Our physical availability continues to expand and diversify
Crude oil is a natural fossil fuel which, once refined, is used to create most of the energy sources used industrially and domestically, from gasoline and diesel to power vehicles, to jet fuel for aircraft and fuel for ships. It is also used widely in the production of chemical products such as pharmaceuticals, solvents, fertilisers, pesticides and plastics.
Different crude oils are graded by their density or specific gravity assigned by an API gravity as well as by their content of sulfur. Their quality is measured in terms of density; light to heavy, and sulfur content; sweet to sour. Density is classified by the American Petroleum Institute (API). API gravity is defined based on density at a temperature of 15.6 ºC. The higher is the API gravity, the lighter is the crude. Light crude generally has an API gravity of 38 degrees or more and heavy crude an API gravity of 22 degrees or less. Crude with an API gravity between 22 and 38 degrees is generally referred as medium crude.
The EU and IMO have a slightly different definition of ‘heavy'. Their cut-off between ‘heavy' and ‘intermediate' lies at 25.7 API gravity, meaning that more crude oil types fall under the ‘heavy' definition of EU and IMO. Sweet crude is commonly defined as oil with a sulfur content of less than 0.5%, while sour crude has a sulfur content of greater than 0.5%. API gravity and the sulfur content are significant factors in explaining the price level and trade pattern of a particular crude oil.
Brent Blend is used for pricing around two-thirds of the crude traded internationally. Rolling price assessments are based on physical Brent-Forties-Oseberg crude oil cargoes loading not less than 10 days ahead and loaded free on board at the named port of shipment (‘Brent Dated). Brent Blend is a light, sweet North Sea crude with an API gravity of approximately 38 and a sulfur content of approximately 0.4%.
Russian Export Blend, the Russian benchmark crude, is a mixture of several crude grades used domestically or sent for export. Russian Export Blend is a medium, sour crude oil with an API gravity of approximately 32 and a sulfur content of approximately 1.2%. Its spot price is reported at Augusta, Italy, and Rotterdam, the Netherlands, which act as the two primary delivery points.
West Texas Intermediate, the US benchmark crude oil, is a light, sweet crude oil with an API gravity of approximately 40 and a sulfur content of approximately 0.3%. The spot price of West Texas Intermediate is reported at Cushing, Oklahoma.
Light, sweet crude is more expensive than heavier, sourer crude because it requires less processing and produces a slate of products with a greater percentage of value-added products, such as gasoline, diesel, and aviation fuel. Heavier, sourer crude typically sells at a discount to lighter, sweeter grades because it produces a greater percentage of lower value-added products with simple distillation and requires additional processing to produce lighter products.
Fuel oil, which is distilled from crude oil and often left as residue during the refining process, refers to a range of the least volatile and heaviest of the commercially used fuels.
Some 10% of fuel oil produced is used to power large ships. A further 15% is used for heating and the remainder is used by refineries as feedstock for further upgrading.
Fuel oil trading, in the form of bunkers for ships has always been a major activity. But fuel oil also drives power stations and other industrial plant and serves as a feedstock for refiners to upgrade for use in many other industries - particularly in rapidly expanding economies in the world.
The fuel market is complex. Although bunkers may be of a fairly standard specification the world over, there are many different qualities of fuel oil required for industrial uses.
The off-take and supply of fuel oil requires more than the ability to just move product from A to B. Our traders, charterers, operators and risk management teams provide innovative solutions to enable a problem free flow of fuel oil from suppliers to end-users.
Gasoline continues to fuel most of the world’s car fleet, it is made by blending up to ten different refined products with this blend varying from jurisdiction to jurisdiction, depending on local requirements.
Our capabilities enable us to take advantage of arbitrages that arise from often-significant price differentials that exist between or even within various countries.
At any given time, tens of gasoline tankers moving product internationally, as well as a network of owned or leased storage capacity in strategic locations that enables our customers to benefit from operational flexibility.
Gasoline, more specifically RBOB Gasoline, is a petroleum-derived liquid mixture that has an energy density slightly lower than jet and diesel fuel but higher than high octane gas, biodiesel, or LNG. On average about 19.5 gallons of gas can be extracted from a 42 gallon barrel of crude oil.
Gasoline is one of the most important commodities in the world used primarily in the transportation industry in the U.S. This usage segment accounts for over 40% of global gasoline demand although emerging markets are quickly catching up in aggregate. It should also be noted that taxation and subsides also play a key role in demand for oil as heavily taxed nations such as those in Europe or Japan, tend to have higher average prices and thus are more easily discouraged than those nations with low fuel taxes such as those in the Middle East and other large oil producing nations.
Middle distillates refers to a range of refined products situated between lighter fractions, such as LPG or gasoline, and heavier products such as fuel oil. Typically they include jet fuel, heating kerosene, and gas and diesel oils, such as marine bunker fuels. Diesel is mainly used for transportation. Heating kerosene is processed for commercial and domestic heating, whereas jet fuel is used to power the engines of commercial and military aircraft.
Jet Fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. The most common fuels are Jet A and Jet A-1 which are produced to an internationally standardized set of specifications. The only other jet fuel that is commonly used in civilian turbine engine-powered aviation is called Jet B and is used for its enhanced cold-weather performance. Kerosene-type jet fuel (including Jet A and Jet A-1) has a carbon number distribution between about 8 and 16 carbon numbers; wide-cut jet fuel (including Jet B), between about 5 and 15 carbon numbers.
JP stands for Jet Propulsion. Military facilities around the world use a different classification system of JP (Jet Propulsion) numbers. The governments of many countries maintain separate specifications for jet fuel for military use.
The reasons for separate specifications include the operational and logistical differences between the military and civilian systems and the additional demands high-performance jet fighter engines place on the fuel.
