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TO ALL THE CONFUSED BROKERS/TIME WASTERS

What do you do when you receive an offer of large amounts of JP-54 and D2

requiring an ICPO with BCL or Soft Probe, NCND and IMFPA up front?


This is pure Broker rubbish - throw it in your rubbish bin

All biggest refineries in Russia are property of majors and these majors trade through own sales departments or trading companies or major traders and all these companies are well-known on real market. Refineries doesn`t work directly on export. That's all.

For Your information.

Gasprom Neft never issues any PB and most of majors never do it because these are well-known companies and the have enough reputation which tells "this seller will supply". In this case You`ll receive detailed schedule of supplies on FOB.

Rosneft supplies on CIF coniditions very seldom and (as usual) in China direction only because Rosneft has long term agreement with CNPC and works with CNPC few years.Rosneft sells oil to China under a 2005-2010 contract for 48.4 mln metric tons of oil.


The ONLY TOP 5 Oil companies in China with the Import License that are authorized to purchase oil are:

1. China Oil

2. CNPC

3. Sinopec

4. Petro China

5. ZhuHai ZengRong


CNPC is already with Rosneft.

Most of supplies in China come by railway and on Russia/China or Kazakhstan/China borders.

Question: ‘How do I recognize a “real seller” from one who is not?
Answer: A ‘real seller’ actually owns the product - he is the legal title holder of the product and 98% of the time he is not offering this product to the “Joker-Broker world” for sale. So you need to be sure of the circumstances as to why a “real seller” is offering “real product” for sale to a broker network when he can just call up Shell Oil or ExxonMobil or BP or Total Oil and sell it direct to them as they are always needing product.

This “REAL SELLER” will always be prepared to offer product to a genuine buyer on an FCO and he will always be in a position to give some sort of partial POP (proof of product) in exchange for POF (proof of funds) and he will normally be ready to do this bank-to-bank.
A genuine Seller Mandate (with official Mandate Appointment Letters from the Seller) will need to be provided if this is the case

REAL BUYER & SELLER has to know everything about ports of the region;( Houston or Rotterdam etc..)
To know about real market situations (including: subscribing on Platts/Argus bulletins, reading public articles etc).

Rotterdam is Europe's largest bunker market. It supplied over 13 million MT of marine fuel in 2007

Real spot volumes are from 10 to 30,000 MT of the product (aka vessel`s volume) ( aka vessel volume can go up to 75,000 MT) of course depends of the product but for gasoil is usually like this. ( Spot are 3 days ONLY)

Do the math:
500,000 MT
Supertankers are large ships, commonly used to carry oil, liquefied natural gas, or liquefied petroleum gas.

Among tanker ships, the very largest are called supertankers.

The largest of these are the Very Large Crude Carrier (VLCC), which can carry 200,000 tons or more of oil, and the Ultra Large Crude Carrier (ULCC), which can manage over 300,000 tons.
( AKA veseel voume 30,000 MT) THAT IS 16. 6 SHIPS PER month
500,000( AKA veseel voume 75,000 MT) THAT IS 6. 6 SHIPS per MONTH

Majors are 100 ,000 MT Contract per month

Non Major are 50,000 Contract per month

Real SPOT volumes are from 10 to 30,000 MT of the product (aka vessel`s volume) ( aka vessel volume can go up to 75,000 MT) of course depends of the product but for gasoil is usually like this. ( Spot are 3 days ONLY)

If You have a money for upfront payment You have to know how much You have.

So make analysis based on Your funds volume and based on real market`s prices and You`ll know how many D2 or JP 54 You can buy.

No one sells 100K- 200K MT of gasoil on real market. Such volumes are selling on government or TOP managers level .

 


How many barrels of petroleum does a typical modern ocean-going supertanker hold?

“Supertankers” are generally defined as those greater than 250,000 tonnes deadweight (meaning the maximum weight they can carry when fully loaded). Today’s supertankers, on average, can carry about 2 million barrels or 84 million gallons of crude oil and petroleum product. The largest supertanker in the world is the Norwegian-owned Knock Nevis which is 647,955 tonnes deadweight and can hold 4.1 million barrels of petroleum.

How do you convert metric ton to American barrel?
You don't. Tons measure mass, whilst barrels measure volume.

Actually, you can. To convert barrels to metric tons, you have to first know the API or specific gravity of the product. So let's take a gasoline with an API of 57.0. and we'll say we have 25k bbls. You must first convert the barrels to gallons.
25,000 x 42 = 1,050,000.00 gallons
Then you have to know what the pounds per gallon for that gasoline is, which in this case is 6.249 lbs/gal
1,050,000.00 x 6.249 = 6,561,450.00 pounds
You then take your pounds and convert them to metric tons, which you would divide your pounds by 2204.62
6,561,450.00 / 2204.62 = 2,976.227 metric tons
How many barrels of crude oil in one MT?

