SUBSCRIBER NOTE: Platts proposes inclusion of STS options in Urals CIF NWE MOC

In light of changing trading patterns in the Urals CIF Rotterdam market, S&P Global Platts proposes reflecting bids and offers including STS options in the Market on Close assessment process from April 1, 2019.

Platts recognises that a proportion of Urals cargoes loaded within the Baltic Sea are delivered to STS zones within Northwest Europe before being co-loaded on to larger vessels for delivery outside the region.

Under this proposal, Platts would publish bids and offers for cargoes delivered on a CIF Rotterdam basis with STS options for a specific STS zone requested as part of the "Terms, Qualities and Conditions". Platts proposes to accept bids and offers for STS options at Southwold and Skaw.

Platts understands that STS is considered normal market practice within the NWE Urals market. However, options to discharge a cargo on an STS basis are not a guaranteed standard in a Northwest European charterparty. Because guaranteeing this option may incur additional costs, indications including STS options may be normalized back to a CIF basis Rotterdam standard.

Platts currently reflects bids and offers in the Platts CIF Rotterdam MOC that include a standard Baltic/UKC charterparty, as well as those including Baltic (short) options and Med options, normalized back to a CIF basis Rotterdam standard. There would be no change to these options under this proposal.

Please send any comments and feedback to europe_crude@spglobal.com and pricegroup@spglobal.com by February 28, 2019.

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.