Platts no longer includes Russia as potential origin source in Asia, Middle East gasoline

Platts, part of S&P Global Commodity Insights, has decided to no longer include Russia as part of the open origin basis of its gasoline assessments in Asia and the Middle East, effective immediately.

Market feedback to Platts' consultation opened Feb. 2 highlighted that Russian gasoline is not part of the fungible spot market.

Feedback included 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 drawn up by G7 member countries. Platts understands that oil market participants in Singapore typically use EU, British and US shipping, insurance and credit institutions to facilitate their daily trading operations.

In addition, market feedback to Platts highlighted that companies operating around the Singapore hub are increasingly stipulating that they will not trade Russian gasoline and/or gasoline blending components that are used in making end-user grade of gasoline traded in the Asian market.

Platts has therefore decided its gasoline assessments in Asia and the Middle East will no longer include Russia as a potential delivery source for the open origin basis of its gasoline assessments, effective immediately.

Platts gasoline assessments in Asia and the Middle East 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).

Platts initially sought feedback on whether Russian material is part of the open spot market reflected in its Asian gasoline assessments, Feb. 2, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/020223-platts-seeks-feedback-on-russian-material-in-asian-gasoline-assessments

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

Please send all feedback, questions, or comments to asia_products@spglobal.com and PriceGroup@spglobal.com.

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Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.