Petroleum has a specific gravity of 0.88 which means 1 liter weighs 0.88 kilograms.
From the volume page we know that:
1 barrel [US, petroleum] = 158.9872972 liter
So 1 barrel weighs:
158.9872972 * 0.88 = 139.908821536 kilograms
1 metric ton is 1000 kilograms:
139.908821536 / 1000 = 7.1475121
So there are a little over 7 barrels of petroleum in a metric ton.
This is assuming that 0.88 is the correct specific gravity. Since as you said, the grade of the oil may make a difference. If you know the exact specific gravity of the oil in question, you will get more accurate results.

Keep in mind all possible logistic schemes; know all railway stations, capacity of ports and stations, demurrages and lay can rates, whole specific of the region , port tariff etc..


The volume which we mentioned in the message meant that total annual capacity of outcome of Rotterdam is 21,7 Mio MT annually. Based on logic it means that Rotterdam port can store such volume without any problem.
As a proof-link You can read this link http://www.portofrotterdam.com/mmfiles/port_statistics_2007_tcm26-48060.pdf
Re that fact that Rotterdam handled more than 400 Mio MT in 2007. You have to know that Rotterdam is huge port and works with all cargoes. Read the link above and You`ll see how much crude oil and petroleum products are supplied/loaded there.

No one port can store so much volume (especially per day).
If You have a money for upfront payment You have to know how much you have.

So make analysis based on Your funds volume and based on real market`s prices and You`ll know how many D2 or JP 54 You can buy.

JP54 is in barrels and D2 is in MT.
Supertanker carries 4 million barrels of JP54
Supertanker carries 550,000 Mt of D2. That is 78,571 barrels of D2
I mertic tons equals 7 barrels.
So make analysis based on Your funds volume and based on real market`s prices and You`ll know how many D2 or M100 You can buy.


Such traders are Vitol, Trafigura, Gunvor (Waterway), Sunimex.

For Your information Rosneft exported 4.31Mio MT of gasoil to ALL clients around the world in 2006, a little bit more in 2007 (4.5 Mio)... These volumes are annual volumes and after that You would like to say that an offer of 1Mio MT of D2 is real?

About the prices of Jet.

Real prices are 1308 per MT or 1308/7,4 = 176 USD per bbl.. Do You want to say that You have the product cheaper than everybody in this world?

Do You know how many crude oil needs for refining and getting 1Mt of Jet?... at least 4-6 MT of crude oil for 1MT of jet...
Crude oil confirmation.
Main confirmation of any availability of the product is resource notice from crude oil mining company with refenrence number and with the name of person the company who in charge of this "allocation".
Petroleum products confirmation.
Main confirmation is resource notice from refinery OR SGS/Seybolt report of availability of the product in storages in the port or on refinery with exact numbers of tanks and (appricable) with photos.
This is real information and one more.

You can play here in "traders" but remember that when You are "selling" or "looking for" 10Mio MT, 20Mio MT, 50Mio MT or any petroleum products from Russia, REMEBER that no one russian petroleum company, no one russian petroleum products terminal can`t load such volume. No one refinery can`t produce such volume.

You are looking like a clowns with such "offers". Don`t be a clowns.

Some others companies are trading small volumes BUT all we are trading based on PLATTS/ARGUS quotes with discount or premiums.

NO ONE SELLER HAS FIXED PRICES.


To know about real market situations (including: subscribing on Platts/Argus bulletins, reading public articles etc).

Real spot volumes are from 10 to 30,000 MT of the product (aka vessel`s volume) of course depends of the product but for gasoil is usually like this.
If You have a money for upfront payment You have to know how much You have.
So make analysis based on Your funds volume and based on real market`s prices and You`ll know how many D2 or JP 54 You can buy.

No one sells 100K- 200K MT of gasoil on real market. Such volumes are selling on government or TOP managers level .
If you dont believe what I am telling you then test it for yourself and phone one of the Oil Traders (like Vitol)
Do not believe in CIF ASWP prices. Because freighting fees are changing every day;

Because each port has own demurrage rates;

Because each port has own schedule and if the seller or his chartering company will not agreed "free window" with port administration You`ll not see Your product in port`s storages (maximum in open sea near port).

Free on Board" means that the seller delivers when the goods pass the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the FCA term should be used.
Usually the seller will designate whether it is F.O.B. at his store/plant or if it is F.O.B. your destination. This determines who is liable for the freight risks/costs. F.O.B. to your door is always better. It shifts the responsibilities/costs to the seller.


Cancelling date (Laycan). This is an abbreviation for the "Laydays and Cancelling" clause in a charter party. This clause establishes the earliest date, when the ship is required by the charterer, (e.g. "Lay time for loading shall not commence before . . .") and the latest date for the commencement of the charter (e.g. “ . . . and should the vessel's Notice of Readiness not be given before . . . ") when the charterers have the option of cancelling the charter.
CIF = Cost, Insurance, Freight. The Sellers pays all charges until the cargo arrives at your Port.
All biggest refineries in Russia are property of majors and these majors trade through own sales departments or trading companies or major traders and all these companies are well-known on real market. Refineries doesn`t work directly on export. That's all.
Resent,
Gazprom
PDVSA:

For Your information.

