Platts extends consultation on delivered cargoes in Cash BFOE

Following a period of market engagement, S&P Global Platts is extending the consultation period on the reflection of delivered cargoes in the Cash BFOE assessment.

This follows a broad consultation around Cash BFOE, published December 4, and available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/120419-platts-opens-consultation-on-cash-bfoe-assessments

S&P Global Platts will continue to seek market feedback on whether Dated Brent and Cash BFOE could be further aligned by adding delivered cargoes into the Cash BFOE assessment.

In its Cash BFOE assessment, Platts considers bids, offers and trades where the buyer is willing to accept the nomination of Brent, Forties, Oseberg, Ekofisk or Troll crude loading in the North Sea by the seller upon physical performance of the trade.

Platts will continue to seek market input on how a delivered cargo could be nominated for delivery as performance against a Cash BFOE cargo -- whether traded as a full cargo or upon convergence of partials -- and what role the cost of freight would play when measuring the difference between the nomination of a delivered cargo and an FOB-loading cargo.

Separately, Platts has proposed to reflect Cash BFOE partial contracts which settle on fallback day, in a note which can be found here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/022120-platts-proposes-to-reflect-cash-bfoe-partial-contracts-which-settle-on-fallback-day

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

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