 Singapore - 97 research octane number (RON) unleaded grade. The lead content is 0.01 grams per liter (g/l).

2 Singapore - 95 RON unleaded. The trace lead content is 0.01 g/l.

3 Singapore - 92 RON unleaded. The trace lead content is 0.01 g/l.

4 Japan - 91-92 RON unleaded. The trace lead content is 0.01 g/l.

RVP for all grades is 9-10 psi. Benzene content for all grades is a maximum of 5 pct. All grades are undyed light yellow.

The most frequently traded cargo size in Singapore is 50,000 bbl. Transactions and bids/offers of a minimum of 50,000 bbl are considered for the assessments. Specific gravity for the gasoline grades quoted is around 0.74 grams per milliliter (g/m). The assessments reflect transactions and bids/offers for barrels loading 15 to 30 days from the date of publication. Market participants should specify loading for a five-day date range. Ten days prior to loading, seller must declare terminal and buyer nominates vessel seven days prior with the loading window narrowed to three days.

The paper gasoline assessment is for 95 RON unleaded grade and reflects transactions for 50,000 bbl. The assessments reflect the value of paper gasoline one and two months ahead from date of publication and are quoted on a full calendar basis. For example, during the month of February, Platt's would quote March and April paper gasoline over the full course of the month. Paper gasoline is a contract settled "strictly" on a cash basis, as it is a non-delivery financial instrument.

Prices for all gasolines are quoted on a US dollars per barrel basis.

MTBE
Minimum 95 pct MTBE. Typically, however, the material runs closer to 98 pct MTBE. RVP is 8-10 psi. Octane is 109 R+M/2. Oxygen is 18.2 pct by weight.

Naphtha
Platt's quotes physical naphtha in Singapore, Japan and the Arab Gulf. The quotes are based on light and full range naphtha with a minimum paraffinic content of 65 pct and specific gravity of 0.69-0.71 g/m. A conversion factor of 9 barrels per metric ton is used. The assessment reflects the typical quality for Singapore barrels and includes a maximum RVP of 13 psi, sulfur maximum content of 800 ppm. The initial boiling point is -25 degrees Centigrade and a final boiling point maximum of 204 degrees C. Chlorine content is a maximum 1 ppm; mercury, maximum is 1 ppb; and arsenic, maximum 20 ppb. Naphtha with a high N+A content typically sold from India and Indonesia isn't included.

The Singapore physical assessment reflects barrels loading 15-30 days from publication, with a minimum volume of 100,000 barrels.

From May 2, 1995, the FOB Singapore naphtha assessment has been based solely on a netback calculation from Japan. On May 2, 1995, Platt's introduced a new "experimental" naphtha which reflects spot market activity in Singapore, including any fixed-price business. This will reflect spot market activity in Singapore, including any fixed-price business. When there is none, it takes into account market-related business, the forward paper market, and other indicators. It appears only in Platt's APAGscan and Platt's Global Alert. Its name is "Spot Naphtha (Experimental)."

The Singapore paper naphtha assessment reflects a minimum of 50,000 bbl paper transactions. Assessments for paper are for one and two months forward and are quoted on a full calendar basis. As an example, during the month of February, Platt's would quote paper for March and for April. It is a non-delivery contract.

Arab Gulf quotes are assessed on a netback basis from Japan using 55,000mt ship freight rates. Freights reported in the Platt's clean tanker reports are used. It may also be assessed independently depending on spot cargo movements from competing areas.

C+F Japan forward naphtha quotes represent trade for 30-45 days, 45-60 days, and 60-75 days ahead of publication. Whichever half-month these quotes fall into becomes the label for the quote. As an example, on February 2, Platt's quoted three cycles: second half March, first half April and second half April. The main quote assesses the market 45 to 75 days from the date of publication. On every 1st and 16th of any given month the quotes will roll-over to the immediately following half-month cycles

Prices for naphtha in Singapore are quoted on a US dollars per barrel basis. Prices for Japan and the AG are quoted on a US dollars per metric ton basis.

Jet/Kerosene
Arab Gulf and Singapore quotes are based on jet DERD 2494 specifications. Specific gravity is typically 0.8 g/m. Singapore smoke point is typically 19-21, but premiums may be paid for higher smoke point and discounts for lower smoke point. Color reflects minimum 18 Saybolt color guarantee for Singapore.

AG quotes are assessed on a netback basis from Singapore using 55,000mt ship freight rates. Freights reported in the Platt's clean tanker reports are used. It may also be assessed independently depending on spot cargo movement and competing barrels from other areas.

The Japan quote is based on DERD 2494. Color typically sold into Japan is around 20-21.

The Singapore physical assessment reflects transactions, bids/offers of a minimum of 100,000 bbl , maximum 250,000 bbl, loading 15-30 days from date of publication. Market participants should specify loading for a five-day date range. Seven days prior to loading, seller must declare terminal and buyer nominates vessel with loading window narrowed to three days, subject to terminal's acceptance.

The Singapore jet paper assessment reflects a minimum of 50,000 bbl paper transactions. Assessments for paper are for one and two months forward and are quoted on a full calendar basis. As an example, during the month of February, Platt's would quote paper for March and for April. Paper jet kerosene is a non-delivery contract.

Prices for all jet/kerosene are quoted on a US dollars per barrel basis.

Gasoil
The Singapore regular 0.5 pct quote represents barrels, with a maximum sulfur of 0.5pct, typical specific gravity of 0.845 g/m and a pour point of 9 deg C maximum. The color represented is maximum 2 and the flash point is minimum 66 degrees Centigrade. Cetane is a minimum 48. Water and sediment is 0.05 pct maximum.

The Singapore 0.5 pct L/P quote is based on gasoil with a pour point below 6 deg C and 0.5 pct sulfur content.