Gasprom Neft never issues any PB and most of majors never do it because these are well-known companies and the have enough reputation which tells "this seller will supply". In this case You`ll receive detailed schedule of supplies on FOB.

Rosneft supplies on CIF conditions very seldom and (as usual) in China direction only because Rosneft has long term agreement with CNPC and works with CNPC few years.

Most of supplies in China come by railway and on Russia/China or Kazakhstan/China borders.

How many barrels of petroleum does a typical modern ocean-going supertanker hold?
“Supertankers” are generally defined as those greater than 250,000 tonnes deadweight (meaning the maximum weight they can carry when fully loaded). Today’s supertankers, on average, can carry about 2 million barrels or 84 million gallons of crude oil and petroleum product. The largest supertanker in the world is the Norwegian-owned Knock Nevis which is 647,955 tonnes deadweight and can hold 4.1 million barrels of petroleum.

How do you convert metric ton to American barrel?
You don't. Tons measure mass, whilst barrels measure volume.

Actually, you can. To convert barrels to metric tons, you have to first know the API or specific gravity of the product. So let's take a gasoline with an API of 57.0. and we'll say we have 25k bbls. You must first convert the barrels to gallons.
25,000 x 42 = 1,050,000.00 gallons
Then you have to know what the pounds per gallon for that gasoline is, which in this case is 6.249 lbs/gal
1,050,000.00 x 6.249 = 6,561,450.00 pounds
You then take your pounds and convert them to metric tons, which you would divide your pounds by 2204.62
6,561,450.00 / 2204.62 = 2,976.227 metric tons
In order to convert MT to BBLS, just do the reverse. Enjoy
How many barrels of crude oil in one MT?

Petroleum has a specific gravity of 0.88 which means 1 liter weighs 0.88 kilograms.
From the volume page we know that:
1 barrel [US, petroleum] = 158.9872972 liter
So 1 barrel weighs:
158.9872972 * 0.88 = 139.908821536 kilograms
1 metric ton is 1000 kilograms:
139.908821536 / 1000 = 7.1475121
So there are a little over 7 barrels of petroleum in a metric ton.
This is assuming that 0.88 is the correct specific gravity. Since as you said, the grade of the oil may make a difference. If you know the exact specific gravity of the oil in question, you will get more accurate results.


Please think of this: how the shipping cost can be the same if the final port is Australia instead Africa? Open your eyes!! The shipping service is not for free, as it's one of the MOST important expense items for selling commodities...
Those fake offers are issued from COMPANIES selling Commodities with such fictitious conditions just with the purpose to obtain Buyers pre-advice L/Cs easily and faster. Why, after opening pre-advice L/C by the Buyer, the Seller's Performance Bond never arrives? Answer: because the smart Seller already got his goal, obtaining a loan of 10-15% from the L/C’s beneficiary bank! Another example: why do sellers over the Internet never send their past records? Why they always declare: after Buyer's LOI or ICPO and Banking soft probe, all the documents will be available (but the docs never arrive ….!!!). Why do they ask for Transferable L/C ? Think with care on the matter, please.

We strongly suggest: never to open a Pre-Advice Transferable L/C to anyone!!! Never ever!! That’s the most important useful tips we can give you.
Furthermore: never accept and sign contract providing POP (Proof of Product) showed only on a Bank to Bank basis!!! That is another INEXISTENT selling condition invented by improvised Sellers/Traders to get in advance Buyer’s L/C without showing the Proof of Product existence (because they have nothing !!). If you are lucky they will shop around with Buyer’s Pre-Advice looking for the product. If not, they will fraud people around the world with Buyer’s Pre-Advice Letters of Credit.
Remember: the POP must be issued BEFORE the Buyer’s financial instruments and never be issued from the Seller as all the people can write a POP declaration on fake letterhead (!!!). The POP shall be issued from independent companies, such as SGS, after they have checked and “sealed” the products in the factory (!!).
Always ask for past Bill of Lading (B/L) and, if the Seller is a fake one, it will reply: we cannot as those documents are confidential. Ahahahah!!! Another lie! The B/L is a public document!!!! All our Suppliers financial highlights and full Company information are available (confirmed by Standard & Poor's and immediately downloadable from the web!!!) as all our Sellers are the world's biggest Hard & Soft Commodity players, with very large quantities in stock and, thanks to that, with the best prices of the Market. Thinking of getting more competitive prices is just a dream or a fraud. We don't need LOIs, ICPOs, BCLs, etc. All our Suppliers accept payment with NON-Transferable L/C as they don't need to "transfer" the credit to anyone. Product and factory visit available "before" starting negotiation and full track records will be immediately available!!
The Port of Rotterdam handled 406.81mt in calendar year 2007,

People offer 5 to 10 million MT as spot deal on FOB Rotterdam or Houston. Is that quantity possible for storage or handling?
First of all, ask Yourself "who has such huge volume?". Then go to Rotterdam and Huston ports website and You`ll find easy that total storing volume of Rotterdam`s port is 21,7 Mio MT (if I`m not mistaken). BUT don`t forget that it`s total volume for ALL clients and not for one. Then check what kind fees these ports take for storing, for what kind term they are ready to provide storing services, etc.
Then ask Yourself, why such huge offer walks around internet and majors don`t know about it. And what`s more interesting, just imagine that majors know nothing about "miracle" prices. Do You really think that on this tight market major don`t know about it and You are lucky man who received this surprise from God? :)
Be real and trust Your eyes and brains (excluding greedy and dreams).

