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 options in the Market on Close assessment process from Monday, April 1, 2019.

A proposal was published February 8 and is 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.

A decision note was published on March 13 and is available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/031319-pl atts-to-include-sts-options-in-urals-cif-nwe-moc

Under the 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 charter party.

Because guaranteeing this option may incur additional costs, indications including STS options may be normalized back to a CIF basis Rotterdam standard.

Platts will continue to reflect bids and offers in the Platts CIF Rotterdam MOC that include a standard Baltic/UKC charter party, as well as those including Baltic (short) options and Mediterranean options, normalized back to a CIF basis Rotterdam standard.

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.