Platts clarifies Middle East crude cargo nomination laycans and procedures

Platts part of S amp P Global Commodity Insights would like to clarify that buyers and sellers of Dubai Oman Upper Zakum Al Shaheen or Murban cargoes in its Middle East crude oil Market on Close assessment process should not nominate cargoes with loading dates ending in the last two calendar days of the month

This is to avoid slippage risk -- the risk that end-month loading dates of a cargo will spill over into the next month with different pricing implications.

For example, a cargo loading in August, which has 31 days, should have its nominated laycan end no later than on Aug. 29, i.e. an Aug. 27-29 loading cargo. For a cargo loading in September, which has 30 days, the nominated laycan should end no later than Sept. 28 i.e. a Sept. 27-28 loading cargo.

Partials contracts leading to a full cargo delivery should contain an assurance of delivery for the month originally specified.

For Al-Shaheen cargoes, sellers should pass loading dates to buyers as soon as possible and at the latest before the end of the last trading day of the month of trade execution.

For other grades, buyers typically nominate loading dates in the month after trade execution.

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