SUBSCRIBER NOTE: Platts resumes reflecting Qatar-loading crude July 3

Effective July 3, 2017, S&P Global Platts has resumed fully reflecting the delivery of crude oil loading from Qatari ports as performance against trades concluded during the Platts Market on Close assessment process for Middle East crude.

Al-Shaheen crude loading from Qatar may, effective July 3, be nominated by a seller to a buyer upon the convergence of crude partials contracts traded during the MOC process, in line with Platts methodology.

Platts proposed resuming the reflection of Al Shaheen in the Middle East basket in a subscriber note published June 28 and available here: https://www.platts.com/subscriber-notes-details/27850618

On June 6, 2017, Platts initiated a review of the deliverability of crude loading from Qatari ports as performance against trades concluded during the Platts Market on Close assessment process for Middle East crude. During the review, Al-Shaheen loading from Qatar could not without mutual agreement between buyer and seller be nominated upon the convergence of crude partials contracts traded during the MOC process. The full note is available here: https://www.platts.com/subscriber-notes-details/27841435

The review was initiated because market participants notified Platts that certain ports in the Persian Gulf put in place restrictions on vessels that had recently called, or were due to call, into Qatar ports. At that time, Platts understood that vessels flying a Qatar flag, arriving from Qatar or destined to Qatar ports were not permitted to call into ports in the United Arab Emirates, Saudi Arabia, Bahrain, as well as certain other countries following a break in diplomatic ties with Qatar.

Since June 6, market participants have notified Platts that some restrictions have been lifted, including official notifications to shipowners and charterers which clearly indicate that vessels may call into Gulf ports on the way from, or on the way to, Qatar ports. Platts has also observed vessels berthing at key co-load ports in the region before or after calling at Qatar for loading, clearly indicating that co-loading is normalizing in the Gulf, including in the UAE and Saudi Arabia.

While certain other restrictions remain in place regarding vessels flying a Qatar flag, market participants have indicated that port guidance from the UAE, Saudi Arabia and others has relieved concerns about possible logistical constraints impacting any co-loading of Qatari crude. It is typical in the Gulf to co-load VLCCs in combinations that include crude from Kuwait, Saudi Arabia, Qatar, the UAE and Oman.

Platts continues to monitor events in the Middle East crude markets very closely, and stands ready to renew its review of any crude stream deliverable into the Dubai and Oman benchmarks, should new developments in the region drive such a requirement.

Platts invites comments around any remaining shipping restrictions, their impact on the deliverability of crude in the Platts assessment process, and its review of Middle East crude in general.

Please send any feedback or questions to asia_crude@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.