GPW calculations in Asia crudes

Following a lengthy review with interested parties, Platts is formalizing the practice of assessing several low production crude grades in the Asia-Pacific region using a Gross Product Worth (GPW) calculation relative to Dubai and Brent crude oil benchmarks at Asian market close.

Platts has seen the need to determine spot value by using direct market observation in combination with GPW analysis of oil products-crude oil crack values for each fraction of the crude oil barrel.

Platts compares this derived, synthetic crude value with all available trade data, including more actively traded Asia-Pacific crude grades of similar quality for consistency of pricing.

Platts also considers broader supply/demand fundamentals for all competing regional crude grades in its final assessment.

This methodology affects the following illiquid grades: China's Daqing, Nanhai Light and Shengli; Indonesia's Ardjuna, Attaka, Belida, Cinta, Handil Mix and Widuri; Malaysia's Miri Light, Labuan and Tapis Blend; and Vietnam's Bach Ho.

Please email comments or questions to asia_crude@platts.com and pricegroup@platts.com.