Platts launches differentials to Dated Brent for West African crude MPPs

S&P Global Platts has launched differentials to Forward Dated Brent for its West African crude oil Market Parity Prices (MPP), effective July 1.

This was first announced in a decision note published April 26, and available here:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/042621-platts-to-launch-differentials-to-dated-brent-for-west-african-crude-mpps

Platts publishes these differentials in Crude Oil Marketwire, and on Platts Global Alert page 1270.

Platts has already published outright value MPPs for the following crudes: Amenam, EA Blend, Yoho, Asaramatoru, Abo, and TEN.

These reflect the value of each of the above West African crudes on an outright price basis at 16:30 London time by calculating the gross product worth (GPW) of each crude grade and subtracting freight and refining costs, before applying an adjustment differential that reflects the related market value.

Platts has received feedback in support of applying a differential to Dated Brent for these outright prices to bring further transparency to the value of West African crude.

As part of this process, Platts has also updated the way the MPPs are calculated to better reflect the value to a Northwest European refiner of West African crude oil. The MPP calculations for the grades listed above are based on the grades' Gross Product Worth benchmarked to a reference basket of relevant crude grades that are actively traded in the regional spot market. These grades are now Qua Iboe, Bonny Light, Forcados and Agbami.

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