Platts to extend CPC Blend, Es Sider and Saharan Blend crude assessment date ranges to 10-30 days

Following a period of consultation, S&P Global Platts will extend its assessment date ranges to include cargoes loading 10-30 days forward for three Mediterranean sweet crudes: Kazakhstan's CPC Blend, Libya's Es Sider and Algeria's Saharan Blend.

The change will be effective March 29, 2021.

This decision follows a proposal note published Feb. 4, 2021 and available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/020421-sampp-global-platts-proposes-to-extend-date-range-for-med-cpc-es-sider-and-saharan-blend-sweet-crude-assessments

In the physical North Sea, Urals, Mediterranean and West African crude oil markets, Platts calculates outright values by applying an assessed differential versus the forward Dated Brent market.

Platts uses a variety of different forward Dated Brent strips to determine the outright value of different crudes pricing relative to the forward Dated Brent market. These strips vary in length and pricing period depending on the crude market being assessed.

Physical cargoes of these three grades are currently assessed loading 10-25 days forward, applying the differential to the Mediterranean Dated Brent strip.

Extending the physical assessment ranges on CPC Blend, Es Sider and Saharan Blend to 10-30 days forward will necessitate changing from the Mediterranean Dated Brent Strip (13-28 days) to the BTC Dated Brent Strip (13-33 days). The BTC Dated Brent Strip is published under the assessment code AAUFI00.

This change is being made as the trading cycle on the grades has shifted further ahead in time in order to capture the growing Asian arbitrage flow, as well as to take into account the increased long-haul crude purchasing options for local Mediterranean refineries.

Platts currently assesses Azerbaijan's Azeri Light loading 10-30 days forward, applying the differential to the BTC Dated Brent Strip. Following consultation feedback, this will remain unchanged.

Platts opened a consultation on its Mediterranean assessments on Sept. 2, 2020, in a subscriber note available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/090220-platts-opens-consultation-on-mediterranean-crude-oil-assessment-date-ranges

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