Platts lists cleared Dubai derivative instruments on eWindow

Platts, part of S&P Global Commodity Insights, has introduced new eWindow instruments for cleared Dubai 1st line crude derivative contracts as part of the Asia crude oil Market on Close assessment process on May 8, 2023.

Trades reported for Dubai derivatives in the MOC process will be cleared by the Intercontinental Exchange. The addition of these new instruments allows market participants to clearly demonstrate Dubai derivatives values in the MOC process, bringing greater transparency and granularity to the suite of Platts Dubai derivative assessments.

The new products replace existing 'Dubai swaps' instruments on eWindow, which required bilateral financial settlement between counterparties following a trade.

Platts first announced the launch of these new instruments in a subscriber note April 24: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/042423-platts-to-launch-dubai-1st-line-futures-contracts-on-ewindow

The Asia crude MOC process is facilitated by Platts eWindow, an online data-entry and communications tool, which brings greater speed, transparency and efficiency to the price assessment processes.

Approved participants in the Platts Market on Close assessment process can submit bids, offers and trades for Dubai 1st line derivatives directly through the eWindow communication tool or do so through an editor who would then publish the bids and offers using the software.

Platts publishes Dubai derivatives assessments for 36 calendar months, four quarters and three years. Platts assessments for Dubai derivatives reflect bids, offers and trades reported in the MOC process as well as information available on exchanges and OTC markets. More details on Platts assessments of Dubai derivatives are available here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/oil/platts-forward-curve

Introduction of the new eWindow products does not represent a change to the Platts Dubai physical or derivative assessment methodology or to the existing Dubai partial instruments on eWindow.

To learn more about Platts Dubai benchmark and how it is assessed, visit: https://www.spglobal.com/commodityinsights/en/our-methodology/price-assessments/oil/dubai-crude-oil-price-assessments

Platts would also like to remind market participants that as per its existing methodology, Platts assesses prices for physical Dubai and Dubai derivatives independent of each other: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/113015-platts-assesses-dubai-derivatives-independent-of-physical-market

However, in the absence of information on partial or full cargoes for a specific contract month, Platts Dubai physical assessments take into consideration relevant information including from the corresponding Dubai derivative contracts.

For example in May, Platts Dubai M3 physical assessment, which reflects loadings in September, would take into consideration information from the corresponding Dubai M2 (July) derivatives assessment, in the absence of bids, offers or trades for partial or full cargoes loading in September.

This is in line with market convention, given that Dubai derivative contracts for July will financially settle on the monthly average of Platts Dubai M1 physical assessment in July that would reflect loadings two months ahead in September.

Platts has launched eWindow instruments for the following Dubai 1st line derivative contracts: 12 consecutive months from M+1 to M+12 alongside their inter-month spreads; eight quarters and three calendar years with their associated spreads.

Approved participants can submit bids, offers or trades for a minimum of 25,000 barrels or larger volumes in multiples of 25,000 barrels.

In line with the timing and increment guidelines for Dubai and Oman crude partials, the flat price and time spread bids and offers for Dubai derivatives may be improved by a maximum of 5 cents/b every five seconds.

Market participants will have up to 10 seconds to repeat a bid or offer, following a trade. An extension of one minute will be triggered by any price changes or a rebid or reoffer in the last 10 seconds before the close at 16.30.00 hours Singapore time (0830 GMT).

The deadline for submitting bids and offers for Dubai derivatives is 4:15 PM SGT for time spreads and 4:20 PM SGT for outright calendar period contracts.

Companies that wish to participate in the Platts MOC assessment process for Asia crude oil-paper may submit their interest at https://www.spglobal.com/commodityinsights/en/our-methodology/participation-review

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

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 to the public upon request.