Platts opens consultation on Diesel 10 ppm UK Cargoes CIF NWE assessment

S&P Global Platts is seeking feedback on the current methodology for Diesel 10ppm UK Cargoes CIF NWE assessment (Code: AAVBH00).

An announcement from the British Standards Institution introduced a concentration limit of 10,000 max for particles of more than 4 microns in diameter per ml in the UK specification of ultra-low sulfur diesel (EN 590), effective from April 30, 2020.

Currently, the assessment of Diesel 10 ppm UK Cargoes CIF NWE (AAVBH00) reflects French specification diesel and is derived as a freight net-forward to the ULSD 10 ppm Cargoes CIF NWE (AAVBG00) assessment based on the incremental freight differential to typical UK ports and using daily freight rates published in the Platts Clean Tankerwire.

Specifically, Platts is seeking feedback on the following aspects of the methodology for Diesel 10 ppm UK Cargoes CIF NWE (AAVBH00):

- Specification reflected. Platts is seeking feedback on whether the assessment should reflect UK quality of diesel, with the assessment incorporating the applicable quality differential.

- Whether to retain the freight calculation structure or move to an assessment of spot value.

- Prevalent flows for UK-specification diesel. The current incremental freight differential assumes a basket of loadports including Scandinavian, Northwest European and Baltic locations. Platts is seeking feedback on prevailing flows of UK-specification diesel.

- Timing of the implementation of changes. Platts is seeking feedback on then appropriate timing for any change to be implemented.

Following the consultation period, S&P Global Platts will host a workshop via webinar on June 4th to discuss the impact of the specification change on the UK ULSD market and potential modifications to the CIF UK ULSD assessment. We invite market participation and further details will follow regarding registration.

As a reminder, Platts launched on March 2 an assessment for CIF UK ultra low sulfur diesel MOPL differential (AUKMA00). The assessment for CIF UK ultra low sulfur diesel MOPL differential (AUKMA00), reflects the latest BSI standard for EN 590. The assessment is published only as a differential to the existing Mean Of Platts London (MOPL) NWE ULSD cargo strip, extrapolated from the existing CIF ARA ULSD cargo assessment (basis ARA) assessment (Code: AAVBG00). This assessment was launched March 2 and the subscriber note announcing the launch is available at: www.spglobal.com

Additionally, Platts published on April 2 a clarification note stating that all bids and offers reported in the CIF Northwest European diesel cargo MOC (basis ARA) must clearly state whether they include a 10,000 max particle guarantee. www.spglobal.com

Platts welcomes feedback in light of changing specification and market flows. Please send any comments, questions or feedback by May 27, 2020 to europe_products and copy pricegroup 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 comments not marked as confidential available upon request.