Platts seeks feedback on Russian material in Asian gasoline assessments

Platts, part of S&P Global Commodity Insights, is seeking feedback on whether Russian material is part of the open spot market reflected in its Asian gasoline assessments.

This consultation by Platts is driven by market feedback around the merchantability of Russian gasoline and/or gasoline blending components that are used in making end-user grade of gasoline traded in the Asian market. Platts has observed that an increasing number of market participants are already restricting, or pre-emptively seeking to exclude Russian-origin gasoline and/or gasoline blending components in their spot trading activity in recent months.

Platts has observed that although Singapore received little to no end-user grade of gasoline directly from Russia in recent months, the city-state has seen imports of naphtha and other gasoline blending components from Russia increase over the same period. Singapore imported a total volume of 277,937 mt of naphtha, reformates and other gasoline blendstocks from Russia from August to December 2022, and 260,678 mt over the first three weeks of 2023, according to Enterprise Singapore data.

Market participants have also expressed concerns about the potential impact on trading operations around the Singapore hub of the entry into force on Feb. 5, 2023 of European Union sanctions on Russian oil products and the accompanying price cap mechanism being drawn up by G7 member countries. Platts understands that oil market participants in Singapore typically use European, British and US shipping, insurance, and credit institutions to facilitate their daily trading operations.

Platts is therefore seeking immediate feedback on whether or not Asian gasoline assessments should continue to include Russian-origin material. Unless otherwise stated, Platts benchmark assessments in these markets currently reflect an open origin basis, which includes potential supply from Russia. All Platts assessments reflect merchantable commodities.

Platts gasoline assessments in Asia include FOB cargo markets in Singapore (PGAEY00, PGAEZ00, PGAMS00 ), the Arab Gulf (AAGJA00, AAICY00), Fujairah (RFJFS00, AFUJA00), Japan (PGACW00), South Korea (PGAQO00), India (AAQWI00, AARBQ00, AARBP00, AAQWH00) and China (AAICW00), as well as net-forwards on a delivered basis in Australia (AACZF00, AACZH00) and South Africa (AAQWW00).

Russian-origin product has already been excluded from Platts benchmark cargo price assessments for naphtha, gasoil, and jet fuel in Asia, as well as from all refined product assessments in Europe.

In a subscriber note published June 23, 2022, Platts clarified the origin standards reflected in assessments that exclude Russian-origin material. In the note, Platts stated that its assessments that exclude Russian-origin material reflect oil that is not wholly, or in part, produced, manufactured, or processed in Russia, or exported from Russia. These assessments also reflect transactions where the performing vessels are not Russian-flagged/registered or Russian-owned. The subscriber note is reachable at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062322-platts-clarifies-standards-for-assessments-that-exclude-russian-origin-material

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