SUBSCRIBER NOTE: Platts proposes to reflect sales of pre-loaded oil in Med Urals crude MOC

In line with changing trading practices and market conditions in the Mediterranean CIF Urals crude market, Platts proposes to amend the conditions under which Mediterranean Urals crude cargoes can be sold against specific loading dates in the Platts Market on Close assessment process.

Platts proposes to allow pre-loaded oil to be sold into bids. In line with current methodology, offering pre-loaded oil on a buyer-acceptable vessel is specifically excluded from this proposal.

Platts currently allows sellers of Mediterranean CIF crude oil cargoes in the MOC to deliver cargoes whose bill of lading falls within a minimum five-day date range specified in a bid by the buyer or within the deemed "slippage day" period.

For example, in Mediterranean Urals and in line with current Platts methodology, a company purchasing a CIF Urals crude cargo for March 11-15 loading dates could receive a cargo loading March 10-11 through March 15-16.

Platts' proposal would allow sellers to deliver a cargo that loaded prior to the specific dates bid, provided it meets all other Platts guidelines and the seller covers any additional costs incurred by the buyer, such as demurrage.

Using the same example as above, the company could also receive a cargo loading, for example, March 7-8 or even earlier.

Platts Mediterranean crude oil assessments would continue to reflect crude oil that has been recently loaded at one of the normal terminals of origin for the specific grade; assessments would continue to reflect only crude oil that remains in its original condition, and Platts' existing ship approval methodology would still apply.

The changes described would apply to Platts assessments for Urals Mediterranean crude only, and Platts is proposing that they become effective January 4, 2016. This proposal will not apply to Urals loading from the Baltic or Platts' other suite of Mediterranean crude assessments.

Platts is specifically seeking feedback on a number of the mechanics involved in transactions of this nature, namely: pricing, freight and deviation costs, and short-options.

Please send any comments and queries to europe_crude@platts.com and pricegroup@platts.com by August 7, 2015.

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.