Platts clarifies pricing publishing guidelines in CIF European distillates cargoes

S&P Global Platts wishes to clarify guidelines for pricing parameters of operational tolerances published in its CIF European Middle Distillates cargoes Market on Close assessment process.

In line with existing methodology, operational tolerance in CIF cargo offers is typically limited to plus or minus 10% of the transacted size for cargoes. When pricing on a floating basis, Platts reflects CIF cargoes where the operational tolerance prices after the completion of discharge.

Platts wishes to clarify to subscribers that main volume pricing and operational tolerance pricing are expected to be within a reasonable range, while accounting for market structure, in order to be reflected in the Platts CIF European Distillate cargo Market on Close assessment processes. Platts may review for publication instances where the two pricing elements are deemed to significantly diverge.

Platts has standardized the way in which it publishes the differential applicable to the pricing of the operational tolerance to "as per main volume pricing differential, plus/minus $X/mt", when pricing on a floating basis.

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