Platts has updated European fuel oil & feedstocks 2024 netbacks formulas

Platts, part of S&P Global Commodity Insights, has updated the formulas to derive its netback and net forward assessments to reflect 2024 Worldscale rates.

This includes an increase in flat rates for voyages including Turkish ports, as detailed in Worldscale Circular No. 6 (2024), and an increase in Port Tariffs for the port of Rotterdam, as detailed in Worldscale Circular No. 7 (2024), outlined in a Dec. 28 subscriber note, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/122823-platts-updates-european-fuel-oil-feedstocks-netback-formulae-to-reflect-revised-rotterdam-port-fees-turkish-flat-rates

The changes to the formulas are effective Jan. 2 for the following assessments:

High sulfur fuel oil

The flat rate used to calculate FOB NWE HSFO cargoes (PUABB00) as a freight netback from CIF NWE HSFO cargoes (basis Rotterdam) is $6.25/mt.

The flat rate used to calculate FOB Mediterranean HSFO cargoes (PUAAZ00) as a freight netback from CIF Mediterranean HSFO cargoes is $7.32/mt.

The Rotterdam harbor dues are $1.04/mt.

Low sulfur fuel oil

The flat rate used to calculate CIF NWE LSFO cargoes (PUAAL00) as a freight net-forward from FOB NWE LSFO cargoes is $7.28/mt.

The flat rate used to calculate CIF Mediterranean LSFO cargoes (PUAAJ00) as a freight net forward from FOB NWE LSFO cargoes, in the absence of other daily bid/offer/trades information, is $13.21/mt.

The flat rate used to calculate FOB Mediterranean LSFO cargoes (PUAAK00) as a freight netback from CIF Mediterranean LSFO cargoes is $7.47/mt.

Marine fuel

The flat rate used to calculate FOB Mediterranean Marine Fuel 0.5% cargoes (MFFMM00) as a freight netback from CIF Mediterranean Marine Fuel 0.5% cargoes is $6.57/mt.

Fuel oil feedstocks

The flat rate used to calculate FOB Baltics VGO cargoes (AAHMX00 and AAHNB00) as a freight netback from CIF NWE VGO cargoes is $9.73/mt.

Please note that spot market bids/offers/trades may, where relevant, also be taken into account when assessing FOB Baltics VGO cargoes.

The flat rate used to calculate FOB Black Sea VGO cargoes (ABBAD00 and ABBAC00) as a freight netback from CIF Mediterranean cargoes is $8.91/mt.

The Rotterdam harbor dues are $1.03/mt.

Please send any comments and feedback to europe_products@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.