The Oil Traders' Word(s) by Stefan Van Woenzel

Author:Stefan Van Woenzel [Woenzel, Stefan van]
Language: eng
Format: epub
ISBN: 9781468586053
Publisher: Author Solutions Inc.
Published: 2012-06-29T04:00:00+00:00

L

L/15

Litres at 15º C/60º F. The oil market’s standard quantity measurements are reported at this temperature. Initial measurements are done at actual temperature and then it is converted to the measurement at 15º C/60º F. Densities reported and discussed in the market are always based on this standard. But be aware that for logistic reasons you might need to convert your nominated quantities to actual temperatures. Fueloil has often a delivery temperature between 50º C/122º F and 60º C/140º F. It means that the real volume is bigger than the B/L. So make sure that your cargo fits in the tank. A mistake I have seen many times when the last 100 to 200 tons did not fit in the tank. Weight is not changing when temperatures change.

Land Locked Trading

Situation where traders sell oil production by supplies into pipelines only. Production of oil may not be loaded on board of vessels because of the production location or because of the local market structure and availability to transport the oil through pipelines to those markets. A big example can be related to the Canadian sand oil production which finds a lot of out-let in the USA. Oil is supplied through pipelines in many batches. In Russia there is a big local market with many refineries processing Urals crude oil and some other light oils. That local trading activity is a land-locked activity with oil supplied through pipelines. It is therefore recommended to have a share in a pipeline system or at least have good access to pipeline capacity and storage linked to pipeline systems. It would give a company a great opportunity to trade and optimize. Being a major company but also being depended on others controlling the systems does not always work on the long term. Trading land-locked is trading the logistics.

Laden

Loaded aboard a vessel. A laden vessel.

Landed Cost (of oil)

The cost of oil off-loaded at a port. Similar to CIF, but would also include any duties, fees, or taxes.

LASH

Lighter aboard ship. Lighter or barge taken on board a vessel to cross open seas from one area to another. Not each lighter or barge is able or allowed to sail on open sea. Basically you can consider the barge as being a big container on board of a barge carrier.

Last Look

Getting to see the last price offer. If the trader who got the last look is able to beat that offer, he will get the business. Giving someone a last look can be tricky and is not always the most popular way to trade, however very efficient to assure that you get the best price. Giving a last look to another company is often done because of good relations. However as a trader you always prefer to have a last look. In case you are not interested in the business you just let the deal go. You have at least the information about the latest agreed price in the market. See also ‘first refusal.’

Last Trading Day

The last day on which trading may occur in a given futures contract or option.

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