Platts amends assessment period, published incoterms for WTI Midland DAP Augusta, Rotterdam assessments

In response to evolving practice in the WTI Midland delivered-Europe market and feedback from participants, Platts, part of S&P Global Commodity Insights, makes the following changes to assessments from April 2:

• Amends the assessment period of its WTI Midland Delivered at Place (DAP) Rotterdam and DAP Augusta assessments to reflect cargoes arriving 30-50 days ahead of the assessment date.
• Publishes bids, offers and trades on a Cost, Insurance, Freight (CIF) and Cost & Freight (CFR) Rotterdam, Augusta basis for WTI Midland cargoes in addition to DAP Rotterdam, Augusta in the Platts Market on Close assessment process with assessments continuing to reflect DAP Rotterdam, Augusta values.
• Clarifies assessments reflect DAP Rotterdam, Augusta values with cargo quantity and quality measured at load port.

This change follows a decision on the WTI Midland DAP Rotterdam and DAP Augusta assessments published Feb. 9, which can be found at:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/020924-platts-to-amend-assessment-period-published-incoterms-for-wti-midland-dap-augusta-rotterdam-assessments

These amendments relate to the following Platts assessments:

30-50 day forward assessment period

Platts adjusts the assessment period for the WTI Midland DAP Rotterdam and DAP Augusta assessments to 30-50 days forward from the assessment date.

This is updated from the originally proposed 30-60 days ahead assessment range and reflects feedback that WTI Midland Aframax cargoes are rarely trading for arrival beyond 50 days forward.

The assessments previously reflected DAP Rotterdam and DAP Augusta WTI Midland cargoes arriving 20-60 days forward from the assessment date on both an outright basis and differential to Dated Brent.

As a result of the assessment range change, the 23-63 Dated Brent Strip [AALEJ00] has been adjusted to reflect a period of 33-53 days forward.

Publication of CIF and CFR offers

Platts publishes bids, offers and trades in the MOC for WTI Midland on a CIF and CFR Rotterdam, Augusta basis, in addition to on a DAP Rotterdam, Augusta basis.

Bids, offers and trades on a CIF or CFR Rotterdam, Augusta basis may be subject to normalization for assessment purposes.

DAP incoterm

Platts understands prevailing market practice for WTI Midland trading on a DAP Rotterdam and DAP Augusta basis is for cargo quantity and quality to be measured at load port.

Platts clarifies its assessments reflect DAP Rotterdam, Augusta with load port quality and quantity.

The assessments appear on Platts Global Alert and Platts Crude Alert pages 1210, 1212, 1238, and in Crude Oil Marketwire.

Please send all feedback and questions 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 feedback not marked as confidential available to the public upon request.