The Singapore 1.0 pct quote has a sulfur content up to 1.0 pct.

The Singapore physical gasoil assessments reflect a minimum of 150,000 bbl, maximum 250,000 bbl, loading 15-30 days from the date of publication. Market participants should specify loading for a five-day date range. Seven days prior to loading, seller must declare terminal and buyer nominates vessel with loading window narrowed to three days, subject to terminal's acceptance.

The Singapore gasoil paper assessment reflects a minimum of 50,000 bbl paper transactions. Assessments for paper are for one and two months forward and are quoted on a full calendar basis. As an example, during the month of February, Platt's would quote paper for March and for April. It is a non-delivery contract.

The Arab Gulf gasoil quote is assessed as a netback to Singapore using 55,000mt freight rates. Freights reported in the Platt's clean tanker reports are used. It may also be assessed independently depending on spot cargo movements and competing barrels from other areas. Sulfur is typically 0.5% max.

The Japan cracked gasoil assessment typically reflects 2.5-2.7 color and 45 minimum Cetane index. Japan "pure" gasoil quote represents straight-run barrels, typically less than 0.5 color and 50 minimum Cetane index. Both quotes assess 0.5 pct sulfur, -5 deg pour (summer), -10 deg pour (winter) material meeting Japan customs specifications.

Prices for all gasoil assessments are quoted on a US dollars per barrel basis.

Fuel Oil
High sulfur fuel oil 180 centistokes (HSFO) quotes are based on cracked fuel with 3.5% sulfur content on a FOB Singapore basis. The typical specifications are as follows: specific gravity at 15 C kg/l is 0.991 maximum; flash point is 66 degrees C minimum; pour point is 24 degrees C maximum; ash on a weight basis is 0.15% maximum; Conradson carbon residue (CCR) on a weight basis is 16%; vanadium is 200 parts per million (ppm) maximum; sodium is 100 ppm maximum; water by distillation volume is 0.50% maximum; sediment by extraction is 0.15% max; and Shell hot filtration test is 0.15% max.

Assessments for 380 CST represent material with a sulfur content of 4% and aluminum and silicon combined content of 80 ppm maximum.

In Singapore, the assessment reflects transactions or bids/offers for parcels of a minimum of 20,000mt, maximum 40,000mt, loading 15-30 days from the date of publication. Market participants should specify loading for a five-day date range. Seven days prior to loading, seller must declare terminal and buyer nominates vessel with loading window narrowed to three days, subject to terminal's acceptance.

180 CST 2.0 pct sulfur reflects a minimum volume of 20,000mt loading 15-30 days from date of publication. The density is 0.98 maximum and the vanadium 95 ppm and sodium 65 ppm.

The Arab Gulf fuel oil 180 CST quote is assessed as a netback to Singapore using 80,000mt freight rates. Freights reported in the Platt's dirty tanker reports are used. It may also be assessed independently depending on spot cargo movements and competing barrels from other areas. Density in the AG varies and assessments include 0.96-0.975. C+F Japan may be assessed independently since cargoes flow from various sources.

Prices for all fuel oil assessments are quoted on a US dollars per metric ton basis.

Low Sulfur Waxy Residue-Mixed/Cracked
Quote reflects mixed/cracked LSWR with maximum sulfur content of 0.3 pct on a FOB Indonesia/Singapore basis, loading 15-30 days from date of publication. The Indonesian grade typically has a sulfur content of 0.2 pct. A minimum volume of 100,000 bbl will be considered for the assessment. Prices are quoted on a US dollars per barrel basis.

Please note: The LSWR straight-run 0.3%S assessment was discontinued effective April 1, 1996.

Products-China

Gasoline

1. 90 RON. The lead content is 0.4 g/l. Specific gravity is 0.72-0.73.
2. 83 RON. The lead content is 0.4 g/l. Specific gravity is 0.72-0.73.
3. 70 RON. The lead content is 0.4 g/l. Specific gravity is 0.7.

All gasoline quotes are on a C+F South China basis from around the Shenzhen area. Parcel size is 5,000 to 25,000mt. Assessment window is 15-30 days from date of publication. The assessment is based on a low pour point with a maximum 0 deg C and a sulfur content of 0.5 pct.

Gasoil
Minimum volume is 100,000 bbl or 10-15,000mt. Ports are South China-Whampoa, Hong Kong, Shenzhen. Deals into other areas are tracked but prices are different. Gasoil into North China may command a higher price due to geographical location. Gasoil into North China has a pour point of less than 0 deg C. Assessment window is 15-30 days from date of publication.

Fuel Oil
Two grades are quoted - 180 and 380 CST. Sulfur is 3.5 pct maximum. Density is 0.991 maximum. Metals specs are normal cargo specs. Vanadium is 200 ppm and sodium is 100 ppm maximum. Water is 0.5 pct maximum.

Hong Kong Bunkers: Same specifications as Platt's current bunker specs. Prices reflect for 180 CST, 300-500mt lots. Larger volumes might be reflected at the range low. For 380 CST, volumes are typically 500-1,000mt. MDO typically is for 50-100mt lots. The timing is for material delivered within a week from date of publication. Prices are on a delivered basis and include barging cost.



PRODUCTS-EUROPE

General Terms and Conditions


All European product assessments are assessed up until 1830 London time (1830 GMT in winter, 1730 GMT in summer). Transactions and screen movements after this time will not be taken into account.

Price Unit
All product prices in Europe are in US dollars per metric ton (mt).

Timing
Both cargo and barge assessments assume reasonably prompt arrival or lifting, typically between 5 to 15 days from date of publication for cargoes, and typically between 2 to 8 days for barges.

