Platts proposes to reflect CPC Blend crude standard cargo size of 90,000 mt

Following a period of consultation, S&P Global Platts proposes to reflect 90,000 mt cargoes as standard in its Aframax assessments of Kazakhstan's CPC Blend crude, effective March 29, 2021.

At present, the cost, insurance and freight (CIF) CPC Blend assessment reflects 85,000 mt cargoes loading from the Black Sea CPC Terminal north of Novorossiisk for delivery into the Mediterranean (CIF Augusta).

The Platts CPC Blend CIF Augusta assessment currently reflects cargoes between 80,000 mt and 140,000 mt, normalized back to the 85,000 mt standard.

In its free on board (FOB) CPC Blend assessment, Platts also currently reflects 85,000 mt cargoes loading from the Black Sea CPC Terminal north of Novorossiisk as a freight netback from the CIF assessment.

Under this proposal, the FOB and CIF CPC Blend assessments will continue to reflect Aframax and Suezmax cargoes, normalized back to a 90,000 mt Aframax as standard.

The FOB Suezmax freight netback calculation will continue to reflect 140,000 mt.

Indications in the Platts Market On Close assessment process will continue to reflect an operational tolerance of plus/minus 10% of the cargo size being bid or offered.

Following market feedback and examining several years of monthly loading programs, Platts notes the standard size for a CPC Blend cargo has, on average, grown larger, with cargoes of up to 100,000 mt regularly included in the program and the majority of Aframax-size cargoes larger than 85,000 mt.

That has been observed as overall CPC Blend crude volumes have grown since 2017, following the introduction of several large fields into the stream, including the Kashagan and Filanovsky fields in the Caspian Sea.

Platts opened the consultation on its Mediterranean assessments on Sept. 2 in a subscriber note available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/090220-platts-opens-consultation-on-mediterranean-crude-oil-assessment-date-ranges

Please send all comments to europe_crude@spglobal.com and pricegroup@spglobal.com by Feb. 17.

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