Platts opens consultation on FOB Singapore gasoline clip sizes

Platts, part of S&P Global Commodity Insights, is opening a consultation process to review the methodology for its gasoline cargo assessments for RON 92, RON 95 and RON 97, which are published on an FOB Singapore basis.

Specifically, Platts is inviting feedback on the existing methodology for gasoline clip sizes reflected in light of recent changes in regional trade flows.

Platts assessments for FOB Singapore RON 92, RON 95 and RON 97 gasoline currently reflect the value of cargoes of a minimum of 50,000 barrels and a maximum of 150,000 barrels each for loading 15-30 days forward from the date of publication.

Currently, Platts publishes bids, offers and trades for 50,000-barrel to 150,000-barrel cargoes in the FOB Singapore RON 92, RON 95 and RON 97 gasoline MOC via eWindow, while price information reflecting larger clip sizes for RON 95 and RON 97 are published as manual headlines on Platts Global Alert page 190.

Details of the gasoline assessment methodology can be found at: http://plts.co/N5hJ30qCT0D.

Platts understands that more regional gasoline buyers are now seeking larger gasoline clip sizes of 100,000 barrels or more on FOB Singapore, Malaysia and Indonesia basis. Rising freight costs due to higher freight rates for coastal tankers, and an aging coastal tanker fleet for gasoline, mean that the marginal clip size in the market is no longer reflecting 50,000 barrels.

Platts is therefore reviewing feedback on a range of possible changes, including but not limited to:

a. Raising the gasoline clip range for RON 92 cargoes to a minimum of 100,000 barrels and a maximum of 200,000 barrels and maintaining the RON 95 and RON 97 clip range at a minimum of 50,000 barrels and a maximum of 150,000 barrels;

b. Raising the gasoline clip range for RON 92, RON 95, RON 97 cargoes to minimum of 100,000 barrels and a maximum of 200,000 barrels;

c. Maintaining the RON 92, RON 95 and RON 97 clip range at a minimum of 50,000 barrels and a maximum of 150,000 barrels, but reflect clips of 100,000 barrels as standard.

In addition to potential amendments to the clip size reflected in its methodology, Platts is also inviting feedback on suitable timelines for any changes to take effect.

The following FOB Singapore assessments, published in Asia-Pacific/Arab Gulf Market Scan and Platts Global Alert pages 2304 and 2310 are under review as part of this market consultation:

Related to the above consultation on gasoline clip sizes, Platts announced in a separate subscriber note on May 13 that it will launch new eWindow instruments for 100,000-barrel and 150,000-barrel cargoes in its FOB Singapore RON 95 and RON 97 gasoline MOC assessment process, effective July 1, found here: Platts to add 100 kb, 150 kb eWindow instruments to FOB Singapore RON 95, RON 97 gasoline MOC | S&P Global Commodity Insights (spglobal.com).

Please send all feedback and comments by Aug. 23, 2024 to asia_products@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.