Credit/Payment Terms
Payment is prompt or within a few working days of lifting or discharge. Wherever greater credit is given this will be allowed for in the assessments.

Sizes
Cargo-Typical cargo size is 17,000 to 25,000mt. However, where smaller or larger cargoes dominate trade for a particular product, these will be considered. For gasoline and jet in Northwest Europe 10,000mt is the typical size. Barge- Typical barge size is 1,000 to 5,000mt. Unless otherwise specified, loading for material covered by 'Barges FOB Rotterdam' assessments is assumed to be from refinery or storage in the Amsterdam, Rotterdam or Antwerp area.

Gasoline
Unleaded 98-The NWE barge assessments represent German grade with specific gravity of 0.755 g/ml and a maximum benzene content of 1 pct. The MON number is 88.

Premium unleaded-The NWE cargo assessments represent 95 RON German grade material with specific gravity of 0.755 g/ml. The Motor Octane (MON) number is 85. The barge assessments represent 95 RON, 85 MON German grade. The Mediterranean assessments represent 95 RON Italian, French, and Spanish grade.

Premium 0.15 g/l.-Cargoes: The NWE cargo assessment represents a low/high range of German, UK and French grades. The Med cargo assessment represents a low/high range of French, Spanish and Italian grades. The research octane number (RON) for CIF and FOB Northwest Europe is 97-98. The RON for FOB and CIF Mediterranean cargoes is 97.0-97.4. The (MON) motor octane number is 86-88 in Northwest Europe, and 86.0-87.6 in the Mediterranean. The specific gravity for both NWE and Mediterranean assessments is 0.755 g/ml. RVP is as follows: Germany, 8.76-13.14 psi in winter and 6.57-10.22 in summer; UK, 12.5 in winter, 10.7 psi intermediate, and 9.3 psi in summer. Barges - The range high tends to reflect ex-refinery material and the range low stored or blended material. The barge quote conforms to 98 RON German grade. The specific gravity is 0.755 g/ml.

MTBE
Regular Unleaded-Assessments are based on specific gravity of 0.745 grams per liter, the RON is typically 91 and the MON 82.5.

Standard parcel size is 1,000mt barges, FOB Rotterdam area ex-producer or storage. Purity is 98% minimum, water 500 ppm maximum. Timing is up to one month from date of publication, but typically 5-15 days.

Naphtha
The CIF NWE physical assessments reflect grades of 65-75 paraffin with a typical specific gravity of 0.69 to 0.73 g/ml. Grades with a higher or lower paraffin content will also be considered when traded, but these may at times command a premium or discount, depending on market conditions. The cargo assessments will typically reflect parcels of 10,000 to 30,000mt. Low/high ranges reflect actual trades done on a fixed price spot basis or, in the absence of fixed trade, buy or sell indications depending on the market trend.

The CIF NWE paper assessment reflects swap market values for one month ahead of publication. On the first working day after the 25th of the month, the swaps quote will move to the next month. Therefore, on January 26th the quoted month will be March.

The FOB Mediterranean cargo assessments include both full range and paraffinic grades of 65 to 80 pct paraffin. FOB values will be assessed as a differential to the CIF Med assessment, using a freight value between Alexandria and Lavera calculated using Platt's cross-Med clean tanker assessments plus an additional 15 Worldscale points for superior tonnage and an allowance of $3/mt for port costs.

Barge assessments represent material with 65 to 80 pct paraffin.

Jet
The assessments assume DERD 2494 from NWE or Mediterranean refineries for both cargoes and barges. Sulfur is 0.3 pct maximum, specific gravity is 0.775-0.840 g/ml, flash point is 38 degrees C minimum, freeze point is minus 47 degrees C maximum. Platt's introduced a formula to calculate FOB Med jet as a netback from NWE CIF cargo assessment on October 1 1998. The formula takes the Worldscale flat rate from Augusta to Rotterdam, multiplied by Platt's clean tanker rate assessment for Med-NWE cargoes. The spot tanker rate assessment is first pro-rated from 30,000mt to 25,000mt and is then multiplied by 1.2 to reflect the added cost for superior tonnage. Assessments using the traditional methodology, labeled "old basis jet" will run for information purposes only until September 30, 1999.

Gasoil
Cargoes-The gasoil 0.2 CIF NWE and FOB NWE quotes represent a low/high trading range of French Fuel Oil Domestique (FOD) and German Deutsche Industrie Norm (DIN) heating oil grades with a density of 0.845 g/ml and a sulfur content of 0.2 pct maximum. The EN590 assessments CIF and FOB NWE reflect finished French Gasoil Moteur (GOM) grade and German automotive diesel oil (ADO) that meet EU directive number EN590. CIF NWE cargoes are assumed to be delivered in a Le Havre/Hamburg port range. Cargo assessments in NWE can include 10,000mt parcels. Mediterranean 0.2 CIF and FOB assessments represent a low/high trading range of French and Italian heating oil grades. Med EN590 CIF cargo assessments represent French and Italian dual purpose grades that meet EU directive EN590. These include Russian grades that meet EN590. Med FOB EN590 assessments reflect Italian and Spanish dual purpose grades that meet EN590.

Effective September 2, 1996, sulfur content in EN590 was reduced from 0.2 pct to 0.05 pct in line with European Union legislation. From February 1, 1997, Platt's no longer includes the additive WASA used for finished German grades in its assessments for EN590 gasoil cargoes and barges in Northwest Europe.

Barges-Assessments represent heating oil grades with a specific gravity of 0.845 g/ml with a maximum sulfur content of 0.2 pct. EN590 barge assessments typically reflect German grades that meet EN590.