World’s appetite for middle distillates from 2000 to 2010, growth in world consumption of middle distillates exceeded growth in demand for gasoline and total oil products: the annual average growth rates (AAGR) were 1.6%/year and 1.3%/year, respectively. In 2020, continued robust global demand for distillate is expected, with a growth rate still at 1.6%/year, above total growth in demand for oil. By contrast, growth in demand for gasoline is forecast to be weak, with an increase of 0.7%/year. From 2020 to 2030, while global growth in demand for oil is expected to be restrained at 0.6%/year, middle distillates still stay a primary driver with an annual growth above that of oil.
Naphthas are refined or partly refined light distillates with an approximate boiling point range of 27 degrees to 221 degrees Centigrade. Blended further or mixed with other materials, they make high-grade motor gasoline or jet fuel. They are also used as solvents, petrochemical feed stocks, or as raw materials for the production of town gas.
However, if it is rich in aromatics and naphthenes it is used for reforming into gasoline or as blendstock for making gasoline. On the other hand, Paraffinic Naphtha is another category of naphtha with a high paraffinic content suitable for petrochemical use as an ethylene cracker feedstock.
Naphtha refers to a range of volatile and flammable liquids produced by the distillation of petroleum. The liquids, which differ slightly in their chemical structures and boiling points, have various applications in the refining process - the main one as a feedstock for gasoline and the manufacture of olefins by the petrochemical industry.
The liquids, which differ slightly in their chemical structures and boiling points, have various applications in the refining process – the main one as a feedstock for gasoline and the manufacture of olefins by the petrochemical industry. Responding to its different usages, there is a huge demand of Naphtha in the market.
Earlier Naphtha was also being used as a major resource for power engines in 80s. Since it is made from distilling petroleum, it looks like gasoline and is a component of kerosene. Naphtha is also used to dilute heavy oils to help move through pipelines, to make high-octane gas, to make lighter fluid, and even to clean metal.
CapitalSV has steadily expanded its naphtha business. Our trading desks in Singapore, Geneva and Houston predominantly take product from the Middle East, India, Russia and Africa and supply to petrochemical companies in Far East Asia, Europe, North and South America.
They are derived from the refining process, and chemicals are added to the base oils to improve the properties required by the application. There are five main groups of base oils which differ depending on the crude from which they originate and the process by which they have been refined.
Lubricants are often liquid form substances introduced between two moving surfaces to reduce the friction, improving efficiency and reducing wear. They may also serve to function for dissolving or transporting foreign particles and of distributing heat. One of the single largest applications for lubricants, in the form of motor oil, is protecting the internal combustion engines in motor vehicles and powered equipment.
Typically lubricants contain 90% base oil (most often petroleum fractions, called mineral oils) and less than 10% additives. Vegetable oils or synthetic liquids such as hydrogenated polyolefin, esters, silicones, fluorocarbons and many others are sometimes used as base oils. Additives deliver reduced friction and wear, increased viscosity, improved viscosity index, resistance to corrosion and oxidation, aging or contamination, etc.
Lubricants such as 2-cycle oil are also added to some fuels. Sulfur impurities in fuels also provide some lubrication properties, which have to be taken in account when switching to a low-sulfur diesel. Biodiesel is a popular diesel fuel additive providing additional lubricity.
Base oil is the name given to lubrication grade oils initially produced from refining crude oil (mineral base oil) or through chemical synthesis (synthetic base oil). Base oil is typically defined as oil with a boiling point range between 550 and 1050 F, consisting of hydrocarbons with 18 to 40 carbon atoms. This oil can be either paraffinic or napthenic in nature depending on the chemical structure of the molecules.
Base stocks are classified inot various grades including Neutral, Solvent Neutral, Bright Stocks, The most common names are for group I (SN: Solvent Neutral), for group II (N: Neutrals) and group III grade names refer to the viscosity (4cst, 6cst, 8cst …).
Liquefied Natural Gas (LNG) is natural gas, cooled to minus 161°C until it becomes a liquid. It is stored under atmospheric pressure and reduced in volume by the ratio of 1:600. As a liquid, natural gas is easier and less costly to transport, particularly where pipeline processing is not available. Once regasified at its destination, it serves the same purposes as natural gas, such as a consumer fuel for heating, cooking or electricity generation.
Natural gas is a major source of energy, but in most of the towns and cities, it is unreachable as they are located at far place from the gas fields. As transporting gas by the pipeline may prove to be a costly affair. Creates LNG by reducing the temperature to – 160 degree Celsius.
LNG is a colorless and non-toxic liquid that we transport easily to the clients destination. We have many years of experience with LNG shipping operators managing ample of carriers. The demand for the resource is booming across the globe, especially in the Middle East.
When LNG reaches to the destination, we return it to a gas at regasification facilities, from where it is then transferred through pipe to industries and homes.
LPG (Liquefied Petroleum Gas) is predominantly propane and butanes, either segregated or in various ratios and mixtures of each product. LPG is a by-product of the refinery process, transported mainly in pressurised vessels. LPG is also a by-product of crude oil production (Associated Gas) and a by-product of natural gas production (Non Associated Gas).
LPG (Liquefied Petroleum Gas) is widely known for being used for the purpose of cooking and heating, as automotive fuel and petrochemical feedstock. The consumption of petrochemicals is 20% with households and the other industries.
LPG is widely referred as butane and propane. It is a flammable mixture of the hydrocarbon gases, which are used as fuel. This is mainly used for cooking equipment, heating appliances and vehicles.
It is more used as a refrigerant and an aerosol propellant, which replace the chlorofluorocarbons with an aim to lessen the damage to the ozone layer. When it is used for vehicle specifically, it is called as auto gas.