Platts to amend basket of ports for FOB Med ULSD netback from Jan. 4

S&P Global Platts will amend the basket of ports it uses to assess FOB Mediterranean ultra low sulfur diesel cargoes from Jan. 4, 2021.

The decision follows on from feedback received during the proposal and consultation period around prevailing flows of diesel in the Mediterranean.

The proposal note, published on May 26, can be found here: www.spglobal.com.

Currently, Platts derives its 10 ppm ULSD FOB Med cargo assessment (Code: AAWYY00) by applying a freight netback to the 10ppm ULSD CIF Med cargo assessment (AAWYZ00).

The calculation is based on the following routes in the Mediterranean: Santa Panagia, Aliaga, Agioi Theodoroi and Batumi to Genoa and Lavera using the daily freight rates published in the Platts Clean Tankerwire for Med-Med 30,000 mt cargoes.

Platts proposes to replace the Black Sea port of Batumi with the Black Sea port of Novorossiisk, to be implemented on Jan.4.

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

Platts continues to seek feedback on the 10 ppm Mediterranean freight basket in relation to the addition of a Black Sea port to the reference freight basket used as guidance to normalize indications received in the CIF Med diesel cargo Market on Close process back to the reference port of Lavera.

Please see the subscriber note published on April 14: www.spglobal.com.

The 10 ppm ULSD CIF Med cargo assessment is available in Platts European Marketscan, Oilgram Price Report and in the Platts pricing database under code AAWYZ00.

The 10 ppm ULSD FOB Med cargo assessment is available in Platts European Marketscan, Oilgram Price Report and in the Platts pricing database under code AAWYY00.

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.