Fuel Oil
The Med and NWE assessments are based upon cracked fuel oil, with the exception of the E-4 assessments which are for atmospheric residue. For the fuel assessments, it is the combination of qualities that is important. Individual specifications shouldn't be considered in isolation. 1 pct sulfur: Low sulfur cargoes and barges are based on 1 pct maximum sulfur content. Cargo assessments are typically based on a viscosity of 380 centistokes at 50 degrees C, a specific gravity of 0.965 to 0.990 g/ml but FOB Mediterranean material can be lighter than that recorded in the north. On barges, the range low typically reflects a flash point of 65 degrees C and the range high 100 degrees C. 3 pct and 3.5 pct sulfur
The typical quality for high sulfur cargo assessments is a viscosity of 380 to 420 centistokes at 50 degrees C, a specific gravity of 0.998 g/ml, a maximum of 300 parts per million of vanadium. The specific gravity of fuel oil varies widely in Europe and a specific gravity of up to 1.020 in the Mediterranean and 1.005 in Northwest Europe may be considered. Typical specifications for 3.5 pct sulfur barges assessments are: 3 to 4 pct sulfur content, specific gravity of 0.998 to 0.991 g/ml, and viscosity of around 380 to 420 centistokes at 50 degrees C. Factors such as water, Conradson carbon and other metals may also have a marked influence on price.

E-4/M-40: Former Soviet Union (FSU) high sulfur atmospheric residue. Typical specifications for E-4 are sulfur content 1.8-2.5 pct, specific gravity is 0.965 g/ml maximum, vanadium content is 120 ppm maximum. The E-4 assessment reflects the premium quoted over the mean of the means of the 3.5 PCT CIF Northwest Europe cargo and Barges FOB Rotterdam. Typical specifications for M-40 are sulfur content 2.6-3.2 pct maximum, specific gravity 0.93-0.97, vanadium content 100 ppm maximum. The M-40 assessment reflects the premium quoted over the mean of the means of the 3.5 PCT FOB Med cargo and CIF Med cargo. M-40 assessment is based on 4 Engler at 80 degrees Celsius.


0.5-0.7 pct Straight Run: The assessments reflect prices for straight-run fuel oil from Northwest Europe with typically 0.5-0.7 pct sulfur.
Rotterdam Bunker 380 CST: Viscosity 380 CST; 3.0-4.0 pct sulfur; vanadium, 150-600 mg/kg; water, 0.3 pct; and ash, 0.01-0.05 pct.

EUROPEAN FEEDSTOCK ASSESSMENTS
Price Units

All feedstock prices in Europe are US dollars per metric ton (mt).

Timing
Cargo assessments assume reasonably prompt arrival, typically between 5 to 15 days from date of publication.



Credit/Payment Terms
Payment is prompt or within a few working days of lifting or discharge. Wherever greater credit is given this will be allowed for in the assessments.

Cargo Size
The typical cargo size is 17,000 to 25,000mt. However, where smaller or larger cargoes dominate the trade for a particular feedstock these will be considered.

High Sulfur Straight-Runs
The high sulfur straight-run assessments are expressed as premiums above the mean of the means of the 3.5 pct sulfur cracked assessments.

E-4: 2 to 2.5 pct sulfur, a specific gravity of 0.965 g/ml max at 20 degrees C, a viscosity E of 4 at 80 degrees C, and 120 ppm vanadium.

M-40: 2.5-2.6 pct sulfur, a specific gravity of 0.97 g/ml max at 20 degrees C, a viscosity E of 4 at 80 degrees C, and 100 ppm vanadium.

Iraqi: The assessments are based on cargoes lifted ex-Iskenderun with typically 3.75 pct sulfur, a viscosity of 69.5 centistokes at 50 degrees C, and a specific gravity 0.938 g/ml.

Low Sulfur Straight-Runs
North Sea: The assessments reflect prices for material originating from Northwest Europe with typically 0.5 to 0.7 pct sulfur.
North African: The assessments are typically based on material from Algeria, Egypt, Libya and Tunisia with a typical sulfur content of 0.3 to 0.7 pct.

VGO
0.5-0.6 pct: The assessments represent VGO cargoes with 0.5-0.6 pct sulfur and a specific gravity of 0.900-0.920 g/ml.
1.5-1.6 pct: The assessments reflect VGO barges with 1.5-1.6 pct sulfur and a specific gravity of 0.900-0.920 g/ml.
2 pct max sulfur: The assessments reflect prices for material with 1.5 to 2 pct sulfur and a specific gravity of 0.900-0.920 g/ml.
In addition to the above, factors such as water, Conradson carbon and other metals may have a marked influence on price.

PRODUCTS-US
General Notes

a) Prices: Product prices in the United States are in US cents per gallon, apart from residual fuel oils which are priced in US dollars per barrel and US West Coast pipeline 180 and 380 CST fuel oils which are assessed in US dollars per metric ton.

b) Specifications: Gasoline specifications can vary across the US depending on the time of the year and the location.

Reid vapor pressure (RVP): RVP can vary from a current low of 7.0 psi (summer), to a high of 15.0 psi (winter). Platt's will make announcements during the course of the year when specifications are changing.

Oxygenated gasoline: The US Environmental Protection Agency now requires oxygenated gasoline during the winter months in carbon monoxide non-attainment areas. The winter months are generally October/November through February/March. In general, the EPA requires those areas to use gasoline with a minimum 2.7 pct oxygen by weight. Both reformulated and conventional grades of gasoline may be oxygenated during the winter months to aid in compliance with carbon monoxide standards as prescribed by the Clean Air Act.

Reformulated Gasoline (RFG): Nine metropolitan areas in the US were designated "extreme" or "severe" in terms of atmospheric ozone levels by the US Environmental Protection Agency. Provisions in the Clean Air Act of 1990 require those areas to use reformulated gasoline. Oxygen content of RFG is a minimum of 1.5% to a maximum of 2.7%. However, in areas where oxygenated gasoline is required during the winter months such as the New York metropolitan area, RFG oxygen content is required to be 2.7-2.9%.

