SUBSCRIBER NOTE: Platts raises reference size for CIF NWE diesel cargoes Jan 3

Effective January 3, 2017, S&P Global Platts has raised the basis size of its CIF Northwest European diesel cargo assessments from 20,000 mt plus/minus 10% to 30,000 mt plus/minus 10%.

Due to an observed change in market flows, in which larger cargoes and vessels are increasingly supplying the market, Platts first proposed the change on July 22, 2016. Following supportive industry feedback, the decision to proceed was made on September 19, 2016.

Typical cargo sizes in the range of 10,000-40,000 mt plus/minus 10% will continue to be reflected, with alternative cargo sizes normalized back to the value of a 30,000 mt plus/minus 10% cargo.

The following assessments are affected: CIF ARA diesel cargoes (AAVBG00), CIF NWE (Le Havre) diesel cargoes (AAWZC00), CIF UK diesel cargoes (AAVBH00), FOB ARA diesel cargoes (AAVBF00), FOB NWE (Le Havre) diesel cargoes (AAWZD00).

Global diesel cargo sizes have increased in recent years with larger diesel exports from Russia and the US, and the commissioning of new refineries in the Middle East geared to diesel production.

For example, the number of 30,000 mt cargoes exported from Russia's Primorsk terminal has gone from five per month at the start of 2015 to more than 15 now, while 20,000 mt cargoes have reduced from 20 to fewer than 10, data from Platts and trading sources showed.

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

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