SUBSCRIBER NOTE: Platts to include STS options in Urals CIF NWE MOC

In light of changing trading patterns in the Urals CIF Rotterdam market, S&P Global Platts will reflect bids and offers including ship-to-ship (STS) options in the Market on Close assessment process from April 1, 2019.

Platts recognizes that a proportion of Urals cargoes loaded in the Baltic Sea are delivered to STS zones in Northwest Europe before being co-loaded on to larger vessels for delivery outside the region.

This decision follows on from a proposal published February 8, 2019 and available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/020819-pl atts-proposes-inclusion-of-sts-options-in-urals-cif-nwe-moc

Under this methodology change, Platts will publish bids and offers for cargoes delivered on a CIF Rotterdam basis with STS options for a specific STS zone requested as part of the "Terms, Qualities and Conditions." Platts will accept bids and offers for STS options at Southwold and Skaw.

Platts understands that STS is considered normal market practice within the NWE Urals market. However, options to discharge a cargo on an STS basis are not a guaranteed standard in a Northwest European charterparty. Because guaranteeing this option may incur additional costs, indications including STS options may be normalized back to a CIF basis Rotterdam standard.

Platts currently reflects bids and offers in the Platts CIF Rotterdam MOC process that include a standard Baltic/UKC charterparty, as well as those including Baltic (short) options and Mediterranean options, normalized back to a CIF basis Rotterdam standard. There would be no change to these options under this proposal.

Please send any further comments and feedback to europe_crude@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

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