Allowable RVP will vary seasonally, depending on the area. Benzene content is limited to a maximum of 1.3%.

Conventional Gasoline: All gasoline not considered RFG is conventional. Under the Clean Air Act provisions, conventional gasoline produced or sold in the US after January 1, 1995 must be at least as clean as gasoline produced or sold during the 1990 baseline period, as specified by the Clean Air Act.

Superfund tax: Authorization for the Superfund tax of 9.7 cts/bbl expired as of December 31, 1995. Therefore, as of January 2, 1996 Platt's US spot market assessments for refined products and Platt's wholesale rack prices no longer include the Superfund tax.

ATLANTIC COAST
Also referred to as New York/Boston Spot. a) Timing: The cargo assessments assume reasonably prompt arrival or lifting, typically between 5 to 15 days away. Barges assume loading 3-10 days away, while a timing closer than three days is considered very prompt. b) Size: Cargoes consist of one bottom with a minimum 150,000 bbl up to no limit, except where vessel size restrictions are in effect. Barge volumes are 20-25,000 bbl minimum up to 100,000 bbl. Volumes between these sizes may impact either the cargo or barge assessment, depending on the market conditions at the time.

See general section under Products-US for information on conventional, RFG and oxygenated requirements.

Gasoline
Regular unleaded: 87 octane, R+M/2, lead content 0.01 grams per gallon, gravity 62 API. Sometimes referred to as 48 grade.
Unleaded midgrade: 89 octane, R+M/2, lead 0.01 grams per gallon, gravity 62 API.
Super premium unleaded: 93 octane, R+M/2, lead 0.01 grams per gallon, gravity 62 API. RVP ranges from 8.3 psi RVP (summer) to 15.0 RVP (winter).


MTBE
Please see listing under US Gulf Coast

Jet Kerosene
Jet Fuel: Cargoes: DERD 2494, 0.3 pct sulfur, gravity 38.9-51 API (0.830-0.775 specific gravity), 38 deg C min Flash, freeze -47 deg. Celsius max. (-52 deg Fahrenheit). Barges: Colonial Pipeline reference 54 grade - 0.3 pct sulfur; 37-51 API gravity; 123-150 deg F min flash; and freeze point -40 deg F max.

Low Sulfur Jet Kerosene
For cargoes and barges, the assessments reflect Colonial Pipeline 55 grade with 37-51 API gravity, 123 degrees F flash point, minus 40 degrees C freeze point, 42 Cetane and 0.04 pct sulfur.
No. 2 Heating Oil
40 Cetane, sulfur content is 0.2 pct at New York Harbor, up to 0.5 pct outside New York, gravity 34 API, 130 deg F minimum flash.
Low Sulfur No. 2
42 Cetane, 0.05 pct sulfur.
No. 6 Oil
0.3 pct: Maximum sulfur 0.3 pct. Pour: 60 deg F max for low pour; high pour typically 100 degrees F but up to 110 degrees is acceptable. (Will frequently be referenced as Con Ed or New York City Spec). Viscosity: 1000 ssu for low pour, 200 ssf for high pour, up to 300 acceptable. 20-22 API gravity.
0.7 pct: Same specification as 1 pct, except maximum sulfur is 0.7 pct.
1.0 pct: Maximum sulfur 1.0 pct. Pour: low pour 60 deg F. max. High pour typical 100 degree F up to 105 degrees F usually acceptable. Gravity: 12 API is most common. Penalty for BTU loss usually incurred if over 15 API. Viscosity: 200-300 ssf.
2.2 pct: Maximum sulfur 2.2 pct. Pour not usually specified, viscosity 225-300 ssf. 12 API gravity.
2.2 pct Boston: Maximum sulfur 2.2 pct. Pour not usually specified, viscosity 225-300 ssf. 12 API gravity. Nitrogen spec is often 0.4%, but not required.
3.0 pct: Maximum sulfur 3.0 pct. Pour not usually specified, viscosity 200-250 ssf, 12 API gravity.
For paper resid market info, see item following US Gulf Coast resid.

US GULF COAST
Pipeline prices are usually for product moving on the Colonial Pipeline with input at Pasadena, Texas. Prices represent barrels being put into the pipeline on a prompt basis. Pipeline assessments reflect southern grade products on Colonial Pipeline with the exception of the supplemental northern grade gasoline which represents northern grade material.

Shipments on the Colonial Pipeline system are scheduled according to cycles. There typically are three cycles per month for a total of 36 cycles per year. For example, cycles 1, 2, and 3 are for January, cycles 4, 5, and 6 are for February, cycles 7, 8, and 9 are for March, etc. Each cycle lasts approximately 10 days and is divided into two five-day sections known as the front-half and the back-half of the cycle. Due to market conditions and perceptions, certain cycles may carry premiums or discounts during the year.

Waterborne barrels represent different locations depending on product, and are noted within product categories. Assessments for fuel oil generally reflect product being lifted within the next 7 to 14 days. Waterborne assessments for gasoline and distillates are concurrent with the pipeline cycles. Waterborne assessments cover barge (minimum 50,000 bbl) and cargo movements being shipped out of ports located anywhere from Corpus Christi, Texas to the Mississippi River. Product can be moving from a Gulf Coast location to another US port or for export. Prices are on an FOB basis.

Gasoline
Pipeline assessments reflect the most prompt pipeline cycle. RVP ranges from 7.4 psi (summer) to 13.5 psi (winter). See general section under Products - US for information on conventional, RFG and oxygenated requirements.
Regular unleaded: 87 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.
Unleaded midgrade: 89 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.
Super premium unleaded: 93 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.
Please note, Premium unleaded 92 octane assessments were discontinued as of January 1, 1997.

