Platts reflects CPC Blend crude standard cargo size of 90,000 mt

Following a period of consultation, S&P Global Platts now reflects 90,000 mt cargoes as standard in its Aframax assessments of Kazakhstan's CPC Blend crude, effective March 29, 2021.

This follows a decision note published March 11, 2021 and available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/031121-platts-to-reflect-cpc-blend-crude-standard-cargo-size-of-90000-mt

Previously, the cost, insurance and freight (CIF) CPC Blend assessment reflected 85,000 mt cargoes loading from the Black Sea CPC Terminal north of Novorossiisk for delivery into the Mediterranean (CIF Augusta).

The Platts CPC Blend CIF Augusta assessment previously reflected cargoes between 80,000 mt and 140,000 mt, normalized back to the 85,000 mt standard.

In its free on board (FOB) CPC Blend assessment, Platts also previously reflected 85,000 mt cargoes loading from the Black Sea CPC Terminal north of Novorossiisk as a freight netback from the CIF assessment.

As part of this change, the FOB and CIF CPC Blend assessments will continue to reflect Aframax and Suezmax cargoes, normalized back to a 90,000 mt Aframax as standard.

The FOB Suezmax freight netback calculation will continue to reflect 140,000 mt.

Indications in the Platts Market On Close assessment process will also continue to reflect an operational tolerance of plus/minus 10% of the cargo size being bid or offered.

Following market feedback and examining several years of monthly loading programs, Platts notes the standard size for a CPC Blend cargo has, on average, grown larger, with cargoes of up to 100,000 mt regularly included in the program and the majority of Aframax-size cargoes larger than 85,000 mt.

That has been observed as overall CPC Blend crude volumes have grown since 2017, following the introduction of several large fields into the stream, including the Kashagan and Filanovsky fields in the Caspian Sea.

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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