Platts to exclude Russian-origin product from European diesel, gasoil cargo assessments June 1

• Existing open origin diesel, gasoil cargo assessments to exclude Russian origin from June 1
• New CIF NWE ULSD cargo assessment to be launched June 1, reflecting all origins
• Seeking more feedback on Russian-origin material in ARA barge markets

Effective June 1, 2022, Platts will no longer reflect Russian-origin product in its open origin European diesel and gasoil cargo assessments.

At the same time, Platts will also launch a new assessment for ULSD cargoes CIF Northwest Europe reflecting all origins.

The decision by Platts, part of S&P Global Commodity Insights, follows a review into the continued inclusion of Russian-origin material in its European diesel and gasoil assessments, announced in a subscriber note published April 14: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041422-s-p-global-seeks-feedback-on-russian-product-in-platts-european-diesel-gasoil-assessments

Feedback gathered from the market, as well as observed market activity in recent weeks, has shown a significant move away from Russian-origin material in the spot market.

Platts has observed that many market participants are now restricting material from Russia, in part or entirely, in their spot diesel and gasoil trading activity.

Platts assessments reflect the value at which a standard, repeatable transaction for merchantable material takes place, or could take place, in the open spot market at arms length.

Although Russian product continues to flow to the European market, Platts understands that it is not trading on the same basis as product from other origins in the spot market, and that there is a difference in value between Russian and non-Russian product.

As a result, with effect from June 1, the Platts assessments listed below will exclude Russian-origin product. Bids, offers and trades reported in the Platts Market on Close assessment process for these assessments will therefore reflect non Russian-origin product with effect from the same date.

NWE Cargoes:

CIF assessments/ Code/ FOB assessments/ Code:

ULSD 10 ppm/ AAVBG00/ ULSD 10 ppm/ AAVBF00

Diesel 10 ppm NWE*/ AAWZC00/ Diesel 10 ppm NWE*/ AAWZD00

Diesel 10 ppm UK/ AAVBH00

Diesel 10 ppm UK cargoes CIF NWE - original (French) spec/ AUKDA00

Gasoil 0.1%/ AAYWS00/ Gasoil 0.1%/ AAYWR00

* Basis Le Havre

Mediterranean Cargoes:

CIF assessments/ Code/ FOB assessments/ Code:

10 ppm ULSD/ AAWYZ00/ 10 ppm ULSD/ AAWYY00

Gasoil 0.1%/ AAVJJ00/ Gasoil 0.1%/ AAVJI00

The calculations for the associated freight netback and freight netforward European gasoil and diesel assessments will remain unchanged as of June 1. However, Platts will continue to monitor prevailing trade flows and review the plausible load ports in these calculations, including the continued inclusion of Russian load ports.

NWE CIF NWE ULSD CARGO ASSESSMENT: Platts understands that there continues to be a flow of Russian product into Europe, and market feedback has suggested a continued need for transparency in this market. As such, Platts will launch a new assessment for ULSD cargoes CIF NWE (all origins), which would reflect material from all origins, including Russia. Other parameters and specifications of the new assessment will be the same as the existing ULSD 10 ppm CIF NWE cargo assessment (AAVBG00). Platts will publish the outright value of this new assessment in $/mt, as well as the spread reflecting the value of cargoes from all origins versus restricted origin cargoes.

SEEKING MORE FEEDBACK ON ARA BARGES: Platts understands there are logistical differences between the Amsterdam-Rotterdam-Antwerp barge market and European cargo markets, particularly around the demonstration of origin of product. As such, Platts is inviting further feedback on whether Russian-origin material should also be excluded from its European diesel and gasoil barge assessments, and how origin of product would be demonstrated in these markets.

Please send any feedback, questions or comments to europe_products@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 upon request.