Platts to launch FOB Brazil Mero crude assessment May 15

Platts, part of S&P Global Commodity Insights, will launch a daily assessment for Brazil's Mero crude on an FOB basis beginning May 15, 2025.

The Mero assessment will reflect standard cargoes of 1 million barrels loading 30-60 days forward via ship-to-ship transfer at Porto do Acu. Bids and offers for cargoes between 950,000-1.05 million barrels may be published for consideration in the assessment. Platts will consider market information for cargoes loading at other locations in Brazil, normalized to reflect loading economics at Porto do Acu.

Market feedback indicates that Mero is sold mostly on a delivered basis at various locations, but that an FOB assessment would provide valuable pricing insight. In the absence of market information on an FOB basis, Platts will consider bids, offers, and trades on a delivered basis for the Mero FOB Brazil assessment after normalization for factors such as freight rates and market structure. In addition, Platts will consider price movements of comparable grades in the region in making the Mero FOB Brazil assessment.

Like Platts' other Latin America crude assessments, Mero FOB Brazil will be published as an outright value and as a differential to the 30-60 day forward Dated Brent, ICE Brent, and NYMEX WTI strips.

The decision to launch the Mero assessment follows a proposal published in a subscriber note March 24: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/032425-platts-proposes-to-launch-mero-crude-fob-brazil-assessment-from-may-5

The Mero oil field is Brazil's third-largest field after Tupi and Buzios. Mero production is expected to increase from around 590,000 b/d to 770,000 b/d later in 2025.

Recent assays suggest Mero is around 28.8 API and 0.32% sulfur.

Mero is produced by a consortium with Brazil's Petrobras holding a 38.6% stake, followed by TotalEnergies with 19.3% ownership and Shell Brazil with 19.3%. CNCP and CNOOC each hold 9.65% of the venture, with Pre-Sal Petroleo SA holding 3.5%.

Please send all feedback, comments or questions to Americas_crude@spglobal.com and pricegroup@spglobal.com.

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