SUBSCRIBER NOTE: Platts proposes to amend freight basket for 0.1% Med gasoil

S&P Global Platts proposes to amend the basket of ports it uses to assess the 0.1% FOB and CIF Mediterranean 0.1% gasoil cargoes from January 4, 2021.

The move follows market feedback surrounding the relevance of the existing loadports in the Mediterranean 0.1% gasoil assessment.

0.1% GASOIL FOB MED NETBACK: Currently, Platts derives its 0.1% gasoil FOB Med cargo assessment (Code: AAVJI00) by applying a freight netback to the 0.1% gasoil CIF Med cargo assessment (AAVJJ00).

The calculation is based on routes in the Mediterranean: Sarroch, Novorossiisk and Batumi to Genoa and Lavera using the daily freight rates published in the Platts Clean Tankerwire for Black Sea-Med 30,000-mt cargoes.

In order to better reflect flows of 0.1% gasoil into the Mediterranean, Platts proposes to replace the Black Sea port of Batumi with the Mediterranean port of Agioi Theodoroi and apply a weighing of 50% for Novorossiisk, 30% for Sarroch and 20% for Agioi Theodoroi, all to Genoa and Lavera from January 4, 2021.

0.1% GASOIL CIF MED: Currently, CIF indications reported in the Platts Market on Close assessment process may typically be normalized back to the reference port of Genoa using a basket of the following three loadports, each with an equal weighting: Sarroch, Novorossiisk and Batumi.

In order to better reflect flows of 0.1% gasoil into the Mediterranean, Platts proposes to replace the Black Sea port of Batumi with the Mediterranean port of Agioi Theodoroi from January 4, 2021.

Under the proposal, the voyages would be calculated by the applicable Worldscale flat rates using the daily freight rates for clean Handysize Med-Med and Black Sea-Med routes, as published in Clean TankerWire.

The 0.1% gasoil CIF Med cargo assessment is available in Platts European Marketscan, Oilgram Price Report and in the Platts pricing database under code AAVJJ00.

The 0.1% gasoil FOB Med cargo assessment is available in Platts European Marketscan, Oilgram Price Report and in the Platts pricing database under code AAVJI00.

Please send any comments or queries on the proposal by July 15, 2020, to europe_products@spglobal.com with a cc to 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.