Platts to launch weekly Brazil diesel, gasoline averages July 18

Platts, part of S&P Global Commodity Insights, will launch weekly averages of Brazilian diesel and gasoline assessments on both FCA and DAP bases, effective July 18, in response to firm market interest for these to be published.

These weekly averages will complement Platts' existing suite of daily assessments for domestic Brazilian diesel and gasoline and their respective monthly averages, providing additional price transparency to market participants. The weekly average assessments will be published in Real/cu m and US cents/gal.

DAP cargo assessments

The weekly averages for Brazil-delivered cargoes of ultra low sulfur diesel, or S10 diesel as it is known in the country, follow US-origin imports at the Itaqui, Suape, Aratu, Santos and Paranaguá ports. These are derived from daily assessments reflecting 250,000-350,000-barrel cargoes for delivery 15-30 days forward from the date of publication. The underlying daily assessments are calculated as a net-forward from the US Gulf Coast — ULSD Colonial Pipeline market prices, minus renewable RVO credit costs, plus a quality premium and freight rates to Brazil.

Platts will also publish weekly averages reflecting the S10 diesel DAP South Brazil spread between US- and all-origin (the most competitive) imports, and the spread of the equivalent differentials to NYMEX ULSD futures.

For gasoline, the weekly averages will also be calculated based on daily assessments at Itaqui, Suape, Aratu, Santos and Paranaguá. The assessments reflect gasoline meeting Brazilian specifications, before the mandatory anhydrous ethanol blend, with a 250,000-300,000 barrel volume, delivery 15-30 days from the date of publication, and consider the most competitive price each day.

Platts will also publish a weekly average for the DAP Suape gasoline price differential to NYMEX RBOB futures.

For both gasoline and diesel, the differentials to NYMEX reflect a differential to the front-month NYMEX futures contract from the first business day through the 10th of each month. From then until the last business day of the month, the differential is expressed against the second-month NYMEX futures contract.

All DAP prices and differential assessments reflect a 2:30 pm ET timestamp and follow the Houston publishing schedule.

FCA domestic assessments

For FCA assessments, Platts reflects products that have already been nationalized and are available for sale at the tank. These assessments reflect gasoline batches negotiated at the Itaqui and Suape ports in Northeast Brazil, with volumes ranging from 300-2,000 cu m, and S10 diesel at the Itaqui, Suape, Santos and Paranaguá ports, considering the same volumes.

Diesel negotiated at the inland terminals of Paulínia and Araucária are assessed with a basis volume of 120-2,000 cu m.

All FCA prices reflect material for prompt delivery of up to seven days forward from the date of publication, based on a 4:30 pm Brasília timestamp and follow the São Paulo publishing schedule.

Details of the new Platts ULSD S10 and gasoline weekly averages are as follows:

These weekly averages will be published on fixed page 2040 of Platts Global Alert and Platts Refined Products Alert.

Please send any further questions, comments or feedback to americas_products@spglobal.com and pricegroup@spglobal.com.

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