 

 


It is very easy you can find Russian Gasoil D2 and Jet Fuel JP54 in all B-to-B portals or trading portal sites all over the world. Most of all brokers are looking for real sellers or real buyers for D2 and JP54. This kind of internet oil dreamers are usually thinking only huge commissions regardless of this kind of oil deals are real or fake. All they have in hands are just papers such as FCO, ICPO, LOI or NCND etc. Actually all such papers are just garbage. This kind of brokers are nothing more than garbage paper brokers. Our advice is very simple, If you have FCO or LOI for Russian D2 or JP54, please throw them into garbage can.

Tips for Russian Gasoil and Jet Fuel Trading.

1. Do professional traders and refineries use this word of D2 ?

Refineries never use D2 actually because they are operation terms like Gasoil 0.2, 0.1, ULSD/50-10 ppm/EN590 (EN590 means that standard of the quality of the product according EU regulation EN590 proof-linkhttp://www.dieselnet.com/standards/eu/fuel_automotive.php). Actually we do not see these terms (D2 for example) in use since beginning of 2010 when Russia begun to export Gasoil 0.1 mainly

2. Is D2 normal name ?

D2 is not “normal name” at this moment. We suppose that somewhere or time-to-time people can use this term but it depends on quality of gasoil. For your information. For example under Russian regulation, produce and export of Gasoil with sulfur content 0.2 or more is forbidden. It allowed (producing and sales) for agriculture use (trucks in collection farms, farms etc) only for domestic market.

3. Is Gasoil for marine gas oil or automotive gas oil ?

Gasoil uses in bunkering fuel production and as gasoil for cars too. Depends on quality. But “D2” doesn’t use on Russian domestic market as cars fuel no more. At this moment we are using gasoil 500 ppm and 50 ppm.

We strongly recommend You to read GOST 305-82 herehttp://www.nge.ru/g_305-82.htm You can translate it through translate.google.comand exact GOST have no connections between each other (based on sulfur contents at least).

4. How do they trade Gasoil in pipeline or any cargo ?

4-1. Trading of gasoil is simple:

a) You show your client the passport of the product of previous supplies or passport of the quality from the refinery.

b) You sign the contract based on trust and due diligence of each parties (through exchange of incorporated docs and due diligence of these docs).

c) Then the buyer issues payment instrument and you supply the product to your customer.

The pipeline supplies does not concern any export buyers because most pipeline`s depots finish too far away from ports (exception is Ventspils and Primorsk ports).

When you would like to show that you supply by pipeline you have to provide following docs.

a) Contract with the producer + confirmation from its party that producer has access and contract with JSC “Transnefteproduct” (OAO “Transnefteproduct”).

b) Contract with storing depot of pipeline’s acceptance point which is integral part of pipeline’s depot.

c) The transport telegram of Transnefteproduct reconfirmation of the schedule and volume of transportation with exact terms of supplies and time of supply of the product in the depot.

d) Optionally the Seller has to show the contract with the port for re-loading and loading, for storing of the product in port’s storages and contract of transportation with railway logistic (cargo) company re shipment from point A (exact name and code of the pipeline`s depot) to point B (exact name and code of railways cargo station (and it can`t be port`s name, all stations here call based on absolutely different parameters (for Novorossysk port we have railway station Grushevaya)).

4-2. You can review full pipeline’s scheme here

http://transnefteproduct.ru/nefteprovod/map-tnp.jpg (red lines means pipeline’s “in project” or “in plans” but not existing pipelines, red points mean same but not pipeline but its depots and storing facilities) and detailed map by types of gasoil here http://transnefteproduct.ru/images/map11.jpg (green is TS-1 supplies (jet fuel) for domestic airports).

4-3. What’s contract with Transneft ?

Russian gasoil 10-50 ppm and 1000 ppm (0.1%) supplies from Primorks, Ventspils, Kaliningrad (Baltiysk) by Gunvor, Vitol, Glencore and Litasco. Supplies from Primorsk and Ventspils are supplies “from Transnefteproduct’s pipeline system”.

Transnefteproduct company is in charge of gasoil’s supplies by State pipeline system. No any pipeline systems which comes from Russia to Europe and of course no any pipeline from Russia to Rotterdam.