MTBE
Specs are for material with minimum 95 pct MTBE, 1,500 ppm maximum water and 500 ppm maximum methanol. RVP is 8-10 psi. Octane is 109 R+M/2. Oxygen is 18.2 pct by weight. US Gulf assessments include volumes of 25,000 bbl or greater traded FOB Houston-Texas City. Smaller volume transactions and deals done outside of the Houston-Texas City area are used only as a guide in the assessment process. Assessments focus on deals lifting 15 days from date of publication, excluding prompt business for immediate lifting. Assessments cover physical spot trade and not paper deals. Platt's FOB New York Harbor MTBE assessment is for the same spec material as the US Gulf Coast but volumes are 10,000 bbl or greater. Both US Gulf Coast and New York Harbor assessments are made at 1615 CST.

Naphtha
Prices represent product moving into and out of the Gulf Coast. Assessments are made on a delivered Gulf Coast basis. Imports are assessed on an inside duty basis. 40 N+A, typically a reforming grade, gravity 56-60 API.

Jet Kerosene
Pipeline assessments represent the most prompt cycle for the Colonial Pipeline, basis Pasadena, Texas origin. Waterborne assessments run concurrently with the pipeline.
Forward assessments for jet reflect the value of the next cycle forward.

Jet/Kero 54 reflects material with 37-51 API gravity, 108 degrees F flash point, minus 40 C freeze point, and 0.3 pct sulfur. Jet/Kero 55 grade reflects product with 37-51 API gravity, 123 degrees F flash point, minus 40 C freeze point, 42 Cetane and 0.04 pct sulfur.

No. 2 Oil
Pipeline assessments represent the most prompt cycle for the Colonial Pipeline, basis Pasadena, Texas origin. Waterborne assessments run concurrently with the pipeline. Waterborne assessments represent barges and cargoes moving out of ports located anywhere from Corpus Christi to the Mississippi River. The high of the range usually represents barges moving out of the Mississippi River area and the low side represents cargoes moving out of various locations.
Forward assessments for No.2 and low sulfur No.2 oil reflect the value of the next cycle forward.
No.2 Oil: 40 Cetane, 0.2 pct sulfur, 30 API gravity, 130 deg F min. flash.


Low Sulfur No. 2 Oil
42 Cetane, 0.05 pct sulfur.
Residual Fuel
Assessments are FOB and represent product moving out of ports anywhere between Houston and the Mississippi River. Both barge lots and cargoes are covered by the assessments.
Assessments may be influenced by blending costs associated with bringing off-spec material to the correct specification. Also, assessments take into consideration the value of different end users for the same material, e.g. straight-run fuel used as a feedstock.
No.6 0.7 pct: gravity 10.5 API, viscosity 225 ssf, maximum sulfur 0.7 pct.
No.6 1.0 pct: gravity 10.5 API, viscosity 225 ssf, maximum sulfur 1.0 pct.
No.6 1.0 pct: gravity 8.0 API, viscosity 225 ssf, maximum sulfur 1.0 pct.
No.6 3.0 pct: gravity 10.5 API, viscosity 225 ssf, maximum sulfur 3.0 pct.
No.6 3.5 pct: gravity 10.5 API, viscosity 225 ssf, sulfur 3.5 pct or higher. This assessment is based on the lower metals normally used for bunkers, typically 30 ppm aluminum and silicon.

US ATLANTIC AND US GULF RESID 'paper' markets
Platt's shows paper market price assessments for 1.0 pct sulfur fuel oil on the US Atlantic Coast and 3.0 pct sulfur fuel oil on the US Gulf Coast:

1) The paper price assessments are for the immediate forward month and the next forward month. The immediate forward month assessment expires on the last Friday of the month. If that falls on a holiday, expiration will occur on the last business day prior to the holiday. For example: during November, 1997, paper markets would have been assessed for December and January. The last Friday of November should have been the last day for December paper assessments. However, since the last Friday of November, 1997 was a holiday, due to the Thanksgiving holiday, the December assessment would have expired on November 26. On the next Monday, Platt's would have assessed the paper markets for January and February, 1998.

2) The quarterly paper market is based on the calendar quarters: January-March, April-June, July-September and October-December. Quarterly paper markets are assessed until the last business day of the preceding calendar quarter. On the first business day of a new quarter, the assessment will reflect the next calendar quarter.

GROUP THREE
Assessments are made on an FOB Tulsa, Oklahoma, basis for product moving on the Williams Pipeline. The Williams Pipeline runs from Tulsa north through the Midcontinent terminating in Minnesota and Wisconsin. Assessments reflect barrels being put into the pipeline on a prompt basis.

Gasoline
Regular unleaded: 87 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.

Premium unleaded: 91 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.
For all grades of gasoline, Reid vapor pressure ranges from 9.0 psi for summer months to 13.5 psi for winter months.

Jet Kerosene
0.3 pct sulfur, 37.5 API gravity, 110 degrees F minimum flash.

Low Sulfur Jet Kerosene
A seasonal assessment running from approximately October/November to early March. Specifications are 0.047 pct sulfur, 37 degrees min. API gravity, minimum 125 degrees to maximum 160 degrees F. flash. Low sulfur jet kerosene is also known as Y grade.
No. 2 Oil
0.5 pct sulfur, 40 Cetane, 30 API gravity, 140 degrees F minimum flash.
Low Sulfur No. 2 Oil
42 Cetane, 0.05 pct sulfur, 30 API gravity, 140 degrees F minimum flash.

CHICAGO
Assessments are made on an FOB Chicago Area Pipeline (CAPline) basis and usually reflect product moving on the prompt cycle.

