Commodity Brokerage / Energy & Petroleum Products / Gas Oil / Diesel

Energy & Petroleum Products

Gas Oil / Diesel

Gasoil and diesel are middle-distillate fuels traded by sulphur specification, with 10 ppm ultra-low-sulphur diesel among the key international grades.

MARKET REFERENCES

How the market commonly references price

There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.

  • Platts FOB Singapore Gasoil / MOPS
  • FOB Arab Gulf gasoil
  • Regional ULSD / diesel assessments

TYPICAL COMMERCIAL STRUCTURE

How physical pricing is often built

Typical Asia formula: MOPS / Platts 10 ppm gasoil average for an agreed pricing period ± market premium/discount. CFR pricing generally adds freight and destination economics.

PRICE DRIVERS

What moves the physical differential?

  • Sulphur specification
  • Cetane / cold-flow characteristics
  • Regional inventories
  • Refinery runs and outages
  • Freight and arbitrage

PHYSICAL TRADE

Commercial considerations

Physical trades are commonly quoted FOB, CFR or CIF. The commercial differential reflects grade, origin, timing and logistics.

The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.

Market methodology reference: view source / methodology

PHYSICAL COMMODITY BROKERAGE

Discuss a Gas Oil / Diesel requirement.

Share the specification, quantity, origin or destination, delivery basis and timing.

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