TRANSNEFT has connections to GASOIL only. NO FUEL OIL, NO BUNKERING OIL, NO GASOLINE, NO KEROSENE. GASOIL ONLY. OWNER OF PETROLEUM PRODUCTS PIPELINE SYTEM IS TRANSNEFTEPRODUCT (100% OWNED BY TRANSNEFT BUT WHICH ACTS AS INDEPENDENT FACE). This point we suppose will be used for some ask of “upfront payment” then. Please note all upfront payments for any kind of transaction code are fake.

4-4. Export License issued by Russian Ministry of Energy is Legit ?

No, this is fake. Export trading of petroleum products doesn`t ask any license under Russian regulation. For such kind of business Seller or trading company has to be registered in tax administration under exact codes. That’s all.

5. Normal Gasoil Trading Volume ?

There is no “normal trading volumes” but minimum trades are:

a) For big traders like Gunvor, Glencore, Vitol etc – minimum is 10-15.000 tons for one buyer up to 50.000 for one buyer.

b) For small and medium trades from river ports in Russia in directions of Europe by water is from 3.500 up to 5.000 tons (aka “vessel’s party”).

And to conclude, normally 30,000 – 50,000 MT cargo is real and safe.We strongly recommend if a cargo is over 50,000 MT, it is mostly fake offer or order.

Please don’t waste your time on so big quantity such as 100,000MT, 200,000MT, even 1million MT. All those offers or orders are 99.9% unreal and fake, just trying to steal your money through fake banking or financial systems.

6. Does Russia sell or produce Jet fuel JP54 ?

No one produces Russian JP54 because it’s virtual product. Refineries, around the world, produce Jet A-1, USGC Jet 54 product + RT (Russia + CIS) only.

7. Jet Fuel Trading

 

RT and A-1 produces in Russia and export to CIS and Baltic countries. In direction of CIS export volume around 30.000 – 35.000 tons monthly. In direction of Baltic countries (then POSSIBLY in direction to EU) the monthly supplies are around 100.000 – 110.000 tons. No any free volumes available.

Re Jet fuel trading. For Russian jet fuel better to talk with Gunvor or Litasco. US imports jet fuel from South Korea and China now.

USGC Jet 54 and Singapore Jet are mainly traded in USA and Singapore Market.



Also for informaton all "sellers" and "buyers"... Proof of product is not banking document and no one bank can`t confirm such kind of documents because it`s not banking documents.

Crude oil confirmation.

Main confirmation of any availability of the product is resource notice from crude oil mining company with refenrence number and with the name of person the company who in charge of this "allocation".

Petroleum products confirmation.
Main confirmation is resource notice from refinery OR SGS/Seybolt report of availability of the product in storages in the port or on refinery with exact numbers of tanks and (appricable) with photos.


This is real information and one more.


You can play here in "traders" but remember that when You are "selling" or "looking for" 10Mio MT, 20Mio MT, 50Mio MT or any petroleum products from Russia, REMEBER that no one russian petroleum company, no one russian petroleum products terminal can`t load such volume. No one refinery can`t produce such volume.


You are looking like a clowns with such "offers". Don`t be a clowns.


And remember that main sellers of russian petroleum products are:

Gunvor, Geneva -- all Rosneft, Gaspromneft, Surgutneftegas and Kirishinefteorgsintez petroleum products and crude oil.

LITASCO -- Lukoil affiliated company for sales of all petroleum products abroad.

Also Vitol and Glencore.


Some others companies (like mine) are trading small volumes BUT all we are trading based on PLATTS/ARGUS quotes with discount or premiums.
NO ONE SELLER HAS FIXED PRICES.



Petroleum products

The word Petroleum is derived from two words “Petra” meaning rock and “Oleum” meaning oil. The oil which occurs naturally in porous rocky strata in liquid form is the crude oil. If it is in semi hard state mixed in sand then it is bitumen. The crude oil can be black, brown, green or even orange to yellow. It contains oxygen, sulphur, nitrogen and other items in minute quantities which determines it suitability for a specific application. The crude oil or its derivatives are marketed by volume (by gallon, litre or barrel) or weight (by metric tonnes ~ MT). The co-relation between 7.2 to 7.4 barrels to 1 MT is taken for rough calculation only as is it not precisely accurate.

D2

D2 is a refinery abbreviation for Gasoil. It is the second distillate from the crude oil, and can be used without reformers and additives. So, the first engines used D2 as fuel - before petrol cars as we know them today was invented. That is because the engine invented by a German called Diesel, requires no spark plugs. The diesel engine will ignite and combust when the pressure increases so that the heated "plug" makes it explode. Here we get the name "Diesel" - since the same principles are used in diesel engines today. However, automotive diesel that you fill has additives that the refinery will add to make the engine more efficient and also easier to start in the winter. Diesel changes "flash point" in the winter. It also has additives to absorb water that condense. If you use summer diesel in the winter, you will get better mileage, but your fuel pipes may freeze and can also burst, and the wax makes the diesel flow thicker.

