Platts launches CPC Blend Suezmax assessment, amends netback calculations from June 2

In response to evolving supply trends in the Mediterranean crude market, Platts, part of S&P Global Commodity Insights, has launched a standalone Suezmax assessment for CPC Blend on a CIF Augusta basis, both as an outright price and a differential to Dated Brent from June 2.

The standalone assessment is published alongside Platts' existing CPC Blend CIF Augusta Aframax assessment [AAHPL00].

This follows Platts' initial proposal for a CPC Blend Suezmax assessment published Feb. 28. (opens in a new tab)Platts subsequently extended the feedback period for the proposal to April 15 (opens in a new tab)before publishing a decision to launch the assessment on April 22(opens in a new tab).

Growing production from Kazakhstan's Tengiz oilfield, expected to add an additional 260,000 b/d of CPC Blend production capacity, has significantly increased the prevalence of Suezmax-sized cargoes in the grade's loading program, according to market participants and copies of loading schedules seen by Platts.

The new assessment reflects cargoes of 130,000 mt pricing 5 days after B/L as standard loading in the period 20-40 days ahead of the assessment date.

Platts considers bids and offers for cargoes between 90,000-140,000 mt for assessment purposes, subject to normalization back to the 130,000 mt basis size.

Platts has amended its FOB Novorossiysk CPC Blend Suezmax netback calculation to align with the new CPC Blend CIF Augusta Suezmax assessment, reflecting a 130,000 mt basis size and deriving a FOB value through the netting back of freight costs, Black Sea additional war risk premia, and Turkish strait demurrage in line with existing methodology.

As part of this launch, Platts has also begun publishing a spread between its CPC Blend Aframax and Suezmax assessments on a CIF Augusta basis from June 2.

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