Platts to reflect UK spec in Diesel UK Cargoes CIF NWE assessment from Sept. 1

S&P Global Platts will reflect UK specification in its Diesel 10 ppm UK Cargoes CIF NWE assessment from Sept. 1, 2020. Platts will also begin publishing an assessment from that date reflecting the previous methodology and specification, under a new code and name.

This decision follows on from feedback received during the proposal and consultation period. The proposal note published on June 3 can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/060320-platts-proposes-to-reflect-uk-specification-in-its-diesel-10ppm-uk-cargoes-cif-nwe-assessment-from-oct-1-2020

In the initial proposal, Platts had proposed implementing the change from Oct. 1, 2020. Feedback to the proposal generally supported a more prompt implementation, reflected in the decision to move the implementation earlier, to Sept. 1. Feedback also indicated support for a published value reflecting the previous methodology and specification to continue to be published.

Platts initiated the consultation following an announcement from the British Standards Institution that introduced a concentration limit of 10,000 max for particles of more than 4 microns in diameter per ml in the UK specification of ultra-low sulfur diesel (EN 590), effective from April 30, 2020.

Currently, the assessment of Diesel 10 ppm UK Cargoes CIF NWE (AAVBH00) reflects French specification diesel and is derived as a freight net-forward to the ULSD 10 ppm Cargoes CIF NWE (AAVBG00) assessment based on the incremental freight differential to typical UK ports and using daily freight rates published in the Platts Clean Tankerwire. The freight net-forward also assumes a basket of loadports in the Baltics, Scandinavia and in the Amsterdam-Rotterdam- Antwerp area.

Effective Sept. 1, 2020, Platts will amend the Diesel 10ppm UK Cargoes CIF NWE assessment to reflect the value of UK specification diesel delivered into UK ports, published under the existing AAVBH00 code. The assessment would reflect both bids, offers and trades reported through the Platts Market on Close assessment process, as well as indications gathered from the market and relevant freight. Platts will continue to consider UK market information with reference to the existing basket of loadports.

In addition, Platts will launch a new assessment retaining the existing methodology of the current Diesel 10ppm UK Cargoes CIF NWE assessment reflecting French spec ULSD under a new code from Sept. 1, 2020, until Dec. 31, 2021, and be named "Diesel 10ppm UK Cargoes CIF NWE – original (French) spec." More details on this new code will be published in a subscriber note in July.

Platts proposed in June to launch a temporary outright UK spec assessment at UK ports from July 1 to Oct. 1, 2020, but due to market feedback a decision has been taken not to publish this assessment.

Platts also currently assesses the daily differential for UK specification diesel CIF UK ports, basis Diesel 10 ppm CIF ARA, which is published as a differential to the existing Mean Of Platts London (MOPL) NWE ULSD cargo forward strip. This differential (code AUKMA00) was introduced on March 2 and reflects the latest BSI standard for EN 590, and will continue to be published after the launch of the new assessment. The subscriber note is available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/030220-platts-launches-cif-uk-ulsd-cash-differential-assessment

Please direct any questions or comments to europe_products@spglobal.com and copy 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. For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing.