Platts discontinues its ULSD 10 ppm CIF NWE (all origin) assessment and related spread Jan 2, 2025

Platts, part of S&P Global Commodity Insights, has discontinued its ULSD 10 ppm CIF NWE (all origin) assessment [ALORA00] and related spread to benchmark ULSD 10 ppm CIF NWE assessment [ALORB00]), effective Jan. 2, 2025.

This discontinuation was announced in a subscriber note published Dec 6, found here (opens in a new tab)and follows a consultation detailed here: METHODOLOGY: Platts opens consultation on Russian-origin ULSD market(opens in a new tab) and a proposal published Nov 8, found here: Platts proposes to discontinue its ULSD 10 ppm CIF NWE all-origin assessment and related spread from Jan 2, 2025(opens in a new tab).

Platts opened the consultation in November 2022 to seek industry feedback on how best to provide continued transparency into the Russian-origin diesel market following European Union sanctions on Russian oil products which came into force in February 2023, following which the ULSD CIF NWE (all origin) assessment no longer reflects Russian-origin product as its current methodology is on a CIF Northwest Europe basis.

In particular, Platts invited feedback on the future of the ULSD CIF NWE (all origin) assessment and related all origin spread, and whether these assessments should be discontinued or amended to reflect the continued flow of Russian oil products to markets outside the EU.

Industry feedback and observation of vessel flows have since indicated that following the February 2023 EU sanctions on Russian oil products there has been a reshaping of traditional flows of Russian material to destinations outside the European Union, including the emergence of new trading hubs for the product, such as Brazil, Turkey and Africa.

As part of its commitment to bringing transparency to these new markets, Platts began assessing ULSD cargoes delivered into South Brazil from all origins, including Russia, from Sept. 1, 2023. More details of the Platts ULSD DAP South Brazil (All-Origin) assessment can be found in the Americas refined oil products methodology guide, here: americas-refined-oil-products-methodology.pdf(opens in a new tab).

Feedback had also indicated that existing sanctions on imports of Russian-origin into the EU are not expected to be lifted for the foreseeable future, and Platts has therefore discontinued its ULSD10 ppm CIF NWE (all origin) assessment [ALORA00] and related spread to benchmark ULSD 10 ppm CIF NWE assessment [ALORB00], effective Jan. 2, 2025.

The changes do not impact other Platts European diesel assessments including benchmark price assessment Platts ULSD 10ppmS CIF NWE Cargo [AAVBG00], which continue to exclude Russian-origin products.

Platts launched its ULSD 10 ppm CIF NWE (all origin) assessment and related spread to benchmark ULSD 10 ppm CIF NWE assessment in June 2022 to reflect material from all origins, including Russia, with the aim of providing transparency into the continued flow of Russian diesel to some Northwest European importers at the time. Platts concurrently changed its benchmark assessment methodology for diesel cargoes delivered in Northwest Europe and the Mediterranean to exclude Russian-origin products with effect from June 1, 2022, as European markets increasingly shifted away from buying Russian-origin oil products after the Russian invasion of Ukraine. More details can be found here: Platts excludes Russian-origin product from European diesel, gasoil cargo assessments June 1(opens in a new tab).

Platts will continue to monitor flows of Russian-origin diesel, as well as the emergence of new trading hubs for the product.

Please send any 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.