Gasoline
Regular unleaded: 87 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.

Midgrade unleaded: 89 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.
Premium unleaded: 93 octane R+M/2; lead, 0.01 grams per gallon; 62 API gravity.
RBOB (Reformulated Blendstock for Oxygenated Blending): 84.6 octane R+M/2; 62 API gravity.
For all grades of gasoline, Reid vapor pressure varies during the year from 9.0 psi during the summer to 15.0 psi during the winter.

Jet Kerosene
0.3 pct sulfur, 37-51 API gravity, 108 degrees F minimum flash.
Low Sulfur Jet Kerosene

A seasonal assessment that runs from approximately November to early March. Specifications included 0.04 pct sulfur and 37-51 degrees API gravity. This is also known as No.1 oil.

No. 2 Oil
0.29 pct sulfur, 40 Cetane, 34 API gravity, 130 degrees F minimum flash.
Low Sulfur No. 2 Oil
0.05 pct sulfur, 42 Cetane

US WEST COAST
Pipeline volumes are generally 12,000-25,000 bbl. Assessments are for product moving on the Kinder Morgan Energy Partners Pipeline (formerly the Santa Fe Pacific Pipeline) system in California and the Olympic Pipeline system in the Northwest. Assessments represent barrels being put into the pipeline, usually within 8-16 days from the effective date of publication, but take into account changes in pipeline schedules. Shipments on the Santa Fe Pacific Pipeline system are scheduled according to cycles. There are typically four cycles every month for a total of 48 cycles per year. For example, cycles 1, 2, 3 and 4 are for January, cycles 5, 6, 7 and 8 are for February, etc. Each cycle lasts approximately 7.5 days, but changes in the schedule may occur and are decided by the pipeline company. Shipments on the Olympic Pipeline system are also scheduled according to cycles. There are typically five cycles every month with the exception of February, which has four, for a total of 59 cycles per year. Each cycle lasts approximately 6-7 days, but changes on the schedule may occur and are decided by the pipeline company.

Gasoline, diesel and jet cargoes are generally 250,000-300,000 bbl with delivery usually within two to four weeks. Fuel oil cargoes are generally 200,000-300,000 bbl. Part-cargoes of at least 70,000 bbl that are traded to fill out or to create a cargo are also considered. Cargoes cover export or import at any location from Los Angeles to Seattle. Delivery usually within two to four weeks. Anything less than two weeks is prompt and could be considered distressed. Domestic, but offshore lightered barrels, are treated as if they were domestic.

See general section under Products-US for information on conventional and oxygenated requirements.

Gasoline
Conventional-Standard gravity is 57-58 API. Sulfur specs are very stringent in California with 0.03% for unleaded. Bromine is less than 30 parts per million at Los Angeles. RVP ranges from 7.0 to 13.5 for Los Angeles, 7.0 to 15.0 for San Francisco and 9.0 to 15.0 for Seattle and Portland.


Unleaded: 84 octane, R&M/2; lead content 0.01 grams/gal. The Unleaded 84 assessment is for product moving to Arizona from Los Angeles. The assessment is made on an FOB Los Angeles basis. This assessment replaces the Arizona RFG assessment which was discontinued in October 1998.

Unleaded: 87 octane, R+M/2; lead content 0.01 grams/gal.
Premium Unleaded: 92 octane, R+M/2; lead content 0.01 grams/gal.
CARB gasoline-Gasoline sold exclusively in California by mandate of the California Air Resources Board (CARB). API gravity is 57-58. Lead content is 0.030 gm/gal. Sulfur is 80 ppm. Aromatic hydrocarbons 30 pct max. Octane level for unleaded is 87 R+M/2 and for premium unleaded is 92 R+M/2. RVP ranges from 7.0 to 13.5 for Los Angeles CARB gasoline and from 7.0 to 15.0 for San Francisco CARB gasoline.

Please note: Los Angeles RFG assessments were discontinued as of March 22, 1996. CARB gasoline replaced RFG gasoline in Los Angeles.

Jet
Pipeline: Jet-A 0.3%S 51-37 API, Waterborne: DERD 2494 0.3%S 51-37 API.

Low Sulfur No. 2 Oil
Low sulfur No. 2 oil is frequently called low sulfur diesel. Specs are 40-45 Cetane, 30-31 API gravity, and 0.05 pct maximum sulfur content.


CARB Diesel

CARB (California Air Resources Board) diesel reflects the Santa Fe Pacific Pipeline spec for aromatics of 35 pct by volume maximum. Other specs are 40-45 Cetane, 30-31 API gravity, and 0.05 pct maximum sulfur content.

Gasoil
45 Cetane, 0.5 pct sulfur; typically 32-33 API gravity. This is a waterborne quote only.

Fuel Oil
Daily IFO 380 and IFO 180 (appearing under West Coast Pipeline):
Daily assessments of IFO 380 and IFO 180 reflect trade in the marine fuel (bunker) market. IFO 380 has viscosity of 380 CST, 2.5-4.0 pct sulfur, 150-600 mg/kg vanadium, 0.5-1.0 pct water, and 0.1-0.2 pct ash. IFO 180 is the same as IFO 380 in all respects except viscosity, which is 180 CST.
No. 6, 0.5%S and 1.0%S
Percentages relate to content of sulfur as a percent by weight. Power generation units, i.e. electric utility companies, usually use the low sulfur grades. This quote is used to distinguish larger volumes whether for import or export.

Please note: assessments for No.6 1.6%S were discontinued as of January 2, 1996.

