Platts proposes to amend basket of ports for FOB Med ULSD netback

Following a formal consultation, S&P Global Platts proposes to amend the basket of ports it uses to assess FOB Med ULSD cargoes from January 4, 2021.

Platts continues to invite feedback on amending the basket of ports reflected in its CIF Med diesel cargo Market on Close assessment process. Platts launched a formal consultation on prevailing flows of diesel in the Mediterranean in a subscriber note published on April, 14: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/041420-platts-extends-consultation-on-ulsd-med-freight-routes

Currently, Platts derives its 10 ppm ULSD FOB Med cargo assessment (Code: AAWYY00) by applying a freight netback to the 10 ppm ULSD CIF Med cargo assessment (AAWYZ00). The calculation is currently based on routes in the Mediterranean: Santa Panagia, Aliaga, Agioi Theodoroi and Batumi to Genoa and Lavera using the daily freight rates published in the Platts Clean Tankerwire for Med-Med 30,000-mt cargoes.

Platts proposes to replace the Black Sea port of Batumi with the Black Sea port of Novorossiysk from January 4, 2021.

Platts continues to seek feedback on the 10 ppm Mediterranean freight basket in relation to the addition of a Black Sea port to the reference freight basket used as guidance to normalize indications received in the CIF Med diesel cargo MOC process back to the reference port of Lavera.

The 10 ppm ULSD CIF Med cargo assessment is available in Platts European Marketscan, Oilgram Price Report and in the Platts pricing database under code AAWYZ00. The 10 ppm ULSD FOB Med cargo assessment is available in Platts European Marketscan, Oilgram Price Report and in the Platts pricing database under code AAWYY00.

Please send any comments or queries on the proposal for FOB Med and the extended consultation on CIF Med by June 15, 2020, to europe_products with a cc to 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.