SUBSCRIBER NOTE: Platts proposes change to CIF NWE diesel cargo reference size

Due to an observed change in market flows, in which larger cargoes and vessels are increasingly supplying the market, Platts proposes to raise the basis size of its CIF Northwest European diesel cargo assessments to 30,000 mt plus/minus 10% from the current 20,000 mt plus/minus 10%. The change would be effective January 3, 2017.

Typical cargo sizes in the range of 10,000-40,000 mt plus/minus 10% would continue to be reflected, with alternative cargo sizes normalized back to the value of a 30,000 mt plus/minus 10% cargo.

The following assessments would be affected: CIF ARA diesel cargoes (AAVBG00), CIF NWE (Le Havre) diesel cargoes (AAWZC00), CIF UK diesel cargoes (AAVBH00), FOB ARA diesel cargoes (AAVBF00), FOB NWE (Le Havre) diesel cargoes (AAWZD00).

Global diesel cargo sizes have increased in recent years with larger diesel exports from Russia and the US, and the commissioning of new refineries in the Middle East geared to diesel production. For example, the number of 30,000 mt cargoes exported from Russia's Primorsk terminal has gone to more than 15 a month now from five at the start of 2015, while 20,000 mt cargoes have fallen from 20 to fewer than 10, data from Platts and trading sources showed.

Please send any comments and queries by August 26, 2016 to europe_products@platts.com and pricegroup@platts.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.