Glossary of Terms:

Barrel – The base unit of size for oil products, originally stored in whiskey barrels. A barrel equals 42 U.S. gallons.

Basis – The difference between the prices of similar fuel products at two different locations. Example: The difference between the NYMEX price of heating oil and the Chicago price of ULSD may be stated as the basis of NYMEX to Chicago.

Belvieu (LDH) – Belvieu refers to Mont Belvieu, Texas, one of the primary locations for storage of propane in the United States (the other being Conway, KS). Louis Dreyfuss Holdings is one of the largest storage facilities in Mont Belvieu, and therefore “LDH” is sometimes used almost interchangeably with Belvieu or Mont Belvieu.

ConwayConway refers to Conway, Kansas, one of the primary locations for storage of propane in the United States (the other being Mont Belvieu, TX).

NYMEX – New York Mercantile Exchange – The NYMEX is the world’s largest physical commodities exchange where energy and other commodities are traded. Prices on the NYMEX are often used as benchmark for prices throughout the world. The NYMEX is a liquid market, and trading is available every business day both in traditional trading pits and through electronic means.

Oxygenate – Substances which raise the oxygen content in a gasoline blend. Oxygenates include ethanol, Methyl tertiary butyl ether (MTBE), and methanol. Some oxygenates also raise the octane level in the fuel, making them primary choices when choosing a product to blend.

Oxygenated Gasoline – Finished motor gasoline having oxygen content of 2.7% or higher by weight.

Rack Prices – “Rack Prices” refers to the published prices at which wholesale distributors of fuels can purchase various fuel products at the terminals.

RBOB – Reformulated Blendstock for Oxygenate Blending – This is base refined gasoline product that is mixed with ethanol or another oxygenate to make the gasoline which meets legal specifications and can be sold and purchased at the gasoline pump. It is not yet ready for retail sale.

RVP – Stands for Reid Vapor Pressure. RVP is a common measure of and generic term for gasoline volatility. The EPA regulates the vapor pressure of gasoline sold at retail stations during the summer ozone season (June 1 to September 15) to reduce evaporative emissions from gasoline and diminish the effects of ozone-related health problems.

Spread – The spread is basically the same thing as basis. It is the difference between two products or places that are often compared. Often used in the update when looking at the price of propane in the two major supply points of Mont Belvieu, Texas and Conway Kansas.

ULSD – Stands for Ultra Low Sulfur Diesel. This means that there are less then 15 ppm (parts per million) of sulfur in the fuel.