SUBSCRIBER NOTE: Platts opens consultation on ULSD Med netback freight basket

S&P Global Platts is opening a formal consultation around prevailing flows of diesel in the Mediterranean and how these should be reflected in its 10ppm ULSD FOB Med cargo netback assessment.

Specifically, Platts is seeking feedback on possible updates to the sea routes used in the calculation of its netback assessments and in freight normalizations. Platts is considering feedback that the Black Sea port of Tuapse should be added to the netback calculation for the Mediterranean diesel assessment in order to better reflect flows into the region from the Black Sea.

Currently, Platts derives is 10 ppm ULSD FOB Med cargo netback assessment by applying a freight netback calculated on the basis of the following voyages: Santa Panagia-Lavera; Cartagena-Lavera; and Agioi Theodoroi-Lavera. A reference basket of these three routes may also be used to normalize indications received in the CIF Med diesel cargo Market on Close assessment process back to the assessment basis port of Lavera.

Platts welcomes feedback from market participants regarding prevalent trade flows of diesel in the Mediterranean to ensure that the assessment continues to be representative of flows within the region.

Platts is also seeking any feedback on the timing of this potential methodology change.

The 10ppm ULSD FOB Med cargo assessment is available in Platts European Marketscan, Oilgram Price Report and in the Platts pricing database under code AAWYY00.

Please send any comments or queries by March 30, 2020, to europe_products with a cc to pricegroup

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.