Platts discontinues restricted-origin European ULSD assessments

Platts, part of S&P Global Commodity Insights, has discontinued its restricted-origin European ULSD cargo assessments, effective March 1.

Platts first proposed the discontinuation in a subscriber note published Nov. 24, 2022: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/112422-platts-proposes-to-discontinue-restricted-origin-european-ulsd-assessments-on-march-1-2023

These assessments were launched on April 11, 2022, to provide further price transparency into what was a developing market at the time, as Platts had observed a number of participants in the European diesel market restricting Russian material, in part or entirely, in their spot trading activity due to the Russia-Ukraine conflict.

As European markets increasingly shifted away from buying Russian-origin products, Platts decided to change the methodology of its established benchmark European diesel assessments to exclude Russian-origin product with effect from June 1, 2022, from open origin previously. The subscriber note announcing this change can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/060122-platts-excludes-russian-origin-product-from-european-diesel-gasoil-cargo-assessments-june-1

As such, since June 1, 2022, both the restricted-origin European diesel assessments and the established benchmark European diesel assessments have reflected the same non-Russian origin material and have been assessed at parity.

Platts has now discontinued its restricted-origin European diesel assessments, effective March 1. The established benchmark European diesel assessments are not affected by the discontinuation; they will continue to be published and will continue to reflect non-Russian material delivered into Europe.

The affected assessments were:

--ULSD 10 ppm Cargoes CIF NWE (restricted origin) (AAURO00)

--ULSD 10 ppm Cargoes CIF NWE restricted origin spread (AAURP00)

--Diesel 10ppm Cargoes CIF NWE (restricted origin) (AATRO00)**

--Diesel 10ppm Cargoes CIF NWE restricted origin spread (AATRP00)**

--Diesel 10ppm UK Cargoes CIF NWE (restricted origin) (AAVRO00)

--Diesel 10ppm UK Cargoes CIF NWE restricted origin spread (AAVRP00)

** basis CIF Le Havre

These assessments were previously published on Platts Global Alert page 1110, in European Marketscan and in the Platts price database under the codes above.

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