Platts launches change for vessel requirements for CIF European distillate cargoes

S&P Global Platts has amended the conditions a vessel is required to meet in order to be reflected in the Platts CIF European Distillate cargo Market on Close assessment processes, with effect from April 1, 2020.

This follows a decision note published March 2, 2020, which can be found here: http://plts.co/8rhu30qulOp This decision amends previous guidance around vessel requirements for CIF European distillates cargoes assessment process, as communicated in the subscriber note published February 10, 2017 and reachable here: http://plts.co/k6aA30qulXZ namely with regards to offers stipulating buyer's approval of an unnamed vessel.

As stated in the current Platts methodology guide, CIF offers may be made with a named or unnamed ship. If a named ship is offered, a buyer is to determine if a ship is acceptable to its own vetting department. If the buyer has no vetting department, reasonable efforts to physically perform should be demonstrated. Platts may review these efforts by requesting documentation to support the outcome.

In the case of an unnamed ship, the seller has the responsibility to declare its commitment to meet either the vetting requirement of any two buyers or to state in its offer which companies' vetting the seller is guaranteeing the ship will meet. Platts' standard requires a seller name at least three relevant oil majors. In the case of an offer committing to meet the vetting requirement of any two buyers, a buyer may put forward a requirement for the two individual relevant major's approval, and this should be communicated to the seller within 24 hours of reporting the trade to Platts. Platts always expects demonstrable and reasonable efforts to be made to perform a trade reported in its Market on Close assessment processes.

Please send any comments to europe_products@spglobal.com with a CC to 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.