SUBSCRIBER NOTE: Platts changes Sokol crude assessment basis to Dubai

S&P Global Platts has amended its assessment methodology for the Far East Russian Sokol crude to assess the grade as a differential to the Platts Dubai crude benchmark as of May 2. Platts previously assessed Sokol crude as a differential to the average of the Platts Dubai and Oman assessments.

The change ensures Platts' assessments of Sokol crude continue to conform with market conventions. The amendment follows changes in the spot market for Sokol crude, where much of the liquidity has transitioned to using Platts front-month Dubai as a benchmark. Previously, the grade often traded as a differential to the average of the Platts Dubai and Oman assessments, in addition to trading as a differential to Platts Dubai.

Platts first proposed the amendment to Sokol assessment methodology in a subscriber note published Feb 21: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/022119-pl atts-proposes-to-change-sokol-crude-assessment-basis-to-dubai

Following the change, Platts assessments of Sokol crude fixed price (AASCJ00) and differential (AASCK00) reflect Platts Dubai crude as the reference basis. For example in May, Platts outright and differential assessments for July Sokol cargoes now reflect a premium/discount to July Dubai derivatives.

The change does not alter any other aspects of Platts assessments of the Far East Russian crude. The assessments continue to reflect the value of cargoes loading two months forward from the month of publication. In accordance with typical market practice, the Platts price assessments reflect a CFR value, for cargoes being delivered to the main ports in Japan and South Korea. Cargoes being delivered elsewhere, including eastern China, are included in the assessment process through price normalization.

Platts continues to publish a Sokol differential to Asia Dated Brent under the code AAPAO00 at the Singapore close, and outright price assessment at the London close under the code AAPAN00.

Platts Sokol crude assessments appear on Platts Global Alert (PGA) pages 2214 and 2215, in Crude Oil Marketwire, Oilgram Price Report and Asia-Pacific/Arab Gulf Marketscan under the codes listed above.

Please send all comments and questions to asia_crude@spglobal.com and pricegroup@spglobal.com

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