S&P Global to cut weighting of Russian ESPO crude in Indonesian crudes Market Parity Price models

S&P Global Commodity Insights will sharply reduce the weighting of Far East Russian ESPO crude oil in its models used to calculate the Platts Market Parity Prices for Indonesian Minas, Cinta and Widuri crude grades, effective April 1, 2022.

Platts MPP prices are based on each grade's Gross Product Worth benchmarked to a reference basket of relevant crude grades that are actively traded in the regional spot market. The MPP model is designed to ensure that the assessment captures both the inherent refining value of the crude as well as the broader oil market demand-supply fundamentals reflected in the price of the reference basket.

S&P Global understands that open market trade in ESPO crude oil has been severely hampered following Russia's invasion of Ukraine. The decision to reduce ESPO's weighting in MPP models follows a steep decline in the price of the grade relative to its refining value based, making it less representative of broader market demand-supply dynamics.

From March 28 and until April 1 2022, S&P Global will gradually reduce the weighting of Russia's ESPO crude in the reference basket for MPP models used to calculate prices of the three Indonesian grades. Over the same period, the weighting of the two other grades in the reference basket -- Abu Dhabi's Murban and Malaysia's Kimanis will be adjusted higher.

S&P Global will continue to review the MPP models for Minas, Cinta and Widuri to ensure they continue to reflect prevailing market conditions and quality of the crude grades.

S&P Global amended the methodology for Platts assessment of Minas crude oil to a MPP model from Jan. 2, 2020, and Cinta and Widuri crude oil to a MPP model from July 1, 2020 in response to changing physical market conditions.

To learn more about Platts Market Parity Price assessments, click on /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/market-parity-prices.pdf

The Minas, Cinta and Widuri MPP assessments are published in Platts Crude Oil Marketwire, Platts Oilgram Price Report and on Platts Global Alert and Platts Crude Oil Alert pages 1250, 1805, 2210, 2211, 2216, 2217, 2244, 2245, 2264, 2265, 2280, 2281, 2811 under the following price database codes:

Assessment Code

Minas at Singapore Close PCABO00

Minas at Singapore Close Monthly Average AAFZH00

Minas at London Close AAPAZ00

Minas at London Close Monthly Average AAPAZ03

Cinta at Singapore Close PCAAX00

Cinta at Singapore Close Monthly Average AAFZC00

Cinta at London Close AAPBJ00

Cinta at London Close Monthly Average AAPBJ03

Widuri at Singapore Close PCAFE00

Widuri at Singapore Close Monthly Average PCAFE03

Widuri at London Close AAPBN00

Widuri at London Close Monthly Average AAPBN03

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