Platts to publish daily Scapa Flow-Rotterdam FAF calculation from June 1

As an accompaniment to its existing WTI Midland FOB Scapa Flow assessment, S&P Global Platts will begin publishing a daily freight adjustment factor (FAF), beginning June 1, 2020.

The calculation will be published at 11 am London time on the day of the assessment on Platts Global Alert pages 1218, 1210, 1212 and 1219, in the Crude Oil Marketwire and in the Platts pricing database under the following code: Crude FAF Scapa Flow-Rotterdam $/bbl - FSFRM00.

The FAF for WTI Midland, in line with the factors for current North Sea CIF Rotterdam grades, is calculated at 80% of the relevant freight rate.

Platts publishes a 10-day rolling freight average the day before each day's Market on Close assessment process, to ensure the freight factor is fully known before the assessment process begins.

For WTI Midland FOB Scapa Flow, this is based on its 10 previous assessments of the Dirty Cross-UK Continent 80,000 mt Worldscale freight assessment, applied to the Scapa Flow-Rotterdam Worldscale flat rate.

The Worldscale flat rate used to represent the Scapa Flow-Rotterdam route in 2020 is $4.24/mt.

The conversion factor for the FOB Scapa Flow assessment is 7.80, in line with the existing Platts WTI Midland assessment [PCACJ00].

This means a $/b Worldscale flat rate of $0.544/b for the FOB Scapa Flow assessment.

The Rotterdam port fee is 13 cents/b.

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