The principal difference between GASOIL and D2 is the content of sulphur. Just 10 years ago, the US EPA introduced a limit of 4% sulphur in the GASOIL, whereas Europe and the rest of the world followed later. As in most other cases, when you first have to remove the sulphur, it was soon discovered ways of doing this more efficient. Then it was discovered that the sulphur, as sulphuric acid, could be traded with a good profit - which now is the motivator for extracting as much as possible.


So "Low sulphur Gasoil" is no longer 4 percent - but below 0.2 percent. Then we have a new, "Ultra Low Sulphur" at 0.02% at the most, and the limit here is (a) that mass spectographs requires extensive calibration to measure below 1000ppm, and (b) sulphur has a way to form clogs - the molecules binds to free hydrogen molecules and form a cluster of molecules that will break if "cracked" by the refinery, but as explained above, D2 is a distillate and has not been "cracked".

ISO has a standard for D2 that most of oil companies use as their reference.

In the U.S. it is ANSI that has defined the US national standard for D2, according to proposals from the ASTM, API and EPA.

In Europe there are similar national variants, e.g. in Germany set by DIN, and in Russia by GOST.

The GOST variant for D2/Gasoil is GOST 305-82 and specifies now a sulphur content of 0.02 MAX which is according to the ISO standard. However, the ANSI standard will call this "Ultra Low Sulphur", and retain 0.2% (2000ppm) as the "Low sulphur”. The reduction of sulphur in the Gasoil used for heating has contributed to less pollution in many cities.

Automotive diesel has national variants - but the usual variants traded are EN590 and EN560 which are specified by ISO in Paris. These qualities may be sold in the U.S., and be compliant with EPA regulations in the U.S. Automotive diesel is now tested in planes with great success, where you get greater mileage per weight unit of fuel - as much as 40% increase. In these days, when no stone remains unturned to reduce emissions, one outcome may be that planes will fly on Gasoil and not kerosene. The problem is condensate / ice particles and wax that may cause the jet engine (which is a turbine) to be completely destroyed. A preliminary solution is to heat the gasoil before injection, and pass it through an electrostatic filter.

Gasoline

Is a transparent petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasoline also contain ethanol as an alternative fuel.

Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely in their physical and chemical properties. The fuel properties must be balanced to give satisfactory engine performance over an extremely wide range of operating conditions. The prevailing standards for fuel represent compromises among numerous quality, environmental, and performance requirements. Antiknock (octane) rating, distillation characteristics, vapour pressure, sulphur content, oxidation stability, corrosion protection, and other properties are balanced to provide satisfactory vehicle performance. Additives are often used to provide or enhance specific performance features.

Jet fuel

Jet fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is clear to straw-coloured in appearance. The most commonly used fuels for commercial aviation are Jet A and Jet A-1 which are produced to a standardized international specification. The only other jet fuel commonly used in civilian turbine-engine powered aviation is Jet B which is used for its enhanced cold-weather performance.

Jet fuel is a mixture of a large number of different hydrocarbons. Kerosene-type jet fuel (including Jet A and Jet A-1) has a carbon number distribution between about 8 and 16 carbon numbers (carbon atoms per molecule); wide-cut or naphtha-type jet fuel (including Jet B), between about 5 and 15 carbon numbers.

Mazut

Mazut is a heavy, low quality fuel oil, used in generating plants and similar applications. In the United States and Western Europe, mazut is blended or broken down, with the end product being diesel. Mazut-100 is a fuel oil that is manufactured to GOST specifications, for example GOST 10585-99. Mazut is almost exclusively manufactured in the Russian Federation, Kazakhstan, Azerbaijan, and Turkmenistan. The most important thing when grading this fuel is the sulphur content.

 

Mazut 100-75 VLS and Mazut 100-99 Grade I are actually the same thing. GOST merged the old classifications of 75 and 99 into a new seven grade classification, all under 100-99. For whatever reason, many people still use the old 75 classification; particularly the Chinese.

The grades are represented by these sulphuric levels:

”Very Low Sulphur” is mazut with a sulphur content of 0.5%
”Low Sulphur” is a mazut with a sulphur content of 0.5-1.0%
”Normal Sulphur” is a mazut with a sulphur content of 1.0-2.0%
”High Sulphur” is a mazut with a sulphur content of 2.0-3.5%.
EN590

EN590 describes the physical properties that all automotive diesel fuel must meet if it is to be sold in the European Union, Croatia, Iceland, Norway and Switzerland.

The EN 590 had been introduced along with the European emission standards. With each of its revisions the EN 590 had been adapted to lower the sulphur content of diesel fuel - since 2007 this is called ultra low sulphur diesel as the former function of sulphur as a lubricant is absent (and needs to be replaced by additives).

The quality of European diesel fuels is specified by the EN 590 standard. While these specifications not are mandatory, they are observed by all fuel suppliers in Europe.

