Platts clarifies origin differences reflected in European diesel cargo assessments

In response to industry feedback, Platts, part of S&P Global Commodity Insights, would like to provide further clarification on the differential between open origin and restricted origin European diesel assessments. Platts would also like to give additional details on how such assessment data will be published.

Platts announced May 17 the exclusion of Russian-origin product in its open origin European diesel and gasoil cargo assessments with effect from June 1, 2022. At the same time, Platts announced that it will launch a new assessment on June 1, 2022, for ULSD cargoes CIF NWE (all origins), which would reflect material from all origins, including Russia: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/051722-platts-to-exclude-russian-origin-product-from-european-diesel-gasoil-cargo-assessments-june-1

This new ULSD cargo CIF NWE (all origins) assessment, which will have the data symbol ALORA00, will going forward reflect the same specifications as the existing open origin ULSD 10 ppm cargo CIF NWE benchmark (AAVBG00) does, up until the June 1 exclusion of Russian origin barrels.

From June 1, Platts will also begin publishing the spread reflecting the value of Northwest European ULSD cargoes from all origins (including Russia) versus open origin cargoes excluding Russia, which reflects the value difference between Russian and non-Russian product. This new spread will have the data symbol ALORB00.

Platts assessments reflect merchantable material and Platts will continue to review the merchantability of material in its European oil assessments on an ongoing basis.

OBSERVED VALUE DIFFERENCE: Platts has already been publishing ULSD 10 ppm cargo CIF NWE (restricted origin) assessments -- which exclude Russian origin product -- since April 11, as well as restricted origin spreads, which reflect the value of restricted origin cargoes versus open origin cargoes: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041122-s-p-global-launches-restricted-origin-cif-nwe-ulsd-cargo-assessments-april-11

Since the launch of the restricted origin assessments on April 11 to May 16, the last assessment date prior to the Platts announcement of the exclusion of Russian origin barrels from June 1, the ULSD 10 ppm cargoes CIF NWE restricted origin spread (AAURP00) has seen a low of $20/mt and a high of $40/mt. During that period, the median value for the spread was $35.25/mt and it averaged $32.83/mt.

ASSESSMENT DETAILS: From June 1, the Platts Northwest European diesel cargo assessments will consist of:

Outright assessments:

Spread assessments:

*From June 1, all open origin European diesel cargo assessments will exclude Russia-origin product

**basis CIF Le Havre

Please send any feedback, questions or comments to Europe_Products@spglobal.com and PriceGroup@spglobal.com.

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