Subscriber note: Platts proposes new date range for WAF crude assessments

Platts requests feedback on a proposal to adjust the range of loading dates reflected in its West African crude assessments, to reflect the value of cargoes loading 30-60 days from the date of publication, further forward than the current 15-45 days forward currently reflected. This change is proposed to take effect from April 1, 2014. Platts notes a growing trend of refiners of West African crude buying cargoes for delivery further forward in time, with FOB WAF crude typically trading towards the back of the current assessment range of 15-45 days. This has occurred as Asian, Latin American and US refiners increasingly seek certainty of supply ahead of the lengthy voyage time from WAF to their respective regions. With the US importing less crude from Africa, markets for WAF are increasingly further away. The most recent data from the International Energy Agency shows 33% of all Nigerian production in 2011 was consumed in the US. Demand into the US has dropped, because of rising domestic production, and will likely continue to fall in the medium-term. Buying patterns from refiners in other parts of the world, and traders who supply them with spot cargoes, is increasingly months, rather than weeks, ahead. Platts analysis of European demand of West African crudes show a growth of about 15-20% over the past few years, while India has become a staple home to much Nigerian production. In line with existing assessment methodology, Platts would reflect a West African Dated Brent Strip for Angolan grades pricing 2-1-2 around Bill of Lading, thereby reflecting a 30-60 Days WAF Strip under the proposed change in assessed dates. Platts would reflect existing methodology for Nigerian crudes, whereby Platts would reflect a Nigerian Dated Brent Strip for Nigerian grades pricing three days after BL, creating a 33-63 Days Nigerian Strip. Please send comments and feedback by September 1, 2013, to europe_crude@platts.com and pricegroup@platts.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.