S&P Global launches restricted origin CIF NWE ULSD cargo assessments April 11

As advised in a prior subscriber note issued April 5, S&P Global Commodity Insights has launched additional assessments of CIF Northwest Europe ULSD (restricted origin), effective April 11, 2022, reflecting the value of non-Russian material.

S&P Global has observed that a number of participants in the European diesel market are now restricting material from Russia, in part or entirely, in their spot trading activity, and there is a growing need for further price transparency in this developing market.

As a result, S&P Global will launch the following assessments on an outright basis, as well as continue to publish the existing Platts CIF NWE ULSD assessments which reflect open origin material. In addition, S&P Global will also publish, from April 11, the spreads between the new assessments and their open origin counterparts. The new assessments are:

--ULSD 10 ppm Cargoes CIF NWE (restricted origin)

--ULSD 10 ppm Cargoes CIF NWE restricted origin spread

--Diesel 10ppm Cargoes CIF NWE (restricted origin) **

--Diesel 10ppm Cargoes CIF NWE restricted origin spread**

--Diesel 10ppm UK Cargoes CIF NWE (restricted origin)

--Diesel 10ppm UK Cargoes CIF NWE restricted origin spread

** basis CIF Le Havre

The methodology for the new assessments is as follows:

ULSD 10 ppm Cargoes CIF NWE (restricted origin)

The assessment will reflect 10,000-40,000 mt cargoes of Benelux and French quality diesel fuel with a maximum sulfur content of 10 ppm and density in the range 0.82-0.845 kg/l. The reference density is 0.845 kg/l. S&P Global normalizes all indications to a 30,000 mt standard with a standard 10% operational tolerance. The CIF assessment reflects ARA delivery, 10-25 days forward from day of publication, with value normalized to basis Amsterdam with typical charterparty options. Russian-origin material is not reflected in the assessment.

ULSD 10 ppm Cargoes CIF NWE restricted origin spread

This assessment reflects the spread between the outright assessments for ULSD 10 ppm Cargoes CIF NWE (restricted origin) and ULSD 10 ppm Cargoes CIF NWE.

Diesel 10ppm Cargoes CIF NWE (restricted origin)**

This assessment is a freight netforward to the ULSD 10 ppm CIF NWE assessment (defined origin) assessment, using daily freight rates published in the Platts Clean Tankerwire. The assessment reflects 10,000 to 40,000 mt cargoes of Benelux and French quality diesel fuel delivered CIF basis Le Havre with a maximum sulfur content of 10 ppm and density in the range 0.82-0.845 kg/l. The reference density is 0.845 kg/l. The assessment reflects material for delivery 10-25 days from the date of publication, with value reflecting the mean of the delivery period. Russian-origin material is not reflected in the assessment.

Diesel 10ppm Cargoes CIF NWE restricted origin spread**

This assessment reflects the spread between the outright assessments for Diesel 10ppm Cargoes CIF NWE (restricted origin)** and Diesel 10ppm Cargoes CIF NWE **

Diesel 10ppm UK Cargoes CIF NWE (restricted origin)

This assessment will reflect the value of UK specification diesel delivered into UK ports, 10-25 days forward from date of publication. The assessment reflects the delivery of UK specification ultra-low sulfur diesel into a basket of UK ports with the following weightings: Thames (50%), Cardiff (30%), Humber (20%). The latest standard for UK-specification diesel (EN590) stipulates a concentration limit of 10,000 max for particles of more than 4 microns in diameter per ml and 10ppm sulfur concentration. The assessment reflects 10,000 to 40,000 mt cargoes, with value normalized to a typical cargo size of 30,000 mt with plus or minus 10% operational tolerance. Russian-origin material is not reflected in the assessment.

Diesel 10ppm UK Cargoes CIF NWE restricted origin spread

This assessment reflects the spread between the outright assessments Diesel 10ppm UK Cargoes CIF NWE (restricted origin) and Diesel 10ppm UK Cargoes CIF NWE.

As trade flows continue to evolve, S&P Global invites feedback on the methodology of these new assessments, including volume and delivery periods. Platts assessments reflect merchantable material and S&P Global is continuously reviewing the merchantability of open-origin material in its Platts Market on Close assessment process.

The subscriber note announcing the launch, issued on April 5, can be found here: https://www.spglobal.com/commodity-insights/en/our-methodology/subscriber-notes/040522-s-p-global-to-launch-restricted-origin-cif-nwe-ulsd-cargo-assessments-april-11

Please send any feedback, questions or comments to Europe_Products@spglobal.com and PriceGroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by S&P Global for public viewing. S&P Global will consider all comments received and will make comments not marked as confidential available to the public upon request.