SUBSCRIBER NOTE: Platts proposes to increase CIF ARA diesel cargo size

Following an in-depth review of evolving market conditions in Europe, Platts is seeking formal feedback on a proposal to increase the cargo size reflected in its CIF ARA ultra low sulfur diesel cargo assessment. Under this proposed change, the cargo size reflected in the Platts benchmark assessment would be increased to 10,000-40,000 mt plus/minus 10%, up from 10,000-35,000 mt plus/minus 10%, with effect from January 2, 2015. The basis of the assessment would remain 20,000 mt plus/minus 10%, but cargoes from 35,000-40,000 mt plus/minus 10% would also be considered for assessment. The current approach of normalizing the price of different cargo sizes back to the value of a 20,000 mt plus/minus 10% cargo would be maintained. The larger cargo size would better reflect changing flows into Europe, where larger cargo sizes are increasingly seen in the market as regional refining runs at low rates, or closes entirely. This proposal follows a middle distillates technical workshop hosted by Platts on April 28 in London. The following assessments would be affected: CIF ARA diesel cargoes (AAVBG00), CIF NWE (Le Havre) diesel cargoes (AAWZC00), CIF UK diesel cargoes (AAVBH00), FOB ARA diesel cargoes (AAVBF00), FOB NWE (Le Havre) diesel cargoes (AAWZD00). Please send any comments and queries to europe_products@platts.com and pricegroup@platts.com. The deadline for comments is July 25, 2014. 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.