Crude Oil, Refined Products, Diesel-Gasoil

January 02, 2025

Platts changes European VGO netback routes & assessment names, Jan 2 2025

Platts, part of S&P Global Commodity Insights, has updated netback routes for European vacuum gasoil cargoes Jan. 2, to reflect a change in trade flows following European sanctions on Russian-origin oil products.

In addition, Platts has also changed the names of some of the affected assessments in order to accurately reflect the updated ports.

The assessments under new names continue to be found under the heading "European Feedstocks and Blendstocks" on page 2 of European Marketscan, and the table is renamed "FOB Med" from "FOB Black Sea".

This change was outlined in an Oct. 11 proposal, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/101124-platts-proposes-to-change-european-vgo-netback-routes-assessment-names-jan-2-2025

The following changes are effective immediately:

Assessment code: Previous Assessment name: New name: Updated load ports:
ABBAD00 LSVGO Black Sea FOB Med LSVGO

Santa Panagia Bay (50%)

Cartagena (30%)

Laconia Bay (20%)
ABBAC00 HSVGO Black Sea FOB Med HSVGO

Santa Panagia Bay (50%)

Cartagena (30%)

Laconia Bay (20%)
AAHMX00 VGO 0.5%-0.6% FOB NWE Retain existing name

Antwerp (40%)

Rotterdam (40%)

Amsterdam (20%)
AAHNB00 VGO 2.0%S FOB NWE Retain existing name

Antwerp (40%)

Rotterdam (40%)

Amsterdam (20%)

As part of this methodology change, there will be no changes to the underlying assessments (VGO 0.5%-0.6% Cargoes CIF NWE, VGO 2.0%S CIF NWE, VGO 0.8% CIF Med Cargo, VGO 2% MAX CIF Med Cargo), their names or basis ports.

To reflect the new netback port baskets, Platts has updated the 2025 netback formulae and applicable Worldscale rates. The rates for European VGO netback assessments are as follows:

The flat rate used to calculate FOB NWE VGO cargoes (AAHMX00 and AAHNB00) as a freight netback from CIF NWE VGO cargoes is $5.04/mt.

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

The flat rate used to calculate FOB Mediterranean VGO cargoes (ABBAD00 and ABBAC00) as a freight netback from CIF Mediterranean cargoes is $5.08/mt.

The Rotterdam harbor dues are $1.12/mt.

Please send feedback, questions or comments 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.