MTSG

Classification of crude oil such as Heavy, Medium, Light, Extra Light can be determined by?

• Sulphur

• API

• Pour Point

• Total Acid Number

Name 3 refinery type in the world.

• Topping, Cracking, Complex

• Topping, Hydroskimming, Treating

• Topping, Hydroskimming, Complex

• Topping, Cracking, Treating

What type of refinery shown in the diagram above? What is X, and what is upgrading material shown as Y?

• Topping, Naphtha, LPG

• Topping, Naphtha, Gasoline

• Hydroskimming, Naphtha, Gasoline

• Complex, Naphtha, LSWR

Delayed Coker Unit (DCU) upgrades Vacuum Residue (VR) into higher material such as Distillates instead of Fuel Oil or Asphalt. What type of refining process does DCU fall under?

• Catalytic Converstion

• Thermal Conversion

What are the main crude oil pricing benchmarks?

• Tapis, Oman, Brent

• Dubai, West Texas Intermediate, Brent

• Minas, Brent, Dar Blend

In April 2023, a Refinery in Asia intends to buy USA crude on Dubai price basis. However, the Producer only selling on ICE Brent price basis. Physical Buy Cost is ICE Brent^{April 2023} + 1.50/bbl. Brent - Dubai Spread April 2023 is +1.95/bbl.

If the Refinery mitigates the price exposure via hedging ICE Brent to Dubai, what would be the crude final price in Dubai price basis?

• Dubai^{April 2023} - 0.45/bbl

• Dubai^{April 2023} + 3.45/bbl

The same Refinery, upon buying the physical crude from USA, has bearish view on the market. Based on their technical analyses and market intel, the Brent - Dubai spread for April 2023 might be narrowing (decrease). Provided that they have proper mandate, should they hedge (lock the spread) now or wait?

• Wait

• Hedge Now

Answer explanation

They should wait for the spread to narrow. Locking/Hedging the spread at narrower/lower number means their crude cost in Dubai price basis is lower.

At spread of +1.95/bbl, their final price is Dubai+3.45/bbl

If they wait and lock at +1.75, their final price is Dubai+3.25/bbl