 

Automobile diesel en 590 is intended for application in diesel engines. Diesel motor fuel quality meets the requirements of European Standard EN 590. For operation in the conditions of a temperate climate following marks of fuel diesel automobile EN 590 are offered: Grade C - limiting filterability temperature -5 ° C; Grade D - limiting filterability temperature -10 ° C; Grade E - limiting filterability temperature - 15 ° C; Grade F - limiting filterability temperature -20 ° C. The entire volume of produced diesel fuel quality meets the requirements for fuels for vehicles of Euro 4 and Euro 5. Low sulfur content in diesel EN 590 reduces emissions of sulfur oxides into the atmosphere, which is especially important for for inhabitants of big cities.

Ultra-low-sulfur diesel (ULSD)

Ultra-low-sulfur diesel (ULSD) is diesel fuel with substantially lowered sulfur content. As of 2006, almost all of the petroleum-based diesel fuel available in Europe and North America is of a ULSD type. There is not a single standard set of specifications and as the government mandated standard becomes progressively more strict so does the definition.

The move to lower sulfur content is expected to allow the application of newer emissions control technologies that should substantially lower emissions of particulate matter from diesel engines. This change occurred first in the European Union and is now happening in North America. New emissions standards, dependent on the cleaner fuel, have been in effect for automobiles in theUnited States since model year 2007.

ULSD has a lower energy content due to the heavy processing required to remove large amounts of sulfur from oil, leading to lower fuel economy. Using it requires more costly oil.

European Union

In the European Union, the “Euro IV” standard has applied since 2005, which specifies a maximum of 50 ppm of sulfur in diesel fuel for most highway vehicles; ultra-low-sulfur diesel with a maximum of 10 ppm of sulfur must “be available” from 2005 and was widely available as of 2008. A final target (to be confirmed by the European Commission) of 2009 for the final reduction of sulfur to 10 ppm, which will be considered the entry into force of the Euro V fuel standard. In 2009, diesel fuel for most non-highway applications is also expected to conform to the Euro V standard for fuel. Various exceptions exist for certain uses and applications, most of which are being phased out over a period of several years. In particular, the so-called EU accession countries(primarily in Eastern Europe), have been granted certain temporary exemptions to allow for transition. Certain EU countries may apply higher standards or require faster transition. For example,Germany implemented a tax incentive of per litre of "sulphur free" fuel (both gasoline and diesel) containing less than 10 ppm beginning in January 2003 and average sulphur content was estimated in 2006 to be 3-5 ppm. Similar measures have been enacted in most of the Nordic countries, Benelux, Ireland and the United Kingdom to encourage early adoption of the 50 ppm and 10 ppm fuel standards.




EN 590:1993—The first EU diesel fuel specification. It established a sulfur limit of 0.2% in onroad and nonroad diesel fuels.
EN 590:1999—This standard reflected the sulfur (350 ppm) and cetane (51) specifications by Directive 98/70/EC.
EN 590:2004—Sulfur limits of 50 ppm (so called Euro 4) and 10 ppm (Euro 5) as regulated by Directive 2003/17/EC. FAME content of 5%.
EN 590:2009—FAME content of 7% as regulated by Directive 2009/30/EC. This directive also adopts mandatory biofuel requirements for refiners and introduces a 10 ppm S limit in nonroad fuels effective 2011.
Such traders are Vitol, Trafigura, Gunvor (Waterway), Sunimex.

Do not believe in CIF ASWP prices.

Why?

Because freigting fees are changing every day;

Because each port has own demurrage rates;

Becasue each port has own schedule and if the seller or his chartering company will not ageed "free window" with port administration You`ll not see Your product in port`s storages (maximum in open sea near port).

A lot of cases connected with CIF and You (as the trader) have to know all of such things (surprises and "underwater stones").

 


Let`s continue our lecture about reality on Russian petroleum market.

 

Real Gasoil`s price inside Russia (I told above) is 26200 RUR (1USD = 23,15 RUR today (source www.rbcnews.com)


Here You can check my words (if You can read russian) http://petroleumargus.ru/products.html if not so You have to look on second chart from top in left column.

 

So 26200 on FCA refinery.


Our exporters don`t pay VAT tax 18% but have to pay export duties.


And we have following approx.price on FCA refinery in exporting direction:


26200-18%=21484 RUR or 21484/23,15 = 928 USD per MT (exporter pays VAT to refinery or refinery pays it itself but the government compensates it to esporter under our regulation after exporting act).


Now we have "to pay" export duties 280,5 USD per MT = 928 + 280,5 = 1208,5 USD per MT.


Logistic expenses by railway (official rates incresed since 1 July on 10%) will take somewhere around 15-30 USD per MT (depends from refinery placement in Russia).


So now, You can make own conclusion about reality.


I`m sure that a lot of guys can tell You that they are "affiliated with government, prime-minister, any petroleum companies etc" but it`s bullshit (except several well-known traders) because just think about that anyone can get any product for free from producer. It`s impossible because producers have expenses too, like:


1. Taxes.


2. Expenses for producing the product.


3. Expenses for supplying of raw materials (crude oil ect).

 

So, up to You believe or not that funny prices which we have around but be serious and we have facts which tell that such "i-net prices" are unreal.


