Platts discontinues FOB Scapa Flow WTI Midland; amends delivered Europe WTI Midland methodologies

As part of the overall methodology evolution, following the decision to include WTI Midland into FOB Dated Brent from June 2023 cargoes, Platts, part of S&P Global Commodity Insights, has:

- Discontinued its FOB Scapa Flow WTI Midland assessment;

- Adjusted the deemed BL for CIF Rotterdam WTI Midland to one day forward from the delivery laycan;

- Applied the approved terminal requirement to WTI Midland DAP Rotterdam and Augusta assessments;

- And adjusted the basis volume of the DAP Rotterdam assessment to 700,000 barrels from June 2023 cargoes.

This follows a decision note published April 11:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041123-platts-to-discontinue-fob-scapa-flow-wti-midland-amend-delivered-europe-wti-midland-methodologies

The decision to include WTI Midland into FOB Dated Brent, published on June 8, 2022, can be found here:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/060822-platts-to-reflect-wti-midland-in-dated-brent-cash-bfoe-from-june-2023

DISCONTINUATION OF FOB SCAPA FLOW WTI MIDLAND ASSESSMENTS

Platts discontinues the WTI Midland FOB Scapa Flow assessments [AWTIF00, AWTIE00] from May 2, 2023.

This means no FOB Scapa Flow WTI Midland assessment will be published from May 2, while on the same day a freight-adjusted FOB North Sea WTI Midland calculated assessment as part of the FOB Dated Brent benchmark will be launched.

The codes for the FOB North Sea WTI Midland values can be found here:

https://www.spglobal.com/commodityinsights/en/our-methodology/price-symbols/040323-new-wti-midland-fob-north-sea-symbols

ONE DAY AHEAD DEEMED B/L FOR WTI MIDLAND CIF ROTTERDAM

Platts amends the deemed bill of lading (B/L) of CIF Rotterdam WTI Midland cargoes for assessment purposes to one day before the first day of the original bid or offered laycan for June 2023 cargoes onwards.

June 2023 cargoes are reflected in the assessment from May 2, 2023.

The CIF Rotterdam WTI Midland assessment is published to codes WMCRD00 and WMCRB00.

APPROVED TERMINAL REQUIREMENT FOR DAP ROTTERDAM AND DAP AUGUSTA WTI MIDLAND ASSESSMENTS

Platts expects that WTI Midland cargoes reflected in the DAP Rotterdam and DAP Augusta assessments from June 2023 cargoes onwards have loaded at a US Gulf Coast terminal approved by Platts for inclusion in the Market on Close assessment process for WTI Midland.

This aligns with the CIF Rotterdam WTI Midland assessment following the June 8, 2022 announcement that Platts will only reflect WTI Midland cargoes that are loaded from pre-approved USGC terminals.

This is in addition to the pipeline provenance and global specification guidelines that already apply to the DAP Rotterdam [AWTIC00, AWTID00] and DAP Augusta [AWTIA00, AWTIB00] WTI Midland assessments.

A USGC terminal wishing to be included in the Platts MOC process would need to demonstrate the ability to meet Platts criteria for performance, including logistical and crude quality requirements.

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/060822-platts-clarifies-usgc-terminal-review-process-for-wti-midland-in-brent-complex

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/092222-platts-clarifies-loading-schedule-criteria-for-usgc-crude-oil-terminal-review-process

As of May 2, 2023, the following terminals have been approved for WTI Midland:

CORPUS CHRISTI:

NuStar Texas North Beach terminal

Flint Hills Resources Ingleside terminal

Pin Oak Terminals Corpus Christi

Buckeye South Texas Gateway

Eagle Ford Terminal Corpus Christi

Buckeye Texas Hub Terminal

EPIC Crude Terminals

Enbridge Ingleside Energy Center

HOUSTON

Seabrook Logistics Terminal

Energy Transfer Houston Terminal

Enterprise Houston Ship Channel Terminal

DAP ROTTERDAM, AUGUSTA WTI MIDLAND ASSESSMENTS REFLECT 700,000 BARREL AFRAMAX CARGOES

The Platts DAP Rotterdam and DAP Augusta WTI Midland assessments reflect 700,000 barrel Aframax cargoes with a volume tolerance of 5% from June 2023 cargoes.

This is in line with the decision announced June 8, 2022 that Platts was to reflect cargoes of 700,000 barrels of WTI Midland, in addition to the BFOET grades, in Dated Brent and related assessments.

This decision can be found in the following subscriber note:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/060822-platts-to-reflect-700000-barrel-cargo-sizes-in-dated-brent-cash-bfoe-from-june-2023

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