GAS LIQUIDS
Assessments are made on an FOB Mont Belvieu, Texas, and FOB Conway, Kansas, basis for all gas liquids. Propane and butane are reported at Mont Belvieu on a non-TET and TET basis. TET material moves on the former Texas Eastern Transmission pipeline which runs from South Texas northward to Ohio and terminates in Massachusetts. The pipeline is now properly Texas Eastern Products Pipeline Co, however, the terms TET and non-TET are still widely used by the industry. Product specifications are the same for both Mont Belvieu and Conway.

As of September 1, 1996, Platt's separated its quotes for ethane and natural gasoline at Mont Belvieu. Platt's now publishes one quote for purity ethane and another for ethane/propane mix. Natural gasoline is now reported on a non-Warren and a Warren basis. Warren is a major terminal in the Mont Belvieu area. While the company owning the terminal is now properly called Dynegy, the industry uses both Warren and Dynegy in referring to the terminal.

Ethane
Specific gravity, 0.3546. US gallons per metric ton, 742. Boiling point, -89 deg C.
Purity ethane is 95 pct pure or better. Ethane/propane mix is comprised of 80 pct ethane and 20 pct propane.

Propane
Specific gravity, 0.5077. US gallons per metric ton, 520.8. Boiling point, -43 deg C.

Normal Butane
Specific gravity, 0.5844. US gallons per metric ton, 452.5. Boiling point, -1 deg C.

Iso-butane
Specific gravity, 0.5631. US gallons per metric ton, 469.6. Boiling point, -12 deg C.

Natural Gasoline
81 degrees API. RVP 12-14. Boiling point, 90 degrees F. Sulfur, 0.1 pct, Octane is in the low 70s R+M/2. US gallons per metric ton, 397.50-397.75.


Caribbean
Assessments are made in US dollars per metric ton as well as US cents per gallon.
Naphtha: 40 N+A reforming grade. Gravity is 66 API.

Jet Kerosene: DERD 2494, 0.3 pct sulfur, 38.9-51.0 API gravity, 38 degrees C minimum flash, minus 47 degrees C. maximum freeze point.

Gasoil: 40 Cetane, 0.2 pct sulfur, 30 API gravity, 130 degrees F minimum flash.
No.6 2.0 pct: 225-300 ssf viscosity, 10-12 API gravity.
No.6 2.8 pct: 200-250 ssf viscosity, 10-12 API gravity.

US FEEDSTOCKS
VGO
Sulfur: Three sulfur grades are assessed: Under 0.5%, 1.0% and over 2%.
Aniline Point: Generally 180 minimum.
Conradson carbon residue: Generally 0.7% maximum.
Straight Run
Low Sulfur: 0.3% sulfur. Approximately 20-22 degrees API gravity. Viscosity is 1,000 ssu or approximately 100 ssf. The product generally is low pour with a pour point of 60 degrees F.
High Sulfur: 2.0 to 3.5% sulfur. Approximately 15-20 degrees API gravity.
Condensate
Sulfur is generally 0.1 pct or less. Approximately 40-65 degrees API gravity.

BUNKERWIRE SPECS
Bunker C: 10.5 API gravity or 420-470 CST; typically 2.5-3.5 pct sulfur but could be higher; and vanadium, 100-350 parts per million (ppm).
IFO 180: viscosity 180 CST; 3.0-4.0 pct sulfur (except on US West Coast, sulfur can be as low as 2.5 pct); vanadium, 150-600 mg/kg; water, 0.5-1.0 pct; and ash, 0.1-0.2 pct.
IFO 380: viscosity 380 CST; 3.0-4.0 pct sulfur (except on US West Coast, sulfur can be as low as 2.5 pct);
vanadium, 150-600 mg/kg; water, 0.5-1.0 pct; and ash, 0.1-0.2 pct.
Marine Diesel Oil (MDO): 1.0-2.0 pct sulfur; vanadium, 100 ppm. max; water, 0.3 pct; and ash, 0.01-0.05 pct.

PRODUCTS-LATIN AMERICA
Assessments are in US dollars per barrel.

Argentina
Gasoil: minimum of 45 Cetane, 0.5% sulfur.

Mogas: Unl 83 RON minimum, 10 RVP maximum, 0.71-0.74 specific gravity, 0.1% sulfur by weight.
Fuel Oil: 0.5% sulfur, 14 API, 550 CST.

Brazil
Fuel Oil: 0.4% sulfur, 17 API, 150-200 ssf.

Colombia
Fuel Oil: 1.5% sulfur, 6 API, 300 ssf.

Ecuador
Fuel Oil: 1.9% sulfur, 12-14 API, 250 ssf.
Pl

Peru
Naphtha: 49 N+A, full range, 63 API.
Fuel Oil: 0.9% sulfur, 15 API, 600 CST and 1.4% sulfur, 12.5 API, 1,000 CST.

Platt's Index
The Platt's Index is an attempt to give a broad view of the state of the oil industry by putting markets for several different crudes and products on the same footing: a base period between July 1987 and December 1988, and a translation of that base period into the number 100.00. Prices for each index component were averaged for that period, and the result constitutes 100 in the Platt's Index.

The index itself first appeared in July, 1990. Each day, Platt's spot assessments are incorporated into a weighted formula based on consumption patterns for products, and supply patterns for crude. The result is a single number that can be used for quick comparisons of a product's status, both over time and against other products or crudes. For example, the gasoil/heating-oil index is weighted 42 pct to Europe, including assessments from Northwest Europe and the Mediterranean, 43 pct to North America, including assessments from New York, Boston, and the US Gulf Coast; and 15 pct to the Pacific Rim, including assessments from Singapore and Japan.

The prices for the base period were averaged, resulting in a base price of approximately 46.5 cts gal. That equates to 100 on the Platt's Index. The ratio between each day's new price and 46.5 cts will be applied to the 100.00 base, and the result is that day's index.