SUBSCRIBER NOTE: Platts reviews Qatar-loading crude in Middle East benchmark

S&P Global Platts has initiated with immediate effect a review of the deliverability of crude oil loading from Qatari ports as performance against trades concluded during the Platts Market on Close assessment process for Middle East crude.

During the review period, and until further notice, Al-Shaheen loading from Qatar may not without mutual agreement between buyer and seller be nominated upon the convergence of crude partials contracts traded during the MOC process. Buyers and sellers may mutually agree alternate loadings of Al-Shaheen cargoes, but sellers should not impose this.

Platts will continue to assess and publish independent values for Qatari-loading crude during this review. This review does not immediately impact existing nominations for cargoes loading in June and July against trades previously reported during the Platts MOC process.

This review has been initiated because market participants have notified Platts that certain ports in the Persian Gulf, including the key bunkering location of Fujairah, on June 5 and June 6 put in place restrictions on vessels that have recently called, or are due to call, into Qatar ports.

Platts understands that vessels flying a Qatar flag, arriving from Qatar or destined to Qatar ports are presently not permitted to call into ports in the United Arab Emirates, Saudi Arabia, Bahrain, as well as certain other countries following a break in diplomatic ties with Qatar.

It is typical in the Gulf to co-load VLCCs in combinations that include crude oil from Kuwait, Saudi Arabia, Qatar, UAE and Oman. As such, restrictions on vessels calling into Qatar and associated uncertainty could impact the inherent value of crude loading from Qatar, including Al-Shaheen.

During the review period, Platts invites further comments regarding the extent and likely duration of these shipping restrictions, as well as their impact on the deliverability of Qatar-loading crude in the Platts assessment process.

Please send any feedback or questions to asia_crude@spglobal.com and pricegroup@spglobal.com. 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.