Buying Petroleum Products
Buying petroleum products: beware fraud

Be aware of fraudulent schemes that might affect potential petroleum products' buyers from the USA and other countries. Nowadays many American (and not only) companies are seeking for long-term supply contracts with the Russian refineries or intermediaries (brokers) involved. The most popular petroleum products are mazut M-100, diesel D-2, jet fuel and liquid natural gas.

There are a lot of companies on the Internet which claim to be ready to sell petroleum products of the Russian origin in high volumes on a long-term basis. But some of them are fake (fraudulent) companies using bogus documents and/or corporate names of major Russian oil corporations (like Rosneft, LukOil etc.).

Usually the fraudulent seller claims to be able to supply petroleum products in high volumes ASAP subject to advance payment of significant amount and/or some “mandatory” fees (inter alia export license fee, title transfer fee etc.). After receiving money they disappear without a trace.

Russia is one of the world's major petroleum products exporter and the overwhelming majority of the legal entities involved in transactions with petroleum products of the Russian origin are prudent companies.

But dealing with potential sellers of petroleum products of the Russian origin (especially when it’s your first contract with them), please, bear in mind the following tips:

- There are no export license requirements in Russia for petroleum products (the only exception is natural gas in a gas form). So if your potential counterparty requests you to pay for an export license, it’s a scam.

- The Russian laws do not provide for any title transfer fee for petroleum products. You might be interested to know that the only case in which you need to officially transfer your title for a property is selling/buying real estate. Petroleum products are not considered as real estate under the Russian laws (and, we guess, under no countries’ laws);

- If you don’t know your counterparty really well it might be appropriate to use a letter of credit as the method of payment. You may also opt for performance bond;

- No Russian authority could receive any sums of money directly to their accounts (especially in a foreign currency). If you’re asked to pay for something allegedly to one of the Russian authority and they’re the direct payees with accounts in some privately owned banks, it’s 100 % a scam;

- Hire Russian lawyer. There’re a lot of large, medium and even small legal firms in Russia that could help you protect your interest and money at relatively low price.

We hope that these tips could be of interest and help to all American companies involved in transactions with petroleum products of the Russian origin.

Here’s a list of major Russian refineries with links to their websites (some of them have information about the above-described scams):

 

Refinery
Corporation
Website link

Ufa Refineries
Bashneft JSC
http://www.bashneft.com/custom/export/

Kirishnefteorgsintez (LLC "KINEF")
Surgutneftegaz OJSC
http://www.surgutneftegas.ru/en/sales/
http://www.surgutneftegas.ru/en/sales/sbit_obshestva/

Omsky Refinery
Gazprom OJSC
http://onpz.gazprom-neft.ru/company/contacts/
http://www.gazprom-neft.com/business/exports.php

Samara Refinery
Rosneft OJSC
http://www.rosneft.com/Downstream/refining/Refineries/Kuibyshev_Refinery/

Lukoil-Nizhegorodnefteorgsintez
Lukoil OJSC
http://www.nnos.lukoil.ru/main/static.asp?art_id=2695

Yaroslavnefteorgsintez
Slavneft OJSC
http://www.refinery.yaroslavl.su/index.php?module=content&mode=pages&name=kontakti

Lukoil-Permnefteorgsintez
Lukoil OJSC
http://www.eng.pnos.lukoil.com/main/default.asp

Lukoil-Volgogradneftepererabotka
Lukoil OJSC
http://www.vnpz.lukoil.com/main/static.asp?art_id=658

Salavatnefteorgsintez
Gazprom OJSC
http://eng.gpns.ru/

RN Tyapsinky Refinery
Rosneft OJSC
http://www.rosneft.com/Downstream/refining/Refineries/Tuapse_Refinery/

RN Komsomoljsky Refinery
Rosneft OJSC
http://www.rosneft.com/Downstream/refining/Refineries/Komsomolsk_Refinery/

Angarskay NHK
Rosneft OJSC
http://www.rosneft.com/Downstream/refining/Refineries/Angarsk_Refinery/

Anchinsky Refinery
Rosneft OJSC
http://www.rosneft.com/Downstream/refining/Refineries/Achinsk_Refinery/

TAIF-NK
independent
http://en.taifnk.ru/

Orsknefteorgsintez
independent
http://www.ornpz.ru/o-kompanii/kontaktyi.html

 

Buying Protocols Fuel Products
These Protocols are the way that we will buy fuel.

Seller issues offer
Buyer and Seller engage via phone call
Buyer issues ICPO
Seller issues draft contract
Buyer and Seller complete and execute contract
Seller issues soft POP
Buyer verifies the soft POP
Buyer issues BLC or RDLC or SBLC
Sellers issues full POP
Lifting and payments as per contract and delivery